SC cancels bails granted to Wadhwan brothers in DHFL bank fraud case

SC cancels bail granted to former DHFL promoters

The Supreme Court on January 24 cancelled the statutory bail granted to the former promoters of Dewan Housing Finance Corporation Limited (DHFL), Kapil Wadhawan and his brother Dheeraj, in connection with a multi-crore bank loan scam case.

The apex court further directed the trial court to hear the plea for a regular bail afresh and noted that the Wadhwan brothers could not have claimed regular bail as a right. "We have no hesitation that the charge sheet having been filed and cognisance being taken in due time, respondents could not have claimed statutory bail as a right," the bench said.

The Central Bureau of Investigation (CBI) has alleged that the Wadhwan brothers caused a wrongful loss of Rs 34,615 crore as of July 31, 2020

In May 2023, the Delhi High Court upheld the order of the trial court granting statutory bail to the Wadhwan brothers. The CBI challenged this order at the Supreme Court.

In December 2022, the special court, in its order,  said that on merits, the two accused persons might not be entitled to any bail keeping in view the gravity and seriousness of the case. However, it said the court was 'compelled' to release them from custody under statutory law by giving mandatory concession of default bail due to incomplete charge sheet.

Under the Code of Criminal Procedure (CrPC), an accused becomes entitled to statutory bail if the agency probing the allegations against them fails to file a charge sheet in 90 days. In Wadhwan's case CBI filed a charge sheet in 88 days.

Wadhwan brothers arrest by CBI:

The Wadhawan brothers were arrested in this case on July 19 2023, though they were already in custody in some other cases pending in Lucknow and Mumbai since April 2020, it noted. The charge sheet was filed in the trial court here on October 15 and cognisance on it has been taken.

According to the FIR based on a complaint made by Union Bank of India, DHFL, the then CMD Kapil Wadhawan, the then Director Dheeraj Wadhawan and other accused persons allegedly entered into a criminal conspiracy to cheat the consortium of 17 banks led by Union Bank of India and in pursuance of the said criminal conspiracy the accused and others induced the consortium banks to sanction huge loans aggregating to Rs 42,871.42 crore.