Delhi High Court Grants Bail To Hyderabad Businessman Arun Pillai In Money Laundering Case Linked To Excise Policy

The Delhi High Court on Wednesday (September 11) granted bail to Hyderabad-based business Arun Ramchandran Pillai in a money laundering case linked to the now scrapped excise policy. 

A single judge bench of Justice Neena Bansal Krishna in its judgment, referred to the Supreme Court's decision in Manish Sisodia v Enforcement Directorate and observed that the "triple test" for grant of bail was satisfied by Pillai. 

"As noted in Manish Sisodia v. Directorate of Enforcement 2024 INSC, there is no possibility of tampering of evidence by the Applicant if the Applicant is granted bail as the case is primarily dependent on documentary evidence which is already seized by the prosecution. Similarly, the apprehension regarding influencing witnesses and that of being a flight risk can be diffused by imposing stringent conditions while granting bail. Therefore, the conditions of triple test are duly satisfied by the Applicant," the high court said. 

The court further said that the Supreme Court in Manish Sisodia had observed that "prolonged incarceration before being pronounced guilty of an offence should not be permitted to become punishment without trial" and that the fundamental right of liberty under Article 21 of the Constitution is "superior to statutory restrictions". The high court noted that the Supreme Court had also reiterated the principle that “bail is the rule and refusal is an exception”.

"The Apex Court reiterated observation in Gudikanti Narasimhulu v. Public Prosecutor, High Court of A.P. that the objective to keep a person in judicial custody pending trial or disposal of an appeal is to secure their attendance at trial. The same observations have been reiterated by the Apex Court while granting bail to similarly placed accused under the Complaint in PMLA case in Kalvakuntla Kavitha v. Directorate of Enforcement 2024 INSC 632 and Vijay Nair v. Directorate of Enforcement in SLP (Crl.) No. 22137/2024 vide order dated 02.09.2024," the high court said. 

Justice Krishna further noted that Pillai is an "experienced professional" with several educational qualifications and had also "volunteered to work with Organisations" like UNICEF Canada to educate children about UNICEF's work for children across the world and Afghans4tomorrow–to help improve the business skills of students at the Kabul Education University.

The high court noted that despite being lodged in Tihar jail as an undertrial prisoner, Pillai had volunteered as a "Horticulture Sahayak".

The court observed that Pillai has "deep roots in the society", is not a flight risk, has a business based in India and he is not likely to abscond from the country. 

The high court thereafter granted bail to Pillai in the ED matter subject to him furnishing a personal bond of Rs 10 Lakh with two sureties of the like amount to the satisfaction of the trial court, and subject to certain other conditions. 

"Any observation made herein is without prejudice to the trial," the court said. 

Background

The CBI had registered a case on August 17, 2022, under Section 120B (criminal conspiracy) IPC read with provisions of the Prevention of Corruption Act against various persons wherein Pillai was named as an accused.

Five days later, the ED also registered a case alleging that Pillai was "actively involved in the conspiracy of drafting" the Delhi Excise Policy 2021- 22 and was also "actively involved in forming the cartel and also participated in the conspiracy of kickbacks, payments of the same and its recoupment".

It was further alleged that he had undertaken various transactions in regard to the transactions related to proceeds of crime. The ED alleged that the Pillai is a "key member" of the criminal conspiracy and has been part of the South Group.

The court also noted that the prosecution complaint has already been filed against the Pillai, in which he has been summoned and the investigation with respect to him is "complete".

The court in its order further noted that the Chargesheet in the CBI case (predicate offence) was filed without Pillai's arrest and he has been admitted to bail in the CBI case in February 2023. 

Case title: Arun Pillai v Enforcement Directorate

Citation: 2024 LiveLaw (Del) 1002

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