According to the FIR based on a complaint made by Union Bank of India, DHFL, Kapil Wadhawan, the then CMD, Dheeraj Wadhwan, the then Director, and other accused persons allegedly entered into a criminal conspiracy to cheat the consortium of 17 banks led by Union Bank of India and in pursuance of the said criminal conspiracy the said accused Kapil Wadhwan and others induced the consortium banks to sanction huge loans aggregating to ₹42,871.42 crore.
The accused had claimed before the court that since the CBI failed to file the charge sheet against them within the mandatory 60-day period from their arrest, they had “indefeasible right" to statutory bail, also known as default bail, in the matter.
Statutory bail, also known as default bail, is a right to bail that accrues when the investigation fails to complete within a specified period in respect of a person in judicial custody.
Special Judge Vishal Gogne, however, said the filing of the present charge sheet in the investigation shall rather be governed by Section 167(2)(a)(i) CrPC, which provides for a maximum period of 90 days.
The judge noted that the accused were also charged with section 409 (criminal breach of trust by public servant, or by banker, merchant or agent) for which the maximum punishment was life imprisonment, “which brings the period of completion of investigation within the purview of Section 167(2)(a)(i) CrPC i.e. 90 days."
The court said in an order passed on September 30, “Since the period of 90 days has not yet expired in the present investigation, which also relates to Section 409 IPC, applicants Kapil Wadhawan and Dheeraj Wadhawan are not entitled to statutory bail under Section 167(2) CrPC. Both applications are dismissed."
Much of that amount was allegedly siphoned off and misappropriated by alleged falsification of the books of the DHFL and dishonest default in repayment of the legitimate dues of the said consortium banks, the CBI claimed.
The complainant alleged that a wrongful loss of ₹34,615 crore was caused to the consortium banks in as much as such was the quantification of the outstanding dues as on July 31, 2020.
