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Published on: January 24, 2024 at 15:10 IST
The Supreme Court, overturned the default bail granted to DHFL promoters Kapil Wadhawan and Dheeraj Wadhawan in connection with the alleged multi-crore loan scam.
Setting aside the concurrent decisions of the High Court and the Trial Court, Justices Bela Trivedi and Ujjal Bhuyan emphasized that Kapil and Dheeraj Wadhawan cannot invoke the statutory right of default bail on the basis of an ongoing investigation against other accused.
“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 Cr.P.C. on the ground that the investigation for other accused was pending,” the bench stated.
The Court, while allowing the appeal filed by the Central Bureau of Investigation (CBI), noted that the lower courts erred in granting default bail to the respondents.
The trial Court, in its judgment, had granted default bail to the Wadhawans, contending that the charge sheet filed by the CBI was incomplete and intended to thwart the statutory right of default bail for the accused under Section 167 Cr. P.C.
In a related context, it is worth recalling the Supreme Court’s April 2023 judgment in Ritu Chhabaria v. Union of India, where it held that the investigating officer cannot file an incomplete chargesheet to negate the right to default bail.
However, a subsequent order by a larger bench led by the Chief Justice of India directed Trial Courts not to grant default bail relying on the Ritu Chhabaria judgment, a decision contested by Central Agencies seeking recall.
Background:
The FIR against Kapil Wadhawan and Dheeraj Wadhawan, DHFL promoters, includes charges under Sections 120B, 409, 420, 477A of IPC, 13(2) r/w 13(1)(d) of PC Act, 1988. The complaint was filed by the Deputy General Manager of Union Bank of India on behalf of a consortium of 17 banks against Diwan Housing Finance Corporation Ltd. (DHFL).
The FIR alleges that the Wadhawans engaged in a criminal conspiracy to cheat and induce a consortium of 17 banks, led by Union Bank of India, into sanctioning substantial loans amounting to approximately Rs. 42,000 Crores.
This story will be updated with the judgment when uploaded.
Case Details: CENTRAL BUREAU OF INVESTIGATION vs. KAPIL WADHAWAN & ANR. Diary No.- 31214 – 2023