Rs 512 cr loan fraud case: Delhi HC grants bail to Managing Director of Delhi-based private firm

New Delhi [India], May 18 : Delhi High Court on Thursday granted bail to the Managing Director cum Promoter of a Delhi-based private company in an ongoing investigation of a case related to bank fraud of Rs 512.67 crore.

Considering the bail plea, the court said that the Central Bureau of Investigation (CBI) had not completed the investigation with respect to offences under Section 13(2) read with Section 13(1)(d) of the PC Act, for which the applicant was arrested.

The bench of Justice Amit Sharma on Thursday while granting bail to Avinash Jain, the MD of Arise India Limited, stated that CBI on December 16, 2022, sought approval from the competent authority under Section 17A of the PC Act, but proceeded to file the chargesheet, before the expiry of the stipulated term of 60 days, while keeping the investigation for offences under Section 13(2) read with Section 13(1)(d) of the PC Act open. Therefore, it is clear that the CBI had not completed the investigation with respect to offences under Section 13(2) read with Section 13(1)(d) of the PC Act, for which the applicant was arrested, the court observed.

Permitting the CBI to pick up one aspect of the investigation and file a piece-meal chargesheet with respect to the same and consequently, defeating the right of the applicant to default bail, goes against the mandate of Article 21 of the Constitution, as held by the Supreme Court, said the Delhi High Court.

Senior Advocate Vikas Pahwa appeared on behalf of the applicant who submitted

that the aforesaid chargesheet is incomplete and was filed only to defeat the applicant's right under Section 167(2) of the CrPC.

CBI on November 14, 2023, arrested Ankush Jain, Managing Director and Promoter of Arise India Limited which deals in the manufacturing of electrical goods, in an ongoing investigation of a case related to bank fraud of Rs 512.67 crore.

The CBI has examined several persons including witnesses, private company officials, Bank Officials, etc. However, the said MD/Promoter of the company was found to be evasive in his replies, said the officials.

A case was registered in November 2020 against a private company based at Mangala Puri in the Palam area of New Delhi and others including its Director and Promoter, other Directors; Unknown Public Servants/others on the allegations of causing loss to Banks to the tune of Rs. 512.67 crore (approx).

The complainant bank i.e. State Bank of India in its complaint had alleged that the accused cheated the consortium of six banks, led by State Bank of India, causing Rs. 512.67 Crore fraud.

It was further alleged that the accused had diverted bank loans to its related parties and deliberately cheated the banks by inflating the company's debtors.

The said private company was in the business of manufacturing and trading monoblock pumps, submersible pumps, batteries, inverters and electrical goods and its Units were at Sonipat (Haryana) and Kala Amb (Himachal Pradesh). The accounts of said Company were declared NPA on February 27, 2017.

CBI had earlier conducted searches in December 2020 at the premises of the accused which led to the recovery of several incriminating documents including books of accounts of the said borrower company, purchase/sales details etc.