Former DHFL Director, Kapil Wadhawan, Granted Bail in Yes Bank Loan Fraud Case
In a significant development in the Yes Bank loan fraud case involving Dewan Housing Finance Corporation Limited (DHFL), former director Kapil Wadhawan has been granted bail by a special CBI court. The decision, delivered by Special Judge A C Dagga, highlights the importance of striking a balance between individual liberty and societal interests amidst the prolonged trial process.
Acknowledging the serious nature of economic offenses and their far-reaching impact on society, the court emphasized that prolonged detention without trial violates an individual’s constitutional right to life and personal liberty. Keeping Wadhawan incarcerated for years without the commencement of the trial would be unjust, according to Judge Dagga.
It should be noted that Kapil Wadhawan had been taken into custody on April 26, 2020, and remained in judicial custody since then. It is important to highlight that Wadhawan’s release is expected to be delayed, as he remains entangled in other legal charges and has not obtained bail in a separate pending case.
DHFL, once a prominent mortgage lender, underwent adversity due to a severe debt crisis which led to its acquisition by the Piramal Group in 2021 under the Insolvency and Bankruptcy Code.
The case revolves around the alleged fraudulent activities orchestrated between Yes Bank co-founder Rana Kapoor and DHFL promoters, including Kapil Wadhawan. Together, they reportedly conspired in a scam amounting to Rs 40 billion. The Central Bureau of Investigation (CBI) alleges that Yes Bank invested Rs 39.83 billion in DHFL by purchasing debentures, and in exchange, DHFL agreed to pay kickbacks totaling Rs 6 billion to companies owned by Kapoor and his family.
Advocating for his client’s release, Kapil Wadhawan’s lawyer, Vijay Aggarwal, cited his client’s prolonged period behind bars and emphasized the unlikelihood of the trial commencing anytime soon. After more than four years of custody, no trial has commenced despite the filing of multiple chargesheets and ongoing investigations. Aggarwal further highlighted that several other co-accused, including prominent real estate figures Sanjay Chabbaria and Avinash Bhosale, have already been granted bail.
In opposition to his bail, the CBI highlighted the magnitude of the economic crime and its adverse impact on the public and the overall economy. However, the court ultimately ruled in favor of granting bail, recognizing the accused’s right to a speedy trial while acknowledging the need to balance legal rights with the gravity of the offense.
This development underscores the complexities surrounding high-profile economic crime cases and the challenges authorities face in ensuring justice is served while safeguarding individual rights. As the trial progresses and more details unfold, it will be crucial to closely monitor the proceedings and understand the outcome’s implications for both corporate governance and the justice system as a whole.
