The Delhi High Court has granted bail to Amitabh Jhunjhunwala, a former senior executive of the Anil Dhirubhai Ambani Group (ADAG), in a money-laundering case arising from an alleged bank loan fraud.
Justice Madhu Jain held that the 70-year-old accused required “structured and continuing medical care” and was therefore entitled to the statutory exception under the Prevention of Money Laundering Act (PMLA) for persons who are “sick or infirm”.
The court, in its September 22 order, noted that the material on record showed a combination of Mr. Jhunjhunwala’s advanced age, serious spinal condition, osteoporosis, need for supervised rehabilitation and a pre-existing cardiac condition requiring continued treatment.
Mr Jhunjhunwala, who was arrested by the Enforcement Directorate on April 15, had sought regular bail on medical grounds. He will, however, remain in custody in a separate case being investigated by the CBI, in which he was arrested on June 1.
The ED had opposed his bail plea, arguing that Mr. Jhunjhunwala did not meet the statutory threshold of being “sick” or “infirm”. The agency contended that his medical condition was under continuous supervision and that the investigations and treatment recommended by government hospitals could be provided through the custodial medical system.
Rejecting the contention, the High Court said an accused need not reach a stage of “irreversible or imminent danger to life” before the medical exception under the proviso to Section 45(1) of the PMLA can be invoked.
The ED case relates to an alleged bank loan fraud involving Anil Ambani group companies, including Reliance Home Finance Ltd (RHFL) and Reliance Commercial Finance Ltd (RCFL), allegedly through shell or dummy companies. Mr. Jhunjhunwala was vice-chairman and director of Reliance Capital Ltd, the parent company of RHFL and RCFL.
