Home >News >India >ED moves SC against bail to Wadhawans

The Enforcement Directorate (ED) on 25 August moved Supreme Court against the Bombay High Court order which granted bail to Kapil and Dheeraj Wadhawan in the Yes Bank case.

A Special Leave Petition (SLP) has been filed by ED at Supreme Court challenging the Bombay high court order on the grounds that the order is not proper and that section 167(2) of code of criminal procedure is not applicable.

The section entitles a person for default bail if chargesheet is not filed under stipulated time.

The Bombay High Court on 20 August had granted bail to Dewan Housing Finance Corporation Ltd promoters Kapil Wadhawan and Dheeraj Wadhawan who are facing money laundering charges in the Yes Bank case.

Justice Bharati Dangre granted them bail as the Enforcement Directorate (ED) failed to file its charge sheet against them in the case within the stipulated 60-day period.

The Wadhawans were arrested and remanded before a Magistrate on 14 May. After this, they applied for bail on 13 July. The ED had filed its charge sheet on 15 July against the Wadhawans.

The lower court judge who heard the case on 15 July had considered the time for completion of investigation and filing chargesheet should start from 15 May that is excluding the first day of remand. Simply put the lower court had held that the two were not entitled to default bail on the basis that the day of their remand should be excluded from calculating the statutory period of 60 days within which investigation is to be completed.

The Wadhawan brothers then approached the Bombay High Court with their plea for bail, which ruled that day of remand should be considered for calculation of stipulated time.

ED in its SLP is arguing against the calculation of stipulated time, said an official with the ED.

The Wadhawan brothers were taken into custody on 14 May to aide the investigative agency in its probe of 5050 crore worth of funds that were allegedly laundered. The agency alleged that former Yes Bank promoters, Rana Kapoor and his family gave high value loans to certain borrowers in lieu of illegal gratification. ED claimed that Yes Bank bought debentures worth 3,700 crore of DHFL, and in return, DHFL sanctioned a 600-crore loan without adequate collateral to Doit Urban Ventures Pvt Ltd where Kapoor’s daughters are directors.

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