ED gets custody of Wadhawan brothers till May 27

Kapil Wadhawan and Dheeraj Wadhawan were produced before a special Prevention of Money Laundering Act (PMLA) court on Friday which further extended their custody with the Enforcement Directorate till May 27.

The Wadhawan brothers, promoters of Dewan Housing Finance Limited (DHFL), were arrested in connection with the Yes Bank fraud case, on May 14 after the Bombay High Court denied them anticipatory bail and ruled that their custodial interrogation was needed.

ED officials contented in the court on Friday that the case involved examination of voluminous documents which needed to be put forth before the accused to understand the intricacies of the fraud, and the Wadhawans were not cooperating with the investigations.

The brothers have been accused of paying a kickback of ₹600 crore to Rana Kapoor, former managing director and chief executive officer of Yes Bank, in the form of a loan to DoIT Urban Ventures (India) Pvt Ltd. floated by Mr. Kapoor in the name of his daughter by showing overvalued properties as mortgages. Yes Bank, in turn, had invested ₹3,700 crore in short-term debentures in DHFL which have not been redeemed till date.

ED had also presented the case details before Bombay High Court, which had rejected their anticipatory bail, and said the Wadhawans had entered into a ‘deep rooted consipracy’ with Mr. Kapoor and his family members.

The high court had observed that only the Wadhawans could throw light on the financial transaction, and the conspiracy can be cracked only through their interrogation.

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Printable version | May 26, 2020 8:28:42 AM |

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