SC grants bail to ex-Bhushan Steel promoter Neeraj Singal
New Delhi: The Supreme Court on Friday ordered the release of Neeraj Singal, the former promoter of Bhushan Steel, in connection with a money laundering case tied to an alleged Rs 46,000 crore bank fraud. The court ruled that the Enforcement Directorate (ED) had not followed due process during his arrest.
A bench comprising Justices Sanjiv Khanna and Sanjay Kumar noted that Singal had been imprisoned for 16 months, and with the trial unlikely to conclude soon, his continued detention raised concerns. During the hearing, the bench remarked: “A line has to be drawn somewhere in economic offences. You can’t shake up the economy, shake up the confidence of the market and shareholders.”
Senior advocate Kapil Sibal, representing Singal, argued that his client should not remain in jail for an extended period without a trial. He pointed to the court’s previous judgement in the Pankaj Bansal case, where the ED was required to furnish the grounds for arrest to the accused. “He has been inside for 16 months. It cannot be punishment before trial,” Sibal stated.
Additional Solicitor General S V Raju, appearing for the ED, opposed the bail application, citing the gravity of the offence. However, Justice Khanna responded, expressing concern that the trial might not start soon, remarking: “Sixteen months he has been inside...normally one would expect trial to be over within two to three years.”
Singal’s bail appeal stemmed from the January 8 Delhi High Court decision that had rejected his plea. The high court had ruled that, although the Supreme Court later mandated the written supply of arrest grounds, the ED had complied with oral communication during Singal’s arrest, making it lawful under the Prevention of Money Laundering Act (PMLA).
The Supreme Court granted Singal bail with conditions, including surrendering his passport and staying within India unless permitted by the court. The ED had accused Singal of playing a central role in one of India’s largest banking frauds, involving more than 150 companies in laundering illicitly acquired funds.
