Breaking News | Ed Freezes ₹51.75 Crore ‘Proceeds of Crime’ In Dhfl Loan Fraud; Foreign Uk Property Trail Under Scanner
Hurtmore House in UK Linked to Alleged Money-Laundering Trail; ₹42,871-Crore DHFL Loan Fraud Probe Uncovers Structured Transactions to Settle Indian Liability
(By Syed Ali Taher Abedi)
New Delhi, August 28, 2026: In a significant development in the sprawling Dewan Housing Finance Corporation Ltd. (DHFL) loan fraud and money-laundering case, the Directorate of Enforcement (ED), Headquarters Investigation Unit, has frozen approximately US$ 5.41 million equivalent to around ₹51.75 crore lying in the bank account of M/s Al Jalore Trading FZE, describing the funds as Proceeds of Crime under the Prevention of Money Laundering Act (PMLA), 2002.
The action followed a search operation conducted on August 19, 2026, under Section 17 of the PMLA, as part of the agency’s continuing investigation into the alleged siphoning and laundering of funds arising from the massive DHFL loan fraud.
The ED investigation originates from an FIR registered by the CBI, AC-VI, New Delhi, following a complaint lodged by Union Bank of India on behalf of a consortium of 17 banks. According to the FIR, the accused, including Kapil Wadhawan and Dheeraj Wadhawan, allegedly entered into a criminal conspiracy to defraud the consortium of lenders that had sanctioned credit facilities aggregating approximately ₹42,871.42 crore to DHFL.
₹34,615-Crore Loss to Consortium Banks
The investigation has alleged that substantial portions of the loan funds were siphoned off and misappropriated through falsification and manipulation of DHFL’s books of accounts, allegedly causing a wrongful loss of approximately ₹34,615 crore to the consortium lenders.
The latest ED action has brought a foreign-asset trail into sharp focus, with investigators examining the alleged disposal of Hurtmore House in the United Kingdom, a property held in the name of Vanita Wadhawan, wife of Kapil Wadhawan.
UK Property Allegedly Used to Create Fictitious Liability
According to the ED investigation, the foreign asset was subjected to a series of transactions allegedly involving the creation of a fictitious liability in the name of Vanita Wadhawan.
A purported loan agreement was allegedly executed between M/s Al Jalore Trading FZE and Vanita Wadhawan, pursuant to which the UK property was mortgaged.
Investigators have alleged that the arrangement was structured to create an encumbrance over the foreign asset and facilitate the settlement of a liability in India allegedly arising from the DHFL loan fraud.
The property was subsequently sold in 2026, with the sale consideration allegedly directed to the Indian bank account of M/s Al Jalore Trading FZE, rather than being received by the registered owner of the property.
₹51.75 Crore Frozen Under PMLA
The ED has alleged that the sequence of transactions resulted in the dissipation, utilisation and disposal of proceeds of crime, involving a foreign immovable asset and an overseas entity, in a manner allegedly designed to facilitate the settlement of an Indian liability.
During the August 19 search operation, ED officials examined the bank account of M/s Al Jalore Trading FZE and found approximately US$ 5.41 million (₹51.75 crore) lying therein.
The amount was subsequently frozen under Section 17(1A) of the PMLA, 2002, on the basis that it represented alleged Proceeds of Crime connected with the money-laundering investigation.
Incriminating Records Seized
Apart from freezing the funds, the ED also seized and impounded incriminating documents, records and material relating to the transactions and assets under investigation during the search proceedings.
The latest action marks another significant step in the agency’s continuing probe into the alleged diversion and laundering of funds in the DHFL case, particularly the manner in which assets located outside India were allegedly dealt with in connection with liabilities arising from the underlying loan fraud.
The ED has stated that further investigation is underway, indicating that the financial trail and the role of other persons and entities involved in the transactions remain under examination.
The freezing of ₹51.75 crore under the PMLA assumes particular significance as investigators continue to trace the alleged movement, layering and utilisation of proceeds said to have originated from the massive DHFL loan fraud.
