Bombay High Court Grants Bail to DHFL Promoters in Money Laundering Case

📅 February 20, 2025

In a significant development in the long-standing money laundering case, the Bombay High Court granted bail to DHFL promoters Dheeraj and Kapil Wadhwan on a bond of Rs 1 lakh each. The decision comes after the promoters were held in custody for nearly four years and nine months, raising serious concerns over their right to a speedy trial.

Extended Incarceration and Speedy Trial Concerns

The bench, headed by Justice Milind Jadhav, observed that detaining an undertrial prisoner for such an extended period violates the fundamental right to a speedy trial guaranteed under Article 21 of the Constitution. With the trial unlikely to commence shortly, the court deemed further incarceration of the Wadhwans unnecessary, noting that they have already served more than half of the maximum seven-year sentence they face if convicted.

Case Background and Legal Delays

The bail order relates to the 2020 Yes Bank money laundering case, which centres on allegations of kickbacks in connection with a massive loan scam estimated at Rs 4000 crore. The case also involves Yes Bank’s founder Rana Kapoor along with other accused parties. Despite the Enforcement Directorate (ED) submitting draft charges as early as May 2023, the special court’s proceedings have experienced significant delays. The court emphasized that the delay cannot be solely attributed to the promoters, as charges have yet to be formally framed.

Legal Arguments and Bail Conditions

Counsel for the Wadhwans, Amit Desai, argued that the prolonged pretrial incarceration, now exceeding four years, not only impedes their right to liberty but also undermines the principle of speedy justice. The court accepted this argument, granting bail without delving into the merits of the case at this stage. The decision underscores the judiciary’s sensitivity to pretrial detention concerns, particularly when the investigation remains pending without a definitive timeline for trial commencement.