The Supreme Court of India has decided to scrutinize the Central Bureau of Investigation’s (CBI) petition to cancel the bail of Dheeraj Wadhawan, a former promoter of Dewan Housing Finance Corporation Ltd (DHFL), in a major bank loan fraud case. The Delhi High Court had previously granted Wadhawan medical bail in September 2024, a decision now contested by the CBI.
On Friday, a bench consisting of Chief Justice Sanjiv Khanna and Justice Sanjay Kumar issued a notice regarding the CBI’s appeal against the high court’s decision. They have called for a response by the last week of April, ahead of the next scheduled hearing.
Represented by Additional Solicitor General SV Raju, the CBI argued that 45-year-old Wadhawan does not suffer from any severe health conditions that would necessitate medical bail. Raju emphasized, “He is a man with money bags…he procured reports from private hospitals and secured the relief.”
In contrast, Wadhawan’s defense, led by Senior Counsel Abhishek Manu Singhvi, highlighted his client’s health issues, including complications related to his kidneys, spine, and heart, underpinned by medical reports.
The backdrop of this legal battle is one of India’s largest banking fraud allegations, with the CBI accusing Dheeraj Wadhawan and his brother Kapil of misappropriating ₹34,000 crore. According to the agency, the brothers manipulated DHFL’s financials and bypassed proper loan sanctioning processes to divert funds to their controlled entities.
The controversy began with their arrest in July 2022, followed by an interim bail grant by a trial court in December of the same year due to incomplete charge sheets by the CBI. The Supreme Court intervened in January 2024, ordering the immediate re-arrest of the Wadhawans, overturning previous bail grants based on the timely submission of charge sheets by the CBI.
The case stems from a complaint by Union Bank of India, leading a consortium of 17 banks defrauded into sanctioning loans totaling ₹42,871.42 crore, a significant portion of which was allegedly siphoned off by the accused.
