Yes Bank fraud case: Bombay HC rejects default bail pleas of DHFL promoters Kapil, Dheeraj Wadhawan

The CBI booked the Wadhawans in March along with Yes Bank promoter Rana Kapoor and his family members for alleged conspiracy, cheating, and under the Prevention of Corruption Act

The Bombay high court has rejected Dewan Housing Finance Limited (DHFL) promoters Kapil Wadhawan and Dheeraj Wadhawan’s pleas seeking default bail in connection with the Yes Bank fraud case.

Mumbai, India - April 27, 2020: DHFL Promoters Kapil and Dheeraj Wadhawan accused in Yes bank fraud cases, have been taken into CBI Custody and has been produced in session court from CBI Headquarter BKC Bandra in Mumbai, India, on Monday, April 27, 2020. (Photo by Vijayanand Gupta/Hindustan Times) (Vijayanand Gupta/HT Photo)

The Central Bureau of Investigation (CBI) booked the Wadhawans in March along with Yes Bank promoter Rana Kapoor and his family members for alleged conspiracy, cheating, and under the Prevention of Corruption Act.

Yes Bank allegedly invested Rs 3,700 crore in DHFL’s short-term non-convertible debenture between April and June 2018. Kapoor allegedly received Rs 600 crore as kickbacks from DHFL in terms of loan advanced to two firms, DOIT Urban Ventures (India) Private Limited and Morgan Credits Private Limited. Kapoor’s three daughters hold 100℅ stakes in DOIT, while Morgan Credits is controlled by his wife.

The Wadhawans, who were arrested on April 26, earlier filed applications before a special CBI court seeking bail on the grounds that the investigation agency had failed to file a charge sheet against them within 60 days of their first remand. They argued they were therefore entitled to default bail.

The CBI maintained it had filed a charge sheet in time on June 25, and thus they were not entitled to default bail.