Supreme Court Revokes Bail for DHFL’s Wadhawan Brothers in ₹34,615 Crore Bank Fraud Case
In a significant ruling, the Supreme Court of India has cancelled the statutory bail granted to Kapil Wadhawan and Dheeraj Wadhawan, the former promoters of Dewan Housing Finance Corporation Limited (DHFL), who are accused in a ₹34,615 crore bank fraud case.
What Did the Supreme Court Say?
A bench comprising Justices Bela M Trivedi and S C Sharma overturned the bail granted by the lower courts, stating that both the trial court and the Delhi High Court had erred in their decisions. The court ruled that since the charge sheet was filed on time and cognisance was taken, the Wadhawan brothers could not claim statutory bail as a right.
“We have no hesitation in stating that the chargesheet was filed and cognisance was taken within the required time, making statutory bail unjustified. The trial court must now reconsider the matter of regular bail,” the court stated.
Why Was Their Bail Cancelled?
Under Indian law (Criminal Procedure Code – CrPC), an accused is entitled to statutory bail if the investigating agency fails to file a charge sheet within 60 or 90 days, depending on the case. In this instance, the CBI filed the charge sheet on the 88th day, leading to the trial court granting default bail—a decision later upheld by the Delhi High Court. However, the Supreme Court ruled that this was a mistake.
Background of the Case
The Scam: The Wadhawan brothers are accused of orchestrating a ₹34,615 crore bank fraud, where loans from a consortium of 17 banks were allegedly siphoned off through fake borrowers and shell companies.
Arrest and Charges: The duo was arrested on July 19, 2023, following an FIR based on a complaint by the Union Bank of India. The charge sheet was filed on October 15, 2022.
Other Legal Troubles: Apart from this case, the Wadhawan brothers are facing multiple fraud and cheating allegations.
Controversy Over Special Treatment in Jail
In a separate scandal, seven police officers were arrested in August 2023 after a TV channel aired footage showing the Wadhawan brothers receiving VIP treatment under the pretext of medical check-ups at government hospitals in Mumbai, despite being in judicial custody.
What’s Next?
With their bail revoked, the Wadhawan brothers will remain in custody unless the trial court grants them regular bail after a fresh hearing. Meanwhile, investigations into the scam and efforts to recover the lost funds continue.
News Source : Information for this article was gathered from a variety of reliable news outlets.
