The ED raids were in relation to a case money laundering in a land deal involving drug lord Iqbal Mirchi
DHFL is under scanner for giving loans to a real estate firm — Sunblink Real Estate. This real estate firm has links with Mirchi
The Enforcement Directorate (ED) on Saturday conducted searches at 14 premises of Dewan Housing Finance Ltd and its associated firms. The searches were in relation to a case money laundering in a land deal involving drug lord Iqbal Mirchi, said an ED official.
A spokesperson for DHFL was not immediately available for a response.
DHFL is under scanner for giving loans to a real estate firm — Sunblink Real Estate. This real estate firm has links with Mirchi.
"It is alleged that DHFL has given loans to the tune of ₹2,100 crore to Sunblink over a period of nine years. So far in the preliminary investigations DHFL has not been named. The searches are to ascertain the nature of the loans," said the ED official.
The non-banking finance company came under investigations when the probe agency was examining three properties linked to Mirchi. These properties were used to launder money and are proceeds of crime.
These properties have allegedly been purchased through loans availed from DHFL by Sunblink.
"These three properties may be attached soon," ED official said.
In addition to these three properties, properties owned by Mirchi in Worli's Ceejay House is also under probe. The transactions pertain to Millennium’s redevelopment of 15-storey commercial building Ceejay House in Worli, Mumbai. Mirchi’s family was allocated two floors in the redeveloped building admeasuring 14,000 square feet. Senior NCP leader Praful Patel and his wife are majority shareholders in Millennium.
Patel was quizzed on Friday for 12 hours by the ED to require about financial transactions between Millennium and Mirchi's wife Hazra Menon.
While a spokesperson for DHFL did not reply to Mint queries on Friday it had written to bourses clarifying the said transaction.
“The dues of Rs. 2186 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," said DHFL in disclosure to stock exchanges.
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