HC grants bail to former IL&FS chairman Hari Sankaran

He will be released on bail upon executing a personal recognisance bond worth ₹1 lakh with one or two sureties of the same amount. However, on the request of his counsel, Sankaran will be released on furnishing cash security of the same amount as he undertook to furnish surety within four weeks

MUMBAI: The Bombay high court on Thursday granted bail to former Infrastructure Leasing and Financial Services Limited (IL&FS) chairman Hari Sankaran, who was arrested by the Serious Fraud Investigation Office (SFIO) for alleged irregularities at the company and its subsidiaries driving them to insolvency.

06 Jan 2-15, Mumbai: Hari Sankaran - Vice Chairman & M.D. - IL&FS. Photographed in Mumbai. Photo by S Kumar/Mint

He will be released on bail upon executing a personal recognisance bond worth ₹1 lakh with one or two sureties of the same amount. However, on the request of his counsel, Sankaran will be released on furnishing cash security of the same amount as he undertook to furnish surety within four weeks.

The single judge bench of Justice Prithviraj K Chavan also asked Sankaran to surrender his passport and refrain from leaving the country without prior permission of the trial court and also from pressuring prosecution witnesses or tampering with evidence, providing his latest address of residence and contact details to the Investigating Officer and the Special Court, and attend the trial regularly unless exempted.

The court also denied a request from the SFIO for a stay of the order. Senior advocate Aabad Ponda, who represented Sankaran, argued that his prolonged incarceration since April 1, 2019, violated his fundamental right under Article 21 of the Constitution, despite the rigorous conditions outlined in Section 212(6) of the Act of 2013. He highlighted Sankaran’s deteriorating health, citing medical reports detailing various ailments and treatments, including the implantation of ten stents in his heart.

Additionally, Ponda argued that he was entitled to bail as he had already served half of the maximum sentence for the offences he was charged with. He also pointed out the delay in commencing the trial, for which he is not responsible.

On the other hand,Hiten Venegaonkar, chief public prosecutor, vehemently opposed Sankaran’s release on bail, citing the gravity and enormity of the offence, encompassing the entire IL & FS group. He argued that Sankaran, as a key figure, had control over the situation.

Moreover, Venegavkar also argued that the mere fact of Sankaran’s cooperation with SFIO investigation and the issuance of a look-out notice against him do not eliminate the reasonable apprehension of him absconding.

After considering the arguments from both parties, the court observed that the investigation was complete, and his detention was no longer required. It noted that almost all evidence was in the form of documents which were already in the custody of the SFIO. The court also considered his cooperation with the investigation, including being called for questioning nearly 30 times. In view of these observations, the court granted bail to the former IL&FS chairman.