DHFL Home Loan Scam: CBI Appeals To Close Case In Court After Probing For 3 Years

The CBI had booked promoters Kapil and Dheeraj Wadhwan along with DHFL.Central Bureau of Investigation (CBI) has appealed to close the case against Dewan Housing Finance Ltd. (DHFL) and its directors related to 2.60 lakh allegedly fake home loan accounts, as per a report by PTI. Some of these accounts were utilised to get interest subsidies under the Pradhan Mantri Awas Yojna (PMAY), officials told PTI.

The agency failed to find any evidence linking DHFL and its directors to any criminal conspiracy after a 3-year long investigation.

What was the scam about?

The irregularities were first highlighted in the report of auditor Grant Thornton, which was appointed by the new board of the scam-hit DHFL, the official added, as per PTI.

The probe agency CBI had now submitted its final report in front of a special court in Delhi. However, the decision as to whether or not to close the case solely depends on the verdict. 

The CBI had booked promoters Kapil and Dheeraj Wadhwan along with DHFL.

Interestingly enough, Dheeraj Wadhawan was previously arrested in connection with the Yes Bank corruption probe. DHFL is a Non-Banking Financial Company (NBFC) that offers housing loans in India.

NBFCs usually cater to home loan borrowers from lower and middle-income Indian groups. DHFL is considered one of the earliest housing lenders in India.

The promoters and DHFL were accused of opening shell branches in Bandra and fake accounts worth Rs 14, 046 crore in the name if home-loan borrowers, who had already cleared the debt.

A total of 2.60 lakh "fake and fictitious" home loan accounts were created in the non-existent branch from 2007-19 for a total loan worth Rs 14,046 crore, out of which Rs 11,755.79 crore were deposited or redirected to several shell firms known as Bandra Book firms, the CBI had alleged in the FIR.

The majority of these false loan accounts were linked in the PMAY to take the benefit of interest subsidies from the National Housing Bank keeping its officials in the loop, CBI alleged.

PMAY till December 2018, and it received an interest subsidy of Rs 539.40 crore, while it has to receive Rs 1,347.80 crore from the government, it had said.

PMAY is a central scheme to ensure housing for all.

Follow Outlook Money's Budget coverage to stay on top of all your personal finance related information.