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Synopsis

The Supreme Court has ordered a fresh medical assessment of former Dewan Housing Finance Corporation Limited CMD Kapil Wadhawan, who sought medical bail in the multi-crore Yes Bank fraud case. 

A division bench of Justices KM Joseph and Hrishikesh Roy passed the order while hearing an SLP filed by Wadhawan seeking bail.

The Central Bureau of Investigation (CBI) had recently filed a chargesheet naming Kapil Wadhawan and Dheeraj Wadhawan, the promoters of the Mumbai-based NBFC DHFL, and 73 others in Rs 34,614 crore bank fraud case. They were detained by the Central Bureau of Investigation on July 19.

The agency had registered the case in June this year. A total of 18 individuals and 57 companies, through which the funds were diverted, have been named in the chargesheet.

Last month, Rouse Avenue Court had denied bail to the Wadhawan brothers in connection with the case.

Special Judge (PC Act) Vishal Gogne while dismissing the bail plea had noted that the filing of the charge sheet in the investigation shall be governed by Section 167(2)(a)(i) CrPC which provides for a maximum period of 90 days for filing of chargesheet.

"Since the period of 90 days has not yet expired in the present investigation, which also relates to Section 409 IPC, applicants Kapil Wadhawan and Dheeraj Wadhawan are not entitled to statutory bail under Section 167(2) CrPC," he had added.

It is alleged that DHFL, Kapil Wadhawan, the then CMD; Dheeraj Wadhwan, the then Director of DHFL, Sudhakar Shetty, and other accused persons entered into a criminal conspiracy to cheat the Consortium of 17 banks led by Union Bank of India and in pursuance of the said criminal conspiracy the said accused Kapil Wadhwan and others induced the consortium banks to sanction huge loans aggregating to Rs. 42,871.42 crores.

Much of this amount was allegedly siphoned off and misappropriated by alleged falsification of the books of the DHFL and dishonest default in repayment of the legitimate dues of the said consortium banks. The complainant alleged that a wrongful loss of Rs. 34,615.00 crores was caused to the consortium banks in as much as the quantification of the outstanding dues as on July 21, 2020.

Case Title: Kapil Wadhawan vs. CBI and Anr.