SC Seeks CBI Response on Kapil Wadhawan’s Bail Plea in ₹34,926-Crore Bank Fraud Case
The Supreme Court on Monday sought a response from the Central Bureau of Investigation (CBI) on a bail plea filed by former Dewan Housing Finance Limited (DHFL) promoter Kapil Wadhawan in connection with an alleged ₹34,926-crore bank fraud case. A bench of Justices J.K. Maheshwari and Vijay Bishnoi issued notice to the agency, asking it to submit its reply. The Delhi High Court had earlier, on August 4, denied bail to Wadhawan, citing that his conduct during custody was “not beyond reproach.”
The High Court had observed that economic offences of such scale were not only crimes against specific victims but against the financial system at large. It noted that Wadhawan, as promoter and CMD of DHFL, was the “principal architect” of a massive fraud involving diversion and misappropriation of funds from a consortium of 17 banks. The CBI has alleged that Wadhawan created and operated 87 shell companies in the names of associates, employees, and relatives to siphon off funds, falsely recording them as retail housing loans to over 2.6 lakh fictitious customers through a non-existent “Bandra Branch-001” in DHFL’s internal systems.
The High Court had refused bail on grounds that Wadhawan continued to exercise influence over assets and witnesses even while in custody, posing a risk of tampering with evidence or fleeing from justice. He was taken into custody in July 2022 and granted default bail in December 2022, but the Supreme Court later cancelled it in January 2024. Considering the gravity of the allegations, the court had concluded that releasing him at this stage would adversely impact the trial.
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