Covid centre scam: Bombay HC grants bail to ‘Raut aide’ in ED case, cites 2-year incarceration without trial

The court directed Patker to be released on furnishing a personal bond of Rs 1 lakh along with two sureties of the same amount and he shall not leave Maharashtra without prior the permission of the trial court and cooperate with the trial.

Patker had moved the high court after a special court designated under the Prevention of Money Laundering Act (PMLA) rejected his bail plea in November 2024.

On July 19, 2023, the ED arrested Patker on allegations that he and other accused had obtained a contract to run a Covid centre in Mumbai during the Covid-19 pandemic and cheated the Brihanmumbai Municipal Corporation (BMC) through under-deployment of doctors and staff. It was also alleged that there was a conspiracy to generate proceeds of crime by fake bills and vouchers.

Patker was one of the four partners of Lifeline Hospital Management Services (LHMS) that was awarded the contract to run a Covid-19 jumbo centre in Worli.

The ED had lodged a money laundering case based on a Mumbai police FIR against Patkar at the Azad Maidan police station that was later transferred to its Economic Offences Wing (EOW).

Patker, through senior advocate Aabad Ponda claimed before the court that other partners were tasked with operating and managing the centres and he had no role in maintenance of attendance or records or preparing invoices raised by the firm. Ponda argued that Patker was not involved in drafting partnership deed of LHMS, therefore allegation of forging such document cannot be attributed to him and he be granted bail on grounds of parity with co-accused who are released on bail.

“…Whether the applicant alone engaged in laundering, or acted under the firm’s collective policy, is a matter for trial. In the absence of compelling material to demonstrate the applicant’s exclusive culpability distinct from Dr Hemant Gupta (co-accused), the ground of parity must weigh in favour of the applicant at this stage,” the HC observed.

That being said, Justice Borkar stated that “the allegations as they stand, if taken at face value, do prima facie indicate complicity of the applicant in generation of proceeds of crime”.

“However, the question that arises for consideration is whether, in the facts of the case, continued incarceration of the applicant is warranted to meet the ends of justice, particularly when the investigation is complete, the applicant has been in custody since July 2023, and the trial is not showing signs of commencing in the near future. These factors must be evaluated in light of the overarching principle that bail is the rule and jail is the exception, especially where there is no likelihood of the accused tampering with evidence or absconding,” the HC held.

“Though this court is cognizant of the twin conditions prescribed under Section 45 of the PMLA, it is also mindful of the principles of liberty and the factual distinction that the present applicant is not shown to have indulged in any direct acts of concealment or projection of proceeds of crime as untainted property. The application, therefore, deserves favourable consideration,” the HC held and granted bail to Patker in ED and Mumbai Police cases.