Jaswant Singh walks out on bail in ED case, court cites debatable complicity

Granting bail to AAP MLA Jaswant Singh in an ED matter, the Punjab and Haryana High Court has asserted that he had ceased to be the director of the company in question seven years before the case’s initiation. The assertion came as Justice Mahabir Singh Sindhu observed that his complicity “would be a debatable question during trial”.

Jaswant Singh is an MLA from Punjab’s Amargarh constituency and was arrested in November last year. The state’s stand in the matter was that the petitioner had been associated as director since the inception of Tara Corporation Limited (TCL) engaged in trading of cattle feed.

Appearing for ED, the Additional Solicitor-General of India had submitted before the bench that loan facility of Rs 46 crore was fraudulently availed by TCL, while showing bogus share capital and fictitious turnovers.

The amount was never used for the intended purposes, but diverted to the accounts of sister concerns and other shell companies. “The petitioner is the main kingpin of entire bank fraud as he stood guarantor for the credit facility availed by TCL and caused loss to the public exchequer to the tune of Rs 41 crore,” it was further alleged.

After hearing senior advocate Vikram Chaudhri with counsel Hargun Sandhu for the petitioner and the rival contentions, Justice Sindhu asserted: “Even as per the stand taken by ED itself, the petitioner ceased to be the director of TCL with effect from December 21, 2015, much prior to the lodging of present FIR on May 23, 2022. Thus, in such a scenario, the complicity of petitioner would be a debatable question during trial”.

Justice Sindhu asserted the petitioner was in custody since November 6, 2023. “As per the stand taken by ED itself, the investigation qua other co-accused is still going on. Thus, not even remotely there would be any chance that the trial is likely to be concluded in the near future,” the court observed.

Justice Sindhu also took note of the fact the material collected by ED till now was voluminous running into 2,276 pages. As many as 20 prosecution witnesses were cited while filing the complaint before the special judge. It was also on record that Rs 35.50 crore approximately had already been recovered and attached by ED out of total dues of Rs 41 crore.

“Again, it is evident that TCL tried to make an attempt for settlement of the outstanding liability through one time settlement. But the same could not materialise for certain reasons. However, there is nothing on record to indicate that ‘OTS’ could not fructify due to any lapse on the part of petitioner,” the court observed.

Referring to his medical history, Justice Sindhu asserted the petitioner was not keeping good health and could safely be termed as a “sick person” within the ambit of the Prevention of Money Laundering Act. “Although, the counsel for ED raised an objection that in case petitioner is granted bail, he may hamper the ongoing investigation and may even threaten the prosecution witnesses; but it is based merely on surmises and there is no material to substantiate the same; hence the objection to that effect is hereby rejected,” the court asserted.