SC rejects Kapil Wadhawan's interim bail on medical grounds in bank loan fraud case

The Supreme Court on Thursday rejected former chairman of erstwhile Dewan Housing Finance Corp Kapil Wadhawan’s appeal seeking interim bail on medical grounds in a bank loan fraud case.

Kapil Wadhawan had earlier this month approached the Delhi High Court for interim bail on medical grounds. The CBI, however, opposed the interim bail, saying it a gross misuse of the process of law. While the regular bail application of Kapil Wadhawan is still pending before the HC, he had sought interim bail on medical grounds.

The HC had last month asked the CBI and the jail authorities to provide the best treatment to Kapil Wadhawan in a reputed government hospital. However, the HC had on September 9 granted bail to DHFC former promoter Dheeraj Wadhwan on health grounds.


According to a FIR based on a complaint by Union Bank of India, the Wadhawan brothers and other had allegedly entered into a criminal conspiracy to cheat a consortium of 17 banks. The accused persons induced the consortium to sanction loans aggregating to Rs 42,871.42 crore. It was found that the accused persons "siphoned off and misappropriated" a significant portion of these funds by "falsifying" the books of the DHFL and dishonestly defaulted on repayment of the legitimate dues of the said consortium banks, thereby causing a loss of Rs 34,615 crore to the consortium lenders. So far, this is the largest banking loan fraud in India.