The Central Bureau of Investigation (CBI) has apprehended Dheeraj Wadhawan on Tuesday in relation to the Rs 34,000 crore Dewan Housing Finance Corporation Ltd (DHFL) bank fraud case, marking a significant development in India’s largest banking loan fraud investigation.
The case involves the alleged defrauding of a consortium of 17 banks. In 2022, the central agency had already filed charges against Wadhawan for his role in the fraud. Previously, Wadhawan was arrested by the CBI in connection with the Yes Bank corruption probe but was subsequently released on bail.
In an effort to recover Rs 22 lakh in pending dues, the Securities Exchange Board of India (SEBI) had, in February 2021, ordered the attachment of bank accounts, shares, and mutual fund holdings of former DHFL promoters Dheeraj and Kapil Wadhawan. This action followed the brothers’ failure to pay fines imposed for non-compliance with disclosure norms in July of the previous year.
The pending dues for each Wadhawan amount to Rs 10.6 lakh, including the initial fine, interest, and recovery costs. In July 2023, SEBI levied an additional penalty of Rs 10 lakh each against the Wadhawan brothers for undisclosed violations of disclosure regulations. During their tenure at DHFL, Kapil Wadhawan served as Chairman and Managing Director, while Dheeraj Wadhawan was a non-executive director, both being integral members of DHFL’s administrative board.
In a related development, the Delhi High Court has issued a notice to the CBI in response to Dheeraj Wadhawan’s bail application on medical grounds. Wadhawan sought relief from the High Court after a trial court rejected his bail plea due to medical reasons. Currently, he is recuperating at his Mumbai residence following spinal surgery. Justice Jyoti Singh has instructed the CBI to respond, with a hearing scheduled for Friday, May 17.
