Yes Bank scam: Court extends Wadhawan brothers’ CBI custody till May 1

Mumbai, April 29: A special court here on Wednesday extended till May 1 the CBI custody of businessmen brothers Kapil and Dheeraj Wadhawan of DHFL group in connection with the Yes Bank scam.

Kapil and Dheeraj Wadhawan, promoter of Dewan Housing Finance Ltd (DHFL) and RKW Developers, respectively, were arrested on Sunday from a quarantine facility in Mahabaleshwar in Satara district, nearly 50 days after they booked in a case of bribery against former Yes Bank CEO Rana Kapoor.

On Wednesday, they were produced before a special court here as their earlier remand ended. The CBI sought their further remand saying that the accused were not co-operating in the investigation. The agency said that it needs to probe them further to unearth the conspiracy and their links with Kapoor.

Defence lawyer Subodh Desai submitted that the nature of offence was such that their custody was not required.

However, the court extended their CBI custody till May 1, PTI reported. 

Wadhawan brothers are named as accused in the CBI FIR pertaining to swindling of money by Kapoor and others, the officials said.

The agency has alleged that Kapoor, 62, entered into a criminal conspiracy with Kapil Wadhawan for extending the financial assistance to DHFL through Yes Bank in return for substantial undue benefits to himself and his family members through companies held by them.

According to the CBI FIR, the scam started taking shape between April to June, 2018 when Yes Bank invested Rs 3,700 crore in short-term debentures of the scam-hit DHFL. In return, Wadhawan allegedly “paid kickback of Rs 600 crore” to Kapoor and family members in the form of loans to DoIT Urban Ventures (India) Pvt Ltd held by the wife and daughters of Kapoor.

Besides the CBI, the duo was also being probed by the Enforcement Directorate in connection with the Yes Bank scam.