Mumbai: Dheeraj Wadhawan, former promoter of Dewan Housing Finance Corporation Ltd (DHFL) and key accused in a ₹34,000-crore money laundering case, attempted to sell high-value artworks worth ₹31 crore while undergoing medical treatment under judicial custody, according to a recent Enforcement Directorate (ED) chargesheet.
The ED alleges that during his stay in a high-end Mumbai hospital in 2021–22, Wadhawan held multiple meetings with bookie Deepak Kapoor and controversial businessman Ajay Nawandar to negotiate the sale of two paintings—Tyeb Mehta’s Falling Bull and a work by Manjeet Bawa—both allegedly purchased using diverted DHFL funds. However, the plan was thwarted when the Central Bureau of Investigation (CBI) raided Nawandar’s residence and seized the artworks.
Dheeraj and his brother Kapil Wadhawan, along with others, face serious allegations including diversion of bank loans, fabrication of false retail loan records, circular fund transactions, and acquisition of personal assets using public money. DHFL had defaulted on loans worth ₹34,000 crore borrowed from a consortium of banks.
Despite their bank accounts being frozen after their arrest in connection with the Yes Bank case, the Wadhawans managed to liquidate high-value assets including jewellery and luxury watches to generate ₹5 crore in cash. Among the assets sold were two diamond bangles (₹75 lakh each), two loose diamonds (₹30 lakh), necklaces worth ₹1.5 crore and ₹60 lakh, a diamond kada worth ₹20 lakh, and two high-end watches valued at ₹90 lakh.
The chargesheet details extravagant spending by the Wadhawan family—including Kapil, Dheeraj, their mother Aruna, Kapil’s wife Vanita, Dheeraj’s wife Pooja, and Rebecca Dewan—who allegedly spent ₹175.3 crore on jewellery, watches, and other luxury items during 2019–20. The ED stated that public funds were not only used to support their opulent lifestyle but were also converted into cash for various personal uses. For instance, the family reportedly paid ₹26.9 crore to two Surat-based diamond firms, only to receive the amount back in cash after a 1% commission deduction.
In 2017–18, Kapil Wadhawan allegedly used company funds to purchase 13 artworks and one sculpture worth ₹63 crore from an auction house via shell companies. The ED said this was part of a broader strategy involving inflated books of accounts and thousands of fake home loans, designed to siphon off funds from a consortium of 29 banks (later reduced to 17).
The diverted funds were used to acquire various personal and commercial assets, including paintings, sculptures, gemstones, real estate, and a 20% stake in Varva Aviation. Auditors, legal consultants, relatives, and even bookies are believed to have played a role in the alleged fraud, causing substantial losses to the banks involved.
The ED chargesheet also names lawyer Ajay Vazirani—former independent director at DHFL—as an accused. Vazirani allegedly helped divert funds from DHFL into RKW Group companies and was involved in the illegal merger of 30 “Bandra Book entities” that had siphoned off ₹5,475.44 crore. He reportedly received ₹17.1 crore into personal and family bank accounts under the pretext of a sham property transaction involving RKW Developers.
Special Judge A.C. Daga recently took cognisance of the chargesheet, stating there is prima facie evidence of the generation and use of proceeds of crime, underscoring the scale and sophistication of the alleged financial misconduct.
