CBI arrests aide of Wadhawan brothers in DHFL-bank fraud case

The Central Bureau of Investigation has arrested an associate of the jailed Wadhawan brothers in DHFL bank fraud case.

The Central Bureau of Investigation (CBI) has arrested an associate of the jailed Wadhawan brothers in the DHFL bank fraud case.

Ajay Nawander, an associate of former promoters of Diwan Housing Finance Ltd (DHFL), is said to be close to some senior police officers and was an informer in the past.

Also read: CBI books DHFL’s Kapil, Dheeraj Wadhawan, others in India’s biggest bank fraud of Rs 34,615 cr

On July 8, the CBI conducted searches in the ongoing investigation into the case related to the alleged loss of Rs 34,615 crore to a consortium of 17 banks led by Union Bank of India, at the premises of two persons in Mumbai and Dewan Villa, Mahabaleshwar, which led to the recovery of a large number of paintings and sculptures, some cash and other incriminating documents.

One of the premises searched in Mumbai belonged to Ajay Nawander and the other in Mahabaleshwar was linked to Rebecca Diwan. The value of the artworks seized from both premises is estimated to be around Rs 40 crore, as per initial estimates.

During the investigation, it was found that the promoters Kapil and Dhiraj Wadhawan had allegedly diverted the funds and made investments in various entities. It was also alleged that the promoters had acquired expensive paintings and sculptures worth about Rs 55 crore (approx) using the diverted funds.

A case was registered on a complaint from Union Bank of India, Industrial Finance Branch, Mumbai, against a private (borrower) company based in Mumbai, its then CMD, then director, and others, including a private person, private companies, unknown public servant(s) and private persons on the allegations that the accused cheated a consortium of 17 banks led by Union Bank of India to the tune of over Rs 34,615 crore (approx) by siphoning off loans availed from the said banks and falsifying the books of said private (borrower) company and creating shell companies/false entities, which had come to be known as Bandra Book Entities.