In a significant legal development, the Bombay High Court has granted bail to DHFL promoters Dheeraj and Kapil Wadhwan, entangled in the 2020 Yes Bank money laundering scandal. The decision, issued by Justice Milind Jadhav on Wednesday, hinges on the extended duration of their incarceration and the indefinite delay in the commencement of their trial.
The Wadhwan brothers, who have been detained since May 2020, were granted bail against a bond of Rs 1 lakh each. According to the High Court, their custody, spanning nearly five years, is disproportionate to the maximum potential sentence of seven years for the charges they face, thus infringing on their constitutional right to a speedy trial as guaranteed under Article 21.
The court’s decision underscored the lack of progress in the trial proceedings, noting that even the charges against the accused have not been framed, despite the Enforcement Directorate (ED) submitting draft charges as early as May 2023. This prolonged pre-trial detention and the sluggish pace of the legal process contributed significantly to the decision to release them on bail.
Justice Jadhav remarked, “Detaining an undertrial prisoner for such an extended period further violates his fundamental right to speedy trial flowing from Article 21 of the Constitution.” He added, “In my opinion, further incarceration of the applicants is not required and they are entitled to bail without entering into the merits of the case at this stage.”
The case against the Wadhwan brothers is tied to allegations of kickbacks linked to a Rs 4,000 crore loan scam, purportedly involving Yes Bank’s founder Rana Kapoor and others. The scandal prompted a dual investigation by the ED and the Central Bureau of Investigation (CBI), focusing on criminal conspiracy and corruption.
Defense counsel Amit Desai argued that with the ongoing delays and no clear end to the investigation in sight, the Wadhwan brothers’ continued detention was unjustifiable, emphasizing their right to liberty and speedy justice.
