Tarun Kumar Vs Assistant Director Directorate of Enforcement (Supreme Court of India)
The Supreme Court considered an appeal challenging the Delhi High Court’s order dated 18 July 2023 refusing bail to the appellant in a money laundering case investigated under the Prevention of Money Laundering Act, 2002 (PMLA). The case arose from allegations of financial irregularities and bank fraud involving Shakti Bhog Foods Ltd. (SBFL). A consortium of banks led by the State Bank of India had appointed a forensic auditor to examine SBFL’s accounts for the period 1 April 2013 to 31 March 2017. The forensic audit report dated 25 June 2019 identified several discrepancies and alleged that the company caused a loss of ₹3269.42 crores to the consortium banks.
Following these findings, the Central Bureau of Investigation registered an FIR on 31 December 2020 against the company’s directors, employees and others for offences under the Prevention of Corruption Act and various provisions of the Indian Penal Code. Since the alleged offences were scheduled offences under the PMLA, the Enforcement Directorate registered an ECIR on 31 January 2021 to investigate money laundering.
The appellant, who was Vice President (Purchases) in SBFL and also a director in certain group companies, was summoned several times during the investigation but was not named in the first three prosecution complaints filed by the Enforcement Directorate. He was arrested on 22 June 2022 and later named as an accused in the fourth supplementary complaint filed on 18 August 2022. His bail application was rejected by the Special Judge in December 2022 and by the Delhi High Court in July 2023.
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