Court rejects anticipatory bail plea of Wadhawans

ED is probing their link to Yes Bank fraud

A special lockdown court on Tuesday rejected the anticipatory bail plea of Kapil Wadhawan and Dheeraj Wadhawan, promoters of the Dewan Housing Financial Limited (DHFL).

The Wadhawans had filed the plea on April 22 before the Prevention of Money Laundering Act court after they feared arrest by the Enforcement Directorate (ED).

The agency is probing their connection to the Yes Bank fraud where the brothers had allegedly paid a kickback of ₹600 crore to Rana Kapoor, former CEO and managing director of Yes Bank, in the form of a loan to DoIT Urban Ventures (India) Pvt Ltd, a firm registered under the name of Mr. Kapoor’s daughters. It is part of the investigation where the ED is probing allegations of money laundering against Mr. Kapoor, co-founder of Yes Bank, who allegedly had sanctioned loans worth ₹30,000 crore out of which loans worth ₹20,000 crore have turned as non-performing assets.

The Wadhawans, in their anticipatory bail plea, had cited the pandemic and subsequent lockdown, and questioned the merits of the case, and claimed that their custodial interrogation was not required. Their plea was objected by Additional Solicitor General Anil Singh following which the court rejected their petition. The Wadhawans also moved a plea seeking protection from arrest till they approach the Bombay High Court, which was also turned down.

The Wadhawan brothers along with 22 of their family members had flouted lockdown regulations and travelled to Mahabaleshwar from Khandala on April 8 with the help of a letter from a senior IPS officer posted with the Home Department. The issue had created an uproar following which with the help of the Satara police, they were kept under quarantine till April 22.

The brothers had then obtained interim relief from arrest till May 5 from a special court in an FIR filed by the Central Bureau of Investigation (CBI), but the agency later challenged the order and obtained an arrest warrant. The Wadhawans were arrested on Sunday and produced before a CBI court on Monday which remanded them in custody till April 20 in the Yes Bank fraud case.

The CBI in its FIR had said that Yes Bank had invested ₹3,700 crore in short-term debentures in DHFL for which a kickback of ₹600 crore was given to Mr. Kapoor in the form of a loan.

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Printable version | Jun 6, 2020 6:14:32 AM |

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