DHFL Promoters Granted Bail Despite CBI’s Protest in Multi-Crore Loan Scam Case

In a significant legal battle, the Central Bureau of Investigation (CBI) challenged the grant of statutory bail to former Dewan Housing Finance Corporation Limited (DHFL) promoters, Kapil and Dheeraj Wadhawan, linked to a massive bank loan scam. The CBI, contesting the bail in the Supreme Court, argued that despite filing the charge sheet within the statutory period of 90 days, the accused were granted bail by lower courts.

The CBI highlighted that while the charge sheet was filed on the 88th day post-FIR registration, the accused were still granted default bail, upheld by the Delhi High Court. The agency stressed ongoing probes and the incomplete nature of the charge sheet as reasons against granting bail, backed by legal precedents supporting their stance.

Responding to the CBI’s plea, Senior advocate Mukul Rohatgi, representing the DHFL promoters, requested time to prepare a response. The bench acceded to this request, scheduling the CBI’s plea for hearing on January 9 next year. The case revolves around allegations of a consortium of banks being cheated of significant sums, with alleged misappropriation and siphoning of funds by DHFL and its key figures, causing substantial financial losses.

The controversy centers on the interpretation of statutory bail provisions, where the CBI asserts that despite the timely filing of the charge sheet, the accused were granted bail due to an incomplete investigation report. This ongoing legal tussle underscores the complexity of the case involving one of India’s notable financial scandals.

The Supreme Court witnessed a heated legal confrontation as the CBI contested the grant of statutory bail to ex-DHFL promoters, Kapil and Dheeraj Wadhawan, in connection with a substantial bank loan fraud case. Despite the CBI filing the charge sheet within the mandated 90-day period, lower courts granted bail, prompting the CBI to challenge this decision.

The agency emphasized the incomplete nature of the investigation and ongoing probes against other individuals involved. While the Delhi High Court upheld the bail, citing the charge sheet’s incompleteness, the CBI stressed that this interpretation went against legal provisions and constitutional mandates.

Senior advocate Mukul Rohatgi, representing the former DHFL promoters, requested time to respond to the CBI’s arguments, leading the bench to schedule the case for a hearing on January 9 next year. The case revolves around allegations of a consortium of banks being cheated of significant sums, with DHFL and its key figures accused of misappropriation and causing substantial financial losses.

The CBI’s persistent challenge raises questions about the interpretation of statutory bail provisions and the completion of investigations before granting such relief. This legal battle brings to light the intricacies of one of India’s prominent financial scandals.

In a contentious legal clash, the Central Bureau of Investigation (CBI) challenged the grant of statutory bail to former Dewan Housing Finance Corporation Limited (DHFL) promoters, Kapil and Dheeraj Wadhawan, in a sprawling bank loan scam case. Despite the CBI filing the charge sheet within the stipulated 90-day period, lower courts granted bail, sparking a legal feud.

The CBI vehemently argued against this decision, citing an ongoing investigation and the charge sheet’s alleged incompleteness. While the Delhi High Court upheld the bail, emphasizing the charge sheet’s unfinished status, the CBI contended that such an interpretation contradicted legal norms and constitutional mandates.

Senior advocate Mukul Rohatgi, representing the ex-DHFL promoters, requested time to counter the CBI’s claims, leading the bench to set a hearing date for January 9 next year. At the core of this case lies allegations of a consortium of banks being defrauded, with DHFL and its key figures accused of financial improprieties causing substantial losses.

The legal battle underscores the complexities of interpreting statutory bail provisions and the need for comprehensive investigations before granting such relief. This ongoing courtroom saga sheds light on one of India’s significant financial controversies.

Pic Courtesy: google/ images are subject to copyright