The Delhi High Court on Wednesday, September 11, granted bail to Hyderabad-based businessman Arun Ramchandran Pillai in connection with a money laundering case related to the now-scrapped excise policy.

A single-judge bench of Justice Neena Bansal Krishna, in its judgment, referred to the Supreme Court's ruling in Manish Sisodia v. Enforcement Directorate and noted that Arun Ramchandran Pillai had met the "triple test" criteria for the grant of bail.

"As noted in Manish Sisodia v. Directorate of Enforcement 2024 INSC, there is no possibility of tampering of evidence by the Applicant if the Applicant is granted bail as the case is primarily dependent on documentary evidence which is already seized by the prosecution. Similarly, the apprehension regarding influencing witnesses and that of being a flight risk can be diffused by imposing stringent conditions while granting bail.''

The court further cited the Supreme Court's observations in *Manish Sisodia*, emphasizing that "prolonged incarceration before a person is pronounced guilty should not be allowed to turn into punishment without trial." It underscored that the fundamental right to liberty under Article 21 of the Constitution takes precedence over statutory restrictions. The Delhi High Court also noted that the Supreme Court had reiterated the principle that "bail is the rule, and refusal is the exception."

Justice Krishna further highlighted that Pillai is an "experienced professional" with multiple educational qualifications. He had also "volunteered with organizations" such as UNICEF Canada to educate children about its global efforts and Afghans4tomorrow to enhance the business skills of students at Kabul Education University.

The high court noted that, despite being held as an undertrial prisoner in Tihar jail, Pillai had volunteered as a "Horticulture Sahayak." The court observed that Pillai has "deep roots in society," is not a flight risk, has a business based in India, and is unlikely to abscond from the country.

The high court subsequently granted bail to Pillai in the ED matter, provided he furnishes a personal bond of ₹10 lakh along with two sureties of the same amount, to the satisfaction of the trial court, and complies with certain additional conditions.

"Any observation made herein is without prejudice to the trial," the court said.

The CBI had registered a case on August 17, 2022, under Section 120B (criminal conspiracy) of the IPC, along with provisions of the Prevention of Corruption Act, involving multiple individuals, including Pillai as an accused.

Five days later, the ED registered a case alleging that Pillai was "actively involved in the conspiracy of drafting" the Delhi Excise Policy 2021-22. The ED further claimed that he was "actively involved in forming the cartel and participating in the conspiracy related to kickbacks, payments, and their recoupment."

It was further alleged that Pillai had engaged in various transactions related to the proceeds of crime. The ED claimed that Pillai is a "key member" of the criminal conspiracy and has been involved with the South Group.

The court also noted that the prosecution complaint against Pillai has already been filed, and he has been summoned. The investigation concerning him is "complete." Additionally, the court observed that the chargesheet in the CBI case (predicate offense) was filed without Pillai's arrest, and he was granted bail in the CBI case in February 2023.

Case title: Arun Pillai v Enforcement Directorate