This isn't the first time Wadhawan's name has surfaced in connection with financial irregularities. In 2022, the CBI had filed charges against him in relation to this case. Previously, he was also embroiled in the Yes Bank corruption probe, leading to his temporary detention and subsequent release on bail.
The Securities Exchange Board of India (SEBI) had taken action against the Wadhawan brothers, Dheeraj and Kapil, former promoters of DHFL, for failing to settle fines totaling Rs 22 lakh imposed for non-compliance with disclosure norms. This move, aimed at recovering pending dues, involved the attachment of their bank accounts, shares, and mutual fund holdings.
The legal woes of the Wadhawan brothers continued as SEBI imposed an additional penalty of Rs 10 lakh each for undisclosed violations of disclosure regulations during their tenure with DHFL. Kapil Wadhawan served as the Chairman and Managing Director, while Dheeraj Wadhawan held a position as a non-executive director on DHFL's board.
In a recent development, Dheeraj Wadhawan sought bail on medical grounds, citing health issues arising from spinal surgery. His plea, initially rejected by a trial court, prompted an appeal to the Delhi High Court. Justice Jyoti Singh has instructed the CBI to respond to the bail application, setting a hearing date for Friday, May 17.
This arrest underscores the ongoing battle against financial misconduct and highlights the challenges facing regulatory bodies in ensuring transparency and accountability within India's financial landscape.