IJSSER

Title: THE MONEY LAUNDERING SCAM INITIATED BY DEWAN HOUSING FINANCE CORPORATION LIMITED (DHFL) AND YES BANK: AN EXPLORATORY ANALYSIS OF OVER-LEVERAGED BORROWINGS
Authors: Jai Setia
\|\| \|\|
Jai Setia The Shri Ram Millennium School Noida
MLA 8 Setia, Jai. "THE MONEY LAUNDERING SCAM INITIATED BY DEWAN HOUSING FINANCE CORPORATION LIMITED (DHFL) AND YES BANK: AN EXPLORATORY ANALYSIS OF OVER-LEVERAGED BORROWINGS." Int. j. of Social Science and Economic Research, vol. 8, no. 10, Oct. 2023, pp. 3071-3085, doi.org/10.46609/IJSSER.2023.v08i10.004. Accessed Oct. 2023. APA 6 Setia, J. (2023, October). THE MONEY LAUNDERING SCAM INITIATED BY DEWAN HOUSING FINANCE CORPORATION LIMITED (DHFL) AND YES BANK: AN EXPLORATORY ANALYSIS OF OVER-LEVERAGED BORROWINGS. Int. j. of Social Science and Economic Research, 8(10), 3071-3085. Retrieved from https://doi.org/10.46609/IJSSER.2023.v08i10.004 Chicago Setia, Jai. "THE MONEY LAUNDERING SCAM INITIATED BY DEWAN HOUSING FINANCE CORPORATION LIMITED (DHFL) AND YES BANK: AN EXPLORATORY ANALYSIS OF OVER-LEVERAGED BORROWINGS." Int. j. of Social Science and Economic Research 8, no. 10 (October 2023), 3071-3085. Accessed October, 2023. https://doi.org/10.46609/IJSSER.2023.v08i10.004.
References [1]. Basudha Das, “DHFL fraud: The Wadhawan brothers, a multi-crore scam and ongoing cases” Business Today, 29th August 2023. https://www.businesstoday.in/latest/corporate/story/dhfl-fraud-the-wadhawan-brothers-a-multi-crore-scam-and-ongoing-cases-396126-2023-08-29 [2]. "Dewan Housing Finance Corporation History”, The Economic Times, 5th September 2023. https://economictimes.indiatimes.com/dewan-housing-finance-corporation-ltd/infocompanyhistory/companyid-12024.cms [3]. “DHFL scam: The family accused of the biggest banking fraud knows how to stay out of jail”, The Economic Times, 27th June 2022. https://economictimes.indiatimes.com//industry/banking/finance/banking/dhfl-scam-the-family-accused-of-the-biggest-banking-fraud-knows-how-to-stay-out-of-jail/articleshow/92467586.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst [4]. “Piramal Capital to sell DHFL bad loan portfolio of Rs 5,500 crore”, India Infoline News Service, 10 Mar, 2023. https://www.indiainfoline.com/article/news-top-story/piramal-capital-to-sell-dhfl-bad-loan-portfolio-of-rs-crore-1678424956968_1.html [5]. “Press Release: Anatomy Of India’s Biggest Financial Scam Pulled Off By Dewan Housing Finance Corporation”, Cobrapost, 29th January 2019. https://cobrapost.com/blog/press-realise-dhfl-l/1374 [6]. Sheersh Kapoor, “Yes Bank-DHFL case timeline: When and how it happened, BFSI News, ET BFSI, 25th March 2022. https://bfsi.economictimes.indiatimes.com/news/industry/yes-bank-dhfl-case-timeline-when-and-how-it-happened/90425996 [7]. “Supersession of the Board of Directors and Appointment of Administrator – Dewan Housing Finance Corporation Limited”, Reserve Bank of India - Press Releases, 20th November 2019. https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=48684 [8]. “Yes Bank-DHFL loan fraud case: HC allows trials in CBI, ED cases against Kapoor, Wadhawan by spl PMLA court”, The Indian Express, 24th February 2023. https://indianexpress.com/article/cities/mumbai/yes-bank-dhfl-loan-fraud-case-hchttps://indianexpress.com/article/cities/mumbai/yes-bank-dhfl-loan-fraud-case-hc-allows-trials-in-cbi-ed-cases-against-kapoor-wadhawan-by-spl-pmla-court-8463460/ [9]. “Yes Bank-DHFL scam: Court says nation is victim, denies bail to Pune-based realtor”, The Economic Times, 27th June 2023. https://economictimes.indiatimes.com//industry/services/property-/-cstruction/yes-bank-dhfl-scam-court-says-nation-is-victim-denies-bail-to-pune-based-realtor/articleshow/101313908.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
ABSTRACT: Dewan Housing Finance Corporation Ltd. (DHFL) was founded in 1984 in the state of Maharashtra, India by the Wadhawan family to facilitate access to cost-effective housing finance opportunities for the lower and middle-income strata residing in semi-urban and rural India. Till 2018, the firm was ranked amongst the distinguished performers in the housing finance industry in the nation. Yes Bank was founded in India in 2004 by Rana Kapoor and Ashok Kapur. In its initial years of expansion, Yes Bank experienced immense development. However, the bold and aggressive lending practices by the bank involved high risks and the bank’s loan book included diverse defaults including DHFL. This impetuous lending ultimately led to the Non-Performing Assets (NPA) tragedy and the RBI’s authorized moratorium for Yes Bank. This research paper provides a detailed analysis of an Indian investigative journalist company named Cobrapost which published an exposé in January 2019 indicting DHFL of exploiting more than INR 31,000 crore of public finances through diverse shell firms and siphoning private benefits primarily for the firm’s immediate stakeholders. The study further underscores the details of the famous fraudulent case between Yes Bank and DHFL, the Central Bureau of Investigation booking Rana Kapoor and the Wadhawan brothers on accusations of criminal conspiracy and defrauding under the Prevention of Money Laundering Act, 2002 and the associated negative consequences for the two business organizations. This banking forgery has been labeled as one of the biggest scams in the banking industry in the nation. So let's hop on to read the detailed case analysis.

IJSSER is Member of