ED Attaches Assets Worth Rs 185.84 Crore in DHFL Bank Fraud Case

The Directorate of Enforcement (ED), Mumbai Zonal Office, has provisionally attached immovable and movable assets worth about ₹185.84 crore in connection with the Dewan Housing Finance Corporation Ltd. (DHFL) bank fraud case. The action has been taken under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

According to the ED, the attached properties include 154 flats in Mumbai and receivables related to 20 flats, making up both immovable and movable assets.

How the Fraud happened?

Kapil Wadhawan, Dheeraj Wadhawan, and others allegedly cheated a consortium of 17 banks led by Union Bank of India. The case originally began after the Central Bureau of Investigation (CBI) registered an FIR against DHFL and its promoters under sections of the Indian Penal Code (IPC), 1860, and the Prevention of Corruption Act, 1988.

The investigation revealed that DHFL and its promoters were involved in siphoning off and misappropriating bank loan funds by falsifying company records and then defaulting on loan repayments.

It further came to light that during 2017–18, Kapil and Dheeraj Wadhawan diverted DHFL funds through proxy companies and Inter-Corporate Deposits (ICDs). These funds were allegedly used for fraudulent trading in DHFL shares. The trades, executed through brokers, were said to be pre-arranged to manipulate the share price and trading volumes of DHFL’s publicly listed stock.

DHFL (Dewan Housing Finance Corporation Limited) was a major Indian housing finance company that focused on affordable housing loans for low and middle-income groups. After facing financial distress and alleged fraud, DHFL was acquired by Piramal Capital & Housing Finance Limited in 2021 and now operates under the name Piramal Finance

Previous Action by ED

This is not the first attachment in the case. Earlier, the ED had attached assets worth ₹70.39 crore. The agency also filed a Prosecution Complaint before the Special PMLA Court, Mumbai, on April 3, 2025. The court took cognizance of the complaint on May 2, 2025.

With the latest action, the total value of attached assets has now reached ₹256.23 crore.

The investigation in the case is still in progress. More details will be released soon.