File photo of former DHFL promoter Kapil Wadhawan | Photo credit: Gayathri G@Chennai
The Supreme Court on Monday sought a response from the CBI on a bail plea filed by former DHFL promoter Kapil Wadhawan in an alleged ₹34,926 crore bank fraud case.
A bench of Justices JK Maheshwari and Vijay Bishnoi issued notice to the agency seeking its response.
The Delhi High Court on August 4 denied bail to Wadhawan, noting that his conduct while in custody was “not above reproach”.
The Supreme Court denied relief, saying such economic crimes were not just crimes against specific victims, but against the financial system as a whole.
The CBI alleged that Wadhawan, as promoter and CMD of DHFL, was the main architect of a massive financial fraud involving diversion and embezzlement of around ₹34,926 crore from a consortium of 17 banks.
“It is noteworthy that the applicant’s conduct during custody has not been above reproach. The allegations regarding manipulation of valuable assets and transactions conducted during judicial custody are serious and suggest that the applicant continues to exercise significant control and influence,” the HC order said.
The Supreme Court noted the CBI’s contention that Wadhawan was facing multiple investigations and cases in different jurisdictions involving serious financial crimes, undermining his argument that he did not pose a risk if his bail was extended.
“The court cannot allow the release of a person who is prima facie the mastermind of a deep-rooted financial fraud, especially when the trial is still in its nascent stages,” the high court judge had said.
If released on bail, the applicant could tamper with the evidence or worse, flee from justice.
“Many of the witnesses in this case are said to be ex-employees or associates of DHFL and as such, there is a high risk and possibility that the petitioner would attempt to influence the witnesses,” the report said.
He was accused of setting up and operating 87 shell companies in the names of associates, employees and family members to siphon off funds wrongly registered as retail housing loans to over 2.6 lakh fictitious customers through a non-existent “Bandra Branch-001” in DHFL’s internal systems.
He was taken into custody in the case on July 19, 2022 and was granted standard statutory bail on December 3, 2022, but the Supreme Court revoked his bail on January 24, 2024.
The High Court noted that his “effective detention” was for two years and not four years as claimed.
“Given the nature and seriousness of the charges, the seriousness of the crime, the applicant’s central role in the conspiracy, the potential adverse impact of his release on the trial and the sheer volume of the funds siphoned, this court finds no merit in the present application,” the order read.
Published on October 27, 2025
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