Anil O. Khandelwal vs. State Of Maharashtra

Facts

Two bail applications were filed by Anil O. Khandelwal and Naresh Tikamchand Jain, who are co-accused in a crime registered by the Economic Offences Wing (EOW) for offences including cheating and criminal breach of trust under the Indian Penal Code. The applicants, both Chartered Accountants, were the Chief Financial Officer and Internal Auditor, respectively, of Cox and Kings Limited (CKL). CKL defaulted on loan repayments to HDFC Bank, among other banks, between 2009 and 2019. The prosecution alleges falsification of accounts and diversion of funds by the applicants. Both have been incarcerated since January 31, 2022, for over three years, and a charge-sheet has been filed. The complainant is HDFC Bank.

Held

The Court allowed both bail applications. The primary reasoning was based on the long period of incarceration of the applicants (over three years) and the principle of parity, given that the main accused and a co-accused had already been granted bail by higher courts and this Court, respectively. The Court also noted its prima facie observations regarding the complainant bank's due diligence in advancing substantial amounts over a long period (10 years), suggesting that enhanced due diligence might have mitigated risks. While acknowledging that the complicity of the accused would be determined at trial, the Court found that the applicants had made out a case for bail based on their long detention and the aforementioned observations. The applicants were directed to be released on bail upon furnishing a Personal Recognizance Bond of Rs. 1,00,000/- each with sureties, with provisional cash bail permitted for a period of four weeks to furnish sureties. Other conditions included reporting to the Investigating Officer, cooperating with the trial, not leaving Maharashtra without permission, and surrendering passports.

Key Issues

1. Whether the applicants are entitled to regular bail under Section 439 of the Code of Criminal Procedure, 1973, considering their period of incarceration and the bail granted to the main accused and co-accused. Arguments for the Applicants: The applicants' counsel argued that the main accused, Ajay Ajit Peter Kerkar, was granted bail by the Supreme Court, and Anil O. Khandelwal had also been granted bail by this Court in a related matter. They also highlighted that Anil O. Khandelwal had been granted bail by the PMLA Special Court on grounds of delay in trial commencement and long incarceration. The applicants claimed parity with these individuals and argued that their continued custody was unwarranted due to their full cooperation during the investigation and the long period of detention. Arguments for the Respondent (State): The judgment does not record specific arguments made by the State opposing the bail applications.