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Supreme Court on Thursday set aside the grant of bail to Bhushan Steel's Ex-Chief Financial Officer Nittin Johari who was arrested by the Serious Fraud Investigation office for alleged serious fraudulent activities, including filing false documents with various banks.
The case of prosecution primarily depended upon the commission of fraud punishable under the Companies Act, 2013 and Indian Penal Code, 1860.
The prosecution version is that from 2009-10 to 2016-17, Bhushan Singal and Neeraj Singal, promoters of the BSL, assisted by employees and close associates, used a complex web of 157 companies to siphon off funds from it for various purposes, and also fraudulently availed themselves of credit from lender banks and cooked account books. All these activities have cause a loss of Rs. 3,500 crore and Johari is believed to play a central role.
The bench giving the order comprised of Hon'ble mr. Justice N.V. Ramana, Hon'bl Mr. Justice Mohan M. Shantanagouda and Hon'ble Mr. Justice Ajay Rastogi. The Hon'ble Bench referred to the past judgements given by the Supreme Court involving the question of granting bail to persons accused of economic offences. The Hon'ble Supreme Court said that Delhi High Court did not apply it's mind in all the circumstances while granting bail, particularly in relation to economic offences. The Hon'ble Supreme Court has asked the Delhi High Court to consider his bail plea afresh at an early date.
The court said that Economic Offences are a bit different and serious offences having deep rooted conspiracies and involve huge loss of public funds which needs to be viewed with utmost care and caution. These offences are quite grave and are affecting the economy as a whole and thereby posing serious threat to the financial health of the country.
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