Delhi excise policy case: HC extends businessman Sameer Mahendru’s interim bail by six weeks

The Delhi High Court on Monday extended by six weeks the interim bail of liquor businessman Sameer Mahendru in a money laundering case related to alleged irregularities in the now-scrapped Delhi excise policy on medical grounds.

While directing Mahendru to surrender before the trial court by 5 PM on September 4, Justice Dinesh Kumar Sharma made it clear that no further extension of interim bail shall be granted to him on the grounds cited in the instant application.

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The high court observed that interim bail can never be allowed to be made an "evergreen process".

“Spinal injuries and surgeries are a serious issue and the recovery from them takes a long time. In view of the detailed order passed on June 12 and the medical records furnished by the petitioner, further extension of interim bail by six weeks is granted,” the high court said.

It made clear that the order is not a precedent and has been passed on peculiar facts of the case.

Mahendru was earlier granted six weeks interim bail by the high court on June 12 on medical grounds and he was directed to surrender before the high court on July 25.

On Monday, senior advocate Vikas Pahwa, representing Mahendru, urged the high court to extend the relief further by six weeks as his condition is not good and he has been advised bed rest. He said the businesman recently fell in the bathroom and suffered serious spinal injuries.

The ED’s counsel vehemently opposed the plea to extend the interim bail and said the high court had earlier specifically directed him to surrender on July 25.

He said Mahendru had visited the ED office on July 18, 21 and 22 on his own, without any summons being issued to him and this itself showed that the petitioner is able to walk and move freely.

The counsel argued an interim bail cannot be an evergreen process and a short cut method to escape the rigours of the Prevention of Money Laundering Act (PMLA).

Justice Sharma said this court has always taken a view that the right to life and right to live with dignity are important facets of the fundamental rights.

“An individual has a right to be treated and to take care of his health as per the medical advice. However, at the same time, medical grounds cannot frustrate the rigors of special laws like PMLA.

“In the special acts, the legislature in its wisdom has put up certain conditions for grant of bail and therefore, interim bail can never be allowed to be an ever green process,” the high court said.

In June, a coordinate bench of the high court had granted six weeks interim bail to Mahendru, observing that he was suffering from life-threatening diseases warranting immediate medical attention and post-operative care.

The court had imposed several conditions including that he shall not leave the limits of the hospital and his house and shall also not leave the country.

The court had noted the PMLA granted relaxation to "sick or infirm persons" in matters of grant of bail and the petitioner was entitled to this benefit on account of the "life-threatening nature of the diseases with likelihood of causing irreversible injury to the petitioner".

The prosecution has accused Mahendru of being one of the major beneficiaries of the violations in the excise policy as he was not only running an alcoholic beverage manufacturing unit but also given a wholesale licence along with some retail licences in the name of his relatives.

Because of the alleged irregularities and violations, Mahendru made around Rs 50 crore, the prosecution has claimed. The money laundering case stems from a Central Bureau of Investigation (CBI) FIR.

According to the CBI and the ED, irregularities were committed while modifying the excise policy and undue favours were extended to licence holders. The Delhi government implemented the policy on November 17, 2021, but scrapped it at the end of September 2022 amid allegations of corruption.

Former Delhi deputy chief minister Manish Sisodia is also an accused in the case.