Delhi court grants bail to directors of company accused in bank fraud case

🔴 The court noted that the ED’s investigation had not been complete despite filing their complaint on 30 October, 2021.

New Delhi | December 24, 2021 12:12 PM IST

2 min read

It was alleged that between 2002 and 2011, funds to the tune of over Rs 43 crore (ED now claims over Rs 50 crore) were siphoned off from the JKCA coffers. (File)

A Delhi court granted bail to the directors of a company who were accused in a case related to a bank fraud worth Rs 1200 crore by the Enforcement Directorate.

Special Judge Shailender Malik granted the bail to Sandeep Singh Madhok and Satender Singh Madhok, associates of the company M/s Jay Polychem India Limited. They were accused of committing fraud and misappropriation of funds to the tune of Rs 1,800 crore by taking loans from a consortium of 12 banks led by SBI. They also allegedly “made transactions using fictitious entities, fabricating and manipulating financial and stock statements and siphoned off the money showing personal and family expenses”.

The court noted that the ED’s investigation had not been complete despite filing their complaint on 30 October, 2021. “ED has not stated that its investigation is complete with regard to the offence of laundering. It only states that evidence of laundering has been collected for only Rs 611 crore and its investigation is still going to trace the remaining proceeds of crime. Complaint also mentions that its investigation is also going on qua accused/ applicants beside others,” the court stated.

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delhi Enforcement Directorate