Yes Bank case of ED: HC refuses pre-arrest bail to Wadhawans
The Wadhawans, who are presently in jail after beingarrested by the CBI in the Yes Bank case, moved the high courtlast week seeking anticipatory bail in the money launderingcase, and another case pertaining to alleged irregularities inthe investment of employees' provident fund of the UttarPradesh Power Corporation Ltd (UPPCL).
Justice Bharati Dangre on Tuesday rejected the pleasin both the cases.
Wadhawans' counsel Amit Desai last week argued thatthere was no case made out for money laundering and thealleged transactions were made in normal course of business.
Desai further argued that there was no case made outfor any arrest or an arrest warrant at this stage, in themidst of COVID-19 lockdown, in a matter of financial naturewhich is being investigated for last six months.
The Enforcement Directorate (ED) counsels Anil Singhand Hiten Venegavkar opposed the pleas and argued thatprovident funds worth Rs 4,200 crore were deposited with theDewan Housing Finance Corporation Ltd (DHFL) as fixed depositsin alleged collusion with some officials of the UPPCL.
Dheeraj Wadhawan and Kapil Wadhawan were arrested lastmonth by the Central Bureau of Investigation (CBI) inconnection with the Yes Bank scam.
According to the CBI FIR, the scam started takingshape between April and June 2018 when Yes Bank invested Rs3,700 crore in short-term debentures of the scam-hit DHFL.
In return, the Wadhawans allegedly "paid kickbacks ofRs 600 crore" to former Yes Bank CEO Rana Kapoor and hisfamily 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 is also being probedseparately by the ED in connection with the Yes Bank scam. SPGK GK