CBI lodges FIR against DHFL for fake PMAY subsidy claims

25 Mar 2021 Editorial Team

The irregularities were pointed out in the report of auditor Grant Thornton, appointed by the present board of the scam-hit DHFL, officials told the media.

Promoters Kapil and Dheeraj Wadhawan, both booked along with DHFL, allegedly opened a fictitious branch of the DHFL in Bandra and fake accounts worth Rs 14,046 crore of home-loan borrowers, who had already repaid their loans, were entered in the database, the officials said.

A total of 2.60 lakh ‘fake and fictitious’ home-loan accounts were created in the non-existent branch from 2007-19 for a total loan worth Rs 14,046 crore, out of which Rs 11,755.79 crore were deposited or routed to several fictitious firms known as Bandra Book firms, according to the FIR.

Several of these fake loan accounts were allegedly opened in the Pradhan Mantri Awas Yojana (PMAY) to claim interest subsidies from the National Housing Bank in connivance with its officials.

DHFL had granted 88,651 cases under the PMAY till December 2018, and it received an interest subsidy of Rs 539.40 crore, while it has to receive Rs 1,347.80 crore from the government.

As we have reported earlier, DHFL has been in financial trouble. Also known as the shadow bank, is a non-banking financial company. It does not have a banking licence or access to Reserve Bank of India (RBI) liquidity. However, the company is still involved in financial services, primarily giving out loans to home buyers in Tier 2 and Tier 3 cities in the country.

In September 2018, the IL&FS crisis emerged, and the DHFL stocks took a hammering. The stocks were affected by 60%. Also, DHFL was alleged by a media source that they had been involved in a scam of Rs 31,000 crore.

On June 4, the company was unable to pay Rs 900 crore worth of interest, which led the rating agencies to downgrade all of its commercial papers.

Image Source

The CBI has booked non-banking financial company Dewan Housing Finance Corporation (DHFL) for allegedly creating over 2.60 lakh fictitious home-loan accounts, some of which were used to claim interest subsidies in the Pradhan Mantri Awas Yojana (PMAY). The irregularities were pointed out in the report of auditor Grant Thornton, appointed by the present board of the scam-hit DHFL, officials told the media. Promoters Kapil and Dheeraj Wadhawan, both booked along with DHFL, allegedly opened a fictitious branch of the DHFL in Bandra and fake accounts worth Rs 14,046 crore of home-loan borrowers, who had already repaid their loans, were entered in the database, the officials said. A total of 2.60 lakh ‘fake and fictitious’ home-loan accounts were created in the non-existent branch from 2007-19 for a total loan worth Rs 14,046 crore, out of which Rs 11,755.79 crore were deposited or routed to several fictitious firms known as Bandra Book firms, according to the FIR. Several of these fake loan accounts were allegedly opened in the Pradhan Mantri Awas Yojana (PMAY) to claim interest subsidies from the National Housing Bank in connivance with its officials. DHFL had granted 88,651 cases under the PMAY till December 2018, and it received an interest subsidy of Rs 539.40 crore, while it has to receive Rs 1,347.80 crore from the government. As we have reported earlier, DHFL has been in financial trouble. Also known as the shadow bank, is a non-banking financial company. It does not have a banking licence or access to Reserve Bank of India (RBI) liquidity. However, the company is still involved in financial services, primarily giving out loans to home buyers in Tier 2 and Tier 3 cities in the country. In September 2018, the IL&FS crisis emerged, and the DHFL stocks took a hammering. The stocks were affected by 60%. Also, DHFL was alleged by a media source that they had been involved in a scam of Rs 31,000 crore. On June 4, the company was unable to pay Rs 900 crore worth of interest, which led the rating agencies to downgrade all of its commercial papers. Image Source

Infrastructure Transport

16 Sep 2025

Metro Line 2B Phase 1 to Boost Realty in Mumbai’s Eastern Suburbs

Mumbai’s real estate sector is set for a major boost as Phase 1 of Metro Line 2B, between Mandale and Diamond Garden, nears completion. The Mumbai Metropolitan Region Development Authority (MMRDA) has confirmed that mandatory rectifications are done, and inspections by the Commissioner of Metro Railway Safety (CMRS) have been carried out. The 5.39-km stretch with five stations forms part of the larger DN Nagar–Mandale corridor, designed to ease congestion and improve east–west connectivity. Passenger operations are expected by December 2025, with the full line slated for 2027. ..

Resources

16 Sep 2025

WattPower wins Best Inverter award at Global Solar Expo 2025

WattPower, a leading renewable energy solutions provider, has won the award for “Best Inverter in the Utility Segment” at the Global Solar Expo 2025. The recognition underscores the company’s commitment to delivering reliable, high-performance and future-ready solar solutions for large-scale projects. At the forefront of utility-scale solar, WattPower manufactures advanced string inverters that directly feed power into the Indian grid. With robust technology, high-quality components and comprehensive product lifecycle support, its solutions stand among the most sophisticated in the ..

Real Estate

16 Sep 2025

Awfis delivers 67,000 sq. ft. innovation hub for eBay in Bengaluru

Awfis Space Solutions, India’s largest flexible workspace provider and the first publicly listed workspace solutions platform, has partnered with eBay to establish a 67,000 sq. ft. innovation hub at Embassy Tech Village, Bengaluru. The mandate covers design, build and management of the new office, which will act as a strategic hub supporting diverse functions and accelerating eBay’s AI-first commerce strategy. The centre will focus on artificial intelligence, engineering, product development and applied research, strengthening eBay’s growth in India. Embassy Tech Village, North Beng..