In its third charge sheet filed against real estate developer Sanjay Chhabariaa the Central Bureau of Investigation has listed how Kapil Wadhawan, chairman and managing director of Dewan Housing Finance Corporation Limited (DHFL), cleared at least 8 proposals worth ₹516 crore within minutes without any due diligence. Between January 18, 2018 and May 17, 2018 Wadhawan approved loans worth ₹416 crore to Radius Estates and Developers and another ₹100 crore to Radius Estate Projects of which ₹416 crore was released to Chhabariaa’s companies within a day of the approvals. Both, Chhabariaa who is the promoter of Radius Group and DHFL’s Wadhawan are at present in judicial custody in Mumbai, awaiting trial. “Investigation has established that accused Kapil Wadhawan had developed a practice at DHFL wherein he used to permit disbursement of loans/ fund to several entities by according approval on mails, without any appraisal and Credit Process Notes,” said the supplementary charge-sheet filed by CBI against Chhabariaa on June 25. In such cases, approvals for disbursements were conveyed by Shri Kapil Wadhawan himself or by his office and based on that approval, funds were disbursed to the parties concerned by the junior officers in Project Finance Division of DHFL, notes the charge sheet. “In the case of disbursements made to Radius Estates and Developers Pvt. Ltd. and Radius Estate Projects Pvt. Ltd, no appraisal was done by the Project Finance Division nor any Credit Process Notes were submitted. These loans were also not put up nor approved in any Finance Committee Meetings,” the charge sheet elaborates and lists the following 8 disbursals:
₹180 crore in 22 minutes
On January 18, 2018, Quaiser Parvez of Radius Estates & Developers Pvt Ltd (REDPL) approached DHFL’s Project Finance Division and sought urgent sanction of ₹180 Crore as a mortgage loan against 49 Units in Project X BKC, aggregating to 61,444 Sq. Feet, built up area and valued at ₹250 crores approximately. Wadhawan, asked his head of finance division, Rajendra Mirashie, to send him a mail seeking his approval for sanction and disbursal. Mirashie forwarded a mail at 12.24 pm for sanction of ₹180 crores as a Mortgage Loan to M/s Radius Estates & Developers and also for disbursement of ₹80 crores out of the said amount. “The request was approved by Kapil Wadhawan and approval was conveyed to Project Finance Division vide mail sent by [email protected] sent at 12.46 hours of 18.01.2022 itself i.e. within 22 minutes. Based on the said approval, the amount of ₹80 crores was disbursed on 18.01.2022 itself without any further documentation. No security was created for the said loan even though mortgage of 49 units was promised,” the CBI notes.
₹35 crore in 3 minutes
A week later, on January 25, 2018, M/s REDPL again sought disbursal of ₹35 crores against mortgage of the same 49 units in Project X BKC. Once again Rajendra Mirashie forwarded the request to [email protected] vide mail sent at 09.23 hrs. and within 03 minutes Kapil Wadhawan approved the request and conveyed the same to Mirashie vide mail sent at 09.26 hrs. Based on the said approval disbursement of ₹35 crores was made on 25.01.2022 itself.
₹64 crore in 24 hours
CBI’s investigation also revealed that ₹64 crores was approved and disbursed on February 9, 2018 by Kapil Wadhawan vide mail. No process note was prepared, no appraisal was conducted and neither was any note put up to the finance committee for the disbursal. There were no mortgage papers created for those 49 units at project X, BKC, states the charge sheet. ₹25 crore in 60 minutes The same month, on February 28, 2018, Sanjay Chhabariaa / REDPL again requested for enhancement of the loan limit from ₹180 crores to ₹220 crores, seeking immediate disbursal of ₹25 crores. The request was referred by Rajendra Mirashie to [email protected] (Wadhawan’s official email) at 13.35 hrs. The approval of the CMD was conveyed after about an hour on the same email. The money was given to Chhabariaa the same day, and once again, no mortgage papers were created for the 49 units in the project
₹12 crore on oral approval
CBI further states that vide mails dated March 21, 2018, Rajendra Mirashie referred a request for a further disbursement of ₹12 crores from the previously approved limit of Rs. 220 crores and was orally instructed by Wadhawan to disburse the said amount. This ₹12 crore was given to Chhabariaa the next day.
₹70 crore in 6 minutes
On March 29, 2018, Chhabariaa’s company REDPL sought an additional sanction and disbursement of ₹70 crores. The request was forwarded to Kapil Wadhawan vide a mail sent at 12.49 hrs. and in response, vide mail dated 29.03.2018 sent at 12.55 hrs. i.e. within 6 minutes, Kapil Wadhawan’s approval was conveyed to Ms Radius Estates for the same X BKC project. Based on the said approval, disbursement was made on the same day. The mortgage of the 49 units in the project at X BKC was once again not created.
₹30 crore in 24 hours
The CBI charge sheet lists another instance on April 9, 2018, when REDPL sought additional sanction of ₹320 crores and disbursement of ₹30 crores. This request was also sent to the CMD and in response and vide mail of the next day Wadhawan’s approval was conveyed, and the money was given to REDPL on April 10.
₹100 crore without project details
On May 17, 2018, Radius Estate Projects Pvt Ltd sought sanction and disbursement of an additional ₹100 crores. The said request was also referred to Kapil Wadhawan, and following his approval, the amount was given the following day. The column for details of primary security merely states: ‘shall be provided in due course of time’. The loan proposal was incomplete and did not provide details of the project for which the loan was being availed. While the mention of mortgaging 49 units in BKC X comes up repeatedly in loan requests to DHFL, Radius group employee Quaiser Parvez has told CBI that all units available with the Radius Group in the project were already mortgaged to other lenders and were never available as mortgage for DHFL.
In its investigation the Enforcement Directorate has found links between Sanjay Chhabariaa, Kapil Wadhawan and Yes Bank promoter Rana Kapoor and explains the link as follows: Yes Bank invested 3,983 crore in short term non-convertible debentures or “Masala Bonds” of DHFL between April and June 2018. The bank subsequently also sanctioned a term loan of 750 crore to a DHFL group firm. In return, the agencies claim, the then Yes Bank MD and CEO Rana Kapoor received a kick-back of 600 crore from DHFL in the form of a loan to his family firm, Do It Urban Ventures (India) Pvt Ltd.
The Enforcement Directorate on July 6 had claimed that immediately after the transfer of 2,700 Crore by Yes Bank to DHFL in the garb of subscription for non-convertible debentures in the first week of June 2018, DHFL sanctioned two loans of 1,100 Crore and 9,00 Crore respectively to two Radius Group firms – M/s Radius Estate Projects Pvt Ltd. (REPPL) and Sumer Radius Realty Pvt. Ltd. (SRPPL) respectively.