The Central Bureau of Investigation (CBI) has made an arrest in connection with the 34,000-crore bank fraud case involving Dewan Housing Finance Corporation Limited (DHFL). Former DHFL director Dheeraj Wadhawan was detained in Mumbai on Monday evening and subsequently presented before a special court in Delhi on Tuesday, where he was remanded to judicial custody.
According to reports, the CBI had already filed a charge sheet against Wadhawan in connection with the case in 2022. This is not the first time Wadhawan has been arrested by the agency. He was previously apprehended in relation to the Yes Bank corruption case and was later released on bail.
The DHFL case, which involves the alleged defrauding of a consortium of 17 banks, has been described as the largest banking loan fraud in the country. In February of this year, the Securities and Exchange Board of India (SEBI) directed the attachment of bank accounts, shares, and mutual fund holdings belonging to former DHFL promoters Dheeraj and Kapil Wadhawan to recover dues totaling 22 lakh.
The market regulator’s action followed the Wadhawan brothers’ failure to settle the fine imposed on them in July last year, relating to a case involving the violation of disclosure norms. The outstanding dues of 10.6 lakh each from the Wadhawans encompass the initial penalty amount, along with accrued interest and recovery costs.
Back in July 2023, regulatory authorities imposed penalties of 10 lakh each on the Wadhawans, former promoters of DHFL (now known as Piramal Finance), for violating disclosure regulations. Kapil Wadhawan served as the Chairman and MD of DHFL, while Dheeraj Wadhawan was a non-executive director. Both the brothers were members of DHFL’s board.
In a separate development, the Delhi High Court, last Saturday, issued a notice to the CBI following a plea from Dheeraj Wadhawan seeking bail on medical grounds. He had appealed against a trial court’s decision denying him bail, citing medical reasons. Wadhawan is currently recuperating at his residence in Mumbai after spinal surgery. Justice Jyoti Singh instructed the CBI to submit a response. The case is scheduled for hearing on Friday, May 17.
