ED freezes ₹51.75 crore in DHFL's ₹34,615 crore bank fraud probe
Synopsis
The ED has frozen ₹51.75 crore traced through a UK property called Hurtmore House and an offshore entity — part of a structured scheme allegedly used to settle Indian liabilities from DHFL's ₹34,615 crore bank fraud. The cross-border money trail, involving Kapil Wadhawan's wife and a UAE-based trading firm, signals how deep and layered the asset-dissipation network reportedly runs.
Key Takeaways
The Enforcement Directorate froze ₹51.75 crore ($5.41 million) from the account of M/s Al Jalore Trading FZE on 28 August under Section 17(1A) of PMLA, 2002 .
The freeze followed a search operation against DHFL conducted on 19 August .
A UK property — Hurtmore House — held by Vanita Wadhawan , wife of accused promoter Kapil Wadhawan , was allegedly mortgaged through a fictitious loan agreement and sold in 2026 , with proceeds routed offshore.
The underlying fraud involves a wrongful loss of approximately ₹34,615 crore to a consortium of 17 banks , with credit facilities of ₹42,871.42 crore sanctioned to DHFL.
The ED's investigation was triggered by a CBI FIR filed on a complaint from Union Bank of India ; further investigation is ongoing.
The Enforcement Directorate (ED) has frozen a bank deposit of approximately $5.41 million (₹51.75 crore) as proceeds of crime in connection with its ongoing money-laundering investigation into the ₹34,615 crore bank loan fraud attributed to Dewan Housing Finance Corporation Ltd (DHFL) and its promoters, according to an official statement issued on Friday, 28 August.
How the Freeze Was Triggered
The action followed a search operation conducted against DHFL on 19 August under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. During the search, the ED examined the bank account of M/s Al Jalore Trading FZE and found approximately $5.41 million in the account, which investigators determined represented proceeds of crime. The amount was frozen under Section 17(1A) of the PMLA, 2002. Incriminating documents and records related to the transactions under investigation were also seized.
The UK Property at the Centre of the Trail
Investigators say the money trail leads through a foreign property — Hurtmore House in the United Kingdom — held in the name of Vanita Wadhawan, wife of Kapil Wadhawan, one of the accused promoters. According to the ED, a purported loan agreement was executed between M/s Al Jalore Trading FZE and Vanita Wadhawan, and the UK property was mortgaged against this arrangement, which investigators describe as a fictitious liability created in her name.
The property was subsequently sold in 2026, but the sale proceeds were directed to the Indian bank account of M/s Al Jalore Trading FZE rather than to Vanita Wadhawan as the registered owner. The ED contends that this transaction constituted dissipation of proceeds of crime and was structured to settle an Indian liability — arising from the DHFL loan fraud — through a layered arrangement involving a foreign asset and offshore entities.
The Underlying Fraud: ₹34,615 Crore Loss to 17 Banks
The ED's investigation was initiated on the basis of an FIR registered by the Central Bureau of Investigation (CBI), AC-VI, New Delhi, following a complaint filed by Union Bank of India on behalf of a consortium of 17 banks. The FIR alleges that Kapil Wadhawan and Dheeraj Wadhawan entered into a criminal conspiracy to defraud the consortium, which had sanctioned credit facilities aggregating to ₹42,871.42 crore to DHFL.
According to investigators, loan funds were siphoned off and misappropriated through falsification of DHFL's books of accounts, resulting in a wrongful loss of approximately ₹34,615 crore to the consortium lenders. This is one of the largest bank fraud cases in India's financial history, and the ED's asset-recovery actions have been ongoing across multiple jurisdictions.
Investigation Status and What Comes Next
The ED confirmed that further investigation in the case is still in progress. The latest freeze brings the agency's recovery and attachment actions in the DHFL case to a new milestone, as investigators continue to trace assets — both domestic and overseas — allegedly linked to the fraud. Legal proceedings under the PMLA are expected to advance as the probe widens.
Point of View
Involving a UAE-registered trading entity and a fictitious mortgage, illustrates how sophisticated the alleged layering was. What the ED has frozen is a fraction of the ₹34,615 crore loss; the real question is how much of the siphoned capital has been permanently moved beyond reach. India's PMLA machinery has improved in speed, but international asset recovery — especially from jurisdictions like the UK — remains slow and treaty-dependent. The pace of judicial proceedings will determine whether this becomes a genuine deterrent or another cautionary tale of partial recovery.
NationPress
28 Aug 2026
Frequently Asked Questions
What has the ED frozen in the DHFL case?
The ED has frozen a bank deposit of approximately $5.41 million (₹51.75 crore) held in the account of M/s Al Jalore Trading FZE, identified as proceeds of crime in the DHFL money-laundering investigation. The freeze was made under Section 17(1A) of the Prevention of Money Laundering Act, 2002.
What is the DHFL bank fraud case?
The DHFL case involves an alleged criminal conspiracy by promoters Kapil Wadhawan and Dheeraj Wadhawan to defraud a consortium of 17 banks that had sanctioned credit facilities of ₹42,871.42 crore to Dewan Housing Finance Corporation Ltd (DHFL). Investigators say loan funds were siphoned through falsified accounts, causing a loss of approximately ₹34,615 crore to the lenders.
What is the role of Hurtmore House in the UK in this case?
Hurtmore House is a UK property held in the name of Vanita Wadhawan, wife of accused promoter Kapil Wadhawan. According to the ED, it was mortgaged through a fictitious loan agreement with M/s Al Jalore Trading FZE, then sold in 2026 with proceeds routed to the trading firm's Indian bank account rather than to the registered owner — allegedly to settle Indian liabilities arising from the DHFL fraud.
Who filed the original complaint that led to the ED investigation?
Union Bank of India filed the original complaint on behalf of a consortium of 17 banks. The CBI registered an FIR based on this complaint, and the ED subsequently launched its money-laundering investigation under the PMLA.
What is the current status of the DHFL investigation?
The ED has confirmed that further investigation in the case is still in progress. The latest asset freeze follows a search operation conducted on 19 August, and legal proceedings under the PMLA are expected to continue as the probe widens across domestic and overseas assets.
