NEW DELHI: The Supreme Court has granted bail to former DHFL promoters Kapil Wadhawan and his brother Dheeraj, acknowledging that an undertrial should not be detained indefinitely in relation to a multi-crore bank loan scam.
In a ruling on December 11, Justices J K Maheshwari and Vijay Bishnoi stated that prolonged incarceration without trial undermines Article 21, which safeguards the right to life and personal liberty.
The court emphasized that under Indian law, “bail is the rule, and jail is the exception,” a principle fundamental to criminal jurisprudence.
It added that pretrial imprisonment must not evolve into punitive action without due legal process, asserting that courts are constitutionally obligated to step in when extended detention becomes disproportionate or arbitrary.
“Considering the number of witnesses and the orders issued by various courts, it seems that a day-to-day hearing will not conclude this case in two to three years,” the bench commented.
The court decided to release the appellants on bail, subject to conditions regarding their travel outside India and without expressing an opinion on the case’s merits.
The Supreme Court mandated that the brothers must notify the trial court and relevant police of their residence and contact details within a week of their release. They are required to report monthly to the police station and attend trial court sessions post charge framing as scheduled. The appellants also must not leave India without prior High Court permission and must surrender their passports to the trial court within two days of release.
Furthermore, the bench warned that any attempts by the appellants to intimidate witnesses, directly or indirectly, could lead to bail cancellation upon prosecution’s application.
“The appellants must be present before the trial court on designated dates until exempted, and they should not seek unnecessary adjournments. The trial court may impose additional conditions as required,” the bench remarked.
Any breach of these stipulations, unless due to an unforeseen circumstance, will justify bail cancellation,” it stated.
The Wadhawan brothers were arrested in this case in July 2022, following a CBI chargesheet filed in October 2022, which a court subsequently accepted.
The FIR was lodged by the Union Bank of India, accusing DHFL, Kapil Wadhawan, Dheeraj Wadhawan, and others of conspiring to defraud a consortium of 17 banks led by the Union Bank by fraudulently obtaining loans totaling Rs 42,871.42 crore.
As alleged by the CBI, a significant portion of the funds was misappropriated through falsified records and dishonest defaults on legitimate dues owed to the consortium banks.
