DHFL Bank Fraud: SC Asks CBI To File Response On Ajay Nawandar’s Bail Plea

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The Supreme Court has instructed the Central Bureau of Investigation to respond to businessman Ajay Ramesh Nawandar’s bail plea in connection with a ₹34,615-crore bank fraud case involving Dewan Housing Finance Limited.

A bench comprising Justices Vikram Nath and Prasanna B Varale has extended Nawandar’s interim protection, allowing him to remain in the hospital until October 14.

The court ordered that Nawandar’s eyes be examined by a senior consultant at AIIMS, New Delhi, with a report to be submitted before the court on the specified date. The CBI is also required to file a counter-affidavit regarding the bail petition.

Nawandar’s plea challenges a May 31 order from the Delhi High Court, which denied his bail request. The High Court emphasized that Nawandar is an influential figure in Mumbai and could potentially influence witnesses if released.

It noted that Nawandar had previously misused interim bail by exaggerating medical issues and manipulating hospital records.

The trial court previously denied bail, citing Nawandar’s alleged involvement in a conspiracy with the Wadhawan brothers, the primary accused in the case, to hide embezzled funds.

The CBI’s investigations revealed that they seized a collection of luxury watches and two paintings worth ₹33 crore from Nawandar’s premises, which were reportedly purchased with the proceeds of the alleged fraud.

The CBI has accused Nawandar of acting as a conspirator, assisting the Wadhawans in concealing the proceeds of their crime and attempting to dispose of these valuable items before his arrest. The agency’s investigation was initiated following a complaint from the Union Bank of India, which leads a consortium of lenders that extended significant credit to DHFL.

The bank alleges that the Wadhawan brothers misrepresented facts and abused public funds, leading to substantial losses for the consortium.