The Enforcement Directorate’s latest move marks another significant step in unraveling what has been described as one of the country’s largest banking frauds. By attaching assets worth nearly Rs 186 crore, investigators are tightening their grip on the financial trail allegedly created by the DHFL promoters to conceal misappropriated funds. The inclusion of 154 flats and receivables from 20 other properties in Mumbai highlights how the diverted bank loans were funneled into high-value real estate, serving both as investment vehicles and means of laundering illicit money.
The broader investigation suggests that Kapil and Dheeraj Wadhawan used a complex web of shell companies and layered transactions to move funds out of DHFL’s accounts. By manipulating inter-corporate deposits and employing brokers to artificially inflate trading activity, they were allegedly able to mask their diversion of funds while simultaneously propping up the company’s market image. Such tactics not only deceived the consortium of 17 banks but also eroded investor and depositor confidence in the financial sector.
The cumulative attachment of over Rs 256 crore underscores the scale of the fraud, which ran into thousands of crores, leaving public sector banks exposed to heavy losses. The Union Bank-led consortium is among the worst affected, with recovery efforts depending heavily on the outcome of the ED and CBI investigations. While the assets provisionally attached represent only a fraction of the suspected diversion, they form part of the ongoing effort to ensure that proceeds of crime are eventually recovered and returned to the financial system.
The filing of the prosecution complaint and its cognizance by the Special PMLA Court suggest that the probe is moving toward trial stages. If the charges are proven, this case could set an important precedent in dealing with large-scale banking fraud and corporate malfeasance in India. However, with further investigations still underway, more properties and financial holdings linked to the accused may yet be unearthed, potentially expanding the scope of recovery.
At its core, the DHFL case reflects deep structural vulnerabilities in India’s banking oversight and corporate governance frameworks. The ED’s continued pursuit of attachments is aimed not only at recovering funds but also at signaling to the financial world that accountability mechanisms are actively being enforced. For now, the spotlight remains firmly on the Wadhawan brothers and their associates, as authorities work to trace the full extent of the siphoned money.
