BROTHERS IN FRAUD

SEVENTEEN INDIAN BANKS WERE ALLEGEDLY DEFRAUDED OF Rs 34,615 CRORE BY DHFL, RUN BY THE WADHAWAN BROTHERS. IT'S ANOTHER SORRY CHAPTER IN THE ONGOING SAGA OF THE GREAT INDIAN BANK ROBBERY

- M.G. Arun

Not too long ago, brothers Kapil and Dheeraj Wadhawan, 49 and 44, respectively, and the promoters of the Mumbai-based NBFC (non-banking financial company) DHFL, were the toast of the Mumbai corporate circuit. Armed with an MBA degree from Edith Cowan University in Australia, Kapil had joined the family's real estate financing business, called Dewan Housing Finance Limited at the time, in 1997, and together with brother Dheeraj, oversaw a big turnaround in its fortunes. From sales revenues of roughly Rs 100 crore and profits of just Rs 16 crore when Kapil took over, the business grew to Rs 10,826 crore in revenues by 2016-17, with a net profit of Rs 2,896 crore. The brothers also expanded the business through a string of acquisitions and diversified it from a pure home loan company to a broader financial services firm that extended loans for education and to small and medium enterprises, and entered the life and general life insurance business, besides mutual funds. They also lived life kingsize, owning a private plane, a yacht and a fleet of luxury cars, including a Rolls Royce Phantom and a Bentley, and moved around with gun-toting bodyguards.

KAPIL WADHAWAN Former CMD, DHFL

DHEERAJ WADHAWAN Former director, DHFL

Their father Rajesh Wadhawan had founded the company in the 1980s. He passed away in 2000, three years after Kapil took over. Rajesh's brother Rakesh and nephew Sarang ran the family's older real estate business, HDIL (formerly Housing Development and Infrastructure Ltd), until recently.