ED Freezes ₹51.75 Crore In DHFL Loan Fraud Probe, Traces Funds To UK Property

Mumbai, August 28, 2026: The Enforcement Directorate (ED) has frozen around Rs 51.75 crore lying in the Indian bank account of Dubai-based M/s Al Jalore Trading FZE, alleging that the funds represent proceeds of crime generated through the diversion of loans sanctioned to Dewan Housing Finance Corporation Ltd (DHFL). The agency also seized or impounded documents and records relating to the transactions and assets under investigation.

The action followed searches conducted on August 19 by the ED’s Headquarters Investigation Unit under the Prevention of Money Laundering Act (PMLA) in connection with the alleged Rs 34,615-crore loan fraud involving DHFL promoters Kapil Wadhawan and Dheeraj Wadhawan.

CBI FIR Underpins Probe

The ED’s investigation stems from a CBI FIR registered on the complaint of Union Bank of India on behalf of a consortium of 17 banks. According to the FIR, the accused persons, including Kapil Wadhawan and Dheeraj Wadhawan, entered into a criminal conspiracy to cheat the consortium banks, which had sanctioned credit facilities aggregating to Rs 42,871.42 crore to DHFL. The loan funds were allegedly siphoned off through falsification of DHFL’s books, causing an estimated wrongful loss of Rs 34,615 crore to the lenders.

Funds Traced To UK Property

According to the ED, its investigation has traced part of the alleged proceeds of crime to Hurtmore House, a property in the United Kingdom held in the name of Vanita Wadhawan, wife of Kapil Wadhawan.

The agency alleged that a fictitious liability was created in Vanita Wadhawan’s name through a purported loan agreement between her and Al Jalore Trading FZE, against which the UK property was mortgaged. The arrangement, the ED said, was used to create an encumbrance over the foreign asset to facilitate settlement of a liability in India arising from the alleged DHFL loan fraud.

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The property was subsequently sold in 2026, with the sale proceeds directed to the Indian bank account of M/s Al Jalore Trading FZE instead of the registered owner, Vanita Wadhawan, the ED alleged. According to the agency, the transaction involved the disposal and utilisation of the foreign asset through a structured arrangement involving foreign property and entities, with the proceeds allegedly used to facilitate settlement of the Indian liability.

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