Sh Jagdish Prakash/Shantanu Prakash Vs Central Bureau of Investigation & Ors. (Delhi High Court)
Summary: The Delhi High Court, in connected petitions filed by Sh Jagdish Prakash and Shantanu Prakash against the Central Bureau of Investigation and others, extended interim protection granted in an earlier connected matter concerning allegations of bank fraud involving Educomp Solutions Limited (ESL) and Educomp-related entities. In its order dated 9 July 2020, Justice Yogesh Khanna directed that the order dated 10 June 2020 in W.P.(CRL) 645/2020 would apply to both W.P.(CRL) 1007/2020 and W.P.(CRL) 1008/2020 until the next hearing. The earlier order, reproduced in the proceedings, had stayed investigation concerning the petitioner in that matter and restrained coercive action. The High Court did not quash the FIR, adjudicate the alleged fraud or finally determine the legality of the investigation.
The petitioners submitted that ESL was incorporated in 1994 and ESPL in 2009, and that the companies obtained loans from a consortium of 13 banks. Their submissions referred to aggregate facilities of approximately Rs.1,995.36 crore as of 30 May 2017, the initiation of Corporate Debt Restructuring (CDR) in 2013 and approval of restructuring on 17 December 2014 for debt of approximately Rs.1,344.22 crore as of the cut-off date. They maintained that no fraud or misfeasance had been identified when the restructuring was approved and that further lending was provided thereafter. These statements were recorded as submissions made on behalf of the petitioners, rather than factual findings reached after a trial.
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