The Central Bureau of Investigation (CBI) has found expensive watches and artworks during further searches in the ongoing investigation of “a case related to alleged loss of Rs 34,615 crore (approx.) to a consortium of 17 Banks led by Union Bank of India”.The investigative agency did not name the group but details of the case point toward DHFL and Wadhwans. Last month, CBI registered an FIR against the Wadhawan brothers and others for allegedly defrauding 17 banks of Rs 34,615 crore – the biggest banking fraud in India so far. The agency said it recovered two paintings made by FN Souza (1964) and another one by SH Raza (1956) worth Rs 5.50 crore; two watches of Jacob & Co & Frank Muller Geneve worth Rs 5 crore and Gold & Diamond Jewellery including Bangles & Necklace worth Rs 2 crore (approx). It was also alleged that the promoters had acquired expensive items using the diverted funds.
During the investigation, the CMD & the then Director, both of private companies based at Mumbai were arrested and both are presently in CBI custody. Last week, the agency brought DHFL directors Kapil Wadhawan and Dheeraj Wadhawan to Delhi for a hearing in connection with the case.A case was registered on June 20 on a complaint from Union Bank of India, Industrial Finance Branch, Mumbai against private (Borrower) company based at Mumbai, its then CMD, then Director and others including a private person, private companies, unknown public servant(s) & private persons on the allegations that the accused cheated a consortium of 17 banks led by Union Bank of India to the tune of Rs 34,615 crore (approx.) by siphoning off loans availed from the said banks & falsifying the books of said private (Borrower) company and creating shell companies, false entities, which had come to be known as “Bandra Book Entities”.It was alleged that the said private company and its promoters had created a number of shell companies and fictitious entities (the Bandra Book entities) and siphoned off huge funds by disbursing funds to such fictitious entities. It was further alleged that separate audits conducted by other private audit accounting organisations had identified multiple instances of diversion of funds by the accused for personal benefits and falsification of books of accounts to camouflage & conceal dubious transactions.