Bombay HC denies bail to Kerkar on grounds of delay in trial in ED case

MUMBAI: Bombay high court on Wednesday declined bail to Ajay Ajit Peter Kerkar, promoter of travel firm Cox and Kings, accused of money laundering and arrested by the Enforcement Directorate on November 27, 2020, over allegations of siphoning of funds at this stage on grounds of delay in trial saying he is at liberty to apply later.
Kerkar had filed a bail plea in 2021 after special PMLA court denied him the relief.At the hearing before the HC argued for bail on grounds of delay in the trial . Justice Prithviraj K Chavan passing the order in the bail plea said “It is to be noted that even the right to be enlarged on bail after undergoing detention for a period exceeding one-half of the minimum period of imprisonment is not an absolute right. “Though right to a speedy trial is a fundamental right, the HC said “Court may still deny the relief (of bail) on the grounds such as delay of the trial at the instance of the accused himself. In light of this, the applicant is not entitled to be released on bail on the ground of delayed trial at this stage," the HC held and dismissed the plea
D U Mirajkar counsel for Kerkar argued that Kerkar has undergone 2 years and 340 days in the custody as an under trial prisoner and the minimum sentence under Section 4 of the Prevention of Money-Laundering Act, 2002 for an offence of money laundering is 3 years.
The charge has not yet been framed and the prospects of the trial commencing in time in the near future is bleak argued Mirajkar.
Cox and Kings Ltd (CKL), came under the scanner after the ED initiated an investigation into allegations of kickbacks taken by Rana Kapoor, former co-founder of Yes Bank Ltd.
“CKL was in insolvency since 2019. Forensic audit revealed serious financial misconduct,” said the HC order. Kerkar filed a complaint on 19.08.2020 for financial misconduct against the CFO and other senior executives of CKL at Nagpada Police Station, Mumbai.
Cox and Kings owes Rs 5,500 crore to banks and financial institutions and was one of the top borrowers of Yes Bank.
Hiten Venegaonkar special counsel for ED had opposed the bail plea arguing the right to be released on bail would be accrued to the applicant on the day when half of the maximum period of imprisonment, would be over. Section 4 of PMLA Act provides for minimum 3 years and maximum 7 years rigorous imprisonment. He said Kerkar had not completed half the maximum term yet.
The HC accepting Venegaokar’s stand said “therefore, as and when the period would be over, (Kerkar) would be at liberty to pray for his release…”
The HC had in March 2023, allowed Kerkar to take medical treatment and on November 2, 2023, rejected his plea to continue the medical bail on grounds of serious health issues.