Investment bank loan scams seem to have emerged as a preferred option for businessmen looking to divert the proceeds of expensive artifacts and valuables, the latest example of this. ₹34,615 crore case Against Dewan Housing Finance Corporation Limited (DHFL) and its promoters.
The Central Bureau of Investigation (CBI) has found that two main accused in the case Kapil Wadhawan, then chairman-cum-managing director of DHFL and director Dheeraj Wadhawan – had bought at least two paintings worth around ₹30 crore. them 15. was seized from th The floor of co-accused Ajay Ramesh Nawandar’s property in Andheri West, Mumbai, on July 9.
Subsequently, the CBI arrested Mr. Nawandar on the suspicion that he along with others were trying to dispose of paintings and other luxury items at the behest of the Wadhawan brothers. He is currently in judicial custody. His bail application was rejected by the special court on August 20.
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As it turns out, during the search, the agency had allegedly seized Rs 45 lakh in cash and 25 expensive watches besides two paintings from the premises of Mr. Nawandar. An investigation revealed that the paintings were purchased from Asta Guru Auction House Pvt Ltd in 2013 through an entity named JVPD One Builder, according to the agency.
The agency alleges that the paintings were obtained from fraudulent loan amounts taken from a consortium of 17 banks led by Union Bank of India. Further, funds for this purchase were remitted by DHFL to JVPD through companies operated by DHFL in the name of Creatoz Builders Pvt Ltd and RKW Developers Pvt Ltd.
CBI submitted in court that proceedings for attachment of assets of Mr. Kapil Wadhawan were underway, Mr. Navander kept them [paintings, watches, etc.,] Was attempting to dispose of more objects to prevent them from being attached. The agency, while probing its biggest ever bank fraud case, also provided evidence that it had received ₹ 1.30 crore from Mr. Dheeraj Wadhawan.
Another major case against fugitive Nirav Modi, his uncle Mehul Choksi and others in which the investigating agencies seized paintings and luxurious items. The accused persons defrauded Punjab National Bank to the tune of ₹13,578 crore. After the alleged scam was unearthed, the Enforcement Directorate and the Income Tax Department conducted searches, which led to the seizure of a large number of valuable assets.
In March 2020, ED auctions 15 paintings Shri Modi and his wife Ami Modi is attached. These include Amrita Shergill. lemon boys (1935), which earned ₹15.68 crore; MF Hussain Battle of Ganga And Jamuna: Mahabharata 12, which sold for ₹13.44 crore; A Raja Ravi Varma’s work (₹2.8 cr); a VS. Gaitonde’s painting (₹9.52 crore); and Manjeet Bawa untitled (₹6.16 crore).
Cars, statues, branded watches and bags were also auctioned. A total of over ₹53 crore was raised from the auction.
The Income Tax Department, which seized 173 paintings and other valuables from premises linked to Mr Modi in February 2018, also auctioned 55 items in March 2019 for about Rs 55 crore. They included a painting (₹25.24 crore) by VS Gaitonde. and Raja Ravi Varma (₹16.1 crore).