Bombay HC Grants Bail to Builder in Yes Bank-DHFL Corruption Case

Mumbai, India — In a notable decision, the Bombay High Court has granted bail to Pune-based builder Avinash Bhosale, who is implicated in a high-profile corruption case involving Yes Bank and Dewan Housing Finance Corporation Ltd (DHFL), currently under investigation by the Central Bureau of Investigation (CBI).

Justice N. J. Jamadar, presiding over a single bench, ruled that the economic nature of an offence should not be the sole basis for denying bail. The court observed that “the parameters which govern the grant of bail in other categories of offences equally govern the case where a person is accused of an economic offence.” This judgment challenges the notion that economic crimes inherently warrant stricter bail considerations.

Bhosale, arrested in May 2022, has been in judicial custody and undergoing medical treatment in a hospital. The court directed him to deposit a surety of Rs 1 lakh as part of the bail conditions.

The bench noted that denying bail in cases of serious economic offences is not an “immutable rule of law,” and emphasized the need to balance the gravity of allegations with the fulfillment of other bail parameters. Justice Jamadar highlighted that the alleged fraud amount attributed to Bhosale had been significantly reduced, affecting the severity of the accusations.

With the investigation concluded and three chargesheets already filed, the High Court acknowledged Bhosale’s two-year custody period. The charges against him include cheating, criminal conspiracy, and criminal breach of trust by a public servant under the Indian Penal Code (IPC), as well as violations of the Prevention of Corruption Act (PCA).

The court found that the applicability of Section 409 of the IPC, concerning criminal breach of trust by a public servant, was debatable in Bhosale’s case. Justice Jamadar stated, “The applicant cannot be prima facie roped in for the offence punishable under Section 409 of IPC which entails punishment of imprisonment for life.” The question of whether Bhosale abetted offences by a public servant, punishable under the PCA, is to be determined at trial.

The CBI alleges that Bhosale received Rs 350 crore in kickbacks from the Radius group, led by businessman Sanjay Chhabria, in return for facilitating loans from DHFL. The agency claims that Yes Bank, under its co-founder Rana Kapoor, disbursed Rs 3,983 crore to DHFL, which then funneled Rs 2,420 crore to entities associated with the Radius group. Kapoor, along with DHFL promoters Kapil and Dheeraj Wadhawan, were arrested in 2020 on charges of criminal conspiracy and financial misconduct.

This ruling marks a significant development in the ongoing investigation, setting a precedent for the consideration of bail in economic offences and reflecting the judiciary’s commitment to ensuring fair legal processes.

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