DHFL case: Delhi Court grants interim bail to Ajay Nawandar on medical ground

A Delhi Court on Wednesday granted interim bail to Ajay Ramesh Nawandar, arrested in connection with an alleged bank fraud of Rs 34,615 crore by Dewan Housing Finance Corporation Limited (DHFL) on medical ground.

The Special Judge Vishal Gogne on Wednesday while granting interim bail said, "Since the application discloses medical grounds for release which are corroborated by the report from the Medical Officer In-charge of the Jail dispensary, the objections raised by the CBI with reference to the factual matrix, comprising a financial fraud and the alleged recovery of costly paintings (worth about Rs 30 crore) from the accused, are beyond the pale of consideration."

The accused is admitted to interim bail for two weeks subject to furnishing personal bonds and two surety bonds in the sum of Rs 5 lakh each, as directed by the Court.

The details of the hospital/medical facility where the accused is to seek medical care shall also be immediately informed to the investigation officer (IO). The accused shall surrender his passport to the IO immediately upon release, the court ordered.

In effect, the accused has thus far been more in medical detention (at the Jail MI room or outside Government Hospitals) than in a typical jail cell. The detention of an accused regardless of the gravity of an offence, cannot operate to the detriment of his basic human right and free agency in determining the nature and locus of medical care, especially when a grave risk to life and limb is more than a reasonable prospect, noted the court.

Advocate Hemant Shah, counsel for Nawandar submitted that multiple reports from the Jail Superintendent reflect a continuous deterioration in the medical condition of the accused who suffers from a host of ailments including uncontrolled diabetes, chronic kidney disease, blood pressure, sleep apnea and like complications.

Earlier the same court had dismissed the regular bail petition of the accused and said that the offences are economic in nature but on account of the investigation into the present offences being intricate, the accused prima facie being complicit at some stage of the handling/diversion of the humongous funds originating from the loans, a strong likelihood of him tampering with evidence and the foreseeable possibility of him influencing witnesses if admitted to bail.

Earlier, Advocate Hemant Shah had submitted that his client was arrested in the matter regarding the erstwhile promoters of DHFL siphoning the credit facilities availed from banks and a small fraction of the amount thereof was also spent on purchasing certain paintings/ sculptures. Out of these paintings, 2 paintings have been recovered from the premise of the applicant (Nawandar) and the same did not belong to the Applicant.

He also stated that Applicant was never associated with DHFL or its erstwhile promoters and had no connection with them. It is further apt to add that not even a single dime has even come to the Applicant either before the accounts turned NPA or subsequently.

According to the CBI, during the searches at Nawandar's premises, it has recovered a large number of uber-luxury watches worth crores of rupees, including Rolex Oyster Perpetual, Cartier, Omega and Hublot Michael Kors.

During the investigation, it was found that the promoters had allegedly diverted the funds and made investments in various entities. It was also alleged that the promoters had acquired expensive paintings and sculptures worth about Rs 55 Crore (approx) using the diverted funds, said CBI officials.

The Promoters of DHFL, Kapil Wadhawan and Dheeraj Rajesh Wadhawan were also recently arrested by the CBI and are presently in Judicial custody.

A case was registered on complaint from Union Bank of India, Industrial Finance Branch, Mumbai against private (Borrower) company based at Mumbai, its then CMD, then Director and others including a private person, private companies, unknown public servant(s) and private persons on the allegations that the accused cheated a consortium of 17 banks led by Union Bank of India to the tune of over Rs 34,615 crore (approx) by siphoning off loans availed from the banks and falsifying the books of said private (Borrower) company and creating Shell Companies/false entities, which had come to be known as "Bandra Book Entities".

It was alleged that the said private company and its promoters had created a number of shell companies and fictitious entities (the Bandra Book entities) and siphoned off huge funds by disbursing funds to such fictitious entities.

It was further alleged that separate audits conducted by other private audit accounting organisations had identified multiple instances of diversion of funds by the accused for personal benefits and falsification of books of accounts to camouflage and conceal dubious transactions.

The audits also identified several instances where large value loans were provided to such fictitious entities without due diligence and without securities. Instances of sanction and disbursement of loans, merely by e-mail communications were allegedly found for which no loan files were maintained in the said private (Borrower) company.

( With inputs from ANI )

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