Yes Bank fraud case: CBI arrests Wadhawans from Mahabaleshwar

The Central Bureau of Investigation (CBI) on Sunday arrested Dheeraj and Kapil Wadhawan of DHFL group, who are allegedly involved in the Yes Bank fraud, from their

The Central Bureau of Investigation (CBI) on Sunday arrested Dheeraj and Kapil Wadhawan of DHFL group, who are allegedly involved in the Yes Bank fraud, from their bungalow in Mahabaleshwar.

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They will be produced before a special court on Monday where CBI will seek their custody.

The duo, along with their other family members, were under home quarantine for 14 days since April 23, a senior official of the agency said.

The CBI had obtained an arrest warrant against the two brothers after the family was caught holidaying in Mahabaleshwar. On April 18, the brothers had obtained a stay on the execution of an arrest warrant after their lawyer pleaded that the two should not be arrested amidst the coronavirus pandemic. The special court had granted them relief and stayed the warrant. The court order protected the two from arrest till May 5.

However, CBI, which was not heard while staying the warrant, approached the special court to lift the stay. The Wadhwans’ interim relief was cancelled on Saturday and a CBI team from Mumbai reached Satara early Saturday afternoon to arrest the two bothers, a senior officer of the agency said.

The agency was assisted by the Satara police. The two arrested men will be brought to Mumbai, the officer said.

Maharashtra home minister Anil Deshmukh confirmed the arrests with a tweet.

“A CBI team has arrested both Kapil and Dhiraj Wadhwan. Satara Police has given them all required assistance and an escort vehicle with one plus three guards up to Mumbai on a written request. The arrest procedures are going on,” Deshmukh tweeted.

According to the CBI FIR, between April and June 2018, Yes Bank invested Rs3,700 crore in short-term debentures of Dewan Housing Finance Corporation Ltd (DHFL). In return, the Wadhawans allegedly “paid a kickback of Rs600 crore” to Kapoor and family members in the form of loan to DoIT Urban Ventures (India) Pvt Ltd.

The CBI had obtained a non-bailable warrant against the two on March 17 but the two men had not been arrested. On April 9, the Wadhawans, with a group of 23 people, flouted the lockdown and travelled to Mahabaleshwar from Khandala after a senior home department official gave them a free pass.

They were put in quarantine once the news of their lockdown violation became public.