Delhi HC's order to grant bail to DHFL's Wadhawans not to be given effect till 1 February

DHFL fraud case: The Delhi High Court has ordered that a trial court's order granting bail to former Dewan Housing Finance Corporation Ltd (DHFL) promoters Kapil and Dheeraj Wadhawan, who were detained by the CBI in connection with a multi-crore bank loan scam case, shall not be given effect until February 1 of the following year.

The Wadhawans' legal representative and the CBI gave their approval before the high court issued its order.

"Senior Counsel appearing on behalf of the respondents (Wadhawans), on instructions, submits that the respondents will not proceed with their bail bonds before the learned Special Court.

"With the consent of both the parties, it is hereby directed that the impugned order dated December 3 will not be given effect to, till the next date of hearing. List on February 1, 2023," Justice Amit Sharma said in the order passed on Wednesday.

Due to an incomplete charge sheet, the Central Bureau of Investigation (CBI) has challenged the trial court's ruling granting the Wadhawan brothers statutory bail.

According to the special court's judgment, the two accused individuals may not be eligible for any bail given the gravity and importance of the case.

However, it claimed that because the charge sheet was incomplete, the court was required by statute to provide mandatory concession of default bail, which forced their release from detention.

The CBI attorney had argued in front of the high court that although the agency had testified in the trial court that the investigation into these two accused persons was complete, the special judge had not taken this into consideration.

There is everything against these accused. The evidence is there and even cognisance was taken on the charge sheet. The special judge sidetracked the main issue and goes on to a different tangent, he had contended.

Dheeraj Wadhawan's attorney, Vijay Aggarwal, stated that although the CBI has not named any bank executives as suspects, his client is accused of plotting and perpetrating the crime with the help of bank officials.

He had said that while there were numerous other cases ongoing against the two accused, there was no need to suspend the bail order.

The trial court, in its order, has said, "The CBI cannot be entirely blamed for filing incomplete charge sheet because it was not humanly possible and was also practically very difficult to complete the very big investigation task within a period of 90 days especially when the accused persons themselves took several years altogether to complete the offences."

According to the special court, the law requires that the accused be given an unassailable right to release on bond without any discussion on the merits if the charge sheet is not filed within 60 or 90 days of the accused's detention, depending on the situation, or if it is filed but is incomplete.

In view of the above facts and circumstances, both the accused persons are entitled to statutory bail under section 167(2) CrPC...,it has said.

The Wadhawan brothers were arrested in this case on July 19, though they were already in custody in some other cases pending in Lucknow and Mumbai since April 2020, it has noted.

The charge sheet was filed in the trial court here on October 15 and cognisance on it has been taken.

The Wadhawans had sought to be released on statutory bail on grounds that an incomplete charge sheet has been filed against them which is not legal or valid in the eyes of law and in such circumstances their judicial custody cannot be extended.

According to the FIR based on a complaint made by Union Bank of India, DHFL, the then CMD Kapil Wadhawan, the then Director Dheeraj Wadhawan and other accused persons allegedly entered into a criminal conspiracy to cheat the consortium of 17 banks led by Union Bank of India and in pursuance of the said criminal conspiracy the accused and others induced the consortium banks to sanction huge loans aggregating to 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 legitimate dues of the said 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 outstanding dues as on July 31, 2020.

(With PTI inputs)