Supreme Court Ruling on Default Bail and DHFL Bank Loan Scam

• Default bail plea rejected: The Supreme Court has cancelled the bail granted to DHFL promoters Kapil and Dheeraj Wadhawan, who were seeking automatic bail under Section 167(2) of CrPC due to the ongoing investigation against other accused.
• Right to default bail limited: The court clarified that the right to default bail only applies when a charge sheet hasn't been filed against the accused. Once a charge sheet is filed, even if further investigation is pending against others, the right to automatic bail ceases.
• Charge sheet sufficiency upheld: The court ruled that the Delhi High Court and Special Court erred in granting bail based on the claim of an incomplete charge sheet. The presence of sufficient material in the submitted charge sheet was deemed adequate for taking cognizance and moving forward.
• Constitutional framework affirmed: The court reaffirmed the importance of Section 167(2) as a legal and constitutional right linked to Article 21. However, it emphasized that this right is confined to situations before the filing of a charge sheet, not after.
• DHFL scam details: The Wadhawan brothers were accused of conspiring with others to defraud a consortium of banks led by Union Bank of India, causing a loss of over Rs 34,615 crore.

Implications:

• This ruling sets a precedent for interpreting default bail rights under Section 167(2) and limits its applicability in cases where charge sheets have been filed against the accused.
• It upholds the importance of judicial review of charge sheet sufficiency before proceeding with criminal trials.
• The decision strengthens the prosecution's case against the Wadhawan brothers in the DHFL bank loan scam.

Additional Information:

• The CBI filed the charge sheet against the Wadhawans on the 88th day after registering the FIR.
• The High Court had granted them bail despite not delving into the case's merits.
• The Wadhawan brothers were arrested in July 2023.

Overall, the Supreme Court's ruling clarifies the scope of default bail under Section 167(2) and sets the stage for the trial to proceed in the DHFL bank loan scam. It emphasizes the importance of balancing the accused's right to bail with the need for efficient criminal proceedings.

(With input from news agency language)
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