Delhi HC grants Bail to person accused of Manipulating Stocks, Inventories resulting in Fraud to the tune of Rs.1000 crores [Read Judgment]

Delhi HC grants Bail to person accused of Manipulating Stocks, Inventories resulting in Fraud to the tune of Rs.1000 crores [Read Judgment]

Delhi High court- grants bail - person accused - manipulating stocks - inventories - fraud - Taxscan

The Delhi High Court granted bail to a person accused of manipulating stocks, inventories resulting in fraud to the tune of Rs.1000 crore.

The complaint of M/s Hassad Netherland, BV against Virkaran Avasthi, Ritika Avasthi, Namit Arora, Vinod Sirohi and Rahul Rai Surana has alleged that the petitioner, Sai Chandrasekhar has committed offence under section 409 or 420 and 120B IPC for deliberately manipulating/falsifying stocks, inventories of M/s Bush Foods Pvt. Ltd which resulted in huge account fraud of approximately Rs. 1000 crore.

The FIR was lodged on the grounds that M/s Bush Foods incorporated under Companies Act having its office at DLF South, Saket, New Delhi, was engaged in the business of procuring, processing etc. and dealing with all kinds of rice and value added rice products etc. The company was originally promoted by Mr. Virkaran Avasthi and his wife Mrs. Ritika Avasthi. Mr. Virkaran Avasthi was Managing Director of company and in-charge of affairs of company.

The company had also taken various loan facilities from various banks prior to the contract with the complainant company. On the basis of the report the actual inventory appears to be less than 5% of the inventory represented to the complainant company shown in the books of account of the company upto October, 2013. The books of account, financial statement of M/s Bush Foods has been manipulated and falsified by officers and employees of the company and represented an incorrect level of stock/inventory to induce the complainant to invest in M/s Bush Foods. Inter-alia, on the basis of said complaint, the aforesaid FIR was registered.

The petitioner was an employee of Hassad Food Company who colluded and conspired with Vikaran Awasthi, Ritika Awasthi and M/s Bush Foods Overseas Private Limited to cheat Hassad Netherlands B.V., a 100% subsidiary of Hassad Food Company, Qatar. It is submitted that the petitioner was responsible for Hassad’s agri business investments in rice, sugar and other projects in South-East Asia, Middile East, Afirica, Europe and South America.

It has been submitted that his job responsibilities included determination and identification of new opportunities globally for mergers and acquisitions and for joint venture opportunities and to manage and coordinate the engagement of 3rd parties, monitor, evaluate, co-ordinate, due diligence process and to recommend to the management and the board potential investment opportunities, strategies and manner of execution.

The petitioner urged that further investigation cannot be a ground for continued incarceration and rejection of bail. Moreover, none of the evidences have been tampered ever since 2013 and the evidence in the present case is documentary in nature and the respondent vide panchnama has seized all the documents, digital devices like computers, hard drives, mobiles etc. which cannot be now tampered as they are in the possession of the respondent.

The Single Bench of Justice Rajnish Bhatnagar noted that The petitioner in the instant case is in custody since October 27, 2020. Nothing has been placed on record to show that the petitioner is a flight risk and according to the counsel for the petitioner the petitioner was granted permission to go to Sri Lanka for two weeks and thereafter he returned, the fact which has not been denied by the respondent.

Therefore, the court held that the petitioner is admitted to bail on his furnishing personal bond in the sum of Rs. 1,00,000 with one surety of the like amount to the satisfaction of the Trial Court, subject to the condition that he shall not leave the country without permission of the Special Court, the passport if already not deposited, shall be deposited with the Special Court, he shall join the investigation as and when required by the prosecuting agency and he shall not tamper with the evidence and influence the witnesses in any manner.

Subscribe Taxscan AdFree to view the Judgment

Support our journalism by subscribing to Taxscan AdFree. We welcome your comments at info@taxscan.in

Related Stories

Taxscan Annual Subscription @599 @420+GST
* Offer extended till 31st May
Taxscan Annual Subscription @599 @420+GST
* Offer extended till 31st May