Dewan Housing Finance Limited (DHFL) allegedly siphoned funds worth Rs 2,267 crore invested by the Uttar Pradesh staterun firm and paid brokers incentives worth Rs 53 crore to access them, the probe by Enforcement Directorate (ED) has revealed.
Savings worth Rs 4,122 crore belonging to the Uttar Pradesh Power Corporation Limited (UPPCL) were invested into DHFL’s fixed deposits through two trusts via 14 brokers between March 2017 and December 2018, agency sources said based on a statement by DHFL’s Chief Business Officer (retail). Of this, around Rs 2,267.90 crore is still outstanding with DHFL. The decision to invest in DHFL was allegedly taken by two senior UP state officials who are the key accused in the case.
The probe which was first conducted by the UP police, was handed over to the CBI on March 5.
ED is also probing if an accused official pocketed additional dues meant for dummy brokers. According to the CBO, DHFL put the money – meant for fixed deposits and home loans – allegedly into acommon collection pool account and used it for overheads including fixed deposits, loan disbursement and business expenses. Probes have also revealed that the investments made into DHFL were allegedly in violation of central government guidelines of 2015 that mandated the investment of such government savings into scheduled commercial banks not private entities’ insecure funds. The two accused UP state officials who took the decision had allegedly not taken the prior approval of their superior, a managing director, the sources said. A trust was formed in 2000 after the trifurcation of the erstwhile Uttar Pradesh State Electricity Board by the state government for managing the general provident fund, gratuity and pension fund of the employees working in or retired from power sector corporations or companies of the state.
The lawyers of DHFL’s former CMD Kapil Wadhawan and his brother Dheeraj Wadhawan, whose anticipatory bail pleas in the case was turned down by the high court on Tuesday, have denied ED’s allegations. They explained that a sizeable amount of the funds has been already returned to UPPCL and the rest is stuck only because of a court order.