Court Cites Prolonged Incarceration and Lack of Evidence in Bail Decision
The Bombay High Court has granted bail to Pune-based businessman Avinash Bhosale in connection with the Yes Bank-Dewan Housing Finance Limited (DHFL) money laundering case, citing prolonged incarceration and potential lack of guilt. Bhosale, founder of the ABIL Group, had been in custody since June 28, 2022, facing charges under the Prevention of Money Laundering Act (PMLA) related to illicit funds received through deals involving Yes Bank, DHFL, and Nibodh Realty.
Justice Manish Pitale, who presided over the case, stated there were “reasonable grounds to believe that the applicant is not guilty of the offences for which he is being prosecuted.” The court agreed with Bhosale’s defense, which argued that the transactions under scrutiny occurred before the alleged crime date and were part of legitimate commercial agreements. This included ₹67.85 crores received by Nibodh Realty, proceeds from the sale of ABIL Dairy LLP, and ₹71.82 crores in consultancy fees.
The Enforcement Directorate (ED) had accused Bhosale of receiving ₹350 crores in kickbacks disguised as consultancy fees for facilitating loans between DHFL and Yes Bank, under its former CEO Rana Kapoor. The case alleges that Yes Bank disbursed ₹3,983 crores to DHFL, which in turn sanctioned ₹2,420 crores to Radius Group, with Bhosale supposedly benefiting from the deal.
Despite these accusations, Justice Pitale noted that the case did not meet the strict criteria required under Section 45 of the PMLA for denying bail. The court also pointed to the lengthy trial process due to the large number of witnesses, which would delay the case indefinitely, making it unreasonable to keep Bhosale detained during that period.
Bhosale was granted bail with conditions, including a personal bond of ₹1,00,000, regular reporting to the ED, surrender of his passport, and assurance not to tamper with evidence or influence witnesses.
Representing Bhosale were Senior Advocate Aabad Ponda and a team from Wadia Ghandy & Co, while Public Prosecutor Hiten Venegaonkar and advocate Aayush Kedia represented the ED, with Additional Public Prosecutor Rutuja A Ambekar appearing for the State.
(With inputs from agency)
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