The Bombay High Court on Wednesday rejected the bail pleas filed by Kapil and Dheeraj Wadhawan, promoters of Dewan Housing Finance Limited (DHFL) in the Yes Bank fraud case and said, “The real victims were the depositors and shareholders; particularly of Yes Bank. That amount involved was not utilized for getting profit for Yes Bank, but, it was used for personal gain of the accused.”
A single Bench of Justice S.V. Kotwal was hearing the bail applications filed by the brothers challenging the rejection of their default bails by a special court on July 31. The pleas were filed on the ground that Section 173 (report of police officer on completion of investigation) of the Code of Criminal Procedure (CrPC) was not filed within the time stipulated under Section 167 (procedure when investigation cannot be completed in 24 hours) of the Cr.P.C
The matter was heard at length by the Bench and reserved for order on October 23. Senior advocate Dr. Abhishek Manu Singhvi, representing the duo, contended that Yes Bank gave the loan to DHFL, then DHFL gets complete dominance over the property. The amount was given as a loan. Therefore, Mr. Singhvi argued, there could not be any criminal breach of trust committed by either of the accused. Similarly, even when the amount was given by DHFL to Yes Bank founder Rana Kapoor’s business enterprises, there was no criminal breach of trust, he maintained. Both these entities and the accused had no grievance against each other, and hence no offence of Section 409 (criminal breach of trust by public servant, or by banker, merchant or agent) of the Indian Penal Code was made out, he said.
The Bench, however, said, “I completely disagree with these submissions. The allegations are not pertaining to criminal breach of trust committed by either of the accused in respect of each others’ property. The prosecution case is that public money which was deposited by the depositors with Yes Bank was used for committing this offence, for personal gain and for causing loss to the bank and its depositors. This offence was committed pursuant to the conspiracy among all the accused.”
The Bench noted, “The real victims were the depositors and shareholders; particularly of Yes Bank. That amount was not utilized for getting profit for Yes Bank, but, it was used for personal gain of the accused. Thus, clearly offence of section 409 of IPC is made out. The ingredients of this offence are clearly borne out in the report filed before the Special CBI Court.”
The 63-page judgment mentioned, “Right to default bail for non-filing the police report within the stipulated period provided under section 167 of CrPC is an indefeasible right which flows from Article 21 (Right to life and personal liberty) of the Constitution of India. Such indefeasible right cannot be defeated by any subterfuge. The Courts cannot be too technical while entertaining application for bail for not filing the police report within the stipulated period under section 167 of CrPC.”
