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Special Court dismisses statutory bail plea of Wadhawans in DHFL case

The Rouse Avenue Court on Monday dismissed the statutory bail plea of Kapil Wadhawan and his brother Dheeraj, former Dewan Housing Finance Corporation Limited (DHFL) promoters, arrested by the Central Bureau of Investigation (CBI) in connection with the multi-crore bank loan scam case. The two accused were arrested in the current FIR on 19 July […]

The Rouse Avenue Court on Monday dismissed the statutory bail plea of Kapil Wadhawan and his brother Dheeraj, former Dewan Housing Finance Corporation Limited (DHFL) promoters, arrested by the Central Bureau of Investigation (CBI) in connection with the multi-crore bank loan scam case. The two accused were arrested in the current FIR on 19 July this year.
Statutory bail, also known as default bail, is a right to bail that arises when an investigation into a person in judicial custody fails to be completed within a specified time frame.
According to the plea, bail as agitated as a matter of an indefeasible right for accused Kapil Wadhawan as a consequence of the CBI allegedly failing to file the chargesheet against him and co-accused Dheeraj Wadhawan within 60 days of their arrest.
Special Judge Vishal Gogne in an order passed on 30 September 2022, while dismissing the bail petition, stated that the filing of the present chargesheet in the present investigation shall be governed by Section 167(2)(a)(i) CrPC which provides for a maximum period of 90 days. 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. Both applications are dismissed, said the court.
Based on a complaint made by Union Bank of India alleging that Dewan Housing Finance Corporation Ltd. (DHFL), Kapil Wadhawan, the then CMD, Dheeraj Wadhwan, the then Director, both DHFL and the 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 Rs 42,871.42 crore.
Much of this amount was allegedly syphoned 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 crore was caused to the consortium banks in as the quantification of the outstanding dues was concerned as on 31 July 2020, alleged the Central Bureau of Investigation.

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