Yes Bank fraud: Court extends CBI custody of Wadhawans till May 8

A Central Bureau of Investigation (CBI) court, on Friday, extended the custody of Dewan Housing Finance Corporation Limited (DHFL) promoters Kapil and Dheeraj Wadhawan,

A Central Bureau of Investigation (CBI) court, on Friday, extended the custody of Dewan Housing Finance Corporation Limited (DHFL) promoters Kapil and Dheeraj Wadhawan, who were arrested in connection with Yes Bank fraud case, till May 8. CBI had arrested the brothers on April 26 and the duo has been in custody since then. CBI will also be probing 150 shell companies which are said to be under the control of Wadhawan brothers.

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CBI in its FIR against the Wadhawan brothers had alleged that Yes Bank had invested ₹3,700 crore in short-term debentures in DHFL, which has not been redeemed till date, for which the Wadhawans had paid a kickback of ₹600 crore to Rana Kapoor, former chief executive officer and managing director of Yes Bank, in the form of a loan to DoIT Urban Ventures (India) Pvt Ltd – a company registered in the name of Kapoor’s daughters.

CBI officials produced the Wadhawan brothers before the court and sought further custody for a period of seven days claiming that they needed to probe the role of other directors in DHFL along with other Yes Bank officials. It also contended that custody is required to find out details about more than 150 shell companies being controlled by the duo. The agency also said they need to probe their email accounts to get more details on the conspiracy.

The agency is looking at the role played by the other accused in the fraud, and are investigating if any kickbacks were received by DHFL or Yes Bank employees. These employees will be asked to join the probe once the lockdown is lifted, said CBI sources.

The court after considering the seriousness of the case extended the CBI custody of the two brothers till May 8 to facilitate CBI in further investigation.