HC REFUSES PRE-ARREST BAIL TO WADHAWANS

The Bombay high court on Tuesday rejected pre-arrest bail pleas filed by Dewan Housing Finance Corporation Ltd (DHFL) promoter Kapil Wadhawan and RKW Developers promoter Dheeraj Wadhawan in connection with Yes Bank scam and purported diversion of funds from Uttar Pradesh Power Corporation Ltd (UPPCL).

Initially, the case was registered in 2019 against employees of UPPCL. The staff, without bringing to the knowledge of the managing director/chairman, of a trust that was looking after provident fund deducted from salaries of government employees, invested the General Provident Fund (GPF) and Central Provident Fund (CPF) in Fixed Deposit with private institution “Dewan Housing Finance Corporation Ltd”.

According to the complaint, General Provident Fund and Central Provident Fund amount was invested in violation of the due procedure for investment of non-government Provident Fund, Contingency Fund and Gratuity Fund, laid down in the notification issued by the ministry of finance, government of India.

Additional solicitor general Anil Singh on behalf of the probe agency opposed the anticipatory bail application saying the amount of EPF cannot be invested in any institution except scheduled commercial banks.

He also argued that the custodial interrogation of the accused was necessary to ascertain the money trial and the properties acquired by them from proceeds of the crime.