HC Denies Bail in Public Sector Bank Fraud Case

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  • Last Updated on 29 August, 2025

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HC bail denial public sector bank fraud

Case Details: Arvind Dham vs. Directorate of Enforcement - [2025] 177 taxmann.com 591 (Delhi)[19-08-2025]

Judiciary and Counsel Details

  • Ravinder Dudeja, J.
  • Vikas Pahwa, Sr Adv., Sumer Singh Boparai, Shambhu K. Thakur, Ayush Puri, Sirhaan Seth, Sidhant Saraswat, Surya Pratap Singh, Abhihsek Singh, Abhilash Kumar Pathak, Talib Mustafa, Khanav Madnani and Sanskriti S. Gupta, Advs. for the Petitioner
  •  Zoheb Hossain, Manish Jain, Special Counsels, Vivek Gurnani, Panel Counsel, Kartik Sabharwal, Pranjal Tripathi & Rakesh Jourawal, Advs. for the Respondent

Facts of the Case

In the instant case, the petitioner was the promoter and controlling mind of the Amtek Group, managing the affairs of its flagship companies. The Enforcement Directorate (ED) registered an ECIR in response to allegations of large-scale financial mismanagement, fraud, and money laundering within the Amtek Group of companies.

ED’s case was that the petitioner orchestrated a complex scheme of siphoning public funds through hundreds of shell entities and falsified financial reporting. The petitioner filed the present application for the grant of bail on the ground that he was suffering from multiple life-threatening ailments, including severe weight loss exceeding 23 kilograms, significant coronary artery disease, a history of perforated intestines, and progressive vision impairment requiring cataract surgery.

It was noted that the stage of trial was also a significant consideration, and in the instant case, a prosecution complaint had been filed, but cognisance of the predicate offences had yet to be taken, and the trial in the PMLA case was at a nascent stage.

Further, it was noted that the magnitude of alleged fraud was staggering and had caused colossal losses to public sector banks. Such offences, if proved, would undermine the very foundation of the nation’s financial system.

High Court Held

The High Court held that the allegations against the petitioner pertained to an economic offence of exceptional magnitude, involving complex, deliberate, and sustained criminal conduct causing grave loss to public sector banks.

Further, the High Court held that while the petitioner might be ailing, adequate medical care could be provided in custody under judicial supervision. Thus, on a cumulative assessment of all factors, there was no ground to grant bail. Also, in case of economic offences of large magnitude, early release on bail can prejudice the trial and erode public confidence in the justice system.

List of Cases Reviewed

  • Jaskaran Singh Chawla v. Union of India [W.P. (Crl.) No. 246 of 2022, dated 27-2-2024] (para 6)
  • V. Senthil Balaji v. Deputy Director, Directorate of Enforcement [2024] 166 taxmann.com 677/186 SCL 275 (SC) (para 17)
  •  Manish Sisodia v. Directorate of Enforcement [2024] 165 taxmann.com 323/185 SCL 315 (SC) (para 18)
  • Kewal Krishan Kumar v. Directorate of Enforcement 2023 SCC OnLine Del 1547 (para 19)
  • Devki Nandan Garg v. Directorate of Enforcement 2022 SCC OnLine Del 3086 (para 20)
  • Ashok Kumar Goel v. Directorate of Enforcement [SLP (Crl.) No. 11905 of 2024] (para 20)
  • Zahur Haider Zadi v. CBI (2019) 20 SCC 404 (para 21)
  •  Enforcement Directorate v. Rahil Hiteshbhai Chovatia 2024 SCC Online Del 7002 (para 21)
  •  Directorate of Enforcement v. Ratul Puri [2020] 113 taxmann.com 300 (Delhi) (para 21)
  •  Kalvakuntla Kavitha v. CBI [2024] 164 taxmann.com 811 (Delhi) (para 22)
  •  Ramesh Chandra v. Directorate of Enforcement [2025] 173 taxmann.com 274 (Delhi) (para 22)
  •  Sanjay Agarwal v. Directorate of Enforcement [2022] 143 taxmann.com 415/174 SCL 519 (SC) (para 23)
  •  Padam Chand Jain v. Directorate of Enforcement [SLP (Crl.) No. 17476 of 2024, dated 9-1-2025] (para 23)
  • Anwar Dhebar v. Directorate of Enforcement [Crl. Appeal No. 2669 of 2025, dated 19-5-2025] (para 23)
  • Arun Pati Tripathi v. Directorate of Enforcement [SLP (Crl.) No. 16219 of 2024, dated 12-2-2025] (para 23)
  • Sunil Dammani v. Directorate of Enforcement [SLP (Crl.) No. 11755 of 2024, dated 3-10-2024] (para 23)
  • Udhaw Singh v. Enforcement Directorate [2025] 171 taxmann.com 642/188 SCL 99 (SC) (para 23)
  •  Amarjeet Sharma v. Serious Fraud Investigation Office [SLP (Crl.) No. 6921 of 2023, dated 10-10-2023] (para 23)
  • Sadhu Singh Dharamsot v. Directorate of Enforcement [SLP (Crl.) No. 15826 of 2024, dated 15-4-2025] (para 23)
  • Pankaj Kumar Tiwari v. Enforcement Directorate [2024] 168 taxmann.com 68 (Delhi) (para 23)
  •  Chandra Prakash Khandelwal v. Directorate of Enforcement [2023] 150 taxmann.com 194 (Delhi) (para 23)
  •  Anil Kumar Aggarwal v. Directorate of Enforcement [2025] 174 taxmann.com 1143 (Delhi) (para 28)
  •  Manish Sisodia v. CBI [2023] 155 taxmann.com 634/[2024] 181 SCL 509 (SC) (para 28)
  • State of Bihar v. Amit Kumar (2017) 13 SCC 751 (para 29)
  • Union of India v. K.A. Najeeb (2021) 3 SCC 713 (para 29)
  • Vijay Madanlal Choudhary v. Union of India [2022] 140 taxmann.com 610 (SC) (para 29)
  •  Nimmagadda Prasad v. CBI (2013) 7 SCC 466 (para 34)
  •  State of Gujarat v. Mohanlal Jitamalji Porwal 1987 taxmann.com 612 (SC) (para 34)
  •  Rohit Tandon v. Enforcement Directorate [2017] 87 taxmann.com 260/[2018] 145 SCL 1 (SC) (para 37)
  •  Kalyan Chandra Sarkar v. Rajesh Ranjan alias Pappu Yadav 2004 SCC (Cri) 1977 (para 42)
  • Ram Govind Upadhyay v. Sudarshan Singh 2002 SCC (Cri) 688 (para 43)
  • Prahalad Singh Bhati v. NCT, Delhi 2001 SCC (Cri) 674 (para 44)
  • Sanjay Chandra v. CBI (2012) 1 SCC 40 (para 45)
  • Y.S. Jagan Mohan Reddy v. CBI (2013) 7 SCC 439 (para 46)
  •  Anwar Dhebar v. State of Chhattisgarh [MCRC No. 3455 of 2024, dated 2012-2024] (para 53).

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied