Mumbai : The special Prevention of Money Laundering Act (PMLA) court on Wednesday remanded Dewan Housing Finance Limited (DHFL) promoters Dheeraj Wadhawan and his brother Kapil to judicial custody till June 11.
Earlier, the Enforcement Directorate (ED) authorities had arrested the two brothers on May 14. The judicial custody was extended till June 11 after their 14-day judicial custody ended on Wednesday.
The Wadhawans, who have been arrested by ED on charges of money laundering, will be lodged in one of the jails in Mumbai, the ED authorities said.
ED had initiated proceedings against the duo based on a first information report (FIR) filed by the Central Bureau of Investigation (CBI) on March 7 against Yes Bank co-promoter Rana Kapoor and the Wadhawans.
It is alleged that between April and June 2018, Yes Bank invested Rs 3,700 crore in short-term, non-convertible debentures of DHFL and Kapoor received Rs 600 crore as kickbacks from the finance firm in the form of loan advanced to two companies — DOIT Urban Ventures (India) Private Limited and Morgan Credits Private Limited. While Kapoor’s three daughters hold 100℅ stakes in DOIT, Morgan Credits is controlled by his wife.
The Wadhawans, however, maintained that these transactions were entered into the regular course of business. They sought pre-arrest bail, claiming that there was no fraudulent misrepresentation and no wrongful loss was caused to the bank in these transactions.
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