On 14th May, the Central Bureau of Investigation (CBI) arrested Dheeraj Wadhawan as part of the ongoing investigation into the ₹34,000 crore DHFL bank fraud. Wadhawan had previously been charge-sheeted by the central agency in connection with the case back in 2022. 

Dheeraj Wadhawan had previously been arrested by the agency in connection with the Yes Bank corruption case and was out on bail. The CBI initiated the DHFL case investigation concerning the alleged defrauding of a consortium of 17 banks amounting to ₹34,000 crore, marking it as the largest banking loan fraud in the country. 

In February of this year, the Securities Exchange Board of India (SEBI) issued an order to attach bank accounts, shares, and mutual fund holdings belonging to former DHFL promoters Dheeraj and Kapil Wadhawan to recover dues totaling ₹22 lakh. This action by the market regulator was taken after the Wadhawan brothers failed to pay the fine imposed on them in July of the previous year in a case related to the violation of disclosure norms. 

The pending dues of ₹10.6 lakh each from the Wadhawan brothers encompass the initial penalty amount, interest, and recovery costs. In July 2023, the regulator imposed a penalty of ₹10 lakh each on the Wadhawans, who served as promoters of DHFL (now known as Piramal Finance), for violating disclosure norms. Kapil Wadhawan held the positions of Chairman and MD at DHFL, whereas Dheeraj Wadhawan served as a non-executive director of the company. Both individuals were members of the DHFL board. 

As Dheeraj Wadhawan is facing legal proceedings related to his health condition. Seeking bail on medical grounds can be a complex issue, especially when it involves ongoing investigations or trials. The fact that the Delhi High Court has issued notice to the CBI indicates that they are taking the plea seriously and are considering it. It will be interesting to see how the proceedings unfold during the hearing scheduled for May 17. 

Image Source: The Times of India