[Moser Baer PMLA Case] Delhi HC Permits Nitin Bhatnagar To Travel To Dubai

The Delhi High Court, on Tuesday, granted interim relief to Nitin Bhatnagar, permitting him to travel to Dubai for two months. Despite strong opposition from the Enforcement Directorate (ED), the bench of Justice Vikas Mahajan granted relief to Bhatnagar.

Special Counsel Zoheb Hussain, representing the ED, argued that Bhatnagar’s application lacked clarity and failed to provide specific reasons for his travel to Dubai. However, Justice Mahajan observed that Bhatnagar had not previously misused permissions granted to him and, therefore, did not pose a flight risk.

Nevertheless, Special Counsel Hussain urged the court to restrict Bhatnagar’s travel to Dubai alone and prohibit him from visiting Malta, citing his citizenship there and the absence of an extradition treaty between India and Malta.

Notably, in November 2024, Advocate Vijay Kasana, representing Bhatnagar, argued for the revocation of the Look Out Circular (LOC) following his discharge, emphasizing his cooperation with authorities since 2020 and on multiple occasions prior to his arrest. He noted that Bhatnagar’s father, an Indian citizen residing in Delhi, had provided a personal surety of Rs 5 lakhs.

Whereas, ED has always expressed apprehension over the absence of an extradition treaty with Malta and questioned how authorities would ensure Bhatnagar’s return if he chose to move to his native country. ED has, therefore, filed an appeal challenging the bail granted to Bhatnagar.

Nexus between Moser Baer Scam and Nitin Bhatnagar

According to the Enforcement Directorate (ED), the case originated from an FIR filed by the Central Bank of India (CBI) on 16 August 2019. It was alleged that m/s Moser Baer India Limited and its directors and promoters had caused unlawful financial losses to the said bank amounting to around Rs 354.51 crore.

As per the Enforcement Directorate (ED), an investigation was initiated against m/s Moser Baer India Limited under various provisions of the Prevention of Money Laundering Act (PMLA) and the Indian Penal Code (IPC) and subsequently the bank deemed Moser Baer's account 'fraud'. The investigation further alleged that loans were siphoned off by director Ratul Puri, who is the nephew of Congress leader Kamal Nath.

As a result, in October 2023, Nitin Bhatnagar was arrested at the Airport, while attempting to board a flight to return to Malta.

Case Title: Directorate Of Enforcement v Nitin Bhatnagar (CRL.M.C. 7571/2024)