DHFL promoters Kapil and Dheeraj Wadhawan were detained at Mahabaleshwar in Maharashtra's Satara district on Thursday for violating prohibitory orders amid lockdown, police said.
Police found 23 people including members of the Wadhawan family at their farmhouse, an official said.
While the Bharatiya Janata Party sought an explanation from the Shiv Sena-Nationalist Congress Party-Congress government, Maharashtra Home Minister Anil Deshmukh said a probe will be conducted.
"Will probe how the 23 members of the Wadhawan family got permission to travel from Khandala to Mahabaleshwar," Deshmukh tweeted.
According to local police officials, the Wadhawan family along with others travelled from Khandala to Mahabaleshwar on Wednesday evening in their cars, even when both Pune and Satara districts are sealed amid ongoing lockdown for containing coronavirus.
Kapil and Dheeraj Wadhawan are accused in Yes Bank and DHFL fraud cases.
They were spotted at their 'Diwan farm house' by civic authorities, officials said.
All 23 people will be booked under section 188 of IPC (disobedience of lawful order of public servant), said a senior official of Mahabaleshwar police station.
Speaking to 'ABP Majha' news channel, Home Minister Deshmukh said that principal secretary (home) Amitabh Gupta had apparntly given the Wadhawans a letter, permitting the family to travel to Mahabaleshwar.
"Such letter is given only in emergency... On Friday detailed information will be collected and action will be taken keeping in mind the protocol. What happened was not right," the minister said.
The Enforcement Directorate had recently issued summons to Kapil and Dheeraj Wadhawan in Yes Bank case and asked them to appear on March 17. The duo reportedly cited the pandemic and skipped the appearance, officials said.
The letter purportedly issued by Gupta mentioned that he knew the Wadhawans, and they were travelling because of some family emergency, police sources said.
Meanwhile, the BJP latched onto the issue.
Leader of Opposition in the Maharashtra Legislative Assembly Devendra Fadnavis wondered how could one vacation in Mahableshwar with official permission from the police when lockdown is in force.
"No lockdowns for mighty and rich in Maharashtra? One can spend holidays in Mahabaleshwar with official permission from police," the former chief minister said.
"It is not possible that a senior IPS officer would do such gross mistake knowing the consequences on his own... With whose order or blessings was this done? Mr CM & HM you owe us an explanation," Fadnavis said.
