The Bombay High Court in the case observed and has granted to Gokulnath Raghu Shetty, who being the prime accused in the Punjab National Bank, PNB fraud case involving over Rs 7,000 crore.
The bench headed by Justice M.S. Karnik in the case observed and has passes the order wherein the court expressed concerns over the prolonged incarceration of the applicant for nearly six years without the trial commencing.
The court stated that the reason, why I am inclined to enlarge the applicant on bail is only on the ground of long incarceration. The applicant was arrested on March 06, 2018 and is now in custody almost for six years. Thus, the charges have not been framed so far and there are around hundred witnesses to be examined. The trial is not likely to conclude any time soon. Thus, the applicant is 65 years of age.
The present matter pertains to the fraud by diamond merchants Mehul Choksi and his nephew Nirav Modi, among others, by obtaining fraudulent Letters of Undertaking, LoU from PNB in connivance with certain bank officials.
The court observed that Shetty, who was employed as a Deputy Manager in PNB’s Forex Department, stands accused of conspiring with the main accused and abusing his official position in order to issue LoUs or Foreign Letters of Credit in violation of established banking norms.
The bench headed by Justice Karnik, while acknowledging the the serious nature of the allegations and their potential impact on the country’s economy noted that Shetty’s continued incarceration was unjustified given the glacial pace of the trial proceedings.
Therefore, the court observed that with around 100 witnesses yet to be examined, the trial is unlikely to conclude anytime soon.
The court also referred to the recent order of Supreme Court, wherein the court granted bail to a co-accused, Hemant Bhatt, the judge remarked that Shetty’s age of 65 years and prolonged custody warranted his release on bail.
The court in the case observed and has imposed stringent conditions to allay the prosecution’s concerns about potential tampering with the investigation.
The court directed Shetty a personal bond for an amount of Rs 1 lakh and surety of the same amount and he must report to the CBI office weekly, refrain from contacting co-accused or influencing witnesses, and not leave the Mumbai metropolitan area without permission of court. Therefore, he has been barred from applying for a passport until the trial concludes.
It has also been clarified by the said court that its observations were prima facie in nature and warned Shetty of severe consequences, which includes the cancellation of bail, if he attempted to tamper with the investigation.
The said order will take effect after six weeks, as requested by the prosecution considering the magnitude of the offence.
The PNB fraud case, which came to light in the year 2018, sent shockwaves through India’s banking sector and triggered a concerted effort to strengthen regulatory oversight and the internal controls within financial institutions.
The counsel, Advocate Sandeep Karnik appeared for the applicant.