Yes Bank fraud: Wadhawans move special CBI court for bail

Kapil and Dheeraj Wadhawan, accused in the Yes Bank fraud case, have approached the special Central Bureau of Investigation (CBI) court for bail, claiming the agency

Kapil and Dheeraj Wadhawan, accused in the Yes Bank fraud case, have approached the special Central Bureau of Investigation (CBI) court for bail, claiming the agency has not filed the charge sheet in the case.

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The court has transferred the case to magistrate court for further proceedings under charges of cheating and conspiracy of the Indian Penal Code and refused to accept the case under Prevention of Corruption Act as the CBI had failed to initiate the process to obtain sanction to prosecute Yes Bank founder Rana Kapoor.

The CBI had filed a charge sheet on June 25 against Dewan Housing Finance Ltd (DHFL), its promoters Kapil and Dheeraj Wadhawan, Belief Realtors Pvt. Ltd, RKW Developers Pvt. Ltd, DoIT Urban Ventures (India) Pvt. Ltd, Yes Bank founder Rana Kapoor and his daughter Roshni Kapoor.

When the court questioned the agency about the sanction order, the CBI prosecutor admitted that the agency is yet to initiate the process with the government for the sanction order to the prosecution of Rana Kapoor under Prevention of Corruption act. As per the act, the sanction order to prosecute a public servant under the Prevention of Corruption Act is a must.

The court held that in absence of sanction order, the case cannot be put on hold, and the charges applicable are of cheating and conspiracy under the Indian Penal Code. The court held that these charges will be tried by the magistrate court.

As per the CBI case, Yes Bank invested ₹3,700 crore in short-term debentures of DHFL between April and June 2018. In return, Kapoor was allegedly paid “kickbacks” amounting to ₹600 crore by DHFL promoter Kapil Wadhawan. DHFL sanctioned a loan to DoIT Urban Ventures (India) Pvt Ltd, a wholly-owned subsidiary of RAB Enterprises, in which Kapoor’s wife Bindu is a director and 100% shareholder, alleged the CBI. Kapoor’s daughters, Rakhee Kapoor Tandon, Roshni Kapoor and Radha Kapoor, are also 100% shareholders in DoIT Urban Ventures.