The debt-ridden Dewan Housing Finance Ltd (DHFL) trouble seems to escalate as on Monday the Enforcement Directorate (ED) has arrested the CMD Kapil Wadhawan, in connection with its money laundering probe against dead gangster Iqbal Mirchi and others.

They said Wadhawan has been arrested under the Prevention of Money Laundering Act (PMLA) as he was allegedly not cooperating in the probe.

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He is being produced in front of a special court for custody today evening.

The case relates to Mirchi’s Mumbai properties, which have been called as proceeds of crime by the ED. Three such properties were sold to Sunblink, the company linked to Wadhawan brothers Kapil and Dheeraj.

The ED has filed a criminal case against Mirchi, his family members and others to probe money laundering charges for alleged illegal dealings in purchase and sale of costly real estate assets in Mumbai.

Mirchi, who died in 2013 in London, was alleged to be the right-hand man of global terrorist Dawood Ibrahim in drug trafficking and extortion crimes.

(With input from agencies)