Mumbai, Nov 17 (PTI) The Bombay High Court on Wednesday discharged Dewan Housing Finance Corporation Ltd (DHFL) and dropped the proceedings against it in a case of cheating and corruption registered by the CBI against its former directors Kapil and Dhiraj Wadhawan, and Yes Bank founder Rana Kapoor.

Also Read | Guru Nanak Jayanti 2021: 28 Indian Sikh Pilgrims Arrive in Pakistan Via Kartarpur Corridor on 1st Day of Its Reopening.

A single bench of Justice S K Shinde allowed the plea filed by DHFL challenging the decision of a special CBI (Central Bureau of Investigation) court in August this year that had rejected its prayer for discharge.

Also Read | Andhra Pradesh Shocker: Man Kills Wife Over Suspicion of Extramarital Affair Near Tirupati; Accused Absconding.

In its plea filed in the high court through senior counsel Ravi Kadam, the company had argued that since it had been taken over by Piramal Capital and Housing Finance, it must be absolved of all previous liabilities.

The plea in the high court had been vehemently opposed by CBI counsel Hiten Venegaonkar.

Venegaonkar had earlier argued that it would be wrong to discharge DHFL of its criminal liability until all statutory appeals in the case were decided.

The HC, however, noted that Kapil and Dhiraj Wadhawan had been ousted from the company's board of directors two years ago.

"The learned (CBI) Judge has committed an error by permitting the prosecution of the corporate debtor (DHFL) to the accused nos. 2 (Kapil Wadhawan) and 3 (Dhiraj Wadhawan), ousted from the Board of Directors by the RBI two years ago," Justice Shinde said in his order.

The CBI's case is that Rana Kapoor, who is currently in jail in connection with a related case being probed by the Enforcement Directorate (ED), had entered into a criminal conspiracy with the Wadhawans.

As per the CBI, in 2018, Kapoor had conspired with the Wadhawans to receive illegal kickbacks worth several crores from DHFL.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)