Funding in costly artworks and valuables appears to have emerged as a favorite possibility for businessmen trying to divert proceeds of financial institution mortgage scams, the newest instance being the ₹34,615-crore case in opposition to Dewan Housing Finance Company Restricted (DHFL) and its promoters.
The Central Bureau of Investigation (CBI) has discovered that the 2 principal accused within the case — then DHFL chairman-cum-managing director Kapil Wadhawan and director Dheeraj Wadhawan — had purchased not less than two work value almost ₹30 crore. They have been seized from the 15 th ground of co-accused Ajay Ramesh Nawandar’s property in Mumbai’s Andheri West on July 9.
Subsequently, the CBI arrested Mr. Nawandar on the suspicion that he together with others was attempting to eliminate the work and different luxurious gadgets on the occasion of the Wadhawan brothers. He’s at present in judicial custody. His bail utility was rejected by a particular courtroom on August 20.
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Because it seems, through the searches, the company had allegedly seized the 2 work other than ₹45 lakh in money and 25 costly watches from Mr. Nawandar’s premises. A probe revealed that the work have been purchased by means of an entity named JVPD One Builder from Asta Guru Public sale Home Non-public Restricted in 2013, in line with the company.
The company alleges that the work have been acquired from the proceeds of defrauded mortgage quantities taken from a consortium of 17 banks led by the Union Financial institution of India. Additionally, funds for this buy had been diverted by DHFL to JVPD by means of firms operated by DHFL named Creatoz Builders Non-public Restricted and RKW Builders Non-public Restricted.
The CBI submitted within the courtroom that as proceedings for the attachment of belongings of Mr. Kapil Wadhawan have been beneath approach, Mr. Nawandar stored them [paintings, watches, etc.,] to be able to stop them from being hooked up and was trying to eliminate the gadgets. The company, whereas investigating its greatest ever financial institution fraud case, additionally got here throughout proof indicating that he had acquired ₹1.30 crore from Mr. Dheeraj Wadhawan.
One other outstanding case wherein probe companies had seized work and opulent gadgets was the one in opposition to fugitive Nirav Modi, his uncle Mehul Choksi and others. The accused individuals cheated the Punjab Nationwide Financial institution of about ₹13,578 crore. After the alleged rip-off was unearthed, the Enforcement Directorate and the Earnings-Tax Division performed searches that led to seizure of numerous invaluable belongings.
In March 2020, the ED auctioned 15 work linked to Mr. Modi and his spouse Ami Modi. They included Amrita Sher-Gil’s Boys with Lemons (1935), which fetched ₹15.68 crore; M.F. Husain’s Battle of Ganga and Jamuna: Mahabharata 12, which have been bought for ₹13.44 crore; a Raja Ravi Varma’s work (₹2.8 crore); a V.S. Gaitonde’s portray (₹9.52 crore); and Manjit Bawa’s Untitled (₹6.16 crore).
Additionally auctioned have been vehicles, sculptures, branded watches and luggage. A complete of over ₹53 crore was raised from the public sale.
The Earnings-Tax Division, which had seized 173 work and different valuables from premises linked to Mr. Modi in February 2018, additionally auctioned 55 gadgets for about ₹55 crore in March 2019. They included a portray by V.S. Gaitonde (₹25.24 crore) and Raja Ravi Varma (₹16.1 crore).