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Synopsis

The Supreme Court on Wednesday dismissed the plea filed by the Central Bureau of Investigation (CBI) challenging the Allahabad High Court order whereby bail was granted to the former Uttar Pradesh Power Corporation Limited (UPPCL) Managing Director Ayodhya Prasad Mishra. Mishra is accused of investing the General Provident Fund (GPF) amount of UPPCL employees in private companies.

A bench of Justice AM Khanwilkar, Justice Abhay S Oka, and Justice JB Pardiwala while dismissing CBI's plea challenging Mishra's bail, allowed bail to other co-accused in the matter.

Counsel appearing for CBI informed the bench that Mishra is the mastermind in the case and the investigation on determining the money trail is still going on.

Whereas, the bench noted that they have no objection to the observations made by the Allahabad High Court that no evidence has been unearthed by CBI to identify the money trail. However, the bench has left it open for the investigating officer to approach the court for cancellation of bail in case conditions of the bail are violated.

Senior Advocate Maninder Singh appearing for co-accused Sudhanshu Dwivedi while seeking bail informed the bench that the Enforcement Directorate has finished the investigation and had found nothing in regards to the money trail.

However, counsel appearing for CBI contended that the investigating agency can only show the gravity of the offence.

The bench allowed bail while stating that the appellant is in jail for more than two and a half years and that the charges have been framed. "We see no reason to not allow the appellant on bail," the court added.

Additionally, the bench further refused to interfere with the plea filed by Uttar Pradesh Government challenging the order allowing bail to another co-accused Praveen Kumar Gupta and directed the trial court to expedite the court proceedings.

Earlier, on March 11, 2022, the Supreme Court had issued notice in the petition while allowing the respondents two weeks' time to file a reply in the plea.

In the context of the instant matter, it is alleged that money from state power employees’ provident fund (EPF) was diverted through wrong investments in Dewan Housing Finance Limited (DHFL) which resulted in the scam of over rupees 2,600 crores. Mishra is one of the key accused persons who gained illegal commissions through this scam.

Allegedly in December 2016, in a meeting of the Trustees, a decision was taken with regard to the investment of funds available with the Trust. One of the said decisions was to invest the funds in DHFL. This was an illegal investment, done in abject violation of the Companies Act, 1956, Employees Provident Fund and Misc. Provisions Act, 1952 and provisions of the Indian Trust Act, 1882.

Initially, the matter was investigated by the Economic Offences Wing of the State Police and along with the Managing Director, the General Manager, Gupta was also arrested in November 2019. The first charge sheet in the case was filed against three persons in February 2020.

Subsequently, the Central Bureau of Investigation (CBI) took over the investigation in August 2020. It was allegedly found that Mishra, along with his co-conspirators had misappropriated corporation employees' fund money to invest in private sector entities in order to incur huge illegal commissions.

Case Title: Central Bureau of Investigation through Director Vs. Ayodhya Prasad Mishra