Mumbai, September 28, 2026: The Central Bureau of Investigation (CBI) found no role of bank officials in the case lodged by Central Bank of India against Housing Development and Infrastructure Limited (HDIL) and its directors for allegedly cheating the bank to the tune of Rs 57.58 crore, after obtaining a loan of Rs 346.62 crore.
Corruption Charges Dropped
The agency on Monday told the special CBI court to drop the charges of corruption from the case lodged against HDIL and its directors Rakesh Wadhawan and his son Sarang Wadhawan.
The agency claimed that the investigation was conducted and no evidence was found to show complicity of the public servants, officials of the bank. Hence, the agency said, the offences punishable under the Prevention of Corruption Act were not found to have been committed as alleged in the complaint lodged.
The agency had lodged a case against HDIL and its directors in February 2023 on the complaint of the deputy general manager of Central Bank of India.
The court accepted the prosecution's contentions and dropped the corruption charges from the case. The case has now been transferred to the magistrate's court to conduct further prosecution against HDIL and the Wadhawans for allegedly cheating the bank.
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Bank Alleges Loan Misappropriation
The bank had submitted a complaint letter in February 2022, alleging that 'HDIL and its directors entered into a criminal conspiracy with other entities, persons and unknown public servants to cheat the bank.' It was claimed that they induced the bank to sanction loans of Rs 346.62 crore and siphoned off and misappropriated a significant portion of the loan amount and thereby caused a wrongful loss of Rs 57.58 crore to the bank.
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