The Enforcement Directorate (ED) in front of the special court for prevention of money laundering on Wednesday said that Dewan Housing Finance Ltd diverted funds to the tune of Rs 12,733 crores by using 1 lakh fake borrowers to 80 alleged shell entities.
ED made these statements during the remand hearing of chairman and managing director, Kapil Wadhawan. He was arrested on 27 January. The special court on Wednesday extended his custody till 31 January.
“The funds were directed to 80 shell companies. A few builders are also being probed as the money was diverted to them through fictitious transactions. The funds were diverted to these shell entities without any paperwork and proper sanctions in the garb of retail loans. 1 lakh of these retail individual customers have been found to be fake. These transactions are dating back to 2015,” said an official with the ED.
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