Former IL&FS Chairman Hari Sankaran granted bail by Bombay High Court due to health concerns and prolonged incarceration. Conditions include a Rs.1 lakh bond, surrendering passport, and strict trial attendance. Sankaran was detained by SFIO for alleged misconduct leading to IL&FS insolvency.
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MUMBAI: On Thursday(7th March), the Bombay High Court has granted bail to Hari Sankaran, the former chairman of Infrastructure Leasing & Financial Services Limited (IL&FS), who was detained by the Serious Fraud Investigation Office (SFIO) due to alleged misconduct leading to the company’s insolvency. The court’s decision came after considering Sankaran’s health issues and the prolonged duration of his incarceration since April 1, 2019.
Sankaran, aged 62, will be released on bail upon executing a personal recognizance bond of Rs.1 lakh along with one or two sureties of the same amount. However, following a request from his counsel, the court allowed Sankaran to be released on furnishing a cash security of the same amount, provided he furnishes surety within four weeks.
Justice Prithviraj K Chavan, presiding over the case, imposed several conditions on Sankaran’s bail. He is required to surrender his passport and is prohibited from leaving the country without the trial court’s prior permission. Additionally, Sankaran must not influence prosecution witnesses or tamper with evidence and is obligated to provide his latest residence and contact details to the Investigating Officer and the Special Court. He is also expected to attend the trial regularly, unless exempted.
The court’s decision came despite the SFIO’s request for a stay on the order. Senior advocate Aabad Ponda, representing Sankaran, argued that his client’s extended detention violated his fundamental rights under Article 21 of the Constitution. Ponda highlighted Sankaran’s deteriorating health, mentioning that he had undergone the implantation of ten stents due to severe heart conditions. He further argued that Sankaran was entitled to bail as he had already served half of the maximum sentence for the offenses charged and pointed out the delay in the commencement of the trial, for which Sankaran was not responsible.
Hiten Venegaonkar, the chief public prosecutor, opposed the bail, emphasizing the severity of the offenses and Sankaran’s pivotal role in the IL&FS group’s downfall. Venegaonkar argued that Sankaran’s cooperation with the SFIO investigation and the existing look-out notice did not mitigate the risk of him absconding.
After reviewing the arguments, the court noted that the investigation was complete and Sankaran’s continued detention was unnecessary. It observed that the evidence was primarily documentary and already in the SFIO’s possession. Acknowledging Sankaran’s cooperation with the investigation, including his attendance for questioning nearly 30 times, the court found grounds to grant him bail.
The court also recognized the serious health issues faced by Sankaran, stating-
“In light of the applicant’s fragile cardiac health and general physical condition, the continuation of their detention would be devoid of any meaningful purpose. Moreover, such a course of action would contravene the very essence of Article 21 of the Constitution.”
It further noted that continued detention could increase the risk of cardiac death, emphasizing the need for proper care and regular attention.
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The SFIO had arrested Sankaran for allegedly abusing his powers at IL&FS, contributing to the company’s financial downfall through fraudulent conduct and the approval of loans to entities that were not creditworthy or had been declared Non-Performing Assets. This resulted in significant losses for the company and its creditors, with IL&FS having borrowings exceeding Rs 17,000 crore from various sources.
