The Enforcement Directorate (ED) has frozen around Rs 51.75 crore in a bank account linked to a UAE-based company as part of its money-laundering probe into the alleged Rs 34,615-crore loan fraud involving Dewan Housing Finance Corporation Ltd (DHFL) and its promoters.
The action followed an ED probe into the sale of a UK property held in the name of Vanita Wadhawan, wife of DHFL promoter Kapil Wadhawan. The agency alleged that the sale proceeds were routed to the Indian bank account of UAE-based Al Jalore Trading FZE instead of being received by Vanita Wadhawan, the property’s registered owner.
The ED’s Headquarters Investigation Unit conducted searches last week under the Prevention of Money Laundering Act (PMLA), during which the amount was frozen.
The money-laundering investigation stems from a CBI FIR registered on a complaint by Union Bank of India on behalf of a consortium of 17 banks.
According to the FIR, DHFL promoters Kapil Wadhawan and Dheeraj Wadhawan, along with other accused, allegedly conspired to cheat the consortium, which had extended credit facilities worth Rs 42,871.42 crore to DHFL.
The ED alleged that the loan funds were siphoned off and misappropriated by falsifying DHFL’s books, resulting in a wrongful loss of around Rs 34,615 crore to the consortium lenders.
UK PROPERTY TRANSACTION UNDER ED LENS
As part of its investigation, the ED examined transactions involving Hurtmore House, a property in the United Kingdom held in Vanita Wadhawan’s name.
According to the agency, the property was disposed of through a series of transactions involving what it described as a “fictitious liability” created in her name.
A purported loan agreement was executed between Al Jalore Trading FZE and Vanita Wadhawan, following which the UK property was mortgaged.
The ED alleged that the arrangement was used to create an encumbrance over the foreign property to settle a liability in India arising from the DHFL loan fraud.
RS 51.75 CRORE FROZEN
Hurtmore House was subsequently sold in 2026. According to the ED, however, the sale proceeds were transferred to Al Jalore Trading FZE’s bank account in India instead of being received by Vanita Wadhawan, the property’s registered owner.
The agency alleged that the transaction was structured to use the foreign property and entities to facilitate the settlement of a liability in India.
During the searches, the ED examined Al Jalore Trading FZE’s bank account and found around USD 5.41 million, equivalent to approximately Rs 51.75 crore.
The agency said the amount represented proceeds of crime and froze it under Section 17(1A) of the PMLA.
The ED also seized and impounded documents and records related to the transactions and assets under investigation. Further investigation is underway.
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