ED attaches Rs 578 cr worth UK assets of Wadhawan brothers

 The Enforcement Directorate (ED) on Tuesday said it has attached assets worth ₹ 578 crore of a UK-based company owned by former DHFL promoters Kapil Wadhawan and his brother Dheeraj in connection with the UPPCL money laundering probe against them and others.

The attached properties "are in the form of investment made by the Wadhawans through WGC-UK in United Kingdom-based companies" and a provisional order has been issued under the Prevention of Money Laundering Act (PMLA).

The value of the assets GBP (British pounds) 57 million or ₹ 578 crore, it said in a statement.

The Wadhawan siblings are at present in jail in connection with the Yes Bank alleged loan fraud money laundering case.

The latest ED case against the Wadhawans is based on an FIR filed by Lucknow Police against some officials of Uttar Pradesh Power Corporation Ltd (UPPCL) for "illegal investment" of general provident fund (GPF) and central provident fund (CPF) of the employees of the power company into Dewan Housing Finance Limited (DHFL) "in violation" of the government notification and directives.

"DHFL in connivance with UPPCL officials had illegally received ₹ 4,122.70 crore of GPF and CPF funds of UPPCL's employees in fixed deposit in DHFL."

"Out of this total investment, ₹ 2,267.90 crore of principal amount of provident fund (GPF+CPF) of UPPCL is still outstanding to be paid by DHFL," the ED claimed.

These "illegal investments" had been received by the DHFL during the period when DHFL was engaged into disbursement of high-value loans to its promoter related companies.

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