Yes Bank-DHFL ‘fraud’: HC grants bail to Pune builder Avinash Bhosale in PMLA case

A single-judge bench of Justice Manish M Pitale, among other conditions, directed that Bhosale be released on bail on furnishing personal bond of Rs 1 lakh along with sureties of the same amount.

The bench noted that “in present case, there are reasonable grounds to believe that the applicant is not guilty of the offences for which he is being prosecuted”. It added that he satisfied the twin conditions to grant bail as per section 45 of Prevention of Money Laundering Act (PMLA), as he was also granted bail in predicate offences.

The bench noted that there was a substance in contention raised by senior advocate Aabad Ponda for bail applicant Bhosale, who remained incarcerated for over two years from June, 2022, there was “virtually no possibility” of the trial being completed within a reasonable period of time. Bhosale had contended that the maximum punishment that could be awarded to him under PMLA was seven-year imprisonment.

The bench noted that the CBI case related to predicate offence was clubbed with ED case and the prosecution intended to examine 70 witnesses in the CBI case and 187 witnesses in the ED case. “There is remote possibility of trial even commencing and hence there is hardly any possibility of the trial being completed within a reasonable period of time,” the bench noted.

“In this context, the applicant is justified in invoking his fundamental right under Article 21 of the Constitution for speedy trial,” the bench noted. It added that the law laid down by the Supreme Court in Manish Sisodia v CBI case was “absolutely clear” and reliance placed by Bhosale on the same was justified, therefore he “deserves to be enlarged on bail”.

The ED, in its third supplementary chargesheet, claimed that the proceeds of crime found their way to the applicant. It had submitted that DHFL received a loan from Yes Bank towards investments of Rs 3,983 crore from April 2018.

The central agency said that the said amount was disbursed periodically on an understanding that the DHFL would route around Rs 600 crore back to the promoters of the bank. It said that part of the amount went to co-accused developer Sanjay Chhabria of Radius Group and the proceeds of crime then found their way to Bhosale through three transactions, therefore he was liable to face prosecution under PMLA.