The directorate of enforcement (ED) has frozen about ₹51.75 crore lying in the bank account of Al Jalore Trading FZE in connection with its money-laundering investigation into the alleged loan fraud involving Dewan Housing Finance Corporation Ltd (DHFL) and its promoters. The action was taken during search operations conducted on 19 August 2026 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
According to ED, the frozen amount of about US$5.41mn (million) represents proceeds of crime linked to the DHFL loan fraud. The agency also seized or impounded documents and records relating to transactions and assets under investigation.
The investigation stems from a first information report (FIR) registered by central bureau of investigation (CBI) following a complaint filed by Union Bank of India on behalf of a consortium of 17 banks.
The FIR alleges that accused persons, including DHFL promoters Kapil Wadhawan and Dheeraj Wadhawan, entered into a criminal conspiracy to cheat the consortium of banks that had sanctioned credit facilities aggregating to ₹42,871.42 crore to DHFL.
ED said its investigation has found that loan funds were allegedly siphoned off and misappropriated through falsification of DHFL's books of accounts. This resulted in a wrongful loss of about ₹34,615 crore to the consortium lenders, according to the agency.
A key aspect of the latest investigation concerns a foreign asset, Hurtmore House in the UK, held in the name of Vanita Wadhawan, wife of Kapil Wadhawan.
According to ED, the property was disposed through a series of transactions involving the creation of a fictitious liability in Vanita Wadhawan's name.
The agency said a purported loan agreement was executed between Al Jalore Trading FZE and Vanita Wadhawan, following which Hurtmore House was mortgaged.
The investigation has allegedly revealed that the arrangement was used to create an encumbrance on the foreign property to settle a liability in India arising from the DHFL loan fraud.
The property was subsequently sold in 2026. However, instead of the sale proceeds being received by Vanita Wadhawan, the registered owner of the property, the consideration was directed to the bank account of Al Jalore Trading FZE maintained in India, ED said.
The agency has described the transaction as involving the dissipation of proceeds of crime and the utilisation and disposal of a foreign asset through a structured arrangement involving foreign property and entities.
During the 19th August searches, ED officials examined the bank account of Al Jalore Trading FZE and found about US$5.41mn, equivalent to around ₹51.75 crore, lying in the account. The amount was frozen under Section 17(1A) of the PMLA, 2002.
ED said the funds represented proceeds of crime connected with the investigation. In addition to freezing the funds, the agency seized or impounded incriminating documents and records related to the transactions and assets under scrutiny.
Further investigation is in progress, ED said.
Supreme Court Directs Tarun Tejpal To Surrender within 2 Weeks
Ritwik Choudhury (Bar
and
Bench)
25 August 2026
The Supreme Court on Tuesday directed former Tehelka editor Tarun Tejpal, convicted in rape case, to surrender before jail authorities within two weeks.
The Court rejected Tejpal's application for exemption from surrendering, and...
₹2.60 Crore ‘Digital Arrest’ Fraud Leads ED to ₹27,850 Crore Money Trail Linked to 163 FIRs across India
Moneylife Digital Team
25 August 2026
The directorate of enforcement (ED) has arrested two persons in connection with a ‘digital arrest’ cyber-fraud case in Goa that has led investigators to an extensive money-laundering network whose bank accounts were allegedly used to...
Ex-DPIIT Chief Ramesh Abhishek Faces Fresh CBI Probe after Lokpal Flags Gaps in DA Investigation
Moneylife Digital Team
24 August 2026
Rejecting the findings of the central bureau of investigation (CBI) in the disproportionate assets (DA) case involving retired IAS officer and department for promotion of industry and internal trade (DPIIT)'s former secretary Ramesh...
32nd Avenue Group Case: ED Attaches ₹71.60 Crore Assets, Traces Funds to Goa and Maharashtra
Moneylife Digital Team
20 August 2026
The directorate of enforcement (ED) has provisionally attached properties and other assets worth ₹71.60 crore in the 32nd Avenue Group money laundering case, alleging an organised scheme in which investors were induced to purchase...
