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[Breaking] No Fraud Committed By Avantha Group Founder Gautam Thapar: Senior Advocate Mukul Rohatgi To Delhi HC

Senior Advocate Mr. Rohatgi submitted that the Loan Facility of Rs. 515 crores sanctioned by YES Bank was secured by Oyster Buildwell Pvt. Ltd. with the appropriate collaterals.

The Bail application of Avantha Group promoter, Mr. Gautam Thapar, who was arrested in connection with an alleged misappropriation of a 515 Crore loan of Yes Bank, was listed before Hon’ble Delhi High Court for hearing today.

Mr. Thapar was arrested in August 2021, by the Enforcement Directorate on allegations of money laundering in connection with allegations of siphoning of funds granted by Yes bank in the form of a Loan.

The Bail Application was filed under Section 439 Criminal Procedure Code, 1973, for grant of regular bail in a case registered by the Directorate of Enforcement under PMLA, on behalf of Mr. Gautam Thapar, who is languishing in custody since 03.08.2021.

Senior Advocate Mr. Mukul Rohatgi appeared on behalf of Mr. Gautam Thapar briefed by a team from Karanjawala & Co. led by Mr. Sandeep Kapur, Senior Partner and comprising Mr. Vir Sandhu, Mr. Vivek Suri, Ms. Niharika Karanjawala, Ms. Apoorva Pandey, Mr. Mridul Yadav, Mr. Abhimanshu Dhyani, Mr. Sahil Modi and Ms. Kajal, Advocates.

Senior Advocate Mr. Rohatgi submitted that there was no embezzlement of funds done by Avantha Group led by Mr. Thapar. The purpose of loan and usage of funds were structured by and were within the knowledge of the officials of Yes Bank and no fraud was committed by Mr. Thapar. The loan amount was received through legal channels and all the transactions were documented, the documents related to the said transaction are already in the custody of the Investigating Agency.

Further, Senior Advocate Mr. Rohatgi submitted that the Loan Facility of Rs. 515 crores sanctioned by YES Bank was secured by Oyster Buildwell Pvt. Ltd. with the appropriate collaterals. The said collateral collectively amounted to over Rs. 850 crores including CG Power shares worth Rs. 728 crores and Jhabua Power Ltd. Shares worth 126 Crores, on the date of sanctioning of the loan facility. It is further noteworthy that on the date of invocation of the collateral by Yes Bank, the collective value of CG Power shares and Jhabua Power Ltd. shares was approximately Rs. 606 crores. It was sheer negligence of Yes Bank which led to loss of money to their bank in terms of selling of CG shares, which is valued around 1400 Cr today.

Senior Advocate Mr. Rohatgi referred to the landmark judgment delivered by Justice V R Krishna Iyer in the case titled ‘State of Rajasthan vs Balchand’, AIR 1977 SC 2447 , where he laid down one of the basic rules of bail jurisprudence, i.e., ‘to provide bail and avoid jail time for the accused’. The judgement has laid the foundation for a more lenient justice system and further referred to the order dated 16.12.2021 delivered by Apex Court in case titled Satender Kumar Antil vs. CBI which states that, “We make it clear that our intent was to ease the process of bail and not to restrict it”.

The Hon’ble High Court after hearing the arguments on behalf of Mr. Thapar, has now listed the matter for rebuttal arguments on behalf of the Directorate of Enforcement on 17.01.2022.


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