DHFL-UPPCL fraud case: ED attaches Wadhawan Global Capital’s assets worth Rs 578 crore

Representational Image

New Delhi: The Enforcement Directorate provisionally attached assets worth Rs. 578 crore of UK-based firm Wadhawan Global Capital (WGC), a company owned by Kapil Wadhawan and Dheeraj Wadhawan in connection with the DHFL-UPPCL fraud case.

The attached assets are in the form of investments made by Wadhawans through WGC in UK-based companies, said the agency.

The ED alleged that DHFL received Rs 4122.70 crore out of the provident funds of the employees of Uttar Pradesh Power Corporation Ltd. (UPPCL). The officials of UPPCL were allegedly involved in this.

ED initiated money laundering investigation on the basis of an FIR registered by Lucknow police against some officials of UPPCL.

“Out of this total investment of Rs 4122.70 crore by UPPCL in DHFL, Rs 2267.90 crore of principal amounts of provident fund (GPF+CPF) of UPPCL is still outstanding to be paid by DHFL. These illegal investments had been received by the DHFL during the period, where DHFL was engaged in the disbursement of high-value loans to its promoter-related companies. All such unsecured loans had been sanctioned as per the directions of the Chairman of DHFL, Kapil Wadhawan and many of such loans have turned into NPA,” said ED in a statement.

“Part of the proceeds of crime, amounting to more than Rs. 1000 crore, generated in this case has been siphoned off to the UK by the Wadhawans by way of seven levels of layering and laundering through more than 30 beneficially owned or controlled Indian companies of Wadhawans,” it added.

Earlier, ED attached properties worth Rs 1412 Crore of Wadhawans in Yes bank-DHFL fraud case and has arrested Kapil Wadhawan and Dheeraj Wadhawan, who are still in judicial custody.

ED has also seized five high-end vehicles of Wadhawans having an approximate value of Rs 12.59 crore.

Also Read: ED attaches Icore Group’s assets in over Rs 2400 crore chit fund scam