The Supreme Court has overturned the medical bail granted to Dheeraj Wadhawan, a former promoter of Dewan Housing Finance Corporation Ltd (DHFL), who is implicated in a multi-crore bank loan fraud case. The court has directed Wadhawan to surrender himself to authorities within two weeks. The authorities have been instructed to ensure Wadhawan receives all necessary medical care.

The case pertains to a significant banking fraud in India, where Wadhawan and his brother Kapil Wadhawan are accused of misappropriating approximately ₹34,000 crore. The Central Bureau of Investigation (CBI) has alleged that the Wadhawan brothers diverted funds from banks to entities under their control by sanctioning loans without proper due diligence or adequate security. They further stand accused of manipulating DHFL's financial records to conceal their fraudulent activities. The CBI asserts that the accused induced a consortium of banks to sanction loans amounting to ₹42,871.42 crore, a substantial portion of which was allegedly siphoned off through falsification of DHFL's financial records and willful default on repayments.

Dheeraj and Kapil Wadhawan were initially arrested in July 2022. Subsequently, a trial court granted them statutory bail in December of the same year, citing an incomplete charge sheet filed by the CBI against them and 73 other accused. However, the Supreme Court later set aside a Delhi High Court order that had granted statutory bail to both Kapil and Dheeraj Wadhawan.

Dheeraj Wadhawan's legal journey has been marked by multiple bail applications and appeals. He had previously withdrawn a bail plea from the High Court in May 2023 after the trial court rejected it twice. The trial court had cited maintainability issues when dismissing his bail application and directed the CBI to arrest him and produce him before the CBI court, in compliance with a Supreme Court order from January 2024.

In September 2024, the Delhi High Court granted bail to Dheeraj Wadhawan on medical grounds, leading to the recent Supreme Court intervention. The High Court's decision overturned a previous trial court order. At the time, Justice Sudhir Kumar Jain held that Dheeraj Wadhawan needs regular and periodical medical attention and treatment under direct supervision of expert and specialist doctors.

The CBI had been directed to re-arrest Dheeraj Wadhawan. The agency had also referred to the Supreme Court's order, noting that while Wadhawan required outpatient treatment, he did not need hospitalization.

The Supreme Court's decision to cancel Dheeraj Wadhawan's medical bail and order his surrender underscores the seriousness of the charges against him in the DHFL bank loan fraud case. The case remains a prominent example of a large-scale banking fraud in India, with significant financial implications for the consortium of banks involved.