The Delhi High Court has denied Bail to Chartered Accountant Nitin Johari, Ex CFO of Bhushan Steel for committing an offence pertaining to the non-disclosure of the documents which are required under Indian Accounting Standards (IndAS).
The petitioner was not only the Chartered Accountant (CA) but also the Chief Financial Officer (CFO) and the whole time director of the company i.e. Bhushan Steel. Further, he was also the part of ‘Committee of Board of Directors on Borrowing, Investments and Loans’ and was a close associate of the assued and the petitioner aided the accused for the purpose of raising fund and further helped him in submitting the requests for credit facilities and also presentations were made to the lender banks. Further, the bail Chartered Accountant (CA) was well aware of the fact that BSL had not provided the required document disclosures and details as required under Indian Accounting Standards (IndAS).
Furthermore, various fraudulent methods were undertaken and a huge inflow and outflow of funds were ensured. On these charges, the Chartered Accountant (CA) was arrested.
The Single Judge Bench of the High Court of Delhi held that the Nottin Johari cannot be granted bail as he has committed an offence pertaining to the non-disclosure of the documents which are required under Indian Accounting Standards (IndAS) based on the rationale that the alleged charges against the accused are very serious in nature and also involves fraud to the misappropriation of several crores of Rupees and this offence adversely affects the economy of the nation and hence the petitioner is not entitled to bail under Section 439 of Criminal Procedure Code (CrPC).To Read the full text of the Order CLICK HERE