In a significant move towards recovering billions in dues from one of India’s most notorious financial scandals, Unity Small Finance Bank Limited has issued a public notice for the e-auction sale of a sprawling 429-acre immovable property in Dahisar, Mumbai Suburban District, linked to the scandal-plagued Wadhawan family. The reserve price for the land, which forms a prime slice of Mumbai’s northern suburbs, stands at ₹1,234.62 crore, with the auction slated for November 3, 2025. This development underscores the ongoing efforts by lenders to liquidate assets tied to Housing Development and Infrastructure Limited (HDIL) and its promoters, who are at the center of the ₹34,000 crore Dewan Housing Finance Corporation Limited (DHFL) bank loan fraud case.
The public notice, dated October 6, 2025, and published from the bank’s corporate office in Kalina, Santacruz East, details the sale under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, read with proviso to Rule 8(6) of the Security Interest (Enforcement) Rules, 2002. The property—comprising Survey No. 344 (Part), CTS No. 1 in Village Dahisar, Taluka Borivali—has been mortgaged/charged to Unity Small Finance Bank as security for loans extended to Ravijoyt Finance and Leasing Private Limited (RFLPL), designated as the “Mortgagor,” and HDIL, the “Borrower.” Guarantors named in the notice include Mr. Rakesh Kumar Kuldeep Singh Wadhawan, the patriarch and founder of HDIL, and his son, Mr. Sarang Rakesh Wadhawan.
Constructive possession of the asset was taken over by the bank’s Authorised Officer on December 26, 2023, following defaults on outstanding dues totaling a staggering ₹2,059.30 crore (precisely ₹2,059 crore, 30 lakh, 48 thousand, 62 paise, inclusive of interest). The sale will proceed on an “As is where is,” “As is what is,” “Whatever there is,” and “No Recourse” basis, with an earnest money deposit of ₹15 crore required from prospective bidders. Detailed terms and conditions are available on the bank’s website, www.theunitybank.com.
This auction is a direct fallout from the Wadhawan family’s entanglement in what investigators describe as India’s largest banking fraud. The scandal erupted in 2019 when the Reserve Bank of India (RBI) placed DHFL under resolution after uncovering fraudulent loans amounting to over ₹34,615 crore disbursed to 66 shell companies controlled by the Wadhawan brothers—Kapil Wadhawan (DHFL’s former managing director) and Dheeraj Wadhawan (former director)—and their associates. These loans, routed through a consortium of 17 public sector banks led by Punjab National Bank (PNB), were allegedly siphoned off for personal enrichment and unrelated ventures, including Bollywood film financing and luxury real estate acquisitions.
The Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) have been probing the case since 2020, charging the Wadhawans with criminal conspiracy, cheating, and money laundering under the Prevention of Money Laundering Act (PMLA). HDIL, the family’s flagship realty firm founded by Rakesh Wadhawan in 1991, is also implicated in the ₹4,300 crore Punjab and Maharashtra Cooperative (PMC) Bank scam, where the bank had extended massive loans to HDIL without adequate collateral, leading to its collapse and the freezing of depositors’ accounts.
Recent judicial developments have intensified scrutiny on the family. On August 5, 2025, the Supreme Court cancelled bail for Dheeraj Wadhawan in the DHFL case, rejecting medical grounds for extension and directing him to surrender within two weeks. This followed the National Company Law Tribunal’s (NCLT) declaration of Kapil Wadhawan as bankrupt on August 19, 2025, amid mounting creditor pressures. Sarang Wadhawan, though less prominently charged, has been named as a guarantor in multiple recovery proceedings, including this Unity Bank action. Rakesh Wadhawan, now in his late 70s, has faced arrest and bail in related probes but remains a key figure in asset liquidation efforts.
The Dahisar property, bounded by Jaffri Creek to the north, the boundary of Eksar to the south, the Dahisar River to the east, and a narrow road creek plus boundary to the west, represents a trophy asset in Mumbai’s booming real estate corridor. Spanning 429 acres with corresponding extents, it holds immense redevelopment potential amid the city’s northward urban expansion. Industry experts estimate its market value could exceed the reserve price by 20-30%, factoring in locational premiums near the Western Express Highway and upcoming metro connectivity. However, bidders may face challenges from ongoing litigation and environmental clearances tied to the site’s creek-adjacent location.
This sale is part of a broader asset monetization drive by the DHFL resolution professional and individual lenders like Unity Bank, which has stepped up as a small finance bank post-merger with Centrum Financial Services. Over the past year, similar auctions have fetched recoveries from HDIL’s stalled projects in Thane and Virar, contributing to a cumulative ₹5,000 crore clawed back from the family’s empire. Yet, with total exposure across scams nearing ₹40,000 crore, full recovery remains elusive, highlighting systemic vulnerabilities in India’s non-banking financial sector.
As the e-auction portal opens bids, all eyes will be on whether this landmark sale marks a turning point in dismantling the remnants of the Wadhawan saga—or merely another chapter in India’s protracted battle against white-collar crime.
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