The Bombay High Court on Wednesday granted bail to Pune-based businessman Avinash Bhosale in connection with the Yes Bank-Dewan Housing Finance Limited (DHFL) money laundering case. The court cited Bhosale’s prolonged incarceration and insufficient evidence of guilt as key reasons for its decision.
Justice Manish Pitale, who presided over the case, observed that there are “reasonable grounds to believe that the applicant is not guilty of the offences for which he is being prosecuted.”
Bhosale, chairman and founder of the ABIL Group, had been in custody since June 28, 2022, under charges related to the Prevention of Money Laundering Act (PMLA) in connection with the Yes Bank-DHFL scandal.
The Enforcement Directorate (ED) alleged that Bhosale received illicit funds through transactions involving DHFL and Yes Bank, including dealings with Nibodh Realty and purportedly fraudulent consultancy fees.
The case revolves around allegations that Yes Bank, under former CEO Rana Kapoor, disbursed ₹3,983 crore to DHFL, which in turn sanctioned ₹2,420 crore in loans to the Radius Group.
Bhosale was accused of receiving ₹350 crore in kickbacks from the Radius Group for facilitating these loans, with the funds allegedly disguised as consultancy payments.
In his defense, Bhosale’s legal team argued that the transactions in question were legitimate and predated the alleged criminal activity.
The court agreed with this defense, particularly concerning ₹67.85 crore received by Nibodh Realty, the sale of ABIL Dairy LLP, and ₹71.82 crore in consultancy fees. Justice Pitale noted that these transactions were in line with pre-existing agreements and standard commercial practices.
The court found that Bhosale satisfied the criteria for bail under Section 45 of the PMLA, concluding that the evidence presented was not strong enough to justify his continued detention.
“The applicant has been able to satisfy the first limb of the stringent test contemplated under Section 45 of the PMLA,” Justice Pitale stated.
Additionally, the court highlighted delays in the trial process due to the large number of witnesses, noting that “there is virtually no possibility of the trial being completed within a reasonable period of time.”
These factors further supported the decision to grant bail.
As part of the bail conditions, Bhosale is required to provide a personal bond of ₹1,00,000 with sureties, regularly report to the ED, surrender his passport, and avoid tampering with evidence or influencing witnesses. He must also provide his contact details and residential address to the trial court.
Senior Advocate Aabad Ponda, along with advocates Dhawal Mehta, Abinash Pradhan, Garima Agrawal, and Yash Dedhia from Wadia Ghandy & Co., represented Bhosale.
Public Prosecutor Hiten Venegaonkar, along with advocate Aayush Kedia, represented the Enforcement Directorate, while Additional Public Prosecutor Rutuja A. Ambekar appeared on behalf of the State.
