YES Bank fraud case: Mumbai HC grants bail to Wadhawan brothers

MUMBAI: The Bombay high court on Thursday granted bail to Kapil Wadhawan and Dheeraj Wadhawan of Dewan Housing Finance Ltd (DHFL) in connection with the YES Bank fraud, saying the Enforcement Directorate (ED) filed a chargesheet against them a day after the stipulated period of 60 days.

The Wadhawan brothers will not be able to come out of the prison immediately as the Central Bureau of Investigation (CBI) is investigating them in the same case. ED is separately probing other pending cases against them. It initiated proceedings against the Wadhawans on the basis of a case registered by CBI on March 7 against YES Bank promoter Rana Kapoor, and his family members.

They have been booked for conspiracy, cheating and also under provisions of the Prevention of Corruption Act, 1988.

YES Bank is alleged to have invested ₹3,700 crore in short term non-convertible debentures of DHFL between April and June 2018. Kapoor allegedly received ₹600 crore as kickbacks from DHFL in terms of loan advanced to DOIT Urban Ventures (India) Pvt. Ltd and Morgan Credits Pvt. Ltd.

The Wadhawan brothers moved HC after a special court rejected their claim that they were entitled to default bail, as ED did not file a chargesheet within 60 days —under section 167(2) of the Code Of Criminal Procedure, 1973—by July 13.

However, HC judge Justice Bharati Dangre held that the exclusion was legally impermissible and granted bail to the Wadhawan brothers in lieu of ₹1 lakh bond each, and on the condition that they will surrender their passports to the investigators.

THE DHFL PROMOTERS GOT DEFAULT BAIL SINCE ED WAS LATE IN FILING ITS CHARGESHEET