Wadhawan brothers sent to judicial custody till June 11
The special Prevention of Money Laundering Act (PMLA) court on Wednesday remanded Dewan Housing Finance Limited (DHFL) promoters Dheeraj Wadhawan and Kapil Wadhawan in judicial custody till June 11.
The brothers were arrested on May 14 by the Enforcement Directorate (ED) and have been in their custody since. As their ED custody ended on Wednesday, the two were produced before the special PMLA court. After 14 days of ED custody ended, the agency sought their judicial custody. The two would now be lodged in a Mumbai jail. The Wadhawans were arrested by ED over money laundering charges. The agency had initiated proceedings against them based on a first information report (FIR) registered by the Central Bureau of Investigation
(CBI) on March 7, 2020, against Yes Bank promoter Rana Kapoor and the brothers.
It is alleged that between April and June 2018, Yes Bank invested ₹3,700 crore in shortterm, non-convertible debentures of DHFL and Kapoor received ₹600 crore as kickbacks from DHFL, in the form of loan advanced to two firms, DOIT Urban Ventures (India) Private Limited and Morgan Credits Private
Limited. While Kapoor’s daughters hold 100% stake in DOIT, Morgan Credits is controlled by his wife.
The Wadhawans, however, maintained that these transactions were entered into the regular course of business. They sought pre-arrest bail, claiming that there was no fraudulent misrepresentation and no wrongful loss was caused to the bank in the transactions.