CBI Closes Case Against DHFL and Directors in Fake Home Loan Accounts Scandal

The CBI has closed the case against DHFL and its directors regarding allegedly fictitious home loan accounts worth ₹14,046 crore. The agency could not find evidence of a criminal conspiracy, and the matter has been submitted to a special court in Delhi for further action. The DHFL is accused of creating 2.60 lakh fake accounts for home loan borrowers, some of which were linked to the Pradhan Mantri Awas Yojna to claim interest subsidies.

The recent closure of the Central Bureau of Investigation (CBI) case against Dewan Housing Finance Corporation (DHFL) and its directors regarding alleged fictitious home loan accounts worth ₹14,046 crore has raised eyebrows in the financial community [1]. The CBI could not find sufficient evidence to prove a criminal conspiracy, and the matter has been submitted to a special court in Delhi for further action [1].

According to reports, DHFL and its directors are accused of creating over 2.60 lakh fake home loan accounts, some of which were linked to the Pradhan Mantri Awas Yojna (PMAY) to claim interest subsidies [1]. The auditor Grant Thornton, appointed by the present board, reported these irregularities [1].

The CBI's First Information Report (FIR) states that promoters Kapil and Dheeraj Wadhawan allegedly opened a fictitious branch of the DHFL in Bandra and entered fake home loan accounts worth ₹14,046 crore of borrowers who had already repaid their loans into the database [1]. Out of this amount, ₹11,755.79 crore were deposited or routed to several fictitious firms known as Bandra Book firms [1].

The DHFL had granted 88,651 cases under the PMAY till December 2018, and it received an interest subsidy of ₹539.40 crore while it was supposed to receive ₹1,347.80 crore from the government [1].

However, a closer look at the DHFL scam reveals a more complex web of financial irregularities and potential political connections [2]. The authors of a research paper titled "DHFL Scam and the Entire Rigmarole," published in the International Journal of Law Management & Humanities, provide insights into the DHFL scam by focusing on the role of the Wadhawan Brothers in money laundering under the guise of 87 (approx.) shell companies [2]. The paper also reveals the nexus of the Wadhawans with the ruling political party and the so-called Mumbai "underworld" [2].

In conclusion, while the CBI's closure of the case against DHFL and its directors regarding alleged fictitious home loan accounts is a significant development, it is essential to note that the DHFL scam is a complex financial affair with potential political connections. Further investigation and transparency are necessary to fully understand the extent of the financial irregularities and ensure accountability.

References:

[1] "DHFL shares hit 5% lower circuit after CBI books co over fictitious home loan accounts." CNBC-TV18. 10 Aug. 2023, https://www.cnbctv18.com/market/stocks/dhfl-shares-hit-5-lower-circuit-after-cbi-books-co-over-fictitious-home-loan-accounts-8718041.htm.

[2] Aditi Sobha and Diksha Kumari. "DHFL Scam and the Entire Rigmarole." International Journal of Law Management & Humanities, vol. 4, no. 3, pp. 6065-6075, 2021.