Court Rejects CBI’s Charges Against Vinod Goenka and Shahid Balwa in DHFL-Yes Bank Fraud Case
A special court in Mumbai has refused to take cognizance of the supplementary chargesheet filed by the Central Bureau of Investigation (CBI) against businessmen Vinod Goenka and Shahid Balwa in the DHFL-Yes Bank fraud case, stating that there is no evidence to support the allegations against them.
Yes Bank’s Investment and Alleged Kickbacks
The case revolves around Yes Bank’s investment of approximately ₹4,727 crore in the non-convertible debentures (NCDs) and Masala Bonds of Dewan Housing Finance Limited (DHFL) between April and June 2018. The bank also approved a ₹750-crore term loan to a DHFL group company.
In return, Yes Bank’s then MD and CEO, Rana Kapoor, allegedly received kickbacks of ₹600 crore from DHFL. The CBI has named Kapoor, along with DHFL promoters Kapil Wadhawan and Dheeraj Wadhawan, as key accused in the case.
CBI’s Fourth Supplementary Chargesheet
The CBI recently submitted its fourth supplementary chargesheet in the case, increasing the total number of accused to 41. Apart from Goenka and Balwa, the chargesheet included 12 more names, including stock market operator Sanjay Dangi.
According to the agency, Goenka and Balwa had taken loans from DHFL but diverted the funds instead of using them for their intended purpose.
Court’s Ruling on the Chargesheet
On March 13, Special Judge A.C. Daga ruled that there was no prima facie evidence against Goenka and Balwa. The court pointed out that:
- Their names were not mentioned in the original FIR or in any of the previous chargesheets.
- They were only included in the latest chargesheet for the first time.
- There was no proof that they had any intention to cheat at the time of securing loans from DHFL.
As a result, the court rejected the charges of cheating and misappropriation against them. It also dismissed the charges against Sanjay Dangi, stating that the prosecution had no strong basis to support the allegations against him.
Charges Remain Against Other Accused
While Goenka, Balwa, and Dangi were cleared, the court found that a case of cheating and forgery under the Indian Penal Code (IPC) and Prevention of Corruption Act was made against:
- Farid Sama (who is absconding)
- Rahul Shah and Ramesh Shah
- A firm linked to Rahul and Ramesh Shah
The case is still under investigation, and further legal proceedings will determine the fate of the remaining accused.
