CBI Arrests Dheeraj Wadhawan in Rs 34,000 cr DHFL Scam, Court Grants Bail on Medical Grounds

The Central Bureau of Investigation (CBI) has taken Dheeraj Wadhawan into custody in connection with the Rs 34,000 crore Dewan Housing Finance Corporation Ltd (DHFL) bank fraud case, considered the largest in India’s banking loan fraud history.

Previously charged in 2022 by the central agency for his alleged involvement in the matter, Wadhawan was earlier arrested by the CBI as part of the Yes Bank corruption investigation and later released on bail.

In a bid to recover outstanding dues amounting to Rs 22 lakh, the Securities Exchange Board of India (SEBI) had directed the attachment of bank accounts, shares, and mutual fund holdings of former DHFL promoters Dheeraj and Kapil Wadhawan in February 2021.

This move came after the Wadhawan brothers failed to settle the fine imposed on them last July for non-compliance with disclosure norms, with each brother having pending dues of Rs 10.6 lakh including the initial penalty, interest, and recovery charges.

Kapil Wadhawan, who served as Chairman and Managing Director during his tenure at DHFL, and Dheeraj Wadhawan as a non-executive director, were both members of the company’s board of directors.

Meanwhile, the Delhi High Court has issued a notice to the CBI regarding Dheeraj Wadhawan’s bail plea on medical grounds after it was rejected by a trial court due to health reasons.

Wadhawan, currently recovering from spinal surgery at his Mumbai residence, appealed to the High Court, with Justice Jyoti Singh directing the CBI to respond, setting a hearing for May 17.