PMC Bank fraud case: Bombay HC grants bail to Vivo Group's auditor

Mumbai [India], April 28 : The Bombay High Court has granted bail to Madan Chaturvedi, chartered accountant of Vivo Group in connection with the Rs 4,300-crore PMC Bank alleged fraud case. He was arrested on January 23, 2021, and since then was in custody in the case.
Justice CV Bhadang while granting bail on April 27, stated that the investigation of the applicant is complete. The necessary seizure of the documents has been made and the two units have been attached.
"Thus, I do not find any justification to detain the applicant behind bar pending trial which may take some time for its conclusion," he said.
"I find that the twin conditions in Section 45(1) are satisfied in this case. In the circumstances of the case, I do not find it necessary to make detailed reference to the cases cited, at the risk of prolixity," said Justice CV Bhadang.
"In this case, the Investigating Agency did not arrest Sarang Wadhaawan and as a result thereof, Sarang Wadhawan could secure bail from the Special Court by order dated April 7, 2022", the court noted.
Senior Advocate Aabad Ponda and Advocate Mayank Jain appeared for Madan Chaturvedi, submitted in the court that the applicant who is a Chartered Accountant by profession was appointed as the professional/non executive Director of Viva Home Finance Ltd in 2014 and Viva Finance and Investment Pvt Ltd in 2016 in order to meet the statutory requirements of National Housing Board (NHB) and the Reserve Bank of India (RBI).
They also submitted that the aforementioned companies have small business operations and are not part of the complaint filed by the ED. It is submitted that the applicant is not involved in the day-to-day management of the companies. He is neither the employee nor the Auditor for M/s Viva Holdings. He has no concern with Mehul Thakur or Mack Star or with the transaction of the alleged purchase of the two units by M/s Viva Holdings from Mack Star without payment of consideration.
According to the financial Probe agency, a criminal case of money laundering was filed against HDIL, its promoters Rakesh Kumar Wadhawan, his son Sarang Wadhawan and others as part of its probe into the alleged loan fraud in Punjab and Maharashtra Co-operative (PMC) Bank. It was alleged by the ED that the Wadhawans, in connivance with Viva Group, have diverted a huge amount from HDIL to many companies and entities belonging to Viva Group in the garb of commission. The source of these funds from HDIL to Viva Group is apparently the illegal fund diversion from PMC Bank, the ED has claimed.
The present offence in the FIR is pertaining to the alleged conspiracy between the officials of Yes Bank and the officials of M/s HDIL
between 2011 to 2016 and thereby defrauding the investors.
The gravamen of the allegations in the complaint is that two office units were transferred by registered sale agreements in favour of M/s Viva Holdings which is a partnership firm of Mehul Thakur for a consideration of Rs 34.36 Crores for which post dated cheques were issued which were never presented for encashment by the Vendors Mack Star Marketing Pvt Ltd.
According to the prosecution the applicant/ Madan Chaturvedi was engaged in the preparation and the auditing of the Books of Accounts of Viva Group of Companies, including M/s Viva Holdings Ltd.
He was aware of the fraudulent transaction of transfer of the two units of Mack Star in the Kaledonia Building to M/s Viva Holdings without payment of consideration.