Loan Scam Case: High Court in SC Revokes Bail for Ex-DHFL Promoter Dheeraj Wadhawan
In a significant development, the Supreme Court of India cancelled the bail of Dheeraj Wadhawan, former promoter of DHFL, on August 5, 2025, in the DHFL bank loan scam case involving alleged misappropriation of ₹34,000 crore. The decision was made following a medical report and the serious nature of the economic offenses.
The cancellation of bail comes after the Delhi High Court denied bail to Kapil Wadhawan, former chairman and promoter of DHFL, on August 4 and 8, 2025, citing the serious nature of the economic offenses, risk of tampering with evidence, and continued influence even during custody.
The scam involves a consortium of 17 banks being cheated to the tune of approximately ₹42,871 crore in sanctioned loans, with around ₹34,000 crore siphoned off through complex frauds. The Wadhawan brothers allegedly manipulated DHFL’s loan software systems to create fake borrower accounts and dummy loans. They operated 87 shell companies and a fictitious "Bandra Branch" within DHFL’s system to channel funds improperly.
Both Dheeraj and Kapil Wadhawan had previously been granted bail, but the Supreme Court set aside these orders, leading to their custody since July 2022 and subsequent denial or cancellation of bail. The Delhi High Court's order stated that the allegations regarding manipulation of assets and transactions during judicial custody were grave and suggested that Kapil continues to exercise significant control and influence.
The Union Bank of India filed a complaint against Dheeraj Wadhawan and his brother Kapil in July 2022. The CBI filed its chargesheet in October 2022, stating that a large amount of this money was siphoned off. The Central Bureau of Investigation (CBI) had also established a dishonest repayment of loans to the consortium of banks.
The CBI claimed that a large amount of money was siphoned in the case, and the bench comprising Justices Sanjay Kumar and Satish Chandra Sharma cancelled the bail granted to Dheeraj Wadhawan due to a report filed by a medical board. However, the CBI argued that Dheeraj Wadhawan did not suffer from any medical problems. The bench has directed Dheeraj Wadhawan to surrender within two weeks.
As of early August 2025, both Wadhawan brothers remain in custody, with their bail either cancelled or denied by the Supreme Court and Delhi High Court respectively, in connection to one of India’s largest banking frauds. The case serves as a reminder of the importance of maintaining integrity in the financial sector and the judicial system's commitment to upholding the law.
- The cancellation of Dheeraj Wadhawan's bail by the Supreme Court in August 2025 signifies a significant development in the finance sector, as it is connected to one of India's largest banking frauds involving the misappropriation of approximately ₹34,000 crore.
- Amidst the political landscape, the scam encompasses sports and general-news channels as well, as it involves a consortium of 17 banks being cheated, along with allegations of manipulation of loan software systems, creation of fake accounts, and operation of shell companies - all crimes that fall under the category of crime and justice.
