DHFL “Scam”? Unmasking Truths Behind BJP’s Political Vendettas

Posted on 25th January, 2025 (GMT 16:58 hrs)

ABSTRACT

The article examines the closure of the CBI case against DHFL and its erstwhile directors regarding fraudulent home loan accounts, highlighting insufficient evidence to prove criminal conspiracy. Despite allegations of money laundering through fake accounts, the CBI investigation didn’t uncover any conclusive proof. The article also questions the extant political motivations behind DHFL’s forced bankruptcy and explores the broader implications of corporate fraud investigations in India’s political landscape by bringing in parallel instances of consummating political vendetta through the manipulation of governmental agencies such as the CBI, ED and IT Department by the present ruling party of India.

“उन्हें ये फ़िक्र है हर दम नई तर्ज़-ए-जफ़ा क्या है,

हमें ये शौक़ है देखें सितम की इंतिहा क्या है!”

“One worries that there is always a new form of oppression

We have this desire to see what is the end of this oppression!“

—- Shaheed-e-Azam Bhagat Singh,

Letter to Brother Kultar Singh (3rd March, 1931)

“Restating the obvious”, “Revelation of the (un)expected”, “Exposure of the flawed operations of Indian reporting and intelligence agencies”…. these are some of the phrases and remarks that we, the OBMA activists, were discussing amongst ourselves upon hearing a quite recent piece of news that has truly turned the table. The news is indeed about the DHFL “scam”. Why did we use quotation marks around the word “scam”? Wait. The reason shall become clear soon.

Before that, here is a portion that we wrote in one of our earlier posts (with necessary additions) in 2023 on the Wadhawan brothers, the erstwhile promoters/directors of the so-called “beleaguered” DHFL:

On 27th March, 2023, the Supreme Court of India dismissed the allegations made by the Enforcement Directorate (ED) and upheld the default bail granted to DHFL’s ex-promoters Kapil Wadhawan and Dheeraj Wadhawan by the Bombay High Court in the Yes Bank-DHFL Money Laundering case.

No criminal charges (either in the Yes Bank or in the DHFL case) against the Wadhawan brothers have been proved conclusively yet. This has a direct binding on the future outcome of the DHFL case.

Yes Bank-DHFL scam: Supreme Court upholds default bail granted to Kapil, Dheeraj Wadhawan VIEW HERE ⤡ (As reported on 27th March, 2023 ©Economic Times)

Note: The Wadhawan Brothers were released on bail (although it was later revoked by the Supreme Court) in connection with the YES Bank-DHFL Scam case, which also led to the conviction of Rana Kapoor. It is important to highlight that the Wadhawans were not directly arrested in relation to the DHFL scam cases that were revealed by Cobrapost back in 2019. Even in October 10, 2024, CBI court grants bail to Kapil Wadhawan in Yes Bank scam case VIEW HERE ⤡ (As reported on 10th October, 2024 ©The Economic Times).

SOURCE:

Other related posts on the Wadhawan brothers that dealt with certain connected phenomena are also given as follows:

Against this backdrop, let us bring to your kind attention the news that we referred to at the beginning of this article:

CBI closes case against DHFL, its directors in ‘fake’ home loan accounts case VIEW HERE ⤡ (As reported on 23rd January, 2025 ©The Hindu)

What is this actually about?

After an extensive three-year investigation, the Central Bureau of Investigation (CBI) has closed its case against Dewan Housing Finance Corporation Limited (DHFL) and its “ex” directors concerning the alleged creation of approximately 2.60 lakh fictitious home loan accounts to launder Rupees 34,000 crores. These accounts were allegedly used to claim interest subsidies under the Pradhan Mantri Awas Yojana (PMAY).

The CBI concluded that there was “insufficient evidence” to establish a criminal conspiracy leading to the creation of these accounts.

The allegations stemmed from a forensic audit by Grant Thornton, which reported that DHFL had established a fictitious branch in Bandra, Mumbai. Within this non-existent branch, fake housing loan accounts were purportedly created between 2007 and 2019, amounting to loans worth ₹14,046 crore. Of this, ₹11,755.79 crore was allegedly routed to several fictitious firms known as “Bandra Book” entities. Many of these “bogus” ghost loan accounts were reportedly linked to the PMAY to claim interest subsidies from the National Housing Bank. DHFL had processed 88,651 cases under the PMAY until December 2018, receiving an interest subsidy of ₹539.40 crore, with an additional ₹1,347.80 crore pending.

Despite these so-called “findings”, the CBI’s investigation did not uncover sufficient evidence of a criminal conspiracy. The agency has submitted its final report to a special court in Delhi, which will decide whether to accept the closure report or order further investigation into the matter.

This development marks a significant turn in one of India’s most high-profile financial investigations, highlighting the complexities involved in CONCLUSIVELY proving corporate fraud as such within the crony oligarchical setup of contemporary Indian polity.

After this grand expose in the CBI Closure Report,

How will Mr. Piramal, the alleged adverse possessor, the king of (de)mergers, handle this topsy turvy situation?

As we have already reported that Mr. Piramal has changed the name of the company that supposedly “bought” (?) DHFL, viz., PCHFL, by merging it with Piramal Enterprises Ltd. (PEL) once he was being challenged at multiple levels of the court of law. Baba Ramdev (again blessed by the BJP like Mr. Piramal) has also done a similar thing in changing Ruchi Soya to Patanjali Foods Ltd⤡.

Now that this CBI report has the potential to significantly (and perhaps radically!) alter the ongoing trajectory of the sub judice DHFL cases, this is beyond any reasonable doubt. However, the question that remains is:

WHY WAS THE DHFL FORCED INTO BANKRUPTCY, THEN, IF THERE WAS/IS NO SUBSTANTIAL PROOF/EVIDENCE IN FAVOUR OF THE SAME THAT LEGITIMIZED THE CONVICTION OF THE WADHAWAN BROTHERS?

It must be noted that the Wadhawan brothers, despite their numerous settlement proposals for the full repayment of all DHFL creditors during the RBI-CoC led “resolution process,” along with their unwavering assurances (the veracity of which remains debatable, but that is another question) throughout early and mid-2019 that DHFL continued to generate cash flows and was a solvent company, raise the question: why did DHFL enter the CIRP under the flawed IBC (2016)?

It does seem that IBC has totally fallen short of its so-called “grand promises,” as evidenced by the DHFL debacle. Its failure mirrors that of the Demonetization initiative, which was entirely unable to curb the circulation of counterfeit and black money or to stop terror funding.

Similarly, it is as inadequate as the PM CARES Fund, which appears to primarily serve as a means for the ruling party to amass wealth (just like the Electoral Bonds scheme), all while failing to enhance public welfare through its questionable, transparently opaque nature as a quasi-governmental “trust” that no can can trust!

As we have noted earlier, the DHFL CIRP was a “test case”⤡ to legitimize the IBC into operation; however, it turned out to be expensive, time-consuming, and detrimental to the futures of the lakhs of innocent DHFL victims, whose lifetime savings were allegedly entangled due to a mere “image-making process” of the ruling party of India, viz., the fascist BJP, because:

A) The Wadhawans allegedly provided the BJP with a donation/bribe of 27.5 crores, reportedly linked to terror-funding connections, but it is claimed they gave even greater bribes to the Congress due to their previous ties (as known from reliable sources; usual disclaimers apply). This situation could have prompted the BJP to pursue a political vendetta, seeking some sort of vengeful retribution against the Wadhawans.

B) The BJP appeared eager to offer Mr. Ajay Piramal a “free,” “penniless,” “ready-made” return gift in appreciation for his “services,” which have drawn scrutiny due to his involvements in the Flashnet Scam and the Electoral Bonds Scam. Notably, Mr. Piramal contributed an eye-popping 85 crores to the BJP⤡ via the now-unconstitutional electoral bonds scheme.

Probably due to this reason alone, as the Wadhawans may soon be acquitted, the DHFL victims have been enduring a different kind of “capital” punishment for five years for alleged “crimes” apparently committed by none (neither the erstwhile directors nor the DHFL victims), save for the BJP’s continuing involvement in terror-funding and politically motivated efforts to dismantle a once AAA-rated, solvent, and profitable enterprise—DHFL. This further characterizes the entire DHFL resolution process itself as a punishment, culminating in the financial demise of the DHFL victims, who now grapple with a multitude of physical and mental health issues. The bitter “taste” of the DHFL as a “test” case has proven to be tragically fatal. It is to be mentioned that justice delayed IS justice denied.

The thing is that, after the NCLT’s revealing first order on 19th May 2021, the DHFL lenders stated the following:

“Lenders said the NCLT order may set a bad precedent, with more promoters moving the court to consider their offer.”

“That if the impugned orders were allowed to operate, it would be extremely prejudicial as it creates a new process, which is contrary to the express provisions of the Code and, if allowed, the CIRP will be never ending where parties will be permitted to keep making offers without regard to sanctity of the process or timelines, including after CoC has exercised its commercial wisdom and approved a plan, which has been submitted by an eligible resolution applicant in compliance with the Code,” DHFL’s lenders said in their appeal.”

SOURCE: Appeals Court Stays Order on Wadhawan VIEW HERE ⤡ (As reported on 26th May, 2021 ©The Mint)

The lenders contended that the verdict of the NCLT would establish a “bad precedent” (if their first order was being followed), given that the DHFL case was the inaugural instance to navigate the experimental and poorly conceived IBC (2016). “Bad precedent”? The assertion made by lenders is not only irrational and illogical, but also absurdly foolish! Regardless of whether it is the first or last precedent, we must speak the truth clearly by calling spade a spade! An illegal resolution process does not transform into a legal one simply to legitimize the newly introduced IBC! Why did the RBI-appointed CoC intentionally aid the current politico-legal administration and their engineered codes, laws, and policies, leveraging their wis(h)dom (The CoC can do no wrong? ‘Wis-h-dom’ of the CoC is presupposed?⤡)?

Interestingly, this CBI closure report on the DHFL “scam” brings up many issues.

This “Wadhawan Affair” is not an exception, actually.

Without any trial or “due process” of law, numerous individuals are being systematically imprisoned by the BJP Union Government, utilizing the ED, CBI, and IT Department as biased instruments of effectuating one-sided, partial, partisan exclusion of “other” voices. This alarming trend underscores the violation of prisoners’ rights, particularly those of political dissidents, thereby undermining the fundamental principle that “a person is presumed innocent until PROVEN guilty.” Despite playing all these shadowy games, the BJP could not even command a “simple majority” after the declaration of the 2024 Lok Sabha Election results. We need to understand that the present regime is essentially illegal, given that it manipulated a massive number of votes in numerous seats to capture power for the third time, as clearly reveled through the ADR report⤡. BJP, don’t you have any amount of shame?!

This has been closely observed in the conviction case of former Delhi Chief Minister Arvind Kejriwal (arrested on March 2024), alongside AAP leaders Satyendra Jain (Arrested in May 2022), Manish Sisodia (Arrested in February 2023), and Sanjay Singh (Arrested in October 2023), followed by a politico-legal battle concerning the so-called Delhi Liquor/Excise Scam along with a series of "corruption" allegations. This maneuver was allegedly designed to undermine any electoral challenges they might pose to the BJP's self-proclaimed "omnipotent" dominance. Disturbingly, this situation escalated to the point where Mr. Kejriwal was denied life-saving medicines for a fortnight when he was not provided with insulin dosages, marking him as the second sitting Chief Minister in India's history—after Mr. Hemant Soren, Hon'ble Chief Minister of Jharkhand, convicted in January 2024—to be arrested in such an arbitrary fashion. Such actions are altogether unprecedented in the annals of post-independent India.

A tale of two Chief Ministers VIEW HERE ⤡ (As reported on 26th May, 2024 ©Supreme Court Observer)

‘Caged parrot’: SC slams CBI over Arvind Kerjiwal’s ‘unjustified’ arrest in Delhi excise case VIEW HERE ⤡ (As reported on 14th September, 2024 ©The Hindu)

DISCLAIMER: The video links provided above are not intended to promote any specific political party, such as the AAP. Rather, they serve to highlight the concerning state of freedom of speech and expression as enshrined in the Indian Constitution under the fascist regime headed by the BJP.

The BJP’s modus operandi in such cases often involves targeting opposition leaders they perceive as “threatening.” They inundate these individuals with arbitrary legal challenges and intimidate them through ED, CBI, and IT raids, especially through the manipulative deployment of the controversial PMLA. However, if these leaders choose to join the BJP, they frequently find themselves conveniently absolved of their “past sins.” Notable examples include Chandrababu Naidu, Ajit Pawar, Suvendu Adhikari, and Mukul Roy, among others. This phenomenon is aptly dubbed as the “Great Indian Washing Machine”—and the BJP is at its helm!

The circumstances were equally troubling for former IPS Officer Sanjiv Bhatt, who was incarcerated for years without proper evidential substantiation through the machinations of the CBI after he submitted an affidavit in 2011 related to the Gujarat Pogrom (2002). This was merely an attempt to stifle his voice in revealing the highly questionable actions of the then Chief Minister of Gujarat, Mr. Narendra Modi, to allegedly manufacture the pogrom in the first place. Furthermore, a multitude of obsolete and even “false” cases were unjustly heaped upon him (such as a so-called Drug Planting case in the 1990s), all without any legitimate explanation in order to guard the ruling party’s narrow interests.

Justice Denied: The Fight for Sanjiv Bhatt and the Battle Against False Convictions VIEW HERE ⤡ (©Hindus for Human Rights)

Why Sanjiv Bhatt, acquitted in custodial torture case from 27 years ago, will remain in jail VIEW HERE ⤡ (As reported on 10th December, 2024 ©India Today)

Let us consider another noteworthy example that aligns with this pattern of actions and reactions:

In June 2017, the Central Bureau of Investigation (CBI) registered a case against NDTV founders Prannoy Roy and Radhika Roy, alleging that they, along with RRPR Holding Pvt Ltd, had entered into a criminal conspiracy with officials of ICICI Bank in 2008-09. The CBI accused them of causing a loss of ₹48 crore to the bank during a loan settlement.

After a thorough investigation spanning seven years, the CBI concluded that there was insufficient legally admissible evidence to substantiate the allegations (just like the Wadhawan brothers!). Consequently, in October 2024, the agency submitted a closure report in a Delhi court, stating that no criminality or abuse of power was found in the loan settlement between NDTV’s former directors and ICICI Bank.

On January 23, 2025, a Delhi court accepted the CBI’s closure report, effectively clearing Prannoy and Radhika Roy of any wrongdoing in this case.

‘No criminal conspiracy or abuse of power’: CBI’s closure report in favour of NDTV’s former directors Prannoy, Radhika Roy VIEW HERE ⤡ (As reported on 28th November, 2024 ©The Indian Express)

In fact, it is evident from such instances that the CBI, ED, and the IT Department are being manipulatively deployed by the BJP to mercilessly silence opposing voices, despite the absence of proper evidence or justification, all in alignment with their political vendetta and whims. This behaviour is entirely unbefitting of India’s democratic institutions, which are tasked with upholding the principles of accountable neutrality. The BJP has systematically blurred the distinctions amidst “party”, “government”, “country” and a special “proper name” (Modi Sarkaar!?!) by such activities. The Leader of the Opposition has very pertinently remarked that this very proper name does not know the Indian Constitution.

Getting back to our initial point in conclusion, the Wadhawan Brothers appear to be navigating a comparable predicament in this context, which could potentially evolve into a positive outcome and overturn the alleged adverse possession of the DHFL by BJP’s “friend” Mr. Ajay Piramal—an outcome that may ultimately favor the legitimate rights and demands of countless innocent DHFL victims who have been burdened by the yoke of fabricated financial abuse over the years.

Cruelty, Thy Name is BJP!