Dewan Housing Finance Corporation Ltd (DHFL) loaned a total Rs 2,186 crore to firms allegedly linked to its own promoters, including Sunblink Real Estate Pvt Ltd and its subsidiaries, the Enforcement Directorate (ED) has found. Investigators suspect the loaned money was subsequently diverted to firms directly or indirectly controlled by the promoters of DHFL.
Kapil Wadhawan and Dheeraj Wadhawan, popularly known as Baba Dewan, are the promoters of DHFL, a housing finance company that has a debt of Rs 1 lakh crore. One of the directors of Sunblink, Sunny Bathija, is the brother-in law of Dheeraj Wadhawan, sources familiar with the ED case said.
Sunblink is also under the scanner for a Rs 225-crore land deal in Mumbai involving Iqbal Memon aka Iqbal Mirchi, a trusted aide of Dawood Ibrahim, who died in London in 2013. The ED has alleged that about Rs 190 crore of the Rs 225 crore was paid to Mirchi through the hawala route.
On Saturday, the agency conducted searches at multiple locations connected to DHFL, its associate firms such as Dheeraj Realty, and the promoters in Mumbai.
DHFL has denied links to Sunblink Real Estate. In response to queries mailed by The Indian Express, it said: “DHFL in the normal course of its business has funded certain projects of various companies which were executed in and around Mumbai. The dues of Rs 2,186 crores comprise the principal amount and the interest payable on the principal sum. On account of certain corporate actions undertaken with/by Sunblink, as on date, Sunblink is mentioned as a borrower. The amounts were never lent to Sunblink as alleged in the media. The corporate actions have been only to enhance DHFL’s security cover and cash flow receivables on the lending.”
Sources said that a part of the Rs 2,186 crore-loan was invested in Faith Realtors Pvt Ltd, Marvel Township Pvt Ltd, Able Realty Pvt Ltd, Poseidon Realty Pvt Ltd, and Random Realtors Pvt Ltd, in the form of share capital.
Records accessed by The Indian Express show that on July, 23, 2019, Faith Realtors and Marvel Township merged with their holding company — Sunblink Real Estate.
One of the shareholders of Faith Realtors before its merger with Sunblink was Yardstick Developers Pvt Ltd, which is managed by Wadhawan Holdings Pvt Ltd from its office in Bandra East in Mumbai.
As per the latest financial disclosures of 2017-18, Faith Realtors has borrowed Rs 622.89 crore, while Marvel Township has taken loans worth Rs 585.79 crore. Poseidon Realty, Random Realty and Able Realty and have borrowed Rs 350.37 crore, Rs 316 crore and Rs 192.65 crore respectively as of March 2018. All these firms had zero revenue from operations in 2017-18.
Faith Realtors and Marvel reported losses of Rs 51.34 lakh and Rs 84.42 lakh respectively as of March 2018. Poseidon, Random, and Able made losses of Rs 51.66 lakh, Rs 62.54 lakh, and Rs 20.10 lakh respectively in the same period.
Dheeraj Wadhawan’s RKW Developers Pvt Ltd is a shareholder in Poseidon Realty, while Random Realty borrowed from RKW Developers. As of March 2018, Poseidon Realty and Marvel Township were among the shareholders of Able Realty.