In a setback for the promoters of Dewan Housing Finance Limited (DHFL) - Kapil and Dheeraj Wadhawan, the Bombay High Court on Wednesday denied them bail. The duo is lodged in jail for their alleged roles in the multicrore Yes Bank scam case.
A bench of Justice Sarang Kotwal said the real victims in this case were the shareholders and depositors of Yes Bank, who are defrauded.
The bench was dealing with the applications filed by both Dheeraj and Kapil Wadhawan, seeking default bail. The duo through senior counsel Amit Desai highlighted the fact that the CBI, which is investigating the case, failed to submit its chargesheet before the special court, within the time frame of 90 days.
Notably, a prosecuting agency is duty bound to submit its probe report or the chargesheet within 90 days. If the same isn't done, the agency must seek additional time to submit the samsame else in such a scenario, the accused is entitled to default bail.
The contentions were vehemently opposed by additional solicitor general Anil Singh, appearing for CBI. He pointed out that the agency had submitted its report before the special CBI court, within time.
However, the documents such as statements of witnesses in the case etc couldn't be submitted on the same day due to the precautionary measures undertaken by the courts in view of the pandemic.
The accused even claimed that they were victims of a criminal breach of trust from Rana Kapoor, the managing director of Yes Bank.
Having heard the contentions, Justice Kotwal held that there wasn't any criminal breach of trust and in fact, the duo along with Kapoor had "conspired" to siphon off the amounts.
"The prosecution case is that public money which was deposited by the depositors with Yes Bank was used for committing this offence, for personal gain and for causing loss to the bank and its depositors," the judge noted.
"This offence was committed pursuant to the conspiracy among all the accused. The real victims were the depositors and shareholders; particularly of Yes Bank. That amount was not utilized for getting profit for Yes Bank, but, it was used for personal gain of the accused. Thus, clearly offences are made out," Justice Kotwal added.
The judge, further said that the CBI did not fault on filing its report late. He also said that filing of documents late doesn't make the chargesheet incomplete.
The judge even said that in such matters, the courts cannot resort to a "technical approach" and thus there wasn't any delay in filing chargesheet.
Accordingly, the bail pleas were turned down.
Notably, the prosecution has claimed that the Yes Bank had invested Rs 3,700 crore in short-term debentures of DHFL between April and June 2018 for which the Wadhawans allegedly gave Rs 600 crore kickback to the former CEO and managing director Rana Kapoor.