Yes Bank scam: Bombay High Court grants bail to Pune Builder Avinash Bhosale

The Bombay High Court on Wednesday granted bail to Pune-based businessman Avinash Bhosale in connection with the Yes Bank-Dewan Housing Finance Limited (DHFL) money laundering case. The Court cited prolonged incarceration and probable lack of guilt as reasons for its decision..Single-judge Justice Manish Pitale while granting the bail observed that there are “reasonable grounds to believe that the applicant is not guilty of the offences for which he is being prosecuted.” Bhosale, chairman and founder of the ABIL group, has been in custody since June 28, 2022, facing charges under the Prevention of Money Laundering Act (PMLA) related to the Yes Bank-DHFL scandal. The Enforcement Directorate (ED) has accused him of receiving illicit funds through transactions involving DHFL and Yes Bank, including deals with Nibodh Realty and alleged fraudulent consultancy fees.The case involves allegations that Yes Bank, under former CEO Rana Kapoor, disbursed ₹3,983 crore to DHFL which then sanctioned loans totaling ₹2,420 crore to Radius Group.Bhosale is alleged to have received ₹350 crore in kickbacks from Radius Group for facilitating these loans, purportedly disguised as consultancy payments..In defense, Bhosale's counsel argued that the contested transactions were legitimate and occurred before the alleged date of crime. The Court concurred, particularly regarding ₹67.85 crores received by Nibodh Realty, the sale of ABIL Dairy LLP, and ₹71.82 crores in consultancy fees. Justice Pitale noted that these transactions were consistent with pre-existing agreements and commercial practices..The Court highlighted that Bhosale met the criteria for bail under Section 45 of the PMLA, observing that the charges were not substantiated enough to justify continued detention. “The applicant has been able to satisfy the first limb of the stringent test contemplated under Section 45 of the PMLA,” Justice Pitale said..Additionally, the Court pointed out the delays in the trial process due to the large number of witnesses. “There is virtually no possibility of the trial being completed within a reasonable period of time,” the single-judge noted. This consideration further supported the decision to grant bail..As part of his bail conditions, Bhosale must provide a personal bond of ₹1,00,000 with sureties, report regularly to the ED, surrender his passport, and refrain from tampering with evidence or influencing witnesses. He is also required to provide his contact details and residential address to the trial Court..Senior Advocate Aabad Ponda and advocates Dhawal Mehta, Abinash Pradhan, Garima Agrawal and Yash Dedhia of Wadia Ghandy &Co appeared for Bhosale.Public Prosecutor Hiten Venegaonkar along with advocate Aayush Kedia represented the Enforcement Directorate.Additional Public Prosecutor Rutuja A Ambekar appeared for the State.[Read Order].Follow Bar and Bench channel on WhatsAppDownload the Bar and Bench Mobile app for instant access to the latest legal news.