Published 21:02 IST, September 3rd 2020
Yes Bank case: SC stays default bail granted to Kapil & Dheeraj Wadhawan by HC till Oct 7
Cracking down on DHFL promoters Kapil and Dheeraj Wadhawan on Thursday, the Supreme Court stayed Bombay High Court's order granting 'default bail' to the duo
Cracking down on DHFL promoters Kapil and Dheeraj Wadhawan on Thursday, the Supreme Court stayed the Bombay High Court's order granting 'default bail' to the Wadhawans - till October 7. An apex court bench headed by Justice Sanjay Kishan Kaul said that it would examine the legal issues involved in the Wadhawans’ bail plea. The two Wadhawan brothers have been booked by the ED under the Prevention of Money Laundering Act (PMLA) in the Yes Bank scam.
Bombay HC grants 'default bail'
On 20 August, the Bombay High Court granted 'default bail' to the Wadhawan brothers as the Enforcement Directorate (ED) failed to file a charge sheet within the stipulated 60-day period. The court had directed the Wadhawan brothers to deposit Rs 1 lakh and surrender their passports. Inspite of getting bail, the continue to remain in jail as they have been booked by the CBI as well in the same case. Previously, the Supreme Court had also dismissed the anticipatory bail pleas of the brothers.
Properties attached
The ED has attached properties of DHFL promoters - Kapil and Dheeraj Wadhawan worth Rs 1400 crores. The attached properties include 12 apartments and land in Pune, properties in Australia, New York and London, as per sources. Moreover, sources report that Yes Bank founder Rana Kapoor's properties worth Rs 1200 crore have been attached - including six flats at the Malabar Hill and Delhi property at the Amrita Shergil Marg, charge sheeting Kapoor in the cases.
What is the Yes Bank crisis?
Yes Bank started facing a crisis as it accumulated many bad loans in 2018 by lending to corporate defaulters such as DHFL, Jet Airways, and Cafe Coffee day, among others. Moreover, when RBI refused to extend the term of founder Rana Kapoor as chief executive in 2018, its management was severely hit with his successor Ravneet Gill managing to raise only one round of funds through a share sale to institutional investors. Currently, the CBI and ED have been investigating several investors who had received loans from Rana Kapoor. Meanwhile, Yes Bank has been restructured by the RBI with SBI as a major stakeholder at 48.21%.
Updated 21:02 IST, September 3rd 2020