DHFL under scanner of another agency

Serious Fraud Investigation Office to probe alleged financial irregularities at the housing finance firm

After Central Bureau of Investigation (CBI) and Enforcement Directorate (ED), a third central investigative agency, the Serious Fraud Investigation Office (SFIO) has taken private firm Dewan Housing Finance Corporation Limited (DHFL) under its scanner. SFIO will record the statements of DHFL's promoter Kapil Wadhawan and his brother Dheeraj as part of its probe to examine alleged financial irregularities at the firm, sources said.

SFIO is examining alleged irregularities at DHFL on the basis of certain suspected fund diversions as per an order of the Centre in November 2019, sources said. A city court recently granted permission to the SFIO to examine the Wadhawan brothers, who are in judicial custody at the Taloja prison in connection with probes by CBI and ED into Yes Bank - DHFL transaction case, and ordered for the issuance of written instructions to the jail authorities, sources said.

DHFL came under the SFIO scanner last year in the wake of allegations that it had siphoned off bank loans funds through layers of shell entities. The Ministry of Corporate Affairs had carried out a detailed examination of the allegations of financial misdoings against the company's promoters through the Registrar of Companies, after which the former asked SFIO to probe the accusations.

DHFL came under the CBI and ED's scanner in March this year when the two agencies took under their scanner a few suspicious transactions in 2018 of the former with Yes Bank. It was alleged that the bank had subscribed to debentures worth Rs 3, 700 crore in April-June of 2018 and, simultaneously, DHFL sanctioned a Rs 600-crore loan to DOIT Urban Ventures Limited, a family enterprise of Kapoor.

The Supreme Court recently stayed till October 7 a Bombay High Court order granting bail to the Wadhawan brothers. The HC had granted the duo bail in the case on the ground that ED had failed to file its charge sheet within the stipulated 60 days, after which the agency approached the apex court via a special leave petition. Abhishek Sharan