Kuldeep Rai Sharma Vs Directorate of Enforcement (Calcutta High Court)
The Calcutta High Court considered a bail application filed in proceedings initiated by the Directorate of Enforcement under the Prevention of Money Laundering Act (PMLA) arising from alleged fraudulent sanction and diversion of loans amounting to ₹11.60 crores.
The petitioner contended that he had been falsely implicated and that the ingredients of offences under Sections 420, 409, 406, 467, 468 and 471 of the IPC were absent. It was argued that no evidence demonstrated receipt or transfer of funds to his account or that of his family members. The petitioner submitted that he was Vice Chairman of the concerned bank until March 2025 and did not officiate as Chairman when the loans in question were sanctioned. Medical grounds were also urged, citing hypertension, hyperthyroidism and severe obstructive sleep apnoea. Reliance was placed on judicial precedents to contend that medical infirmities and prolonged custody of 204 days justified bail. It was further argued that statements recorded under Section 50 of the PMLA could not be treated as conclusive evidence without corroboration.
The Enforcement Directorate opposed the application, alleging that shell companies were floated by associates and loans were sanctioned to such companies under the petitioner’s active guidance and influence. It was contended that the loans were used for purposes other than those sanctioned and that funds were diverted to family members and associates. The ED relied on bank account statements, blank signed cheque leaves, and statements recorded under Section 50 PMLA, which have the status of judicial proceedings. Materials indicated alleged transfers of substantial sums, including approximately ₹41 crores routed through shell entities, ₹5.10 crores paid through cheques from related accounts, and ₹5.50 crores transferred in connection with property transactions. Statements of witnesses, including dummy directors and the petitioner’s driver, were cited as corroborative evidence.
