Former DHFL Director Dheeraj Wadhawan Arrested by CBI

The Central Bureau of Investigation (CBI) has arrested former DHFL director Dheeraj Wadhawan in connection with a Rs 34,000 crore bank fraud case. He was apprehended in Mumbai on Monday night and brought before a special court on Tuesday, which placed him in judicial custody.

This case involves the alleged defrauding of a consortium of 17 banks. Dheeraj and his brother Kapil had previously been arrested in the same case on July 19, 2022. The CBI had filed a charge sheet against 75 entities, including the Wadhawan brothers, on October 15, 2022.

Initially, both former DHFL directors were granted bail by the special court on December 3, 2022, due to the incomplete nature of the investigation and a piecemeal charge sheet. The Delhi High Court upheld this decision. However, the CBI challenged the bail in the Supreme Court, which overturned the lower courts’ decisions, citing significant legal errors.

The case began with a complaint from the Union Bank of India, leading a consortium that extended credit facilities of Rs 42,871 crore to DHFL between 2010 and 2018. At various points, these loans were declared non-performing assets by the banks.