The Enforcement Directorate(ED) in connection with the Uttar Pradesh Power Corporation Limited(UPPCL) has attached assets worth Rs. 578 Crore of United Kingdom-based Wadhwan Global Capital Limited employees’ provident fund scam involving the Dewan Housing Finance Limited(DHFL).
BACKGROUND
Kapil and Dheeraj Wadhwan are owners of the company, and multiple agencies are investigating them in various cases of alleged cheating and fraud. The properties which are attached are in the mode of investments that were made by the Wadhawans through the company in the U.K.- based entities.
FIRST INFORMATION REPORT
The First Information Report was registered by the Lucknow police against some officials of the UPPCL for investing its funds amounting to Rs.4,122.70 Crores in the Dewan Housing Finance Limited which is in violation of the government notification and directives and on the basis of this FIR the Enforcement Directorate probe was issued.
Principal amounts of the UPPCL of Rs. 2,267.90 Crores is still outstanding with the DHFL according to the agency.
An official stated that the illegal investments were received during the period when DHFL has engaged in the disposal of high-value loans to its promoter related companies.
The official further stated that the unsecured loans were sanctioned by the consent of DHFL Chairman Kapil Wadhwan and most of these loans have turned into Non-performing assets.
MONEY DIRECTED TO UNITED KINGDOM
A prominent part of the portion of these loans were sanctioned off and not used for the stated purpose. The Wadhwans through seven levels of layering and laundering had directed over Rs. 1,000 Crores.
PRESENT SCENARIO
Assets worth Rs. 1,412 Crores were attached by the Enforcement Directorate belonging to the Wadhwans in the Yes bank-DHFL fraud case. Kapil and Dheeraj Wadhawan were also arrested, and are in judicial custody. Agency has also seized their five high-end vehicles worth Rs. 12.59 Crores.
