Loan scam case: SC cancels ex-DHFL promoter Dheeraj Wadhawan's bail
What's the story
The Supreme Court has canceled the bail of former Dewan Housing Finance Limited (DHFL) promoter Dheeraj Wadhawan in a multi-crore bank loan scam case. The bench, comprising Justices Sanjay Kumar and Satish Chandra Sharma, directed Wadhawan to surrender within two weeks after considering a medical board's report. On September 9, 2023, the Delhi High Court granted him bail on medical grounds, citing that he was a "sick person."
Legal proceedings
Bail order passed on plea by CBI
The bail order was passed on a plea filed by the Central Bureau of Investigation (CBI) challenging the High Court's decision. Additional Solicitor General SV Raju, appearing for the agency, had earlier argued that Wadhawan did not suffer from any serious medical conditions and that huge sums of money were siphoned off in this case. The Wadhawan brothers—Kapil and Dheeraj—were arrested in July 2022.
Case background
FIR filed on complaint by Union Bank of India
The FIR was filed on a complaint by Union Bank of India. It alleged that DHFL, its then chairman-cum-managing director Kapil , and then director Dheeraj conspired to cheat a consortium of 17 banks led by the Union Bank of India. The accused allegedly induced the consortium to sanction loans aggregating ₹42,871.42 crore. The CBI claimed a large part of this amount was siphoned off through falsification of DHFL's books and dishonest default in repayment.
Expedited proceedings
Kapil Wadhawan's plea in SC
In June this year, the Supreme Court had urged the Delhi High Court to decide on Kapil's bail plea in the bank fraud case. He had moved the apex court seeking an early hearing of his petition, saying his bail plea was being adjourned repeatedly. On the same day the SC canceled the bail of Dheeraj, the Delhi High Court also denied bail to Kapil.