Yes Bank - DHFL loan fraud: Court denies temporary bail to builder Sanjay Chhabaria; only allows visit to ailing mother

The special PMLA court in Mumbai refused to grant interim bail to builder Sanjay Chhabaria, who is accused of money laundering, to attend to his ailing mother. However, the court allowed him to visit the hospital where his mother is expected to undergo surgery from Monday to Thursday.

MUMBAI: The special PMLA (Prevention of Money Laundering Act) court on Friday refused to grant interim bail to builder Sanjay Chhabaria to attend to his ailing mother who has been diagnosed with cancer. The court has, however, allowed him to visit the private hospital in Bandra where his mother is expected to undergo surgery during the day from Monday to Thursday.

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Chhabaria, booked for money laundering in connection with Yes Bank - DHFL loan fraud case had approached the court for temporary bail pleading that his 79-year-old mother had been diagnosed with cancer and she has been staying alone in Khar ever since his father died during Covid-19 in 2020. He sought interim bail for nine weeks.

The plea was opposed by the Enforcement Directorate (ED) stating that Chhabaria’s wife could also look after his ailing mother and there was no urgency in the plea. Besides, it was said that the accused, if released on temporary bail, can influence the evidence and witnesses in the case against him.

After hearing both sides, the court noted that the trial in this case had been delayed as the accused kept filing repeated bail pleas. Besides, the court said, Kapil Wadhawan and Dheeraj Wadhawan who too are facing prosecution in the case, have misused the liberty granted to them and that was detrimental to the case of the Central Bureau of Investigation.

“Another incident reported by the deputy inspector general (prison), south region, Mumbai clearly indicated how Kapil Wadhawan was repeatedly sent to the Sir JJ and KEM hospitals by the Jail Authorities when he was not suffering from any severe illness. Subsequently, the Jail Authorities, Taloja transferred him to Nashik Road Jail to control the misconduct,” the court said.

“Both prosecution agencies (ED and CBI) have alleged that Wadhawans have been misusing their hospital visits and dealing with their properties situated abroad. This is in short, the conduct of other accused persons,” the court said.

However, Chhabaria’s lawyer Vibhav Krishna contended that the allegations of misuse of hospital visits are in respect of the other accused and no complaints have come forth against Chhabaria.

The court, after considering all the aspects, allowed the builder to be with his mother on the crucial dates - Monday to Thursday from morning to evening but under police escort.