Bhuraria was the internal auditor of Shakti Bhog Foods Limited (SBFL) and statutory auditor of several sister concerns of SBFL.
The ED moved against him alleging that it was through his aid and assistance that SBFL borrowed, layered and siphoned off the loan funds using the platform of about 24 known group companies and several shell entities.
It was also alleged that he was directly involved in paper sale purchase transactions of SBFL without conducting any actual business transactions, which resulted in inflation of their financials. It was on the strength of these audited but falsely inflated financials that SBFL was able to obtain loans from banks, the ED contended.
The borrowed funds were then channelized through the bank accounts of several Shakti Bhog group entities which had provided a platform for changing the colour of the borrowed funds from liabilities to assets and to siphon off the same by creating a web of complex transactions.
Bhuraria was arrested in August 2021 and remained in custody till the Delhi High Court allowed his release on bail.
A single-judge of the High Court noted that though the ED accused the applicant of being the ‘mastermind’ of the fraud, it had relied only on five documents to show his guilt. Further, the chargesheet was yet to be filed.
This was challenged before the Supreme Court by the ED.
The apex court today clarified that the High Court’s findings were prima facie in nature and limited to grant of bail rather than the merits of the case.
The Supreme Court had earlier taken strong objection to the bail condition requiring Bhuraria to constantly send the police the exact details of his whereabouts by sharing the Google pin location from his mobile phone.
Justice Oka had questioned whether such a condition, amounting to surveillance, can be allowed at all.
However, the Court did not go into that aspect and said it will be considered in appropriate case.
Source: Barandbench
