In a significant development in the multi-crore bank loan fraud case, the Supreme Court on Tuesday cancelled the bail granted to former DHFL promoter Dheeraj Wadhawan.
The bench, comprising Justices Sanjay Kumar and Satish Chandra Sharma, directed Wadhawan to surrender within 2 weeks.
Medical Grounds Bail Overturned
Court’s decision came after reviewing a report submitted by a medical board, which contradicted earlier claims about Wadhawan’s health condition.
The Delhi High Court had granted him bail on September 9, 2024, on medical grounds, ruling that he fell within the definition of a “sick person.” However, the Central Bureau of Investigation (CBI) challenged the order in the apex court.
CBI Argues No Serious Ailment, Major Scam Involved
Additional Solicitor General S.V. Raju, representing the CBI, told the court that Wadhawan suffered from no serious medical ailments, and that his bail was unjustified considering the scale of the alleged fraud. He emphasised the magnitude of the scam, where enormous public money was siphoned off.
The case revolves around a massive banking fraud where Dheeraj Wadhawan and his brother Kapil Wadhawan—former top executives at DHFL—were arrested in July 2022.
According to the FIR filed by the Union Bank of India, the Wadhawan brothers, along with other accused, were involved in a criminal conspiracy to defraud a consortium of 17 banks, led by Union Bank. The accused allegedly induced the banks to sanction loans amounting to ₹42,871.42 crore, a significant portion of which was diverted or misappropriated.
The CBI alleged that the fraud was executed through falsification of DHFL’s books of accounts and by wilfully defaulting on repayment obligations. The chargesheet was filed in October 2022, and the court has since taken cognisance of the matter.
With the court now cancelling Dheeraj Wadhawan’s bail, he is expected to return to custody within the court-mandated timeline.
The case remains one of the biggest financial frauds in India’s banking history, involving systemic lapses and high-level corporate misconduct.
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