Bhushan Power & Steel bank fraud: Delhi Court grants bail to former CMD Sanjay Singal in ED case

A Delhi Court has granted bail to former CMD of Bhushan Power & Steel, Sanjay Singal in the money laundering case arising out of the bank fraud case.Singal was arrested by the Enforcement Directorate in November, 2019..As per the order passed by Special Judge (PC Act) Arun Bhardwaj, the bail is subject to Singal furnishing two sureties in the sum of Rs. 10 Lakhs each..The Court has also directed Singal to surrender his passport and not leave the country without its permission. .Singal has also been directed to not try to tamper with the evidence or influence the witnesses and cooperate with the investigation..Bhushan Power & Steel had taken loans to the tune of Rs 47,204 crore from banks and had subsequently defaulted in the payment schedule.It is the investigating agencies' case that Singal, along with other accused and some unknown public servants of banks, hatched a criminal conspiracy to cheat the banks, financial institutions and the government exchequer.It is alleged that Singal and others dishonestly and fraudulently diverted a huge amount of bank funds through shell companies etc and deliberately defaulted in payment, which caused wrongful loss to the lending banks/financial institutions.Based on the above, in April, 2019, CBI had registered a case under Section 120B IPC read with Sections 420, 468, 471 and 477A IPC and Sections 13(2), 13(1)(d) of the Prevention of Corruption Act, 1988 against Sanjay Singal and others. Subsequently, the Enforcement Directorate (ED) also filed an ECIR to investigate the money laundering charge..Singal's bail was earlier rejected by the Court in December. Subsequently, chargesheet/complaint was filed against him by the ED on January 21..Singal broadly argued that he was entitled to statutory bail under Section 167(2) CrPC. He stated that an incomplete complaint had been filed in the matter as the complaint itself acknowledged that investigation on various aspects was still pending. .Singal added that since the commencement of the trial was not likely to take place in the near future, his continued detention was unwarranted..Even otherwise, Singal argued, he was entitled to be released on bail in view of the proviso to Section 45 PMLA, 2002 read with Proviso to Section 437 CrPC as he was suffering from enlarged prostate, Diabetes Mellitus, Hypertension, Ischemic Heart Disease and Spine Problem..The Enforcement Directorate submitted that the quantum of proceeds of crime was still being probed and the investigation could not be restricted.It was added that trial in ED's complaint would commence without waiting for completion of remaining investigation and a supplementary chargesheet would be filed in due course..ED also contended that Singal was the "mastermind" and for economic offences, jail and not bail was the rule..After hearing the parties, the Court rejected Singal's contention that ED had filed incomplete chargesheet. It, however, noted that it was accepted by both the sides that the trial was not going to end soon.The Court also noted that when the first bail application was dismissed, there was a possibility that the investigation might result in proceeds of crime to the extent of Rs 27,704 crores. This figure has now been restricted to Rs 4229.54 crores..It was further pointed out that it was the "common case" of the parties that for improving debt-equity ratio, the company resorted to taking the money of the company and routing it back through various channels as equity of the accused and his family members so that they continue to get financial support of the banks..The sum result was that the funds were pooled in the company and not taken away, the Court added as it observed, .Though, there may not be any financial loss in strict sense, but for this dubious device followed by the company, they would face the consequence at the end of the trial.Delhi Court.In conclusion, the Court deemed it appropriate to extend bail to Sanjay Singal in the case. .It said,."..keeping in mind that chargesheet/complaint has been filed, there will be considerable delay in filing of supplementary complaint and completion of trial, ED has efficiently secured and safeguarded the proceeds of crime by Attachment Orders, considering the reasons alleged by the accused for circular rotation of funds, the factors which were beyond the control of the company rendering it a defaulter and considering that the offence is punishable u/S 3 with imprisonment of seven years, this Court is of the opinion that the applicant is entitled to bail."Delhi Court.The Court also opined that there was no apprehension of Singal not attending the trial as he has roots in the society and there is no apprehension of tampering with evidence as all the records were already with the Resolution Professional..Singal's bail plea was accordingly disposed of..Singal was represented by Senior Adocate Sidharth Luthra with Advocates Vijay Aggarwal and Mudit Jain.ED was represented by Special Public Prosecutor Nitesh Rana. .Read the Order: