The Prevention of Money Laundering Act (PMLA) court on Thursday granted Diwan Housing Finance Limited (DHFL) promoters Kapil and Dheeraj Wadhawan protection from arrest till April 27 in the money laundering case in connection with the Yes Bank fraud.
The Wadhawans filed for anticipatory bail which was opposed by the Enforcement Directorate (ED), and the agency filed a reply. Senior advocate Amit Desai also filed a rejoinder to the ED’s reply, and the hearing will continue on April 27.
The brothers in their plea have raised several grounds, including the spread of COVID-19 in the city, and also questioned the merits of the case, and said that their custodial interrogation was not required. The Wadhawans, along with a group of 21 people, had flouted lockdown regulations and travelled to Mahabaleshwar on April 8 with the help of a letter from a senior police officer.
Meanwhile, the Bombay High Court has directed the brothers to file a reply to the ED’s plea seeking cancellation of their bail.
On April 15, the HC issued notices to the duo after the ED moved the court seeking their custody. Government pleader Poornima Kantharia, appearing for the ED, said the Wadhawans went to Mahabaleshwar in violation of bail conditions.
Justice A.S. Gadkari directed them to file a reply by April 28, and posted the matter for hearing on April 30.
The ED is probing allegations of money laundering against Rana Kapoor, former managing director and chairman of Yes Bank, for having sanctioned loans worth ₹30,000 crore of which ₹20,000 was turned into non-profitable assets.
The agency has claimed that Yes Bank during Mr. Kapoor’s tenure bought debentures worth ₹3,700 crore from DHFL for which a loan of ₹600 crore was sanctioned to DoIT Urban Ventures Private Limited, a company registered under Mr. Kapoor’s daughter’s name but was operated by Mr. Kapoor.
