Rakesh Wadhawan, promoter of Housing Development and Infrastructure Limited (HDIL), has been granted bail by a special court after the Central Bureau of Investigation (CBI) filed a chargesheet against him in the Punjab and Maharashtra Co-operative (PMC) Bank scam. The court granted bail stating that the investigating agency did not arrest Wadhawan until the chargesheet was filed, thus negating the need for his judicial custody.
Court Verdict and CBI's Arguments
The court accepted the chargesheet filed by the CBI on February 7th. Following this, Rakesh Wadhawan, former chairman of PMC Bank, Waryam Singh, and other accused applied for regular bail. The court granted relief to all, stating, "The CBI did not arrest the accused during the investigation. The prosecution failed to present any substantial basis to prove the necessity of the accused's custody for the case."
Although the CBI opposed the bail applications, the court felt that releasing the accused would not hamper the progress of the case.
Background of the Scam
The case, filed in September 2020, relates to the Caledonia project in Andheri (East), Mumbai. Investigations revealed that while approximately ₹100 crore was spent on the building's construction, ₹900 crore was embezzled in land acquisition. Allegations suggest that between 2011 and 2016, Rakesh Wadhawan and other co-accused misused loans in collusion with bank officials, causing significant financial losses to the public. The CBI claims that Rana Kapoor, former CEO of Yes Bank, also acted irregularly in approving these loans.
With the court's acceptance of the chargesheet, the next step is the formal framing of charges against the accused. However, the defense may argue that the Mumbai Police's Economic Offences Wing (EOW) had previously investigated this case and recommended its closure.
