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FUThe DHFL scam, involving the Wadhawan brothers, Kapil and Dheeraj, emerged as one of India's largest banking frauds, amounting to multi-crores. This scandal unfolded over the years, implicating the former promoters of Dewan Housing Finance Limited in defrauding 17 banks through a complex web of financial misconduct and diversion of funds.
The scam came to light in January 2019 after a sting operation by Cobrapost, revealing that DHFL had siphoned off over ₹31,000 crores to related entities for personal gains. Subsequently, credit rating agencies downgraded DHFL's paper, leading to defaults on repayments and legal actions by depositors and financial institutions.
The involvement of the Wadhawan brothers in diverting funds, making political donations, and engaging in fraudulent activities led to their arrests in July 2022. Despite being in custody, reports surfaced that they spent more time in luxury hospitals than behind bars, raising questions about their medical bail requests and privileges during hospital stays.
The scam extended beyond DHFL, involving the split of the Wadhawan family business in 2010 to create HDIL and DHFL, both embroiled in separate scams. HDIL's connection to the PMC Bank scam further highlighted the intricate web of financial irregularities within the family's businesses.
The acquisition of DHFL by the Piramal Group in September 2021 marked a significant development in the aftermath of the scandal. The broader context of banking frauds in India, totaling 5.3 lakh crores over the last decade, underscores the magnitude and impact of financial misconduct in the country, with cases like the Yes Bank-DHFL scam standing out as major instances of fraudulent activities.
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