Yes Bank-DHFL case: Avinash Bhosale denied immediate relief

The Central Bureau of Investigation (CBI) had arrested Bhosale on May 22, 2022, and later the Enforcement Directorate (ED) also arrested him in connection with the Yes Bank-Dewan Housing Finance Corporation Limited (DHFL) loan fraud case. Earlier this month, the special court had refused Bhosale’s bail plea.

A single-judge bench of Justice Sandeep V Marne on Monday was hearing two criminal applications by Bhosale in ED and CBI cases seeking to set aside the May 16 order of the sessions court extending judicial custody of the applicant.
Advocate Vijay Aggarwal, appearing for Bhosale, submitted that there was no application filed for extension and the order passed by the trial court is not a reasoned order.

Aggarwal submitted that Bhosale was not produced before the Sessions Court while granting judicial custody. He added that the Judge who has passed the impugned order is not designated as Special Judge under the provisions of section 43 of the Prevention of Money Laundering Act (PMLA), 2002.
Aggarwal, agreed that the issues in the pleas would require consideration through detailed hearings, in the interim sought release of the applicant during pendency of present applications.

Additional Solicitor General Anil Singh and advocate A M Chimalkar representing ED and CBI, respectively opposed the plea.

After hearing submissions, the vacation bench noted, “The issues raised in the present applications would require detailed consideration. Unless the applications are heard on various points raised by the applicant, it would not be possible to consider the prayer for grant of interim relief. The applicant is in custody since May 26, 2022. His judicial custody has been extended from time to time. Validity of orders granting such extension is under challenge in these applications. In view thereof, the prayer for interim relief cannot be considered today.”

The bench posted further hearing to June 6.

The ED had alleged that DHFL had diverted Rs 66 crore to Bhosale and entities linked to him as consultancy charges for providing services related to loans given to various projects by DHFL. However, the ED alleged that no such consultancy services were provided by Bhosale and there was siphoning of money.

The central agency had also alleged that Bhosale had connived with co-accused Sanjay Chhabria and illegally obtained funds to the tune of Rs 431 crore in an entity owned by Bhosale. It said this was the same period when Chhabria had received funds from DHFL for the development of a project