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Synopsis

The Delhi High Court, recently, granted bail to Dheeraj Wadhawan, the ex-promoter of Dewan Housing Finance Corporation Limited (DHFL), in connection with the bank fraud case on medical grounds. “The applicant at present may not require hospitalisation and can be treated as outdoor patient but the applicant needs regular and periodical medical attention and treatment under direct supervision of expert and specialist doctors”, the bench of Justice Sudhir Kumar Jain held.  

Dheeraj Wadhawan, a promoter of DHFL, was arrested on July 19, 2022, along with Kapil Wadhawan for custodial interrogation by the CBI. After the investigation, a report was filed on October 15, 2022, against 18 individuals, including the Wadhawan, and 57 companies for offenses such as conspiracy, fraud, and corruption. 

Wadhawan, who suffers from several chronic health conditions, underwent multiple surgeries while in custody and was granted medical bail by the Bombay High Court on December 8, 2023, to undergo spinal surgery. 

Despite his medical condition, the trial court rejected his request for interim medical bail on February 8, 2024. The Bombay High Court, however, extended the Wadhawan's medical bail several times in 2024 to allow further surgeries. 

On May 2, 2024, Wadhawan was granted regular medical bail and discharged from Lilavati Hospital. However, the trial court denied his regular bail application on May 10, 2024. The trial court, in its order dated May 24, 2024, rejected Wadhawan’s request for bail on medical grounds. The trial court refrained from discussing the merits of the case, focusing solely on the medical bail plea. The trial court noted that granting bail to sick individuals is not mandatory in all cases and emphasized that a prisoner cannot demand treatment from a specific doctor or hospital. The CBI, therefore, was directed to re-arrest him. Wadhawan returned to judicial custody in Tihar Jail and filed a petition challenging the trial court's decision, seeking regular bail on medical grounds.

Special Public Prosecutor Anupam Sharma, representing CBI, informed the court that during his judicial custody, Wadhawan met with a co-accused, Ajay Nawandar, without permission and allegedly attempted to dispose of proceeds from the crime. CBI further referred to the Supreme Court’s order noting that while Wadhawan required outpatient treatment, he did not need hospitalization. 

However, the bench of Justice Sudhir Kumar Jain categorized Wadhawan as a sick person under section 437 (1) of the CrPC. The court noted that while Wadhawan did not currently require hospitalization and could be treated as an outpatient, he required regular and periodic medical attention under the direct supervision of expert and specialist doctors.

The court further noted that if Wadhawan's medical conditions were not properly addressed, they could potentially become life-threatening. “The applicant is required to be treated by the suitable doctors may be at private hospitals. The applicant is entitled for grant of bail as per proviso to section 437 (1) of the Code”, the court noted. 

Therefore, the court granted bail under the following conditions:

“i) The applicant shall furnish personal bond in sum of Rs. 10,00,000/- with one surety of like amount to the satisfaction of the trial court. 
ii) The applicant shall surrender his passport if not already seized during investigation to the trail court and shall not leave country without prior permission of the court. 
iii) The applicant shall intimate his present address to the trial court within one week from date of release and shall intimate trial court about any change in residential address within three days.
iv) The applicant shall not indulge in any criminal activity and shall not tamper with evidence and try to influence or threaten any witnesses. 
v) The applicant shall attend the trial regularly unless his personal attendance is exempted by the trial court. The applicant may appear through video conferencing but with the permission of the trial court. 
vi) The trial court shall also be at liberty to impose any other condition on the applicant at time of considering bail bond and thereafter under given facts and circumstances of the case”. 

Background: 

In August 2023, the Bombay High Court held that while Dheeraj Wadhawan would receive necessary medical assistance, he would not be granted additional privileges. 

Previously, in May, 2023, the Delhi High Court dismissed the CBI’s plea seeking cancellation of bail to former Dewan Housing Finance Corporation Limited (DHFL) promoters Kapil Wadhawan and his brother Dheeraj Wadhawan. Justice Dinesh Kumar Sharma stated that there was 'no illegality or perversity' in the order of the Sessions Judge and the charge sheet filed by the CBI in the present case was an incomplete/piecemeal charge sheet.

For Petitioner: Senior Advocate Vikas Pahwa with Advocates Avishkar Singhvi, Ashish Verma, Vijay Kari Singh, Debopriyo Moulik, Rohan Dakshini, Prakhar Parekh, Janaki Garde, Vishwajit Singh, Tejas Popat, Raghav Dharmadhikari, Garvil Singh, Sanskriti Shakuntala Gupta and Vivek Kumar Singh
For Respondent: Special Public Prosecutor Anupam Sharma with Advocates Prakarsh Airan, Harpreet Kalsi, Abhishek Batra, Ripudaman Sharma, Vashisht Rao and Syamantak Modgill
Case Title: Dheeraj Wadhawan v CBI (2024:DHC:6941)