ED Ties Rs 578-cr to British Assets of Wadhawan Brothers | Photo credit: PTI
New Delhi: The Directorate of Enforcement (ED) said on Tuesday it had seized assets worth Rs 578 crore from a UK-based company owned by former DHFL promoters Kapil Wadhawan and his brother Dheeraj as part of the UPPCL’s money laundering investigation against them and others.
The attached properties “are in the form of investments made by the Wadhawans through WGC-UK in UK based companies” and an interim order has been issued under the Prevention of Money Laundering Act silver (PMLA).
The value of the assets is Â£ 57million or Rs.578 crore, he said in a statement.
The Wadhawan siblings are currently in jail in connection with the alleged fraud money laundering case of Yes Bank.
The latest ED case against the Wadhawans is based on an FIR filed by Lucknow police against certain officials of Uttar Pradesh Power Corporation Ltd (UPPCL) for “illegal investment” of the General Provident Fund (GPF) and the Central Fund of employee provident fund (CPF). of the power company in Dewan Housing Finance Limited (DHFL) “in violation” of the government notice and guidelines.
âDHFL, in collusion with UPPCL officials, illegally received Rs 4,122.70 crore from GPF and CPF funds from UPPCL employees in fixed deposit at DHFL. “
“Of this total investment, Rs 2,267.90 crore of the UPPCL Contingency Fund Principal Amount (GPF + CPF) is yet to be paid by DHFL,” said the managing director.
These âillegal investmentsâ had been received by DHFL during the period when DHFL was engaged in disbursing high value loans to its companies linked to the promoter.
“All of these unsecured loans were sanctioned as instructed by DHFL President Kapil Wadhawan and many of these loans turned into NPAs,” the agency said.
Many of these loans, he said, were misappropriated without using them for the purposes for which they were sanctioned.
“The proceeds of crime, in the amount of over Rs 1,000 crore, generated in this case were diverted to the UK by the
Wadhawans through seven layers of layering and laundering across more than 30 beneficially owned / controlled Indian companies, âhe said.
The agency previously tied properties worth Rs 1,412 crore to the Wadhawans as part of a separate money laundering investigation against them in the alleged loan fraud case of the Yes Bank.
He also seized 5 SUVs, worth 12.59 crore rupees, belonging to them in the Yes Bank case.