DHFL loan scam: SC cancels statutory bail of Wadhawan brothers
The Supreme Court of India has revoked the statutory bail of former DHFL promoters Kapil Wadhawan and Dheeraj Wadhawan, who are implicated in a massive loan scam. Justice Bela M Trivedi and Justice S C Sharma, while canceling the bail, noted that both the High Court and trial court erred in granting bail to the Wadhawan siblings. Kapil and Dheeraj are accused in a bank loan scam case exceeding Rs. 34,000 crore.
Why Supreme Court canceled bail of Wadhawan brothers
Under the Code of Criminal Procedure, an accused person can receive statutory bail if the investigation agency doesn't file a chargesheet within 60 or 90 days, depending on the case. However, the CBI submitted the chargesheet on 88th day after registering the FIR. The trial court then granted default bail, a decision supported by the Delhi High Court. SC stressed that due to the timely filing of the chargesheet, the "respondents could not have claimed statutory bail as a right."
Background of Wadhawans and DHFL fraud case
The Wadhawan brothers were arrested on July 19 last year for their involvement in a Rs. 34,615 crore bank fraud case. Kapil served as Chairman and MD of DHFL, while Dheeraj was a non-executive director. Both were members of DHFL's board. The case stemmed from a complaint filed by Union Bank of India, which led to the FIR. The brothers face charges of alleged cheating and fraud.
