India: DHFL Scam, ED finds customized software used to create fake accounts for money laundering

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The Enforcement Directorate on February 7, 2020, has discovered the software used by the Wadhawans to launder Rs 12,773 crore from the Dewan Housing Finance Corporation (DHFL). DHFL promoters, Kapil and Dheeraj Wadhawan created shell companies to divert money from the NBFC they were investigating suspicious land deals related to the late Underworld gangster, Iqbal Mirchi. The ED found that the software was specifically created for the purpose of hiding fake loans or the amount laundered through the NBFC from RBI and other agencies, indicating that DHFL’s promoters were directly involved in laundering money.

The investigating team discovered that the software, installed in the main operating systems of DHFL, was used to create fake folio numbers and accounts, where the siphoned money was equally distributed. The total amount in these dummy accounts is almost close to Rs 12,800 crore. The real people had no idea that their documents and profiles were misused by DHFL. The ED got access to the software after the arrest of Kapil Wadhawan, chairman of DHFL. Kapil Wadhawan is in judicial custody of the Enforcement Directorate till February 18. As per KPMG forensic audit report, Enforcement Directorate has found Rs 12,773 crores laundered by DHFL and another Rs 20,000 crore remains untraceable. DHFL owes over Rs one lakh crore to multiple financial institutions, including a Rs 40,000 crore exposure to banks.