Yes Bank-DHFL case: Court sends Kapil & Dheeraj Wadhawan to 8-day police remand

Delhi's Rouse Avenue court, on Tuesday, sent the Wadhawan brothers -  Kapil and Dheeraj - to 8 days police remand in the Yes-Bank-DHFL scam case. The two are accused of a Rs 34,815 crore scam pertaining to Dewan Housing Finance Corporation Ltd (DHFL), of which Kapil was the managing director, and Dheeraj was the director.

The Wadhawan brothers were produced before the CBI Special Judge, on Tuesday, July 19, along with Ajay Nawandar, an alleged aide of gangster Chota Shakeel.

What is the Yes Bank-DHFL scam?

In response to a complaint made by the Union Bank of India on 11 February 2022, the CBI filed an FIR. DHFL Ltd, Kapil Wadhwan, Dheeraj Wadhwan, Sudhakar Shelly, Amaryllis Realtors, Skylark Buildcon Pvt. Ltd, Darshan Developers Pvt. Ltd, SOB Constructions Pvt. Ltd, Township Developers Pvt. Ltd, Shishir Realty Pvt. Ltd, SunblInk Real Estate Pvt. Ltd, and other unidentified individuals, including public servants, have been named in the FIR.

According to the CBI's supplementary chargesheet, Kapil Wadhwan allegedly approved loans totalling over Rs 400 crore to businesses owned by co-accused Sanjay Chhabria without adhering to the rules.

In the case against Yes Bank founder Rana Kapoor and Dewan Housing Finance Limited (DHFL) promoters Kapil and Dheeraj Wadhawan, the federal agency submitted a new chargesheet last month. Chhabria was also charged in the third chargesheet in the case. 

The chargesheet, taken under consideration by the local special CBI court earlier this week, cited numerous loans that Rana Kapoor allegedly approved while working at Yes bank, as well as their numerous redistributions to businesses owned by the co-accused.

Between January and May 2018, as per the CBI, loans of Rs 316 crore and Rs 100 crore were given to Chhabriaa-owned Radius Estate & Developers and Radius Estate Projects, respectively. These loans were allegedly approved by Kapil Wadhawan.

As per the CBI chargesheet, Kapil had previously approved loan disbursements without noting the credit process or appraisal in emails. The chargesheet said that Chhabriaa diverted a sizeable portion of the loans that DHFL had approved for the Radius business.

The CBI claimed that a Rs 632 crore loan granted by Yes Bank to the Wadhwan family's Belief Realtor was not applied to the Slum Rehabilitation Authority (SRA) project, in suburban Bandra, for which it was intended. Kapil, Dheeraj Wadhawan, Rana Kapoor and Sanjay Rajkumar Chhabariaa thus conspired to cheat Yes Bank and DHFL, the CBI claimed in its chargesheet.