The DHFL “Scam”: A Simulated Hoax?
The DHFL “Scam”: A Simulated Hoax?
The DHFL “Scam”: A Simulated Hoax?
Posted on 23rd February, 2025 (GMT 12:55 hrs)
ABSTRACT
The article critiques the DHFL “scam,” suggesting it was a fabricated or simulated hoax. It argues that the DHFL resolution process pre-figuratively favoured Mr. Ajay Piramal as the winning bidder, excluded the Wadhawan brothers from participating in the CIRP presenting their settlement proposals, and neglected FD and NCD holders’ interests. The piece highlights a CBI closure report from January 2025 that found lack of conclusive evidence of wrongdoing by the Wadhawans, questioning the legitimacy of the Insolvency and Bankruptcy Code (IBC) application in the context of the DHFL and implying crony political motives behind the “cooking up” of the scandal. Ultimately, it portrays the situation as financially devastating to innocent common stakeholders to enrich the superrich.
Who hasn’t heard about “hoaxes”? Who hasn’t heard of nation-states, corporate groups, and even self-seeking individuals manufacturing or cooking up false, simulated claims projected as “true events” to perpetuate their anti-people agenda from time to time?
A likely scenario might have allegedly occurred with regard to the laying down of the anatomy of India’s unprecedented financial debacle: the DHFL “Scam”. Now, in our last posts, we have reflected on the latest developments in relation to the legal and extralegal status of this supposed “scam,” and have also questioned the shrewd tactics deployed by the profit-seeking groups in the course of this entire saga.
In this short post, we will strive to note down the most crucial points that have a huge “say” on the outcomes of the DHFL cases in the near future:
- First of all, it is now evident that the DHFL “resolution process” and its outcome appeared to be somewhat “predetermined.” The RBI-appointed Committee of Creditors (CoC) exhibited a notable bias toward one of the bidders, i.e., Mr. Piramal, among the simulated tussle of various dummy bidders (e.g., Adani Group) and genuine bidders (e.g., Oaktree Capital). The former directors of DHFL, namely the Wadhawan brothers, were excluded from participating in the CIRP and were not given an opportunity to present their full settlement proposal multiple times. Additionally, the CoC did not, as noted by the NCLT order dated 19.05.2021, make the resolution proposals available to the FD and NCD holders, who constitute(d) 65% of the voting share in the CoC. Despite the counterarguments from 63 Moons and, subsequently, the NCLAT (27.01.2022) regarding Piramal’s purported “good buy” of DHFL by trading 45k crore worth of assets for merely a rupee, along with allegations of material irregularities regarding the resolution professionals and multiple “contrary to law” aspects in the CIRP (again, the NCLAT order dated 27.01.2022, against which Mr. Piramal bought a so-called “blanket stay order” at the Supreme Court), Mr. Piramal repeatedly asserted his claim to “own” DHFL, initially projecting his PCHFL and then swiftly merging it with PEL to allegedly evade legal accountability.
- The CBI has released its closure report on the “DHFL Scam Case against the Wadhawans” in January 2025, submitting it to a special Delhi Court after three years of investigation. However, what has this investigation revealed? According to the CBI’s own statements, there is a lack of “conclusive evidence” to support the claim that the Wadhawans engaged in any grave financial misdemeanour. Then why was the DHFL “resolution” executed? What was the rationale behind it? Why did countless innocent FD and NCD holders endure significant haircuts on their life savings to accommodate someone’s profiteering desires? Additionally, what justified placing a profitable, ongoing AAA-rated NBFC like DHFL—one that continued to get and generate cash flows even in mid-2019—under the flawed and ill-conceived IBC (2016) framework? It seems that the DHFL scam “did not has happened” (sic; grammatical errors intended).
- As previously mentioned through our OBMA platform, the IBC (2016) was a so-called “dream project” of the late Finance Minister of the BJP, Mr. Arun Jaitley. Following that logic, any kind of “failure” of the IBC to yield the “rightful” (according to the BJP’s gaze) results consequently reflect the failures of the BJP government. Therefore, it needed to preserve its reputation during the unfolding of the DHFL crisis, which also exposed alleged connections between the BJP and DHFL involving terror-funding groups and the “underworld” (Cf. Cobrapost Report, 2019). To safeguard its “image,” the BJP took extreme measures. Thus, the DHFL was placed under the IBC to demonstrate the latter’s (pre-)supposed validity or legitimacy, rendering the former a mere “litmus test case” where the victims of DHFL were treated as lab-state guinea pigs “open to experimentation”, and finally, to their merciless financial extermination!
- Depopulation measures, or Malthusian positive checks, have become prevalent during the Neoliberal “Bio Warfare” era, utilized by crony elites to perpetuate their exploitation while sacrificing innocent citizens at the altar of so-called “development”—a perilous endeavor—which they later label as mere “collateral damage.” This was particularly evident during the COVID-19 P(L)andemic. Moreover, the unfolding of the DHFL narrative also suggests a somewhat similar, though smaller-scale application of such “depopulation measure”, aiming to extinguish senior citizens, including widows of retired Indian army personnel and others in the name of a “scam” that has no evidence for “being a scam”! What sort of utter nonsense is that?
In conclusion, it is abundantly clear to many common Indian citizens that the allegedly manufactured, predetermined “bankruptcies” in India, which have become exceedingly rampant over the last decade during the BJP’s fascist “rule,” such as the DHFL “scam,” appear to be a simulated hoax, lacking substantiation or evidential justification. These events are more like “buffets for the chosen crony oligarchs,” allowing them to indulge themselves in filling their pot-bellies with the entire meal, while the victims of financial abuse are left in utter ruin.
Did those helpless victims ever deserve to be in that state?
In light of these unsettling revelations, it becomes evident that the DHFL saga was not merely about financial mismanagement or corporate failure but a meticulously orchestrated operation benefiting a select few at the cost of thousands of innocent investors. The selective application of the IBC, the glaring conflicts of interest, and the calculated sidelining of legitimate stakeholders all point toward a deeper nexus of power, profit, and political maneuvering. If a so-called “scam” can be manufactured to justify the expropriation of assets, then no financial institution or citizen’s savings are truly safe within the global “risk” (and sick) society. The DHFL case serves as a grim reminder that justice remains elusive when entrenched interests dictate outcomes, and until these systemic injustices are fully exposed and challenged, history will continue to repeat itself—each time with new victims, but the same perpetrators.
SEE ALSO:
https://onceinabluemoon2021.in/2025/02/16/dhfl-scam-circus-the-great-hotchpotch/
https://onceinabluemoon2021.in/2025/01/28/the-dhfl-scam-an-absence-that-exists/
https://onceinabluemoon2021.in/2025/01/20/a-reflexive-question-answer-session-on-the-dhfl-scam/
https://onceinabluemoon2021.in/2025/01/17/dhfl-scam-who-are-gaining-from-such-surgical-strike/
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