CBI arrests former DHFL director Dheeraj Wadhawan in connection to ₹34,000-crore fraud

Former DHFL director Dheeraj Wadhawan has been arrested by the Central Bureau of Investigation (CBI) in connection with a ₹34,000-crore bank fraud case, as reported on Tuesday. Wadhawan, who was detained in Mumbai on Monday evening, was presented before a special court in Delhi on Tuesday and subsequently remanded in judicial custody.

According to reports, Wadhawan had already been charge-sheeted by the CBI in connection with the case in 2022. He had previously faced arrest by the agency in relation to the Yes Bank corruption case and was later released on bail.

The CBI's case against DHFL involves an alleged fraud of ₹34,000 crore, purportedly the largest banking loan fraud in the country, targeting a consortium of 17 banks.

In February of the current year, the Securities and Exchange Board of India (SEBI) directed the attachment of bank accounts, shares, and mutual fund holdings belonging to former DHFL promoters Dheeraj and Kapil Wadhawan to recover dues amounting to ₹22 lakh. This action followed the Wadhawan brothers' failure to settle fines imposed on them in a case involving the violation of disclosure norms.

Kapil Wadhawan, who served as the Chairman and MD of DHFL, and Dheeraj Wadhawan, a non-executive director, were both members of DHFL's board.

In a separate legal development, the Delhi High Court issued a notice to the CBI following a plea from Dheeraj Wadhawan seeking bail on medical grounds. He had appealed against a trial court's decision denying him bail due to medical reasons. Wadhawan is currently recovering from spinal surgery at his residence in Mumbai. Justice Jyoti Singh instructed the CBI to submit a response, with the case scheduled for hearing on Friday, May 17.