Cobrapost Expose: Company Accused Of Siphoning Off Rs 31,000 Crore Donated 19.5 Crore To BJP

Cobrapost on January 29, 2019, released a report accusing that the primary promoters of a Non-Banking Financial Company (NBFC) called Dewan Housing Financial Limited (DHFL) siphoned over Rs 31,000 crore of public money. The investigative portal accused that the primary stakeholders of the company- Aruna Wadhawan, Dheeraj Wadhawan, and Kapil Wadhawan granted cumbersome money with the help of their proxies and associates as loans to several shell companies. The report also stated that these shell companies were linked to the above-mentioned stakeholders.

The report shed light stating that with the help of these shell companies the money was able to leave the country. Cobrapost alleged that this money was used for buying shares/equity and other private assets in other countries such as Dubai, Sri Lanka, Mauritius, and the UK. The report further alleged that Wadhawans with the help of this money bought a cricket team in Sri Lanka. The story alleged that Wadhawan ensured that loans were granted to this shell/dubious companies.

However, the report, in the end, took a jibe at three developers for donating Rs 19.5 crore between 2014-15 and 2016-17 to the Modi-led BJP government. The report further unveiled that all these three developers were linked to the Wadhawans.

Which are the three developers?

Cobrapost in their report, multiple times alleged RKW Developers Pvt. Ltd., Skill. Realtors, and Darshan Developers of donating to the ruling party. However, of these three, Darshan and RKW were the main benefactor to the BJP. The report stated that RKW allegedly donated Rs 10 crore in 2014-15 without mentioning about it in balance sheets. What is noteworthy is the fact that RKW had incurred a loss of Rs 8,284,772 in 2012-13.

Similarly, Darshan developer suffered a loss Rs 5,13,406 in 2013-14 but still managed to donate Rs 7.5 crore to the BJP in 2016-17. Skill Realtors donated around Rs 2 crore to the party in 2014-15 without mentioning anything about it in the balance sheet. The Cobrapost further said that Skill Realtors made a mere profit of Rs 26,914. The question here lies how did the company manage to grant such a hefty amount out of a measly profit?

Why is it wrong?

Cobrapost explained that according to the law this is a punishable offence as these companies paid amounts which were more than 7.5 % of their profits. The law states that every officer in the company who is in default is punishable by law with six month’s imprisonment and can be fined fives times the amount of donation.

Donation before Election

The report further alleges DHFL of sanctioning and disbursing loans to companies in Gujarat and Karnataka just before their respective state elections. Gujarat-based companies just before Gujarat election received a whopping loan of Rs 1,160 under various schemes and projects. Interestingly all these projects are currently under the municipal corporation and are on hold or bear the status of having been suspended.

Also Read: DHFL Promoters Accused Of Siphoning Off Rs 31,000 Cr Public Funds; Shell Companies Acted As Money Carrying Vehicles