The Supreme Court has revoked the bail granted to former DHFL promoters, Kapil Wadhawan and his brother Dheeraj Wadhawan, implicated in the multi-crore Yes Bank-DHFL loan scam. The decision came during a hearing by a bench comprising Justices Bela M Trivedi and SC Sharma, which highlighted that both the Delhi High Court and the trial court had "greatly erred" in extending bail to the accused brothers involved in a staggering Rs 34,615-crore bank loan fraud case.

The bench asserted that the Delhi High Court and the lower court made a crucial mistake in granting bail to the Wadhawan brothers since the charge sheet had been filed, and cognisance was taken within the stipulated time frame. Justice Bela M Trivedi, while delivering the judgment, stated, "We have no hesitation that the charge sheet having been filed and cognisance being taken in due time, respondents could not have claimed statutory bail as a right. (The High Court) HC and lower court greatly erred." The court emphasized that the trial court should reconsider the brothers' regular bail, and appeals should be entertained accordingly.

According to the Code of Criminal Procedure (CrPC), an accused is entitled to statutory bail if the investigating agency fails to file the charge sheet within 60 or 90 days, depending on the circumstances, after concluding the investigation. In this case, the CBI filed the charge sheet on the 88th day following the lodging of the first FIR, leading the trial court to grant default bail. However, the Delhi High Court stayed this order in December.

The Wadhawan brothers, arrested in connection with the multi-crore scam on July 19 of the previous year, have been at the center of controversy, notably after reports emerged in August of how they were allegedly enjoying a lavish lifestyle behind bars at Taloja Central Jail on the outskirts of Mumbai. 

The charge sheet in the case was filed on October 15, 2022, following a complaint by the Union Bank of India. The Delhi High Court, while clarifying that it did not delve into the merits of the case, nullified the earlier granted bail, directing the trial court to reconsider the matter.