The Central Bureau of Investigation (CBI) arrested Dheeraj Wadhawan on Tuesday in connection with the Rs 34,000 crore Dewan Housing Finance Corporation Ltd (DHFL) bank fraud, the largest banking loan fraud in India. The case involves the alleged defrauding of a consortium of 17 banks. Wadhawan was previously charge-sheeted by the CBI in 2022 for his role in the scam and had been arrested earlier in the Yes Bank corruption probe but was released on bail.
In February 2021, the Securities Exchange Board of India (SEBI) ordered the attachment of the Wadhawan brothers’ assets to recover pending dues of Rs 22 lakh. This followed their failure to pay fines for non-compliance with disclosure norms. Each brother owes Rs 10.6 lakh, including fines, interest, and recovery costs. In July 2023, SEBI imposed an additional Rs 10 lakh penalty on each for undisclosed violations.
Kapil Wadhawan served as DHFL’s Chairman and Managing Director, while Dheeraj was a non-executive director. Both were part of DHFL’s administrative board.
Last Saturday, the Delhi High Court issued a notice to the CBI regarding Dheeraj Wadhawan’s bail application on medical grounds after a trial court rejected his plea. Wadhawan is recovering from spinal surgery at his Mumbai home. Justice Jyoti Singh has ordered the CBI to respond by Friday, May 17.
