Delhi Court Dismisses Kapil Wadhawan & Dheeraj Wadhawan’s Bail Application in Matter of DHFL Bank Loan Scam Case

DHFL SCAM LAWINSIDER

Aastha Thakur

Published on: 04 October 2022 at 17:52 IST

The former Dewan Housing and Finance Limited (DHFL) MD Kapil Wadhawan and Director Dheeraj Wadhawan were denied statutory bail by the Delhi Court in the alleged matter related to a bank loan scam of over ₹ 34,000 crore.

The Central Bureau of Investigation (CBI) arrested both of them on July 19, 2022. They approached the court arguing that more than 60 days have passed since their arrest, the investigation is still not completed by the authorities and no charge sheet has been filed yet.

Therefore, in their bail applications they argued that, as per the statutory provision provided under Section 167 of the Code of Criminal Procedures (CrPC) both of them are entitled to statutory bail.

The matter was heard by the Special Judge (PC Act) Vishal Gogne of the Rouse Avenue Court, who held that both of them are registered under Section 409 (criminal breach of trust by Public Servant or by banker, merchant or agent) of the IPC, as per which the investigation period comes under the purview of Section 167(2)(a)(i) CrPC and which is 90 days.

The Court stated that, “The filing of the present chargesheet in the present investigation shall be governed by Section 167(2)(a)(i) CrPC which provides for a maximum period of 90 days.”

“Since the period of 90 days has not yet expired in the present investigation, which also relates to Section 409 IPC, applicants Kapil Wadhawan and Dheeraj Wadhawan are not entitled to statutory bail under Section 167(2) CrPC,”

Both Kapil Wadhawan, Dheeraj Wadhawan were accused of being in a criminal conspiracy to cheat an association of 17 banks led by the Union Bank of India.

The complaint also made the accusation that the accused encouraged the banks to authorise loans in the amount of ₹ 42,871.42 crore. A large amount of this was siphoned off and misappropriated by alleged falsification of the books of the DHFL and dishonest default in repayment of the legitimate dues of the said consortium banks.

The complaint also claims that both of the accused caused a loss of an amount ₹ 34,615.00 crore to the bank consortium.

The complaint also alleges that a wrongful loss of ₹ 34,615.00 crore was caused to the consortium banks.

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