New Delhi: The Supreme Court of India, in a significant ruling on December 11, 2025, granted regular bail to Kapil Wadhawan and Dheeraj Wadhawan, former executives of Dewan Housing Finance Limited (DHFL), in the massive financial fraud case registered by the Central Bureau of Investigation (CBI). The bail was granted primarily on the grounds of their prolonged pre-trial incarceration and the constitutional right to a speedy trial, despite the gravity of the economic offences alleged.
A Division Bench comprising Hon’ble Mr. Justice J.K. Maheshwari and Hon’ble Mr. Justice Vijay Bishnoi allowed the criminal appeals, setting aside the orders of the Delhi High Court that had previously denied them bail. The appellants have been in custody since April 2020 in connection with this and other related cases. The main FIR was registered for alleged offences under the IPC, including Sections 120-B, 409, 420, and 477-A, along with provisions of the Prevention of Corruption Act, relating to an alleged fraud of ₹57,252 crore.
The Court decisively addressed the argument that delay alone should not justify bail in serious economic offences. Emphasising the primacy of Article 21 of the Constitution, the judgment observed:
“Where delay in investigation or trial is such that incarceration becomes unduly prolonged, the constitutional guarantee of fairness is irreparably compromised.”
Highlighting the fundamental ethos of criminal jurisprudence, the Court reiterated the well-settled principle:
“There is no gainsaying that under Indian law, ‘bail is the rule and jail is an exception’ is etched in the ethos of criminal jurisprudence.”
The Bench further quoted precedent to stress the inviolability of the right to a speedy trial:
“If the State or any prosecuting agency, including the court concerned, has no wherewithal to provide or protect the fundamental right of an accused to have a speedy trial as enshrined under Article 21 of the Constitution, then the State or any other prosecuting agency should not oppose the plea for bail on the ground that the crime committed is serious. Article 21 of the Constitution applies irrespective of the nature of the crime.”
The Court noted the formidable challenges in the trial process, pointing to the voluminous chargesheet running into nearly four lakh pages, 736 witnesses, and 17 trunks of un-relied-upon documents. The judgment referred to an observation of the trial court in an earlier order, which stated:
“Thus, looking to the number of witnesses and the orders passed by the Courts, it appears that even if the case is taken up on a day-to-day basis, its conclusion would not be possible within two to three years.”
Given these circumstances, and the fact that the investigation was complete and all other co-accused had already been enlarged on bail in connected cases, the Supreme Court deemed it appropriate to release the appellants. The Court imposed stringent conditions, including the furnishing of a personal bond of ₹10,00,000 each with two sureties of the like amount, surrender of passports, and restrictions on leaving the country’s territorial jurisdiction without prior permission of the High Court.
Case Details
Case Name: Kapil Wadhawan v. Central Bureau of Investigation
(with connected appeal by Dheeraj Wadhawan)
Case Numbers:
Criminal Appeal No. _ of 2025 (arising out of SLP (Crl) No. 16953 of 2025)
Criminal Appeal No. _ of 2025 (arising out of SLP (Crl) No. 17057 of 2025)
Coram: Hon’ble Mr. Justice J.K. Maheshwari and Hon’ble Mr. Justice Vijay Bishnoi
Judgment Pronounced On: December 11, 2025
Advocates for the Petitioners/Appellants:
Mr. Mukul Rohatgi, Senior Advocate; Mr. Balbir Singh, Senior Advocate; Mr. Arvind Nayar, Senior Advocate; Mr. Ashish Verma, Advocate; Mr. Jai Anant Dehadrai, Advocate; Mr. Prakhar Parekh, Advocate; Ms. Debopriyo Moulik, Advocate; Ms. Iti Agarwal, Advocate; Mr. Samir Malik, AOR; Mr. Lzafeer Ahmad B. F., AOR; Ms. Chitra Rentala, Advocate; Mr. Parikshit Arvindan, Advocate; Mr. Krish Parashar, Advocate.
Advocates for the Respondent (CBI):
Mr. Suryaprakash V. Raju, Additional Solicitor General; Mr. Mukesh Kumar Maroria, AOR; Mr. Annam Venkatesh, Advocate; Mr. Zoheb Hossain, Advocate; Mr. Hitarth Raja, Advocate; Mr. Kartik Sabharwal, Advocate; Mr. Ayansh Shukla, Advocate; Mr. Shaurya Sarin, Advocate; Mr. Harsh Paul Singh, Advocate; Mr. O. P. Gaggar, AOR; Mr. Sachindra Karn, Advocate.
