NEW DELHI: The Delhi High Court denied bail to DHFL promoter Kapil Wadhawan in a Rs 34,926 crore bank fraud case, citing his “unreproachable” conduct in custody.
Justice Ravinder Dudeja stated that such economic crimes affect not just individual victims but the entire financial system.
The CBI alleges that Wadhawan was the principal architect of a significant financial fraud, diverting and misappropriating approximately Rs 34,926 crore from a consortium of 17 banks.
The judge noted, “The applicant’s conduct during custody has not been beyond reproach. Allegations of manipulating valuable assets and transactions during judicial custody are serious and imply continued influence by the applicant.”
The court observed the CBI’s claims about Wadhawan facing multiple investigations for serious financial offences, undermining his argument that he posed no risk if granted bail. “The court cannot allow the release of an individual seen as the mastermind of extensive financial fraud, especially with the trial at an early stage,” the judge remarked.
If released, the order warned, there is a risk the applicant might tamper with evidence or evade justice.
“Witnesses in this matter are primarily ex-employees or associates of DHFL, increasing the potential for witness tampering,” the court emphasized.
Wadhawan has been accused of establishing 87 shell companies to divert funds, falsely recorded as retail housing loans to over 2.6 lakh fictitious customers through a non-existent “Bandra Branch-001” in DHFL’s internal systems.
He was taken into custody on July 19, 2022, and granted default statutory bail on December 3, 2022, but the Supreme Court rescinded his bail on January 24, 2024.
The court noted that his “effective custody” period is two years rather than the four years claimed.
Considering the nature and severity of the allegations, the gravity of the offence, Wadhawan’s principal role in the conspiracy, the potential negative impact of his release on the trial, and the enormity of the siphoned funds, the court found no merit in his bail application.
