A day after the Central Bureau of Investigation (CBI) arrested Kapil and Dheeraj Wadhawan, promoters of Dewan Housing Finance Corporation Ltd, in connection with the alleged fraud linked to loans obtained from Yes Bank, a special court in Mumbai on Monday sent them to CBI custody till April 29.
The Wadhawan brothers were arrested from Mahabaleshwar Sunday after the court vacated a stay on the execution of a non-bailable warrant against them.
The CBI had submitted before the court that the duo had been issued notices to appear before them in connection with the multi-crore scam, but had not joined the investigation. The CBI had further said that the two were part of a criminal conspiracy along with the Yes Bank’s former CEO and founder, Rana Kapoor, who is currently in jail.
The probe agency claimed that between April and June 2018, the Wadhawans, along with Kapoor, had entered into a conspiracy, by the Yes Bank investing Rs 3,700 crore in short-term debentures of DHFL. The CBI claimed that simultaneously, Kapil paid a ‘kickback’ of Rs 600 crore to Kapoor and to his family-linked ventures, as loan.
After Kapoor’s arrest last month, the CBI had claimed that the amount that was given as loan to RKW Developers Private Limited — a DHFL group company — for their Bandra Reclamation Project, was “siphoned off” by Kapil as it was transferred from RKW to DHFL without making any investment in the project. While seeking their custody, the CBI sought to probe further into the transactions to investigate into the alleged illegal kickbacks. CBI had sought their custody till May 4.
The Wadhawans through their lawyer said that they had not been absconding and claimed that they were in correspondence with the CBI, giving them specific reasons why they had not been able to come forward to join the probe. The brothers along with 21 others had travelled from Khandala to Mahabaleshwar on April 9, during the national lockdown, leading to them being placed in quarantine.
The state Home Minister, Anil Deshmukh, had said Saturday, their quarantine period was over and their custody could be taken by the CBI or ED since both the agencies wanted to interrogate them.
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