A default bail was been granted by Justice Bharati Dangre to Wadhawan brothers, on the condition of Rs 1 lakh as surety and depositing their passports.
On Thursday, the Bombay High Court issued bail to the promoters Kapil Wadhawan and Dheeraj Wadhawan of Dewan Housing Finance Corporation Ltd, accused by the Enforcement Directorate of money laundering in the multi-crore Yes Bank scam case.
Justice Bharati Dangre granted them bail as the Enforcement Directorate ( ED) had failed to file its charges against them in the case within the 60-day period stipulated.
The court observed that there is a time limit imposed in statute for filing the charge sheet, and an accused can not be held in jail except for a day beyond the specified time and they have the right to default bail.
An accused can obtain default bail if, during the time provided by section 167 of the Criminal Procedure Code, the prosecuting agency refuses to file a charge sheet against him or her in the case.
Additional Solicitor General Anil Singh, appearing for ED, tried to stay its order for two weeks so that the agancy could file an appeal against the order in the Apex Court.
However, Justice Dangre declined and said that once the default bail right is due the accused can not be held in jail even for a day thereafter. The court ordered the duo to deposit as surety, one lakh each and surrender their passports.
However, the brothers will remain in prison, as the Central Investigation Bureau (CBI) have booked them in the same case. They had requested bail alleging the ED had refused to file its charge sheet during the stated 60-day timeframe.
The ED arrested the brothers on May 14, on suspicion of money laundering. On July 15, the ED filed its charge sheet against the Wadhawans, Yes Bank founder Rana Kapoor, his wife Bindu Kapoor, daughters Roshni and Rekha, and their chartered accountant Dularesh K Jain and Associate.
The Enforcement Directorate had commenced proceedings in the case after CBI, filed an FIR, on 7th March, 2020, in connection with suspected fraudulent loans issued by Yes Bank and the ‘quid pro quo’ between the Rana Kapoor and the Wadhawans.
According to the CBI and ED, between April and June 2018, Yes Bank invested about Rs 3,700 crore in DHFL’s short term non-convertible debentures.
Rane Kapoor reportedly earned Rs 600 Crore as kickbacks from DHFL, in terms of loan granted to two firms- DOIT Urban Ventures (India) Private Limited and Morgan Credits Private Limited.
Rana Kapoor’s daughters hold 100 percent stake in DOIT, and his wife handles Morgan Credits, according to the investigating authorities.