ED seizes properties worth 578 crores of Wadhawan brothers in the UK, case related to illegal investment.
The Enforcement Directorate (ED) on Tuesday said it has registered a UK-based probe into the money laundering case involving Uttar Pradesh Power Corporation Limited (UPPCL) owned by Dewan Housing Finance Limited (DHFL) promoters Kapil Wadhawan and his brother Dheeraj Wadhawan.
The company’s assets worth Rs 578 crore have been attached.
According to a statement issued by the ED, the seized properties are in the form of investments made by the Wadhawan brothers in UK-based companies through WGC-UK.
The Wadhawan brothers are currently in jail in connection with the money laundering case related to the Yes Bank loan fraud.
The latest ED case against the Wadhawan brothers is based on the FIR registered by the Lucknow Police against some officials of UPPCL.
According to this, the officials of UPPCL had illegally invested General Provident Fund (GPF) and Central Provident Fund (CPF) of employees of Power Company in DHFL in violation of government notification and instructions.
The ED claims that DHFL in connivance with the officials of UPPCL had received Rs 4,122.70 crore in fixed deposits of GPF and CPF of UPPCL employees.
ED seizes properties worth 578 crores of Wadhawan brothers: Out of this, UPPCL’s principal amount of Rs 2,267.90 crore is still outstanding with DHFL.
The probe agency alleges that DHFL had secured the said illegal investment when the company was giving huge loans to companies linked to its promoters.
All these unsecured loans were sanctioned on the instructions of DHFL chairman Kapil Wadhawan. Many of these loans later turned into non-performing assets (NPAs).
Many loans were not used for the purposes for which they were sanctioned and were embezzled.
Earlier in the Yes Bank loan fraud case, the ED has attached properties worth Rs 1,412 crore of the Wadhawan brothers.