HC grants bail to bizman in ₹150 cr bank fraud
MUMBAI: The Bombay high court on Wednesday granted bail to 79-year-old businessman, Manoharlal Agicha, who was facing prosecution under the Prevention of Money Laundering Act, 2002 (PMLA) for allegedly causing wrongful loss of around ₹150 crore to the Union Bank of India.
₹150 cr bank fraud” title=”HC grants bail to bizman in ₹150 cr bank fraud” />Justice NJ Jamadar cited the businessman’s advanced age, deteriorating health, and prolonged incarceration as the reasons for granting him bail.
Agicha, a director of Associate High-Pressure Technologies Pvt. Ltd. (AHPT), was arrested on November 10, 2023, following a series of investigations by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED).
The charges against him arose from allegations of a ₹149.89 crore loan fraud involving Union Bank of India, in which AHPT’s loan account was converted into a non-performing asset (NPA). CBI registered the FIR on June 9, 2021, after receiving a complaint from the deputy general manager of the bank.
Senior advocate Abad Ponda, representing Agicha, argued that his client’s continued detention was both medically unjustified and legally inappropriate. He argued that the pending trial would likely be delayed indefinitely, as the Gujarat high court had stayed proceedings in the predicate offence on March 6, 2024.
He asserted that since the PMLA case depends on the existence of a predicate offence, the stay rendered it legally impossible to proceed with the money laundering charges. He maintained that the constitutional guarantee under Article 21 of the Indian Constitution- ensuring the right to life and liberty should override statutory provisions and that further incarceration without any realistic prospect of trial would violate Agicha’s fundamental rights.
Advocate Hiten Venegaonkar, representing the ED, acknowledged Agicha’s medical condition but argued that it was not severe enough to warrant his immediate release, as the state had provided him adequate care, including referrals to private hospitals.
In his ruling, Justice Jamadar observed that Agicha’s deteriorating health and his reliance on others for basic needs qualified him for relief under the first proviso to Section 45(1) (bail restrictions for money laundering offences) of the PMLA, which allows bail for individuals who are sick or infirm.
The judge emphasised that the combination of multiple ailments and advanced age rendered Agicha both “sick and infirm” within the meaning of the statute and prolonged detention without a clear timeline for trial violated Agicha’s right to personal liberty under Article 21. Relying on recent Supreme Court decisions, the judge reiterated that the principle of “bail as the rule and jail as the exception” should apply even in cases under the PMLA.
