SC Cancels Bail For DHFL Promoters In Multi-Crore Bank Loan Scam; Directs Immediate Custody Following Error In Previous Grant

A two-judge bench of Justice Bela M Trivedi and Justice S C Sharma said the High Court and the trial court committed error in granting bail to them.

"We have no hesitation in holding that the charge sheet having been filed against the respondent accused in the prescribed time limit and the cognizance had been taken by the special court of the offences alleged committed by them, the respondents could not have claimed the statutory right of default bail under Section 167 (2) of CrPC on the ground that the investigation for other accused was pending," the bench said.

It also directed that Wadhawans be taken into custody forthwith.

The CBI had earlier assailed in the Apex Court the statutory bail granted by courts below to Kapil Wadhawan and his brother Dheeraj.

Additional Solicitor General (ASG) S V Raju, appearing for the CBI, had said that the charge sheet in the case was filed well within the 90 days statutory period and yet the statutory bail was granted to the accused

Under the Code of Criminal Procedure (CrPC), an accused becomes entitled for grant of statutory bail if the probe agency fails to file the charge sheet on conclusion of the investigation in a criminal case within 60 or 90 days period.

In this case, the CBI filed the charge sheet on the 88th day after registration of the FIR and the trial court granted default bail to the accused and the Delhi High Court upheld the order, the law officer had said.

The CBI probe, relating to other aspects and against some other accused, was continuing and the courts below construed that the charge sheet filed was not final and granted default bail to the accused, the ASG had said, adding there were several judgements which support the plea of the probe agency.

Earlier on May 30, last year the Delhi High Court upheld the statutory bail granted to DHFL promoters in connection with a multi-crore rupees bank loan scam case.

The High court had dismissed the petition of the CBI challenging the trial court order of December 3 last year and held that holding the decision to grant them bail was "based on good reasoning and logic".

The Wadhawan brothers were arrested in this case on July 19 last year. The High Court, however, had clarified it did not go into the merits of the case.

The charge sheet was filed on October 15, 2022 and cognisance was taken.

The FIR in the case was based on a complaint made by the Union Bank of India.

It had alleged that DHFL, its then CMD Kapil Wadhawan, the then Director Dheeraj Wadhawan and other accused persons entered into a criminal conspiracy to cheat the consortium of 17 banks led by the Union Bank of India, and in pursuance of the criminal conspiracy, the accused and others induced the consortium to sanction huge loans aggregating Rs 42,871.42 crore.

Much of that amount was allegedly siphoned off and misappropriated by alleged falsification of the books of the DHFL and dishonest default in repayment of the legitimate dues of the consortium banks, the CBI has claimed.

The complainant has alleged that a wrongful loss of Rs 34,615 crore was caused to the consortium banks in as much as such was the quantification of the outstanding dues as on July 31, 2020.

With PTI Inputs