In Brief
The Serious Fraud Investigation Office challenged the grant of bail to the accused in a large-scale fraud case involving misappropriation from BSL through a complex web of companies, fraudulent bank credit, and falsified accounts. The alleged fraud caused loss to banks of crores of rupees. The Supreme Court held that the High Court failed to properly apply the mandatory bail conditions under Section 212(6)(ii) of the Companies Act and did not demonstrate adequate application of mind. The Court found the High Court was improperly influenced by the bail granted to another accused. The appeal was disposed, directing the High Court to redecide the bail application afresh in accordance with law.
The lawyer headnote and full judgment text are available to registered users.