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Last Updated : Feb 11, 2020 07:47 PM IST | Source: Moneycontrol.com

ED unearths software through which DHFL allegedly laundered money

"The software distributes the amount that is allocated for laundering by way of creating fake folio numbers, borrowers' profiles and properties, which then goes to those accounts as loans on paper," said two officials of DHFL on the condition of anonymity.

 
 
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In a major breakthrough for the Enforcement Directorate (ED), the central investigation agency has recovered a software from the office of the Dewan Housing Finance Corporation (DHFL), through which the non-banking finance company (NBFC) has allegedly siphoned and laundered Rs 12,773 crore by way of creating several hundreds dummy accounts through 79 shell companies.

"The software distributes the amount that is allocated for laundering by way of creating fake folio numbers, borrowers' profiles and properties, which then goes to those accounts as loans on paper," said two officials of DHFL on the condition of anonymity.

The company's nexus with the realty belonging to the family Dewan Housing is visible through this software.

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"The NBFC primarily uses residents profile in this software, where the data comes from the Dewan housing that deals in slum rehabilitation where they take aadhar card and other personal details of residents. DHFL then uses this data and distribute money in small amounts to thousands of borrowers," said one of the officials quoted above.

The modus operandi of the alleged software is such where, hypothetically, if the company wants to launder say Rs 100 crore, the software will create fake profiles of several thousand borrowers. Then, the NBFC would distribute the money to such accounts in no time. Here, the profile of such borrowers will be automatically generated one which can help the company in case of any investigation.

The investigation agency got hold on the software after the arrest of Kapil Wadhawan, the chairman of DHFL.

Earlier, ED mentioned digital evidence in their remand appeal but they have not disclosed in court about such software.

The agency was stunned when several loans were taken on the name of government officials where the software had used the staff quarters addresses as proof.

Currently, Wadhawan is in ED’s judicial custody till February 18. So far, Wadhawan has applied for bail at the special court of Prevention of Money Laundering Act (Act).

DHFL owes over one lakh crore rupees to multiple financial institutions, including around Rs 40,000 crores exposure by banks. ED has found Rs 12,773 crores laundered by DHFL and another Rs 20,000 are untraceable as per KPMG forensic audit report.

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First Published on Feb 11, 2020 11:18 am
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