Subhash Sharma S/o Lokheshwar Prasad Sharma Vs Directorate of Enforcement Government of India Through Assistant Director (Chhattisgarh High Court)
The Chhattisgarh High Court considered the first bail application filed under Section 439 of the Code of Criminal Procedure (CrPC) by the applicant, who had been arrested in connection with ECIR No. RPSZO/03/2019 registered by the Directorate of Enforcement (ED) for offences punishable under Sections 3 and 4 of the Prevention of Money Laundering Act, 2002 (PMLA). The ECIR was registered on 3 October 2019 on the basis of three FIRs already registered against the applicant, which were treated as scheduled offences. According to the ED, the applicant had obtained loans amounting to ₹31.37 crore from Punjab National Bank and Axis Bank through forged and fabricated documents in the names of his companies, and the loans were subsequently declared as Non-Performing Assets (NPAs). The applicant contended that he had cooperated with the investigation from 3 October 2019 to 5 March 2022 by appearing whenever required. He challenged the legality of the Look Out Circular (LOC), contending that it had been issued arbitrarily despite there being no arrest warrant or attempt on his part to evade the investigation or trial. He further argued that after being detained at IGI Airport, New Delhi, he was not produced before the competent court within 24 hours, rendering his custody unconstitutional and illegal.
