In a significant development, the Central Bureau of Investigation (CBI) has arrested Dheeraj Wadhawan in connection with the Dewan Housing Finance Corporation Ltd (DHFL) bank fraud investigation. This case, which involves an alleged swindling of a consortium of 17 banks, has been termed as the largest banking loan fraud in India. The arrest of Wadhawan comes as a crucial step in the ongoing probe into the Rs 34,000 crore scam.
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Dheeraj Wadhawan, a prominent figure in the financial sector, had previously been charge-sheeted by the central agency in 2022 for his alleged involvement in this case. This arrest marks another significant development in the long-standing investigation into financial irregularities within DHFL.
The investigation into the DHFL scam gained momentum after the Securities Exchange Board of India (SEBI) ordered the attachment of bank accounts, shares, and mutual fund holdings belonging to former DHFL promoters, Dheeraj and Kapil Wadhawan, in February 2021. The move was aimed at recovering pending dues amounting to Rs 22 lakh following the Wadhawan brothers’ failure to settle fines imposed on them for non-compliance with disclosure norms.
SEBI had imposed a penalty of Rs 10 lakh each against the Wadhawan brothers in July 2023 for undisclosed transgressions of disclosure regulations during their tenure with DHFL. Kapil Wadhawan, who served as the Chairman and Managing Director of DHFL, and Dheeraj Wadhawan, a non-executive director, were integral members of the company’s administrative board.
The arrest of Dheeraj Wadhawan by the CBI underscores the government’s commitment to combating financial fraud and ensuring accountability within the banking sector. It sends a strong message to individuals involved in fraudulent activities, highlighting the consequences of such actions.
Meanwhile, in a separate development, the Delhi High Court has issued a notice to the CBI in response to Dheeraj Wadhawan’s bail application on medical grounds. Wadhawan, who is currently recuperating at his Mumbai residence following spinal surgery, had sought bail citing health reasons. The trial court had previously rejected his bail plea, prompting him to approach the High Court.
Justice Jyoti Singh has directed the CBI to provide a response to Wadhawan’s bail application, with a hearing scheduled for Friday, May 17. The outcome of this hearing will be closely watched as it could have implications for Wadhawan’s legal proceedings and the broader investigation into the DHFL scam.
Overall, the arrest of Dheeraj Wadhawan and the subsequent legal proceedings underscore the importance of accountability and transparency in the financial sector. It serves as a reminder of the need for robust regulatory mechanisms and stringent enforcement measures to prevent financial irregularities and protect the interests of investors and stakeholders.