Dewan Housing and Finance limited(DHFL) has been found involved in a giant scam worth 97000 crores, including loans worth more than 50000 crores from the public sector banks of India. In a shocking revelation, it has been found that State Bank of India alone has given loans of more than 11500 crores to DHFL, and the scams have been exposed by Cobrapost.

The main accusations against DHFL are as follows: DHFL chief Wadhawan using his influence to sanction 14300 crores loans to fake companies, and acquiring a cricket team in Sri Lanka, donations of more than 19 crores to BJP via fake companies, 1000 crores scam via insider trading. 14300 crores worth loans were given to 34 companies located at the same address without any verification or collateral obtained and these loans have turned out to be NPAs.

During the elections, DHFL had given 1160 crores to various companies in Gujarat, and 1300 crores to companies in Karnataka, and it has been exposed that Galaxy, Silicon and Hemisphere are the companies that partnered DHFL in the scams. As per the 2013 companies act, only the organisations or business establishment which are profitable are entitled to make donations to political parties with a cap of 7.5% of the net profit earned. However, RKW developers and Darshan Developers had been giving donations to BJP despite running in losses, as exposed by the scam, and now DHFL has come under the radar of Ministry of corporate affairs to investigate the financial mismanagement case.