The Enforcement Directorate has frozen ₹51.75 crore held in a bank account linked to Al Jalore Trading FZE as part of its money laundering investigation into the alleged ₹34,615-crore DHFL bank fraud. According to reports from The Economic Times, the action followed fresh searches conducted by the agency on August 19, 2026 under the Prevention of Money Laundering Act, 2002. The ED said the amount, equivalent to about $5.41 million, represents alleged proceeds of crime connected with the case. During the search operation, ED officials examined the Al Jalore Trading FZE account and froze the ₹51.75 crore balance under Section 17(1A) of the PMLA. The agency also seized or impounded documents and records relating to the transactions and assets under scrutiny.
The latest action focuses on Hurtmore House, a property in the United Kingdom held in the name of Vanita Wadhawan, wife of former DHFL promoter Kapil Wadhawan. According to The Economic Times, investigation has revealed that the property was disposed of through a series of transactions involving the creation of a fictitious liability in her name. The ED found that a purported loan agreement was executed between Al Jalore Trading FZE and Vanita Wadhawan, following which the property was mortgaged. The property was sold this year, with the sale consideration sent to the bank account of Al Jalore Trading FZE maintained in India, instead of being received by the registered owner, Vanita Wadhawan. The agency alleged that the arrangement was used to create an encumbrance over the foreign asset for the purpose of settling a liability in India arising out of the DHFL loan fraud, with the transaction involving dissipation of proceeds of crime and utilisation of a foreign asset in a manner intended to facilitate settlement of an Indian liability through structured transactions.
The investigation stems from a Central Bureau of Investigation case filed after Union Bank of India complained on behalf of a consortium of 17 lenders. As reported by The Economic Times, the consortium had sanctioned credit facilities worth ₹42,871.42 crore to Dewan Housing Finance Corporation Ltd (DHFL). The agency alleges that loan funds were subsequently siphoned off and misappropriated through falsification of the company's books, causing losses of about ₹34,615 crore to the lenders. The accused, including Kapil Wadhawan and Dheeraj Wadhawan, allegedly conspired to defraud banks in connection with loan facilities sanctioned to DHFL amounting to ₹42,871.42 crore. The company's books were manipulated to siphon off and misuse the loan funds, causing wrongful losses to the group's lenders.
The ED's investigation remains ongoing, with the agency stating that further investigation is underway. The structure allegedly used to facilitate the movement and utilisation of suspected proceeds of crime through a foreign asset and entities continues to be under scrutiny. This case is significant for India's banking and non-banking financial sector as it underscores regulatory scrutiny on large corporate loans, cross-border assets, and structured transactions posing alleged money laundering risks. The agency has stated that the investigation into money laundering and foreign assets is ongoing, highlighting key aspects such as disposal of foreign assets, liability adjustments in India, and the freezing of approximately $5.41 million.
