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 Urban

13 Oct 2025

Recycling Leaders Push for Policy Reforms in India

As India prepares for the largest recycling-focused event in its history, industry leaders are making a strong case for policy reforms to unlock the country’s circular economy potential. Ahead of the Bharat Recycling Show (BRS) 2025, co-located with Plastics Recycling Show (PRS) India, a high-level panel discussion in Mumbai spotlighted the urgent need for regulatory clarity, digital innovation, and integration of the informal sector.Held under the theme “Unlocking Circular Value: Regulatory and Market Trends in Recycling”, the panel brought together prominent voices from across the recy..

Infrastructure Energy

13 Oct 2025

Environmental Hearing Set for 1000 MW Naying Hydro Project

The environmental public hearing for the 1,000 MW Naying hydroelectric project will take place on November 12 at Yapik community hall in Shi-Yomi district, Arunachal Pradesh, officials confirmed. The run-of-the-river project on the Siyom (Yomgo) river is being developed by the North Eastern Electric Power Corporation (NEEPCO). Construction, including a concrete dam, underground powerhouse, and tunnel, is expected to commence around 2028, with commissioning planned by 2032. The project aims to generate approximately 4,966.77 GWh of electricity. The Naying project received Central Electricity ..

Infrastructure Energy

13 Oct 2025

India Achieves 490 MWh Energy Storage Capacity by June 2025

India’s cumulative energy storage capacity reached 490 MWh by June 2025, according to data released by the Central Electricity Authority (CEA). Of this, more than 85 per cent is associated with renewable energy projects, primarily solar and wind, reflecting the country’s accelerated shift towards grid stability and clean energy integration. The CEA report highlights that 16 energy storage systems are currently operational across 10 states, with major installations in Rajasthan, Gujarat, Karnataka, and Maharashtra. These include both standalone and co-located battery systems deployed by le..