Tag: cbi

In its complaint, the lead bank has affixed the findings of audit firm, KPMG engaged by the consortium which has prima facie found, “deviation of laid down norms and procedures, manipulation of accounts, concealments, undisclosed bank accounts and misrepresentation”.

While the CBI is probing the promoters: Kapil and Dheeraj Wadhawan in the Yes Bank scam, sources said even while prima facie there is a case of fraud of loss of public money, the federal agency cannot register a fresh FIR for the want of general consent which needs to be accord by the Maharashtra government. In August last year in the aftermath of the probe into the manipulation of television rating points (TRP), the state government withdrew consent to the agency accorded to the CBI under Section 6 of the Delhi Special Police Establishment Act. A general consent is a must for the CBI to register an offence in the state, in its
absence, the federal agency has to approach the state government on a case to case basis seeking permission to conduct investigation.

Maharashtra is not the only state to withdraw consent, claiming vendetta by the centre, even other non-NDA states mainly West Bengal, Chhattisgarh, Kerala, Rajasthan and Punjab in the last one year have withdrawn general consent.

“Communication and representation has been made to the state government but consent hasn’t been accorded. The loss caused to public money is over Rs 40,000 crores and prima facie there is fraud committed by the promoter and the erstwhile management which requires to be investigated thoroughly,” said a senior official privy to the development.

Union Bank of India was not immediately available for comment.

The special audit report prepared by KPMG against the erstwhile management has found DHFL disbursed loans and advances totalling to Rs19,754 crores to 35 entities with commonalities to DHFL promoter. “…of these 25 entities had reported minimal operations and were disbursed loans and issued ICDs amounting to Rs14.632”. This number reached to 66 in the subsequent report submitted by KPMG. “Various emails evidencing that DHFL promoters were in control of multiple entities to the extent of appointment of directors and auditors, having income tax notices, maintenance of secretarial records of various companies”.

It also found that loans and advances to the tune of Rs 25,595 crores were disbursed to 65 entities having various deficiencies such as borrowers had minimal operations, inadequate loan documentation, mortgage security valuation and others, states the report accessed by ET reads. The audit also observed that repayments of 169 entities of Rs 5,476 crores could not be traced in DHFL’s bank account statements.

It also found a “Bandra Book entity”, that maintained the details of non-existing retail loans using dummy names which were maintained in a separate accounting system and then transferred to main accounting software of DHFL called Synergy. Rs 14,095.08 crores stated as project finance was prima facie falsely stated as retail loans and 1.81,664 fictions retail loan accounts were created for the same, the report states.