YES Bank fraud: Wadhawans seek bail on ‘merits of the case’

Dewan Housing Finance Limited (DHFL) promoters Dheeraj Wadhawan and Kapil Wadhawan have approached the special Prevention of Money Laundering Act (PMLA) court for

Dewan Housing Finance Limited (DHFL) promoters Dheeraj Wadhawan and Kapil Wadhawan have approached the special Prevention of Money Laundering Act (PMLA) court for bail on the merits of the case. The Enforcement Directorate has now been asked to submit its reply on their plea by June 20.

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The Wadhawans were arrested by the Enforcement Directorate in connection with the YES bank fraud case on May 14. The agency initiated proceedings against the Wadhawans based on a first information report (FIR) registered by the Central Bureau of Investigation (CBI) on March 7 against the two brothers as well as the bank’s promoter Rana Kapoor.

As per ED’s allegations, YES Bank had invested ₹3,700 crore in DHFL’s short-term non-convertible debentures between April and June 2018, for which Kapoor had received kickbacks worth ₹600 crore as loans to DoIT Urban Ventures (India) Private Limited. Kapoor’s daughters hold 100℅ stake in DoIT Urban Ventures Private Limited.

The two brothers have in their bail plea questioned the allegation of payment of kickbacks given to Kapoor. They have said that no other ‘defaulter’ has been arrested by the agency. The Wadhaans in their plea have claimed that their company is now under a court-appointed administrator and hence, there is no question of them tempering with any evidence related to the company records, if they are granted bail.