DHFL Scam

What is DHFL (Dewan Housing Finance Limited)-

DHFL is a non-banking financial company that offers loans at a high-interest rate to the individual as home loans, real estate companies, and other corporates by taking the loan from a bank, getting people to fixed deposits in their company at a low-interest rate.

History-

DHFL was established by Rajesh Wadhawan on 11 April 1984 under the name of Dewan Housing Development Finance, which was later renamed as Dewan Housing Finance Limited (DHFL).

In 2008, the company was divided into two parts, HDIL and DHFL, with HDIL being held by Rakesh Wadhawan and DHFL by Kapil Wadhawan, Aruna Wadhawan, and Dheeraj Wadhawan.

Headquarter- Mumbai
Founded- 11 April 1984
Managing director- Kapil wadhawan

Before telling about the scam, we should know some small facts.

Shell Company

A shell corporation is a company that exists only on paper and has neither employees nor an office

AMC Mismatching-

AMC (Asset management company)

When a company takes a loan from a bank at a time period and a fixed interest rate or gets a fixed deposit from the people, then that money is used by the company to give loans to the people, loan to the corporate and whoever had a time period and when the difference is found in the time period or the loan is taken by the company from the bank and given a loan by the company, the same is called AMC mismatching.

Non-convertible debentures (NCBs)-

Debentures are long-term financial instruments which are known as debt. Some debenture has a feature of convertibility into share after a certain point of time at the discretion of the owner. The debenture which can not convertible into share or equity is called a non-convertible debenture.

  • Kapil wadhawan, Dheeraj wadhawan, and Aruna wadhawan is promoters of the DHFL company in which Kapil wadhawan is major promoters

Let’s talk about the scam-

The promoter used to lend loans to about 45 companies without any security, out of which 34 were shell companies and some of them were such of 11 company whose year on year profit was only ₹ 100000 and the money is taken by these companies used in Sri Lanka, Dubai, Marcius, and the UK  to buy an individual property or invest in their share market.

It is the rule of a finance company that when it issues a loan to a corporation, it gives the loan to the company in several parts, but they gave all the companies a loan in one part, then later all those companies gave themselves bankrupt dredged because the companies gave the money to the promoters, which DHFL did not put in the grade of NPA which is a fraud.

Information about this scam was found by Cobrapost Investigation

At present, the company has a loan of about 96880 crores.

Loan details in INR

Non-convertible debenture-31,312 Cr.

From bank-36,963cr.

From external commercial borrowing-2,965cr.

From national housing Board (NHB)-2,848cr.

Public Deposits-9,225cr.

Other sources-13,567cr.

36 banks, including 32 nationalized and private and six foreign banks. which was given in the list below

Indian bank lenders name-

NAME OF INDIAN LENDERSAMOUNT IN CRORE
1-STATE BANK OF INDIA11650.00
2-BANK OF BARODA4396.88
3-BANK OF INDIA4150.00
4-CANARA BANK3100.00
5-CENTRAL BANK OF INDIA2775.00
6-SYNDICATE BANK2500.00
7-UNION BANK OF INDIA2446.00
8-INDIAN BANK1850.00
9-IDBI BANK1810.00
10-CENTRAL BANK OF COMMERCE1795.00
11-PANJAB NATIONAL BANK1700.00
12-CORPORATION BANK1500.00
13-UNITED BANK OF INDIA1223.75
14-PANJAB AND SINDH BANK1220.00
15-BANK OF MAHARASHTRA1170.00
16-ANDHRA BANK1050.00
17-DENA BANK904.00
18-INDIAN OVERSEAS BANK900.00
19-HDFC BANK823.00
20-UCO BANK500.00
21-SOUTH INDIAN BANK425.00
22-VIJAYA BANK400.00
23-ICICI BANK350.00
24-KOTAK MAHINDRA BANK320.00
25-ALLAHABAD BANK300.00
26-FEDERAL BANK300.00
27-AXIS BANK250.00
28-KARNATAKA BANK LTD.200.00
29-DCB BANK50.00
30-STANDARD CHARTED BANK
31-YES BANK
The total calculation is not possible because of below 2 banks not show there amount

Total loan of foreign lenders- US$ 105,000,000

NAME OF FOREIGN LENDERLOAN INUSD
1-CTBC BANK CO LTD.US$ 10,0000,00
2-TAIWAN BUSINESSUS$ 5,000,000
3-THE KOREA DEVELOPMENT BANK
SINGAPORE BRANCH
US$ 15,000,000
4-THE KOREA DEVELOPMENT BANKUS$ 15,000,000
5-BARCLAYS BANK PLCUS$ 30,000,000
6-ABU DHABI COMMERCIAL BANK PJSCUS$ 30,000,000
Total loan amount of foreign lenders- US$ 105,000,000

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