The ED on Monday arrested Kapil Wadhawan, Chairman and MD of Dewan Housing Finance Ltd, in connection with the agency’s probe into the Iqbal Mirchi money laundering case.
Seeking his custody for seven days from a special PMLA court, the ED called him an ‘active conspirator’ in the case.
On Monday, the special PMLA court also granted bail to Kapil’s brother Dheeraj who is accused by the agency of being the ‘prime mover’ of a property deal between a company linked to him and late drug lord Iqbal Memon, alias Mirchi.
The ED has alleged in its complaint how properties of Mirchi, believed to be proceeds of crime, were sold to Sunblink Real Estate Private Ltd, a company linked to Dheeraj Wadhawan. Dheeraj claims he was not aware that Mirchi was a wanted man.
Arguing for custody of Kapil, the agency told the court that in 2010-11, DHFL had given loans to five shell companies amounting to Rs 1500 crore, and by July 2019, the outstanding amount had reached Rs 2186 crore.
The beneficiary owners of these companies are Kapil and Dheeraj, the agency has alleged. “The sole purpose of these companies was to siphon off public money,” it added.
It is further alleged that these five entities and Sunblink Real Estate Private Ltd are inter-related and have been used and controlled by Kapil to ‘layer and obfuscate’ the origin of the monies. Kapil, the agency alleged, has played a ‘very crucial role’ in the nefarious transactions by way of money laundering. “He first diverted huge funds from DFHL to shell companies. Later these shell companies got amalgamated with Sunblink real estate to cover the alleged diversion of loans acquired from DHFL,” it said.
Kapil is also one of the promoters of RKW Developers. The agency told court that a loan of Rs 50 crore taken from DHFL was later repaid by a loan taken from RKW developers while Kapil Wadhawan was in control of affairs of both.
Appearing for the ED, special public prosecutor Hiten Venegaonkar told court that this Rs 50 crore was disbursed by DHFL to Sunblink without taking into account the loan policy of DHFL. At the time of sanctioning of the loan, there was no substantial property in the name of Sunblink. The ED also mentioned in court the statement of one real estate broker involved in a land deal who had stated that Kapil Wadhawan had visited London with him to meet Iqbal Mirchi, but that he did not meet him.
Appearing for Kapil, his advocate Prasad Dhakephalkar argued that the five companies are totally unconnected to the Iqbal Mirchi case and questioned the basis on which the agency had come to the conclusion that the companies were shell companies. Special judge PS Rajvaidya gave the agency custody of Kapil till Wednesday.