Bank loan fraud case: Court allows CBI to arrest Anil Ambani’s former aide Jhunjhunwala

The CBI had alleged that on Jhunjhunwala’s directions, loan funds were misused, causing wrongful loss to the banks. The CBI has not named him in the charge-sheet in the case related to the alleged misuse of a nearly Rs 2,000 Crore worth term loan and letters of credit sanctioned by three banks.

However, it said the probe against Jhunjhunwala was ongoing.

The special court designated under the CBI Act, presided over by Judge J P Darekar, noted that Jhunjhunwala has “no complaints of ill treatment” by the producing Tihar jail authority or the CBI.
His advocates, Reeti Upadhyay and Mudit Jain, argued that as per the production warrant, he was required to be produced on June 5 and his appearance prior to that was illegal.

“After hearing both sides, the application is allowed and the CBI is permitted to arrest the accused formally” as per provisions of law, the special judge noted on Monday evening.

As the proceedings continued beyond court working hours, the CBI lawyer said that the arrest procedure would take time and that he would be produced on Tuesday after completing formalities. The court said that in the meantime, he can be sent to judicial custody at Arthur Road Jail in Mumbai.

“This is a peculiar situation as the accused is produced from a far distance, i.e., from Central Prison No. 07, Tihar, New Delhi. Further, there are medical issues concerning the accused. Considering all these facts and circumstances, accused Amitabh Jhunjhunwala is taken into judicial custody,” the court noted.

Jhunjhunwala’s lawyer further stated that he has a spine fracture and a heart ailment, after which the court directed the jail authority to permit him to wear a Taylor’s brace and to take medicines as per rules.

The court also directed the Arthur Road jail authority to provide Jhunjhunwala with “proper bedding, care and medical treatment, if required, as per rules.”