Supreme Court Grants Bail to DHFL Promoters in Rs 57,000 Crore Bank Fraud Case
The Supreme Court has granted bail to Kapil Wadhawan and Dheeraj Wadhawan, former promoters of Dewan Housing Finance Limited (DHFL), in a major bank fraud case involving more than ₹57,000 crore.
A Bench of Justice JK Maheshwari and Justice Vijay Bishnoi noted that the brothers have spent over five years in jail, even though the trial has not yet started. The Court said that such long detention without trial violates the constitutional right to personal liberty and speedy trial under Article 21.
The Court also pointed out that the investigation in the case is complete and that all other co-accused in related cases have already been released on bail. It observed that the chargesheet is extremely large, running into nearly four lakh pages, with 736 witnesses and massive documentary and digital evidence. Even if the trial is conducted daily, it is unlikely to conclude for another two to three years.
The case relates to loans worth ₹57,252 crore taken by DHFL from a consortium of 17 banks. The CBI has alleged that around ₹34,926 crore was diverted through shell companies linked to the Wadhawan brothers. An FIR was registered in 2022, and multiple chargesheets were filed naming over 110 accused, including companies and individuals.
Senior Advocate Mukul Rohatgi, appearing for the Wadhawans, argued that the matter is largely based on documents and does not justify continued custody. He also highlighted that DHFL has already undergone insolvency proceedings, and its assets were sold to Piramal Capital under a resolution plan approved by the NCLT and upheld by the Supreme Court.
The prosecution opposed the bail, calling the case one of the largest financial frauds in India. However, the Court reiterated that “bail is the rule and jail is the exception.” It clarified that even in serious economic offences, prolonged pre-trial detention cannot become a form of punishment.
Relying on earlier judgments, including Union of India v. KA Najeeb, the Court held that if the State is unable to ensure a timely trial, it cannot oppose bail only on the ground of seriousness of the offence. The Bench also explained that provisions under the new Bharatiya Nagarik Suraksha Sanhita must be read in line with the constitutional guarantee of personal liberty.
The Supreme Court granted bail with strict conditions. The Wadhawan brothers must furnish a bond of ₹10 lakh each with sureties, surrender their passports, report to the local police every month, and seek court permission before travelling abroad. Any attempt to influence witnesses or violate conditions will lead to cancellation of bail.
