CHENNAI: The Supreme Court on Monday sought a response from the Central Bureau of Investigation (CBI) on the bail plea of Kapil Wadhawan, former chairman and managing director of Dewan Housing Finance Corporation Ltd (DHFL), in connection with the alleged multi-crore bank fraud case.
A bench comprising Justices J.K. Maheshwari and Vijay Bishnoi issued notice to the CBI, asking it to file its reply on Wadhawan’s petition challenging the Delhi High Court’s order that denied him bail earlier in August. The apex court will hear the matter again after receiving the agency’s response.
Kapil Wadhawan, along with his brother Dheeraj Wadhawan, is accused of orchestrating a massive financial fraud involving the diversion and misappropriation of funds worth around Rs 34,900 crore from a consortium of 17 banks. According to the CBI, the promoters allegedly created 87 shell companies in the names of associates and employees to channel funds and recorded fictitious housing loans under a non-existent “Bandra Branch-001” within DHFL’s system.
Wadhawan was arrested by the CBI in July 2022 and was granted statutory bail by a trial court in December that year. However, the Supreme Court later set aside the bail order in January 2024, observing that the case involved grave economic offences. The Delhi High Court had in August 2025 refused to grant him bail, citing the seriousness of the charges, the early stage of trial, and concerns over his conduct while in custody.
The High Court had also noted that the alleged fraud was not just against specific banks but posed a threat to the financial system itself. It observed that releasing Wadhawan at this stage could risk tampering with evidence or influencing witnesses.
The case against DHFL promoters is among the largest financial fraud investigations being handled by the CBI. The agency maintains that the funds were siphoned off to various entities controlled by the Wadhawan family and their associates under the guise of legitimate loans.
By seeking the CBI’s response, the Supreme Court has kept the matter open for further hearing, indicating that any decision on Wadhawan’s bail will depend on the agency’s reply and the court’s evaluation of the broader impact of the alleged offences. The outcome will be closely watched, given the scale of the case and its implications for accountability in major financial institutions.
