UP Power Corporation EPF Scam: Supreme Court Issues Notice In CBI's Plea Challenging Allahabad HC's Order Granting Bail To Former UPPCL MD AP Mishra

The Supreme Court on Friday issued notice in the SLP preferred by Central Bureau of Investigation ("CBI") assailing Allahabad High Court's order of granting bail to Ayodhya Prasad Mishra, former Managing Director of Uttar Pradesh Power Corporation Limited (UPPCL) accused in EPF scam.

The bench of Justices AM Khanwilkar and CT Ravikumar while seeking response from Mishra adjourned the matter for April 8, 2022.

Additional Solicitor General Aishwarya Bhati appearing for the CBI had submitted that the amount of thousands of crores had not been recovered yet.

Appearing for Mishra, Senior Advocate Vivek Tankha had submitted that the accused was a senior citizen suffering from several health issues.

Responding to the submissions made by Senior Counsel, ASG contended that when the fraud was committed the accused was a senior citizen only.

The bench of Justice Dinesh Kumar Singh on July 13, 2021 considering Mishra's frail health and insufficient evidence had granted bail.

"Considering the age of the accused-applicant, his health condition and his long incarceration in jail and so far, no evidence of money trail involving him having been unearthed by the C.B.I., it would be appropriate to enlarge the accused-applicant on bail," the order stated.

Background

The accused along with his co-conspirators had allegedly misappropriated funds from the Uttar Pradesh State Power Sector Employees Gratuity Fund and the Uttar Pradesh State Power Sector Employees Pension Fund to invest in private sector entities in order to incur huge illegal commission. Such illegal investments were done in abject violation of the Companies Act, 1956, Employees Provident Fund and Misc. Provisions Act, 1952 and provisions of the Indian Trust Act, 1882 as well as Rules framed thereunder.

The Central Bureau of Investigation (CBI) had taken over the investigation from the State police authorities. Accordingly, the accused had been charged under Sections 409, 420, 467, 468, 471, 120-B of the Indian Penal Code and Section 13(2) of the Prevention of Corruption Act, 1998 on March 3, 2020.

Further, the prosecution had alleged that General Provident Fund (GPF) contributions to the tune of Rs.2631.20 crores were invested in Diwan Housing Finance Limited (DHFL), a company incorporated under the Companies Act. Similarly, an amount of Rs.1491.5 crores from the Contributory Provident Fund was alleged to have been invested in the DHFL. Accordingly, the concerned funds had suffered a huge loss to the tune of Rs.2267.9 crores (Principal Amount) besides interest. The accused had allegedly made such investments in DHFL for personal gain, the record suggested.

Case Title: Central Bureau of Investigation through Director v Ayodhya Prasad Mishra| SLP (Crl) No 8398/2021

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