Delhi court grants bail to Dev Inder Bhalla in defence deal case

Singapore based businessman Dev Inder Bhalla was arrested by the Enforcement Directorate (ED) from Kolkata Airport on Monday

A Delhi court on Thursday declared that the custody remand of Dev Inder Bhalla, director of M/s Interdev Aviation Services Pvt. Ltd. is illegal and granted him interim bail in a case of money laundering filed against him in connection with a defence deal.

The Delhi court said the Enforcement Directorate (ED) agency was not legally empowered to arrest the accused without the indulgence of the court. (Representative Image)

Bhalla, a Singapore based businessman, was arrested by the Enforcement Directorate (ED) on Monday from Kolkata Airport in relation to the investigation being carried out regarding the deal for procurement of three fully modified EMB-145 aircraft.

“The agency was not legally empowered to arrest the accused without the indulgence of the court, nor is it empowered now legally to seek its custody remand at this stage of the case knowing fully well the fact that the accused had been summoned by the court on their own complaint and request after taking cognizance,” Delhi Rouse Avenue court special judge Anil Antil observed in the order.

It had been alleged that M/s Embraer, an aircraft manufacturing company had obtained a contract for supply of three fully modified EMB-145 aircraft to the Indian government as platform for Airborne Early Warning and Control (AEW&C) project. It had been further alleged that M/s. Embraer had employed a middleman, Sh. Vipin Khanna to secure the contract for supplying the aircraft.

The Central Bureau of Investigation (CBI) registered a first information report (FIR) when information regarding payment of bribe to some officials of the Defence Ministry for procurement of the deal through a middleman erupted in public domain, pursuant to which ED also registered an enforcement case information report (ECIR).

The special public prosecutor (SPP) for ED argued before the court that after investigation the department had filed a prosecution complaint before the court and cognizance of the offences was taken and investigation had revealed an active role of the accused.

It was also submitted that during investigation summons were issued but Bhalla failed to join the investigation in the case. He did not appear before the investigating agency and to secure his presence, open ended non-bailable warrants (NBWs) were issued and in pursuance of the NBWs the accused was intercepted in Kolkata.

ED had thus, prayed for his custodial remand to trace the proceeds of crime generated by him due to his criminal activity, to confront him with other persons who have made material disclosures and to further ascertain his role.

Advocates Aditya Singh Deshwal and Ridam Arora appearing for Bhalla stated that the act of the department is not legal, and they have not come before the court with clean hands as they have concealed and suppressed material facts to achieve their goals. It was also submitted that Bhalla had never received any summons to join the investigation and the NBW taken by the agency was illegal.

It was pointed out by the counsels that the NBWs are not in existence because it was obtained by the agency prior to filing the charge sheet and this was not mentioned in the document. It was further highlighted that the court had also issued summons after taking cognizance of the chargesheet.

The court after hearing the submissions of the counsels for both the parties observed that the agency should have handed over the NBWs outstanding against Bhalla to the court at the time of filing of the complaint.

“The agency cannot act in a camouflage manner to arrest the accused herein. At one hand they are carrying summons to execute them for his appearance and at the same time they are also taking aid of the NBWs to justify their arrest,” the court said in its order

Thus, the court dismissed the application seeking custody remand of Bhalla and released him on interim bail till the next date of hearing that is February 24 on furnishing a personal bond of ₹1 lakh with one surety of the like amount.

The court also directed Bhalla to make himself available for investigation as in when called by the investigation officer (IO). He was also directed that do not make any inducement threat or promise to complainant on any other person related to the case and shall handover his passport to the IO and shall not leave the country without the prior permission of the trial court.

The court also directed him to inform the IO about his mobile phone number, saying he shall always keep it operative, and furnish his current residential address. Bhalla was also directed to furnish an undertaking separately duly forwarded by the embassy to ensure that he will make compliance to all the conditions imposed upon him.