2024:BHC-AS:11095 ba-2937-2022.doc Shailaja IN THE HIGH COURT OF JUDICATURE AT BOMBAY CRIMINAL APPELLATE JURISDICTION CRIMINAL BAIL APPLICATION NO.2937 OF 2022 a/w INTERIM APPLICATION NO.4329 OF 2023 a/w INTERIM APPLICATION NO.4422 OF 2023 IN CRIMINAL BAIL APPLICATION NO.2937 OF 2022 Hari Sankaran ] Applicant Vs.

Serious Fraud Investigation Office]

Mumbai and another ] Respondents …..

Mr. Aabad Ponda, Senior Advocate a/w Mr. Vikrant Singh Negi, Ms. Ekta Tyagi, Ms. Anjali Shah, Mr. Pratik Thakkar, Ms. Priyamvada Singhania, Ms. Sneha Barange i/b D.S.K. Legal, for Applicant.

Mr. H.S. Venegavkar, Special Public Prosecutor a/w Mr. Ayush Kedia, Mr. Pradeep Yadav and Ms. Divya Gontia, for Respondent No.1.

Mr. A.A. Palkar, A.P.P, for Respondent No.2 – State.

…..

CORAM : PRITHVIRAJ K. CHAVAN, J.

RESERVED ON : 21st February, 2024.

PRONOUNCED ON : 7th March, 2024.

ORDER:

1. By this application, the applicant seeks his release on bail who is being prosecuted by the Serious Fraud Investigation Office, Mumbai (for short, “SFIO”) in connection with Criminal Complaint No.20 of 2019 in File No. SFIO/INV/UNIT – V/1003/IL &

FS/2018-19 pending before the Special Judge for the offences punishable under Section 447 of the Companies Act, 2013 (for short “Act of 2013”) and Sections 417, 420 r/w 120-B of the Indian Penal Code, 1860 (for short “I.P.C”).

2. Shorn of unnecessary details, a few facts germane for disposal of this application, can be summarized as follows.

3. There are 30 accused arraigned by respondent No.1 – SFIO in the aforesaid criminal complaint. The applicant is accused No.3. The genesis of the case is an order of investigation passed by the Central Government i.e Ministry of Corporate Affairs whereby the said Ministry in the public interest on the basis of cogent material, framed it’s opinion that investigation into the affairs of the several companies i.e Infrastructure Leasing and Financial Services Limited (IL & F.S) and it’s subsidiary companies is necessary to be conducted by SFIO and accordingly passed an order bearing Order No. 03/679/2018/CL-II (WR) dated 30th September, 2018 in this regard in exercise of it’s powers under Section 212 (1) (c) of the Companies Act, 2013.

4. Pursuant to an order of the Ministry, a team was appointed for carrying out the aforesaid investigation. During investigation, it revealed that IL&FS Financial Services Ltd (hereinafter referred to as “IFIN’) is one of the subsidiary companies of the IL&FS Group, whose investigation has also been ordered by the Ministry of Corporate Affairs. Having conducted the investigation, a report dated 28th May, 2019 along with all it’s annexures came to be filed. 5. As per Section 212 (15) of the Act of 2013, investigation report came to be filed in the Special Court for framing charges against all the accused.

6. The applicant came to be arrested on 1st April, 2019 under Section 212 (8) of the Act of 2013. The Special Judge rejected his application for bail vide an order dated 3rd October, 2019.

7. I heard Mr. Aabad Ponda, learned Senior Counsel appearing for the applicant as well as Mr. Venegavkar, Special Public Prosecutor at a considerable length.

8. Dehors merits, arguments of learned Senior Counsel revolves around two aspects viz: long incarceration of the applicant without any hope of commencing the trial at least for a few years and, secondly, serious ailments with which the applicant has been suffering at the age of 62 years.

9. Mr. Ponda would argue that the long incarceration of the applicant ever since his arrest on 1st April, 2019 is in gross violation of his fundamental right under Article 21 of the Constitution despite rigours of twin conditions in view of section 212 (6) of the Act of 2013. By 31st March, 2024, he would be completing five years behind the bars and he is the only person in the custody out of the accused who are being prosecuted by the respondent No.1. Learned Senior Counsel would invite my attention to a number of medical reports to substantiate his con