DHFL scam: CBI arrests director Dheeraj Wadhawan in ₹34,000- crore bank fraud case

The Central Bureau of Investigation (CBI) arrested former DHFL director Dheeraj Wadhawan in connection with a ₹34,000-crore bank fraud case, officials were quoted as saying on Tuesday. 

Wadhawan was detained in Mumbai on Monday evening and subsequently presented before a special court in Delhi on Tuesday, where he was remanded in judicial custody.

According to reports, he had already been charge-sheeted by the CBI in connection with the case in 2022.

Also read: China warns new US tariffs to ‘severely’ impact relations: Report

Wadhawan had previously been arrested by the agency in connection with the Yes Bank corruption case and was subsequently released on bail.

Furthermore, it was reported that the CBI had registered the DHFL case, which involved the alleged defrauding of a consortium of 17 banks amounting to ₹34,000 crore, making it the largest banking loan fraud in the country.

In February this year, the Securities and Exchange Board of India (SEBI) directed the attachment of bank accounts, shares, and mutual fund holdings belonging to former DHFL promoters Dheeraj and Kapil Wadhawan to reclaim dues totalling ₹22 lakh.

The market regulator's action followed the Wadhawan brothers' failure to settle the fine imposed on them in July last year, relating to a case involving the violation of disclosure norms.

The outstanding dues of ₹10.6 lakh each from the Wadhawans encompass the initial penalty amount, along with accrued interest and recovery costs.

Back in July 2023, regulatory authorities imposed penalties of ₹10 lakh each on the Wadhawans, former promoters of DHFL (now known as Piramal Finance), for violating disclosure regulations.

Also read: Zomato user gets fed up with 'Call Maa' reminder on Mother's Day, Internet is divided

Kapil Wadhawan served as the Chairman and MD of DHFL, while Dheeraj Wadhawan was a non-executive director. Both the brothers were members of DHFL's board.

In a separate development, the Delhi High Court, last Saturday, issued a notice to the CBI following a plea from Dheeraj Wadhawan seeking bail on medical grounds. He had appealed against a trial court's decision denying him bail, citing medical reasons. Wadhawan is currently recuperating at his residence in Mumbai after spinal surgery. 

Justice Jyoti Singh instructed the CBI to submit a response. The case is scheduled for hearing on Friday, May 17.

(With inputs from PTI)