SC Vacates Status-quo on FIR, Releases Respondent on Bail as Flight Risk was Addressed by Surrendering Passport

Case Details: Directorate of Enforcement v. Dr. Shivinder Mohan Singh - [2023] 151 taxmann.com 297 (SC)

Judiciary and Counsel Details

• • V. Ramasubramanian & Pankaj Mithal, JJ.
  • Tushar Mehta, Ld. Solicitor General (NP), K.M. Nataraj, Ld. A.S.G., Mukesh Kumar Maroria, AOR, Kanu Agarwal, Adit Khorana, Rajan Kumar Choursia, Anirudh Bhat & Zoheb Hussain, Advs. for the Petitioner.
  • Mukul Rohatgi, V. Giri, Sr. Advs., Aditya Dewan, Shiven Varma, Advs., Abhinav Agrawal & Avadh Bihari Kaushik, AOR’s. for the Respondent.

Facts of the Case

In the instant case, the Respondent was arrested in connection with an FIR for a predicate offence and in connection with an Enforcement Case Information Report (ECIR).

Subsequently, the High Court ordered the release of the respondent on bail in connection with the ECIR lodged against him on the ground that there was no grave threat to the interests of society or the public at large if the respondent was enlarged on bail, subject to certain stipulated restrictions.

The High Court, however, in connection with the predicate offence ordered status quo and, thus, the respondent continued to be in jail, for more than three years.

Later, the appellant filed an instant Special Leave Petition (SLP) challenging the order of the High Court, which ordered the release of the respondent on bail in connection with the ECIR lodged against him on the ground that the respondent was a flight risk.

Further, it was also noted that the respondent was still in custody in connection with the predicate offence and, therefore, at least as on date, the question of the respondent being a flight risk did not arise. In any case, by directing the respondent to surrender his passport, the said apprehension could also be taken care of, which he had already surrendered.

Supreme Court Held

The Supreme Court observed that the continued incarceration of the respondent, who had not completed nearly half of the punishment that could be imposed, might not be necessary.

The Supreme Court held that the order granting status quo stood vacated and the respondent was to be released subject to such conditions as could be imposed by the Special Court.

List of Cases Reviewed

• • Dr. Shivinder Mohan Singh v. Directorate of Enforcement [2020] 118 taxmann.com 1 (Delhi) (para 12) affirmed.