New Delhi: The Central Bureau of Investigation (CBI) conducted nationwide searches Thursday in an on-going investigation into the DHFL loan scam, and recovered paintings and watches worth crores.
The agency is probing irregularities that led to the alleged loss of Rs 34,615 crore to a consortium of 17 banks led by the Union Bank of India.
The agency, sources said, searched 11 locations across the country at premises associated with the accused.
The CBI recovered two watches of Jacob & Co & Franck Muller Geneve worth Rs 5 crore; a painting by F.N. Souza (1964) and another by S.H. Raza (1956) worth Rs 5.50 crore and gold and diamond jewelry including bangles and necklace worth Rs 2 crore, aCBI press release said.
It is alleged that the promoters of Dewan Housing Finance Corporation Ltd (DHFL) acquired the expensive items from diverted funds.
The CBI statement further mentioned: “During investigation, then CMD & then Director, both of private company based at Mumbai were arrested and both are presently in CBI custody.”
What is the DHFL case
The CBI has booked DHFL and its directors Kapil Wadhawan and Dheeraj Wadhawan — among the 13 accused — for allegedly defrauding 17 banks of Rs 34,615 crore. This is the biggest case of bank fraud registered ever by the agency.
DHFL promoters, including the Wadhawan brothers, are already under investigation by both the CBI and the Enforcement Directorate (ED) in a case of alleged fraud involving Yes Bank.
The Print had reported how Dheeraj Wadhawan, arrested two years ago in connection with the Yes Bank money laundering case, has spent more time in a luxury hospital than behind bars.
A fresh case was registered on 20 June 2022 after the Union Bank of India complained against the Mumbai-based company.
“According to the UBI complaint, since 2010, the DHFL has extended credit facilities of over Rs 42,000 crore by the consortium of which Rs 34,615 crore remain outstanding. The loan was declared NPA in 2019 and fraud in 2020,” reported The Indian Express.
The report further said a forensic audit into DHFL’s loans — conducted by accounting firm KPMG in 2020-21 — observed that “large amounts were disbursed as loans & advances by the borrower company to a number of inter-connected entities and individuals with commonalities to DHFL Promoter Entities, which were used for purchase of shares/debentures.”
According to the KPMG report, most of the transactions of such entities and individuals were in the nature of investments in land and properties.
Apart from the Wadhwans, the CBI has booked Sudhakar Shetty of Suhana Group and 10 other real estate companies.
Further investigation is continuing, the CBI press release said.
The agency claimed the items belonged to former DHFL CMD Kapil Wadhawan and ex-director of the company Dheeraj Wadhawan, who allegedly defrauded banks to the tune of ₹34,615 crore, making it the biggest bank loan fraud case probed by the agency.
The King of Good Times, as Mallya was known as, is one of the biggest offenders when it comes to bank fraud. The businessman's now bankrupt. The Kingfisher Airlines owes more than Rs 10,000 crore to several banks, wih SBI, PNB and IDBI all loaning him money. Mallya fled India in early 2016.
In financial parlance, this is known as round-tripping. Hence, in effect, DHFL gave an unsecured loan to its promoters. The shell companies and other transactions were just paraphernalia which was used to cover up these blatantly illegal transactions.
Piramal Capital and Housing Finance Limited (earlier Dewan Housing Finance Corporation Ltd. (DHFL)) is a non-deposit taking housing finance company, headquartered in Mumbai with branches in major cities across India.
It is regarded as India's largest corporate fraud and rocked the nation's financial system. The prime suspect in the 14,000-crore-rupee scandal is the well-known jeweller and designer Nirav Modi.
Once they have your personal information (such as your ID, Social security number, etc.), they can steal your identity and access your bank account. If you're on the job hunt, it's a good idea to set up fraud and credit monitoring to make sure no one is using your credentials for the wrong reasons.
India's Biggest-Ever Bank Loan Fraud: All You Need To Know About Rs 34,000-Crore DHFL Scam. A total of 17 banks have been defrauded of over Rs 34,000 crore by home loan provider DHFL.
In 1920, Charles Ponzi saw an opportunity with International Postal Reply Coupons, which allowed mail senders to pay for replies in advance. Ponzi offered Boston investors returns up to 50 percent for investing in the coupons and promised the money in 45 days. A run on Ponzi's Boston Bank in 1920.
To give legality to their money obtained illegally, they use different techniques, one of which is money laundering. In February 2022, India witnessed its biggest-ever banking fraud of around 22,842 crores involving ABG Shipyard Ltd. (discussed in detail below), which is a shipbuilding and repair company.
How Do Banks Investigate Fraud? Bank investigators will usually start with the transaction data and look for likely indicators of fraud. Time stamps, location data, IP addresses, and other elements can be used to prove whether or not the cardholder was involved in the transaction.
Criminals use fake websites, emails, or text messages to deceive victims into providing personal information, such as credit card numbers, bank account numbers, and passwords. The criminals then use this information to steal money from the victims' accounts or to commit other types of fraud.
The results indicate that lack of training, overburdened staff, competition, and low compliance level, the degree to which procedures and prudential practises framed by the Reserve Bank of India to prevent frauds are followed are the primary reasons for bank frauds.
And more than ₹3,000 crore each has been allegedly wiped off by the DHFL from Union Bank of India and Punjab National Bank. Of the 17, only four private banks — such as HDFC, Federal Bank, Karnataka Bank and South Indian Bank — were taken for a ride by the DHFL, though the amounts defaulted are comparatively less.
Bank fraud is a federal crime in many countries, defined as planning to obtain property or money from any federally insured financial institution. It is sometimes considered a white collar crime.
1. Charles Ponzi. Charles Ponzi was an Italian businessman and swindler who was responsible for duping thousands of investors in the early 20th century. Ponzi cheated investors out of an estimated $32 million, which would be valued at nearly half a billion dollars today.
Younger adults reported losses to online shopping fraud – which often started with an ad on social media – far more often than any other fraud type, and most said they simply did not get the items they ordered. Younger adults were over four times more likely than older adults to report a loss on an investment scam.
Contact your bank immediately to let them know what's happened and ask if you can get a refund. Most banks should reimburse you if you've transferred money to someone because of a scam.
Fraudsters usually hide their identities to evade detection. However, in the same way as transaction records create a path to track stolen funds, the electronic communication methods used to commit the fraud also leave a trail that can be used to identify the perpetrator.
Can thieves steal identities with only a name and address? In short, the answer is “no.” Which is a good thing, as your name and address are in fact part of the public record. Anyone can get a hold of them. However, because they are public information, they are still tools that identity thieves can use.
Which Banks Are the Best at Dealing With Identity Theft and Fraud...
Ally Bank. In the event that you are compromised or hacked online, many banks have a two-factor authentication process that allows you, the customer, to log back into your accounts. ...
Financial fraudsters have been engaging in schemes to separate their victims from their money since well before Charles Ponzi became synonymous with swindling in the 1920s. The original Ponzi scheme took investors for as much as $20 million.
Gambling and gaming platforms often accept payment in Bitcoin or other cryptocurrencies, making them a favorite destination among cryptocurrency money launderers. Money launderers use crypto to buy credit, virtual chips, or in-game currency on these platforms and cash out after a few transactions on the website.
Bank tellers can see your checking and savings accounts as well as money paid toward loans. They can also move money around your different accounts at your request.
In the US, banks are required to complete fraud investigations within 10 business days of the time they are advised of the claim. Banks can request an extension, but in most cases, they will be required to issue a temporary refund to the customer within 10 days.
Unrestricted access to assets or sensitive data (e.g., cash, personnel records, etc.) Not recording transactions resulting in lack of accountability. Not reconciling assets with the appropriate records. Unauthorized transactions.
Generally, the bank is more likely to be liable for the fraud for card-present transactions, while the merchant might get stuck with the cost for transactions without a physical card.
Your bank should refund any money stolen from you as a result of fraud and identity theft. They should do this as soon as possible - ideally by the end of the next working day after you report the problem.
You're protected by Bank of America's $0 Liability Guarantee: Fraudulent transactions made using Bank of America credit and debit cards are covered by our $0 Liability Guarantee as long as you report them promptly; please visit our account and card security page for additional details.
Section 409 provides that the criminal breach of trust committed by banker, merchant, factor, broker, attorney or agent shall be punished with imprisonment for life, or with imprisonment of either description for a term which may extend to ten years, and shall also be liable to fine.
What Is A Bad Bank, And How Will It Work? The bad bank in India will be called National Asset Reconstruction Ltd (NARC). This NARC will work as an asset reconstruction company. It will buy bad loans from the banks, relieving them of the NPA.
Bad bank backed by the government will merely shift bad assets from the hands of public sector banks, which are owned by the government, to the hands of a bad bank, which is again owned by the government.
PCHFL acquired DHFL in September 2021 for a total consideration of Rs.34,250 crore. PCHFL has retained over 3,000 employees of the DHFL Group and are also adding over 2,000 new jobs in the merged entity.
(PCHFL) will merge with DHFL. The merged entity will be 100% owned by Piramal Enterprises Limited. The creditors of DHFL (including FD holders) would recover an aggregate amount of ~Rs. 38,000 Crores from the resolution process of DHFL.
DHFL fixed deposit offers competitive interest rates which vary between 8.25% and 8.95% and flexible deposit tenure. This interest rate range is applicable to general citizens. Senior citizens enjoy an additional interest rate of 0.40% over and above the basic rate.
A good personal loan interest rate depends on your credit score: 740 and above: Below 8% (look for loans for excellent credit) 670 to 739: Around 14% (look for loans for good credit) 580 to 669: Around 18% (look for loans for fair credit)
Advocate, Supreme Court of India, Dr Pavan Duggal, said that victims losing money to bank frauds can get 90% of their money back in just 10 days. Most banks have an insurance policy against unauthorized transactions. Bank customers have to report an unauthorized transaction within three days to get up to full refund.
Unfortunately, the money isn't yours unless you made the deposit or if someone else made the deposit on your behalf. The only time you can keep money that is deposited into your account is when the deposit was intended to be made into your account. So, if the deposit was a mistake, you can't keep the money.
The Central Bureau of Investigation (CBI) has alleged that DHFL's promoters formed 87 shell companies, created more than 260,000 "fictitious borrowers" and set up a "virtual branch" to divert money borrowed from banks.
The scam was the biggest money market scam ever committed in India, amounting to approximately ₹ 5,000 crores. The main perpetrator of the scam was a stock and money market broker Harshad Mehta. It was a systematic stock scam using fake bank receipts and stamp paper that caused the Indian stock market to crash.
What is the case about? According to CBI, ABG Shipyard and its directors are accused of cheating 28 banks (the consortium is led by SBI) to the tune of 23,000 crore. The agency said that ABG Shipyard availed loans since 2005, but due to non-payment of dues, the account turned non-performing assets (NPAs) in 2013.
The Central Bureau of Investigation (CBI) has carried out a detailed analysis of 53 financial crimes including bank frauds and Ponzi schemes starting from Harshad Mehta's manipulation of the stock market using funds obtained from banks in the 90s to the use of fraudulent Letters of Undertaking (LoUs) and Letters of ...
What is the DHFL case. The CBI has booked DHFL and its directors Kapil Wadhawan and Dheeraj Wadhawan — among the 13 accused — for allegedly defrauding 17 banks of Rs 34,615 crore.
In FY22, banks reported 9,102 frauds involving an underlying amount of Rs 60,389 crore against 7,358 frauds with an amount involved of Rs 1.37 lakh crore in FY21. Banks reported 8,702 frauds entailing Rs 1.85 lakh crore in the pre-pandemic FY20.
On Monday, Oct. 19, 1987, the Dow Jones Industrial Average plunged almost 22%. Black Monday, as the day is now known, marks the biggest single-day decline in stock market history.
The FBI is the lead federal agency for investigating cyber attacks and intrusions. We collect and share intelligence and engage with victims while working to unmask those committing malicious cyber activities, wherever they are.
Bank fraud is described as participating in a scheme to defraud a financial institution. In other words, 18 U.S.C.§ 1344 makes it a federal crime to defraud a bank or participate in a scheme to defraud regarding the accounts of a financial institution.
As per the corporate debt restructuring (CDR), executed by the lenders on 29 March 2015, the company that was continuously making profit till March 2013, became a defaulter next year due to 'downturn in global shipping industry and global financial crisis'.
The responsibility for banking fraud lies with both the bank and the customer. Banks are responsible for ensuring the security of customers' financial data and accounts. They should have strong security systems and protocols in place to protect customers' accounts from fraud and theft.
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