The Enforcement Directorate (ED) recently attached assets worth Rs 415 crore of Maharashtra’s two builders in relation to the Yes Bank-DHFL bank loan fraud-linked money laundering case. The DHFL scam is India’s biggest financial fraud involving Rs 34,000 crore, in which a total of 17 banks have been defrauded by this home loan provider. According to an RBI estimate, the total credit of the Indian banking system was at Rs 120 lakh crore till May 2022. Here’re four biggest financial scams in India:
The Rs 34,000-Crore DHFL Scam
A consortium, comprising 17 lenders, had extended credit facilities of Rs 42,871 crore between 2010 and 2018. In January 2019, DHFL was hit by an investigation after media reports on allegations of siphoning off of the funds surfaced.
The lenders held a meeting on February 1, 2019, and appointed KPMG to conduct a “special review audit” of DHFL from April 1, 2015, to December 31, 2018. The banks also issued a look-out circular against Kapil and Dheeraj Wadhawan on October 18, 2019, to prevent them from leaving the country. Union Bank of India (UBI) has alleged that KPMG, in its audit, red-flagged diversion of funds in the garb of loans and advances to related and interconnected entities and individuals of DHFL and its directors.
The scrutiny of account books showed that 66 entities having commonalities with DHFL promoters were disbursed Rs 29,100 crore, against which Rs 29,849 crore remained outstanding.
This caused a loss of Rs 34,615 crore…
