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Find sources: "DHFL scam" – news · newspapers · books · scholar · JSTOR Reviewer tools: guideline project (talk • log) The article may be deleted if this message remains in place for five days, i.e., after 17:00, 31 October 2026 (UTC). |
| Date | Alleged 2006–2019; investigations from 2019 |
|---|---|
| Location | |
| Also known as | Dewan Housing Finance Corporation loan fraud |
| Type | Alleged bank fraud and money laundering |
| Outcome | Company resolved under IBC and acquired; criminal and PMLA proceedings ongoing |
| Accused | Kapil Wadhawan, Dheeraj Wadhawan and others |
The DHFL scam, also known as the Dewan Housing Finance Corporation loan fraud, is a major financial scandal in India involving the diversion of bank loans as a part of a money laundering by the promoters of Dewan Housing Finance Corporation. As promoters, Kapil Wadhawan, Dheeraj Wadhawan and others obtained about ₹42,871 crore (US$4.5 billion) in loans from a consortium of 17 banks between 2010 and 2018. And, a large part of it was diverted through false accounting, fictitious retail loans and related companies, causing an estimated loss of about ₹34,615 crore (US$3.6 billion) to the lenders.
In 2022, the Central Bureau of Investigation (CBI) registered a case following a complaint by Union Bank of India (UBI), while the Enforcement Directorate (ED) is investigating the alleged money laundering. The Reserve Bank of India (RBI) took control of DHFL's board in 2019 after the company defaulted on payments. DHFL later entered insolvency proceedings and was acquired by the Piramal Group in 2021. Criminal and money-laundering proceedings against the former promoters and others are ongoing.
In 1984, Rajesh Kumar Wadhawan started DHFL as a housing finance company.
After 2018 non-banking finance sector crisis, the farud came into the light. In January 2019, the Cobrapost alleged diversion of funds through multiple shell companies; DHFL denied those allegations. Later, forensic audit by Grant Thornton and consequent investigations revealed that DHFL used fake "Bandra Book" loan accounts and internal software to hide transfers to companies linked to its promoters by making them appear as regular home loans.
From 2010 to 2018, a UBI-led consortorium sanctioned about ₹42,871 crore in loans and credit facilities to DHFL. Investigation revealed transfer of ₹11,500–11,755 crore to 87 shell entities, many linked to the promoters. The modus operandi was faking or recycling the borrower records by showing these transfers as retail home loans. Some funds were used to buy paintings, jewellery, an aviation-company stake and overseas properties. Company records were doctored to conceal the transactions and support further borrowing.
The alleged farud came to light during India's non-banking finance crisis sector after 2018. In June 2019, DHFL defaulted on its debt, causing a sharp price to fall and prompting regulatory action. In October 2019, the ED searched DHFL offices and properties linked to its promoters as part of the wider probe, which also examined loans linked to companies associated with properties connected to Iqbal Mirchi. On 20 November 2019, the RBI dissolved DHFL's board.
In January 2020, promoter Kapil Wadhawan was arrested by the ED under the PMLA in connection with the investigation. He was later granted bail. The ED also investigated transactions involving Yes Bank and DHFL, including about ₹3,700 crore in debentures.
On 24 March 2021, the CBI filed a case, alleging that about 260,000 fictitious home-loan accounts were created under the Pradhan Mantri Awas Yojana, involving ₹14,046 crore in loans. Out of which, about ₹11,755.79 crore allegedly transfered to shell companies. In January 2025, the CBI closed the investigation, citing insufficient evidence to prove a "criminal conspiracy."
In September 2025, the ED attached DHFL's assets worth ₹186 crore.
In December 2025, the Supreme Court of India granted bail to the Wadhawan brothers in the CBI case.