Supreme Court Grants Bail to DHFL Promoters After Five Years in Custody

India’s Supreme Court has granted bail to Kapil and Dheeraj Wadhawan. The brothers are promoters of the troubled Dewan Housing Finance Limited. The decision came on Tuesday, December 16, 2025. The court cited excessively long pre-trial detention.

The judges stated proceedings cannot be used to prolong custody. According to Bar and Bench, the investigation in the massive bank fraud case is complete. The court emphasized the constitutional right to a speedy trial.

Court Cites “Violation of Liberty” in Landmark Bail Order

The bench highlighted the brothers’ five-year incarceration. They noted other co-accused in related cases are already out on bail. The court found this prolonged custody without trial violated fundamental rights.

The scale of the case is monumental. The chargesheet spans four lakh pages. It lists 736 witnesses. Supporting evidence includes 17 trunks of documents and over two terabytes of digital data.

The judges reasoned the trial could take years even if held daily. This made indefinite pre-trial detention unjust. The ruling sets a significant precedent for financial fraud cases.

Legal Experts Hail Decision Prioritizing Liberty

The Wadhawan brothers’ lawyer welcomed the verdict. He stated pre-trial incarceration should be an exception, not the rule. The decision prioritizes the liberty of the accused.

The case involves alleged fraud of ₹57,000 crore. A consortium of 17 banks provided loans to DHFL. The Central Bureau of Investigation alleged a large portion was siphoned off.

Charges include criminal conspiracy and cheating. The first chargesheet was filed in October 2022. The accused have been in custody since April 2020.

The bail grant marks a pivotal moment in India’s high-profile DHFL bank fraud case. It underscores the judiciary’s role in balancing extensive investigations with individual rights. This decision will influence future proceedings in complex financial litigations.

Thought you’d like to know

What was the main reason for granting bail?

The Supreme Court cited a violation of the constitutional right to liberty and a speedy trial. The judges noted the investigation was complete and a trial would still take several years to conclude.

How long were the Wadhawans in custody?

Kapil and Dheeraj Wadhawan spent over five years in pre-trial custody. They were arrested in April 2020 in connection with the alleged bank fraud.

What is the total value of the alleged DHFL fraud?

The Central Bureau of Investigation is investigating alleged fraud involving loans worth approximately ₹57,000 crore. The agency claims a significant portion was diverted through shell companies.

Were the brothers granted bail in other related cases?

Yes. The Wadhawans had previously been granted bail in ten other cases from the same transactions. This includes cases under the Prevention of Money Laundering Act.

What happens next in the legal process?

The trial in the main CBI case will proceed. However, the promoters will now do so from outside of judicial custody, subject to the bail conditions set by the court.