The Supreme Court said on Tuesday that a large three-day bench will examine whether an accused should be detained on the day taken into custody while calculating the 60-day period for default bail.
A two-judge bench of Justices SK Kaul and Hrishikesh Roy also said that it would request Chief Justice SA Bobde that a larger bench be constituted at the earliest.
The legal issue arose during the hearing of the Enforcement Directorate’s appeal against the Bombay High Court order granting bail to former DHFL promoters, Kapil Wadhavan and Dheeraj Wadhawan in the Yes Bank money laundering case being investigated by the agency.
Senior advocate AM Singhvi, appearing for Wadhawan, told the apex court that his clients have been in jail for more than 11 months, and demanded early disposal of the petition.
He said that when there is a conflict in law, the decision should be in favor of the accused.
The apex court said that the question of interim bail should also be decided by a three-judge bench.
“We will try to resolve the issues at the earliest,” the bench said.
In September last year, the apex court stayed the Bombay High Court order granting bail to former DHFL promoters.
The apex court issued a notice to the accused on the petition of the Enforcement Directorate against the High Court order of bail.
On August 20, 2020, the Bombay High Court granted bail to the Wadhawan brothers, saying that mandatory default bail is the sequel to not filling the charge sheet.
The HC had granted him bail as the ED had failed to file its chargesheet in the case within the stipulated 60-day period.
The Central Investigation Agency had then filed a special leave petition before the apex court.
The federal investigative agency said it was not in violation of the process and filed a portion of the charge sheet via email the day before the 60-day period expired.
The chargesheet was filed in physical form by the ED on 13 July.
According to Section 167 (2) of the Code of Criminal Procedure, an accused can be held in custody for a maximum of 90 days for an offense with death, life imprisonment or a sentence of not more than 10 years. If the investigation is related to any other crime, the accused can be held in custody for 60 days.
If the investigating agencies do not complete their investigation within these deadlines, the arrested person is entitled to ‘default bail’.
However, former promoters of the Dewan Housing Finance Corporation (DHFC), Wadhawan, were not released on bail as they are currently in CBI custody.
He was arrested by the ED on May 14 under the provisions of the Prevention of Money Laundering Act (PMLA).
The ED had dismissed the PMLA allegations against the two and the CBI’s FIR lodged in March in connection with the alleged suspicious loan given by Yes Bank in this case and the “quid pro quo” between its co-promoters Rana Kapoor and Wadhawan. Had studied
According to CBI and ED, Yes Bank invested around Rs 3,700 crore in DHFL’s short-term non-convertible debentures between April and June 2018.
(This story has not been edited by NB employees and is auto-generated from a syndicated feed.)