DHFL calls emergency tele-conference of investors on Cobrapost expose, Kapil Wadhawan threatens strong legal action against website

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Kapil Wadhawan, CMD of DHFL group, on Wednesday warned Cobrapost website of strong legal action for ‘baseless’ allegations against his group of companies in its expose. The company on Wednesday called an emergency tele-conference of investors, where Wadhawan denied Cobrapost’s allegations of financial fraud committed by his companies.

Kapil Wadhawan

Soon after the content of the Cobrapost’s stunning expose went viral on Tuesday, an email invite from the company said, “Dear investors, Mr Kapil Wadhawan, CMD, and the management are pleased to invite you to an investor call on 30 Jan 2019 at 8.45 am IST. The agenda is to address various concerns with reference to the allegations against DHFL by Cobrapost.”

Later speaking at the tele-conference, Wadhawan said, “The DHFL has engaged a team of  reputed senior lawyers to strongly defend itself and initiate appropriate legal actions against those involved in such activities including taking actions against attempts made by Cobrapost yesterday to malign DHFL in the larger public good.”

On Tuesday, Cobrapost had revealed what it said appeared to be the biggest financial scam in Indian history. The website had said that the primary promoters of Dewan Housing Finance Corporation were found to have siphoned off more than Rs. 31,000 crore of public money.

The alleged scam has primarily been carried out through grants of loans and advances to shell companies and by using other means. Money has also been routed through these dubious companies and parked outside India, to acquire assets. Cobrapost claims to have unearthed the scam by closely analysing documents available with public authorities and information available in public domain.

Bollywood megastar Shah Rukh Khan happens to be the brand ambassador of this group. The biggest victim of this alleged scam, according to Cobrapost, are Indian banks that are already reeling under enormous stress due to scams hitting the PNB, AXIS BANK and ICICI.

Together these banks have a cumulative liability of a whopping Rs 96,880 crore. These are mostly public sector banks with the exception of Kotak, ICICI, HDFC and Axis. Loans issued by the State Bank of India amount to Rs 11,650 crore, while Bank of Baroda and Bank of India loaned more than Rs 4,000 crores each.

Soon after the revelations were out in public domain, the DHFL’s shares had tanked by 8%. The explosive revelation had evoked angry reactions from former Finance Minister Yashwant Sinha and noted Supreme Court lawyer Prashant Bhushan, who justified Congress President Rahul Gandhi’s Chowkidar Chor Hai attack on Prime Minister Narendra Modi.

3 COMMENTS

  1. Prashant Bhushan is a biggest disruptor. In the garb of being honest or a crusader against corruption he is another Kejriwal. Makes wild accusations against everyone. Moreover he is a lawyer. He is a very dangerous person from whom the whole country is at risk. However, thankfully he doesn’t have the technical capability of Subramaniam Swamy nor his political following.

  2. At this point in this case does anyone think that DHFL promoters Wadhawan would come out in a press conference and deny the allegations if they were guilty? The normal reaction of a guilty person would be to hide away from media glare.
    There is a Pattern emerging here. Last week Zee Group was targeted by posting a story about Zee being investigated by SFIO for allegedly involved with a company who deposited nearly ₹3000Cr during DeMo. At that point of time Zee was under pressure to repay loans and was in the process of finding a suitor to buy its majority stake. The stock market was jolted and Zee lost nearly $2.5 billion in market cap that day. Zee group is see. To be close to BJP govt.
    Yesterday it was DHFL where it was alleged that the management siphoned off ₹31000 Cr. Curiously somewhere in the article was a mention that BJP received political funding of ₹20Cr from DHFL group. This is ridiculous. If the BJP sold the nation’s interest they would have at least got more than ₹20 Cr. The congress sells the nation’s interest for anything between ₹100Cr to ₹100000Cr depending on the extent of sale of their souls. Surely BJP knows the economics.
    Clearly there will be more of such “scams” over the next 2 months in the run up to the elections. These are clearly aimed at discrediting the Modi government by manufacturing scams where none exist. The Rafale “scam” failed to pass muster. Now the Congress is in panic mode. Last week there was an EVM hacking claim in London with Kapil Sibal managing the show. I expect a scam every 3-4 days. Those who support Congi will latch on to these and idiots like Prashant Bhushan and Yashwant Sinha who are just sore losers will throw in their weight even if there is nothing in the allegation.

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