Enforcement Directorate probes real estate deal of DHFL associate company

Essential Hospitality sold the office to a firm controlled by ex-Maharashtra CM's son-in-law.

The Enforcement Directorate (ED) is examining a real estate transaction worth Rs 121 crore between Essential Hospitality (EHPL), a Dewan Housing Finance (DHFL) associate group firm, and Charak Pharma, an entity controlled by Raj Shroff, son-in-law of Sushilkumar Shinde, former Maharashtra chief minister and ex-Union home minister.

The agency learnt of this commercial deal in a search operation on the premises of Dheeraj Realty and DHFL last week. The search was in connection with a loan of Rs 2,186 crore to Sunblink Real Estate; the latter is under the probe agency’s lens for property dealing with the late Iqbal Memon, an underworld figure.

EHPL is a wholly-owned subsidiary of RKW Developers, wherein DHFL's Dheeraj Wadhawan is promoter and whole-time director.

In May, said ED sources, Essential Hospitality sold a seven-storey commercial building to the promoters of Charak Phrama for Rs 121 crore and further registered the same property as Rs 7 crore. The property is on the western express highway, Sahar, Mumbai. The building has since been leased to Big Tree Entertainment (BookMyShow).

“The enforcement agency is examining all the documents seized during the search operation at eight locations. We are scrutinising the deal structure and whether all checks and balances are in place,” said an ED source.

Sources say it seized jewellery worth Rs 22 crore and a hard disc, besides some documents. An e-mail sent by this publication to DHFL was not answered. Raj Shroff did not respond to messages.

ED sources said the loan sanctioned to Sunblink was diverted to Memon for terrorist financing and creating like assets. On Saturday, Kapil Wadhawan, chairman of DHFL, was questioned by the ED, along with others, on the matter. Dheeraj Wadhawan is learnt to be in hospital and the ED is waiting for his recovery to record a statement. Its sources say he might give more information on the rationale for the loan to Sunblink and related matters. The agency is examining the loan agreement and the collateral provided by Sunblink.

Business Standard