CBI court grants bail in ₹916-cr IDBI fraud, says custody unjustified post-probe

Special Judge V P Desai granted bail to Rajendra Srinath Chaturvedi, noting that the probe agency had filed a supplementary chargesheet and secured his presence through summons without seeking his arrest. The court held that once the investigation is complete and the accused was not arrested during the probe, continued insistence on custody at the post-cognisance stage would be unjustified

MUMBAI: Observing that custodial detention cannot be insisted upon when the agency chose not to arrest him during the investigation, a special Central Bureau of Investigation (CBI) court on Tuesday granted bail to an accused in the ₹916-crore IDBI Bank fraud case.

CBI court grants bail in ₹916-cr IDBI fraud, says custody unjustified post-probe

Special Judge V P Desai granted bail to Rajendra Srinath Chaturvedi, noting that the probe agency had filed a supplementary chargesheet and secured his presence through summons without seeking his arrest.

The court held that once the investigation is complete and the accused was not arrested during the probe, continued insistence on custody at the post-cognisance stage would be unjustified.

It also cited parity with the prime accused Vinod Chaturvedi, who has already been granted bail, observing that similarly placed accused should not be treated differently.

The case stems from 2019 CBI FIR against Usher Agro Ltd and its promoters, including managing director Vinod Chaturvedi, for allegedly siphoning off bank loans taken from a consortium led by IDBI Bank by inflating financials.

Investigators alleged that the promoters routed loan money through around 15 shell companies using fictitious transactions and circular trading between 2013 and 2016. The Enforcement Directorate (ED), which later filed a money-laundering case based on the CBI FIR, pegged the proceeds of crime at ₹916 crore.

The court noted that the offences alleged - including cheating, criminal conspiracy and forgery - are not punishable with death or life imprisonment, and that the filing of the chargesheet reduces the need for custodial interrogation.

The prosecution opposed the plea, calling it a “grave economic offence” involving large-scale fraud on a public sector bank and lenders.

The defence argued that the accused had cooperated with the probe, appeared on summons, had no criminal antecedents and was not a flight risk. It also cited his medical condition, stating that he is a cancer patient undergoing chemotherapy, with restricted mobility.

The court granted bail on a personal bond of ₹50,000 with sureties and imposed conditions, including not tampering with evidence or leaving India without permission.