JUDGMENT

Manoj Kumar Ohri, J. - The present application has been filed under Section 439 Cr.P.C. on behalf of the applicant seeking regular bail in Complaint Case No.24/2021 filed under Sections 44/45 of the Prevention of Money Laundering act, 2002 (hereinafter, referred to as the 'PMLa') and arising out of ECIR No.11/HIU/2021 registered under Sections 3/4 PMLa by the respondent/ED.

Factual Background

2. Pithily put, the case of the prosecution is that subsequent to the removal of Sh. Rana Kapoor, the then MD and CEO of Yes Bank Ltd. (hereinafter, referred to as the 'Bank'), certain complaints came to be filed assailing his role in grant of various credit facilities to borrowers, in violation of banking norms and against receipt of illegal gratification, which resulted in huge loss to the Bank. One of these complaints was in relation to M/s. Oyster Buildwell Pvt. Ltd. (hereinafter, referred to as 'OBPL'), a real estate company, which was extended credit facilities to the tune of Rs.514.27 crores, resulting in loss of Rs.466.51 crores to the Bank.

as a result, FIR/RC No.2232021a0005 was registered under Sections 120B/406/420/468/471 by the CBI against OBPL, the applicant and others, including unknown public servants and private persons, for having committed criminal breach of trust, cheating, criminal conspiracy and forgery for diversion/misappropriation of the public money during the period from 2017 to 2019. The investigation in the case is stated to be still pending.

The Prosecution Complaint

3. The present ECIR was recorded by the respondent under Sections 3/4 of the PMLa, followed by filing of the prosecution complaint on 01.10.2021. as per the complaint, avantha Group is led by the present applicant, being its Founder and Chairman. The companies primarily involved in the transaction in question were OBPL, M/s. Jhabua Power and Investments Limited (hereinafter, referred to as 'JPIL') and M/s. Jhabua Power Ltd. (hereinafter, referred to as 'JPL'), which are a part of avantha Group and under the control and beneficial ownership (direct or indirect) of the applicant.

In December, 2017, JPL had signed an operations and management (O&M) agreement for its thermal power project with JPIL, which work was sub-contracted by JPIL to OBPL at higher monthly consideration. In the contract between JPIL and OBPL, a special clause was added, as per which, interest free security deposit to the tune of Rs.514.27 crores was to be provided by OBPL to JPIL. For extending of this security deposit to JPIL, OBPL sought a loan from the Bank, wherefore the Term loan in question came to be disbursed in its favor.

4. after the Term loan of Rs.514.27 crores was disbursed to OBPL, the funds were transferred to JPIL as security deposit. Reportedly, the said funds were utilized for retiring of avantha Group loans i.e., Non-Convertible Debentures of Rs.285 crores subscribed by Edelweiss in avantha Holding Ltd. (hereinafter, referred to as 'aHL') as well as for repayment of existing debt of the Group companies to the tune of Rs.190 crores of aditya Birla Finance Ltd. (hereinafter, referred to as 'aBFL').

5. It was alleged that the agreements entered into between OBPL, JPL and JPIL were 'sham'. Though the Term loan given by the Bank to OBPL was prima facie secured, inter-alia, by the pledge of 8 crore shares of CG Power, the said shares were already pledged with Edelweiss and aBFL, against whom the Group companies had pre-existing loan obligations. It was further alleged that OBPL was part of avantha Group and as such, was controlled by the applicant. It carried no business activity and had no employees working in it. It did not even have any experience in handling of O&M work of a thermal power plant and was shown to have been contracted by JPIL only to create a paper trail. Notably, the company neither provided any service under the agreement to JPIL nor received any consideration for the same.

6. It was also alleged that the Term loan taken by OBPL was routed from