DHFL loan scam: ED seizes foreign property proceeds worth ₹51.75 crore

The Enforcement Directorate has moved to confiscate assets amounting to ₹51.75 crore that are believed to be the proceeds of a fraudulent loan scheme involving Diwan Housing Finance Corporation Ltd (DHFL). This action follows a search operation on 19 August, conducted under the Prevention of Money Laundering Act, 2002.

During the raid, investigators uncovered a bank balance of about $5.41 million (≈₹51.75 crore) in the account of Al Jalor Trading FZE, a company that allegedly functioned as a front for moving the illicit money. The ED has classified the balance as proceeds of crime and frozen it per Section 17(1A) of the PMLA.

The agency’s findings point to a UK property – owned on paper by Vanita Vadhawan, wife of DHFL promoter Kapil Vadhawan – being used to fabricate a loan agreement with Al Jalor Trading FZE. The property was allegedly pledged as security, sold in 2026, and the sale amount was funneled into the Indian bank account of Al Jalor Trading FZE instead of the actual owner’s account.

Officials say the transaction was a calculated move to convert foreign‑held assets into Indian rupees to cover the massive liabilities created by the alleged DHFL loan fraud, which has caused a loss of about ₹34,615 crore to a consortium of 17 banks.