This case, which concerns the purported deception of 17 banks, is being referred to as India’s biggest banking loan scam.
In connection with the bank fraud investigation involving Dewan Housing Finance Corporation Ltd (DHFL) around Rs 34,000 crore, the Central Bureau of Investigation (CBI) detained Dheeraj Wadhawan on Tuesday.
This case, which concerns the purported deception of 17 banks, is being referred to as India’s biggest banking loan scam.
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Wadhawan was already charged by the central agency in 2022 for his involvement in this case. Wadhawan was previously arrested by the CBI as part of the Yes Bank corruption investigation and then freed on bond.
The Securities Exchange Board of India (SEBI) has ordered the attachment of bank accounts, shares, and mutual fund holdings of erstwhile DHFL promoters, Dheeraj and Kapil Wadhawan, in February 2021 in an attempt to recover outstanding dues of Rs 22 lakh.
The Wadhawan brothers’ inability to pay the fee levied on them in July of last year for violating disclosure standards led to the ruling.
The outstanding debts owed by each of the Wadhawans total Rs 10.6 lakh and include the original penalties, interest, and recovery expenses. The Wadhawan brothers, who were DHFL promoters at the time, were hit with penalties of Rs 10 lakh each by SEBI in July 2023 (now Piramal Finance). The violation of disclosure laws that went unreported led to the fine.
Dheeraj Wadhawan was a non-executive director of DHFL, while Kapil Wadhawan held the positions of Chairman and Managing Director. The administrative board of DHFL included both brothers.
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In response to Dheeraj Wadhawan’s request for medical release, the Delhi High Court last Saturday sent a notice to the Central Bureau of Investigation (CBI).
After his bail request for medical reasons was denied by a trial judge, Wadhawan filed an appeal with the High judge. Wadhawan underwent spinal surgery and is now recovering at his Mumbai home. The CBI has been instructed by Justice Jyoti Singh to provide a response, and a hearing has been set for this Friday, May 17.
