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In a significant development, the bail pleas of Dheeraj and Kapil Wadhawan, promoters of Dewan Housing Finance Limited (DHFL), were rejected by a special Prevention of Money Laundering Act (PMLA) court. The court stated that both individuals played integral roles in a conspiracy and scam that involved the illicit use of public funds, resulting in substantial damage to Yes Bank. The case revolves around an alleged money laundering scheme amounting to Rs 5,050 crore, allegedly involving banker Rana Kapoor and his family members.
The special judge presiding over the case, M G Deshpande, described it as a clear-cut instance of money laundering, emphasizing the undeniable gravity and magnitude of the offense. The judge highlighted Dheeraj Wadhawan's statement, which indicated that the funds acquired for the Bandra Reclamation Project were obtained solely through loans but were never utilized for the intended purpose.
The court pointed out that the prosecution complaint presented flow charts that clearly demonstrated the money trail and the systematic transformation of tainted funds into seemingly legitimate assets through various shell companies. This, according to the court, serves as a classic example of money laundering.
Regarding the funds from Yes Bank, the judge asserted that they constitute public money and represent the wealth of the nation. The judge also noted that the evidence on record indicated that the concerned applicants, the Wadhawans, failed to clear their overdue loan accounts, yet proceeded to obtain further loans from Yes Bank without settling their previous debts. This action resulted in significant losses for the bank and unjust gains for Rana Kapoor, the Wadhawan brothers, and their respective families.
The judge further mentioned that the Enforcement Directorate (ED), in their prosecution complaint, provided a list of 101 companies owned by Rana Kapoor, his daughters, and wife. These entities were utilized to divert, park, and siphon off the proceeds of criminal activities by means of layering and integration. The judge emphasized that these companies were employed as platforms to house the illicit funds. Notably, none of the accused individuals were able to produce any compelling evidence to demonstrate the business activities, turnovers, or revenue generated by DOIT, a company wholly owned by Rana Kapoor's three daughters.
In conclusion, the special PMLA court's decision to deny bail to the Wadhawan brothers affirms the serious nature of the alleged money laundering case. The court's observations reflect the strong belief that public funds, particularly those of Yes Bank, were misappropriated for personal gains, while loans were not utilized for their intended purposes. The court's reference to the list of companies owned by Rana Kapoor and his family underscores the intricate nature of the scheme and the elaborate measures employed to hide the illegal proceeds.
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