Bombay High Court Denies Sanjay Chhabria's Plea, Rejects Delay Condonation In Yes Bank-DHFL Fraud Case

In a setback to Sanjay Chhabria of the Radius Group, the Bombay High Court on Thursday rejected his plea seeking condonation of delay in filing a revision petition challenging the special court’s order allowing his arrest in the Yes Bank-DHFL fraud case.

Details of case

In April 2012, Chhabria was arrested by the Central Bureau of Investigation (CBI) in a case of alleged corruption against Yes Bank founder Rana Kapoor and Dewan Housing Finance Corporation Ltd (DHFL).

The Directorate of Enforcement (ED), which is probing a related case, subsequently sought his custody by approaching the special court for Prevention of Money Laundering Act (PMLA) cases, which was allowed. This PMLA court order was challenged by Chhabria before the HC. He also sought that the high court condone the delay in filing the plea.

Rejecting his plea, Justice Prithviraj Chavan said: “The delay cannot be and should not be condoned at the sweet will of the person who approaches the court beyond the prescribed time limit.”

CBI's claims

ED counsels Hiten Venegaokar and Ayush Kedia opposed the plea, stating that it was very vague as it did not provide sufficient cause nor did it state how late the revision application was being filed. Chhabria’s contention that he was pursuing multiple remedies, and therefore there was a delay, cannot be termed to be a 'sufficient cause,' Justice Chavan noted.

In 2020, the CBI registered a case against Kapoor, Kapil Wadhawan of DHFL, and others for alleged corruption. It claimed that Kapoor entered into a criminal conspiracy with Wadhawan for extending financial assistance to DHFL through Yes Bank in return for substantial undue benefits to himself and his family members through companies held by them.

DHFL diverted a huge sum of money to the Radius Group of Sanjay Chhabria, who then disbursed it to Nibodh Realty LLP of Avinash Bhosale, claimed CBI.