Recently, the Supreme Court highlighted the constitutional limits of prolonged pre-trial incarceration while granting bail to former DHFL promoters Kapil Wadhawan and his brother Dheeraj, observing that keeping undertrial prisoners in custody for years without conclusion of trial offends the guarantee of personal liberty under Article 21 of the Constitution.
The case arose from an FIR lodged on the complaint of Union Bank of India, alleging that Dewan Housing Finance Limited (DHFL), along with its then chairman-cum-managing director Kapil Wadhawan, former director Dheeraj Wadhawan and others, entered into a criminal conspiracy to defraud a consortium of 17 banks. The prosecution alleged that loans worth Rs. 42,871.42 crore were sanctioned to DHFL, out of which substantial amounts were siphoned off through falsification of accounts and deliberate defaults. The Wadhawan brothers were arrested in July 2022, and the Central Bureau of Investigation filed its chargesheet in October 2022, after which the trial court took cognisance.
Before the Supreme Court, the accused sought bail primarily on the ground of prolonged incarceration without commencement of trial, contending that continued custody had become punitive in nature. They argued that given the voluminous record, the large number of witnesses, and the complexity of the case, the trial was unlikely to conclude in the near future. The prosecution opposed bail, pointing to the magnitude of the alleged fraud, the involvement of public money, and the seriousness of the economic offence.
The Bench of Justice J.K. Maheshwari and Justice Vijay Bishnoi reiterated the settled principle that “bail is the rule and jail is the exception,” emphasising that pre-trial detention cannot be permitted to operate as punishment in the absence of a finding of guilt. The Court noted that even if the trial were conducted on a day-to-day basis, its conclusion within the next two to three years appeared improbable. It held that such prolonged incarceration, without adjudication, strikes at the very heart of the right to life and personal liberty guaranteed under Article 21.
Without expressing any opinion on the merits of the allegations, the Supreme Court granted bail to Kapil and Dheeraj Wadhawan, subject to stringent conditions. The Court directed them to disclose their residential details to the trial court and local police, report monthly to the jurisdictional police station, surrender their passports, and refrain from leaving the country without prior permission. It also cautioned that any attempt to influence witnesses or breach bail conditions would result in cancellation of bail.
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