The Supreme Court on Wednesday set aside the anticipatory bail granted to 13 individuals accused of corporate fraud involving over ₹4,000 crore of public funds.
Punjab and Haryana High Court had earlier granted anticipatory bail to the accused, but the Supreme Court deemed the decision “perverse and untenable” after the ministry of corporate affairs’ Serious Fraud Investigation Office challenged the high court’s order. The accused had defied arrest warrants and the proclamation order issued by a special court in Gurgaon.
“Even though the non-bailable warrants were issued from time to time against the respondents, and even though the proclamation proceedings were initiated against them, the high court has passed the impugned orders.
“The said orders have been passed in utter disregard of the mandatory conditions contained in Section 212(6) of the Companies Act, and also ignoring the conduct of the respondents accused. Such orders being in the teeth of the legal position settled by this court, as also in the teeth of Section 212(6) of the Companies Act, would fall into the category of perverse orders and therefore untenable at law,” a bench of Justices Bela M. Trivedi and Prasanna B. Varale said.
Justice Trivedi said economic offences involve deep-rooted conspiracies involving huge loss of public funds.