Bank fraud accused cites COVID-19 to seek bail, court rejects plea

Terming it an abuse of process of law, a special CBI court in Mumbai recently rejected the bail plea of an accused in the Rs 245-crore Dena Bank scam who had sought release citing the risk of contracting coronavirus infection in jail.

Rejecting the bail application of Vimal Barot, the holiday court noted that he is an accused in a multi-crore bank fraud case who faces a maximum punishment of life imprisonment.

Barot sought bail on the ground that he was moved to the crowded Taloja Jail where he may contract coronavirus. The court, however, did not find merit in the argument.

The Central Bureau of Investigation (CBI), which was intimated about his bail application at the last moment via WhatsApp and email, strongly countered the arguments of the accused.

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Citing a recent Supreme Court order which asked states to consider releasing undertrials to decongest prisons to prevent the spread of COVID-19, the special court said the apex court has categorically specified that those facing criminal cases of multi-crore bank frauds or cases wherein punishment is more than seven years will not be covered under the said direction.

"It is interesting to note that the bail application was pressed before Holiday Court and not before the Regular Court. This is an abuse of process of law. Moreover, the recitals in the bail application itself show that the case of applicant/accused does not cover the directions of Hon'ble Supreme Court," the court said while rejecting Barot's plea.

Barot along with his three associates and Dena Bank manager P V Nagarkar allegedly lured public and private organisations to open fixed deposits (FD) in the bank, officials said.

As part of the criminal conspiracy, the accused allegedly gave forged FD documents to the depositers and took overdrafts and loans against the original FDs, causing a loss of Rs 245 crore to the bank, they said.

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After taking over case on July 14, 2014, the CBI started a manhunt to track Barot, who had gone into hiding, according to the officials.

He was caught after eight months from Ahmedabad on March 29, 2015 and has been in jail since then, they said. Others charge sheeted in the case are Nagarkar and Barot's three associates -- Devedra Bhogle, Rahul Gohil and Amrita Mathews. All four are out on bail, they added.

Barot's is the second case in which a CBI court has refused to buy an accused's argument that he may contract coronavirus in a crowded prison.

The bail application of Hilal Rather, son of a former Jammu and Kashmir minister, who had also cited fear of contracting COVID- 19 in jail, was rejected by a special CBI court in Jammu on March 31.