The Headquarters Investigation Unit of the Directorate of Enforcement (ED) conducted search operations on August 19, 2026, under the Prevention of Money Laundering Act (PMLA), 2002, in connection with the ongoing money laundering investigation arising from a loan fraud committed by M/s Dewan Housing Finance Corporation Limited (DHFL) and its promoters. During the search operations, the bank account of M/s Al Jalor Trading FZE was examined, and a sum of approximately USD 5.41 million (around ₹51.75 crore)—identified as proceeds of crime—available in the said entity’s account was frozen. Documents and records indicating the offense and related to the transactions under investigation were also seized/recovered during the search operations. Further investigation is underway.
The Enforcement Directorate (ED), Headquarters Investigation Unit conducted a search operation on 19.08.2026 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 in connection with the ongoing investigation into money laundering arising out of loan fraud committed by M/s Dewan Housing Finance Corporation Limited (DHFL) and its promoters.
The Enforcement Directorate initiated the investigation based on an FIR registered by the CBI, AC-VI, New Delhi, pursuant to a complaint filed by Union Bank of India on behalf of a consortium of 17 banks. The FIR states that the accused persons, including Kapil Wadhawan and Dheeraj Wadhawan, entered into a criminal conspiracy to defraud the consortium banks, which had sanctioned loan facilities totaling ₹42,871.42 crore to DHFL. The loan proceeds were diverted and misappropriated through falsification of DHFL’s books of accounts, resulting in wrongful loss of approximately ₹34,615 crore to the consortium lenders.
The investigation revealed that a foreign asset located in the United Kingdom, namely Hurtmore House, held in the name of Kapil Wadhawan’s wife, Vanita Wadhawan, was disposed of through a series of transactions by creating a fictitious liability in her name. A purported loan agreement was executed between M/s Al Jalore Trading FZE and Vanita Wadhawan, pursuant to which the said UK property was mortgaged. The investigation also revealed that this arrangement was used to create a charge on the said foreign asset for the purpose of settling the India-based liability arising from the DHFL loan fraud.
The said property was subsequently sold in 2026, and the sale proceeds were remitted to the bank account of M/s Al Jalore Trading FZE, maintained in India, instead of being received by the registered owner, Vanita Wadhawan. Thus, the said transaction involved laundering the proceeds of crime, utilizing the foreign asset, and disposing of the liability arising in India through a structured transaction involving foreign assets and entities.
During the search operation, the bank account of M/s Al Jalore Trading FZE was examined, and an amount of approximately US$ 5.41 million (approximately ₹51.75 crore), which was proceeds of crime, held in the account of the said entity was frozen under Section 17(1A) of the PMLA, 2002. Other incriminating documents and records relating to the transactions and assets under investigation were also seized/seized during the search operation. Further investigation is ongoing.
