'Pre-Trial Detention Cannot Become Punishment': Supreme Court Grants Bail To Former Rajasthan Minister In PHED Scam

The Supreme Court has said prolonged pre-trial detention cannot be allowed to degenerate into punishment without trial, in violation of an undertrial's fundamental right to personal liberty and a speedy trial.

A Bench of Justices Dipankar Datta and Sheel Nagu made the observation while granting regular bail to former Rajasthan minister Mahesh Chandra Joshi and co-accused Mukesh Pathak in a case concerning alleged irregularities in tenders floated by the Public Health Engineering Department (PHED), Rajasthan, under the “Jal Jeevan Mission”.

The Bench said the gravity of allegations of large-scale financial impropriety and institutional collusion cannot, by itself, justify indefinite pre-trial detention. It noted that the investigation against the appellants was complete, the documentary and electronic evidence had already been seized, the record was voluminous and the trial was unlikely to conclude in the near future.

“Courts must balance the severity of the offence with the rights of the undertrial, particularly where the investigation is complete, evidence is in custody, and the trial is unlikely to conclude in the near future,” the Bench said.

Court said several circumstances tilted the balance in favour of granting bail. These included the filing of charge sheets and the fact that the investigating agency was already in possession of tender files, minutes of Bid Evaluation and Finance Committees, official notesheets, correspondence with IRCON International Limited, bank account statements, forensic reports of seized mobile devices, call detail records and transcripts of intercepted conversations.

Court also noted that Joshi, aged about 72 years, had been in custody since May 7, 2026, for over five months. Before that, he had spent over seven months in custody in a connected proceeding under the Prevention of Money Laundering Act, 2002, arising from the same underlying allegations and involving the alleged financial trail of Rs 50 lakh to M/s Sumangalam Landmark LLP. He was granted regular bail in that case by the Court on December 3, 2025.

Pathak had remained in custody in the present FIR since February 18, 2026, for nearly eight months.

PHED scam

Allegations of widespread irregularities started surfacing in tenders floated by the PHED under the Jal Jeevan Mission. The prosecution alleged that between 2021 and 2023, two proprietorship concerns, M/s Shri Ganpati Tubewell Company, owned by co-accused Mahesh Mittal, and M/s Shree Shyam Tubewell Company, owned by co-accused Padam Chand Jain, acted in concert with public servants in the PHED and private individuals.

According to the prosecution, the two firms participated in 237 tenders, comprising 68 and 169 tenders respectively, on the strength of forged and fabricated work completion certificates and letters of acceptance purportedly issued by IRCON International Limited.

Using these credentials, the firms emerged as the lowest bidders and secured work orders in 104 tenders. These comprised 31 tenders valued at Rs 859.2 crore and 73 tenders valued at Rs 120.25 crore, respectively, taking the total value of the work orders to Rs 979.45 crore.

The Bench acknowledged the seriousness of the allegations.

“There can be no gainsaying that allegations of large-scale financial impropriety and institutional collusion in the execution of a public welfare project such as the ‘Jal Jeevan Mission’ are grave and warrant serious scrutiny,” it said.

However, Court added that the seriousness of the allegations “cannot by itself eclipse all other considerations governing the grant of bail or justify indefinite pre-trial detention.”

Further custody not necessary

Court noted that the case involved 22 accused persons, three chargesheets, 124 prosecution witnesses and 192 documents spread across about 20,000 pages. Charges had not yet been framed and the trial was yet to commence.

Court also noted that investigation into the alleged involvement of some co-accused was still pending, while several accused against whom arrest warrants had been issued remained absconding.

“Having regard to the sheer volume of oral and documentary evidence proposed to be adduced, the trial as and when it commences is likely to take sufficient time to conclude in the near future,” the Bench said.

Court also took note of the fact that several co-accused had already been granted interim protection or bail. Co-accused Arun Srivastava, then Additional Chief Engineer, was granted bail by the Rajasthan High Court on June 1, 2026. Co-accused Shubhanshu Dixit, then Secretary of RWSSMB15/PHED Finance Committee, and Sanjay Badaya, alleged to have acted as an intermediary for Joshi, were granted bail by the Supreme Court on September 29, 2026.

The Rajasthan High Court had on August 13, 2026 rejected the regular bail applications filed by Joshi and Pathak.

The Supreme Court subsequently set aside the high court's order, holding that further pre-trial incarceration was neither warranted nor necessary.

“We are satisfied that further pre-trial incarceration of the appellants is neither warranted nor necessary, and that any legitimate apprehension of the prosecution can be adequately safeguarded by imposing appropriate conditions,” the Bench said.

Senior counsel Siddharth Luthra and Siddharth Aggarwal appeared for Joshi, while Kaushal Sharma appeared for Pathak. Additional Solicitor General S V Raju and Padmesh Mishra represented the State.

Case Title: Mahesh Chandra Joshi Vs State of Rajasthan with connected matter

Bench: Justices Dipankar Datta and Sheel Nagu

Date of Judgment: October 16, 2026