Supreme Court Issues Notice On ED Plea Against Bail To Ex-Best Foods MD In ₹1,740 Cr PMLA Case

The Supreme Court on Tuesday issued notice on the Enforcement Directorate's plea challenging the Delhi High Court order granting bail to Dinesh Gupta, former Managing Director of Best Foods Ltd.

The case concerns alleged diversion and siphoning off of loan funds obtained from a consortium of banks led by the State Bank of India, resulting in an outstanding liability of about ₹1,740.30 crore. The ED alleges that Gupta while in control of Best Foods and related entities, diverted the loan funds through dummy and shell entities and laundered the alleged proceeds of crime.

A Division Bench of Justices M.M. Sundresh and P.B. Varale issued notice in the case and agreed to hear the case on merits.

The top court was hearing ED's challenge against the Delhi High Court order that granted bail to Dinesh Gupta, former Managing Director of Best Foods Ltd, in a money laundering case arising from allegations that loan funds obtained from a consortium of banks led by the State Bank of India were diverted and siphoned off.

The loan account was eventually declared a non performing asset with outstanding liabilities of about ₹1,740.30 crore.

The High Court held that further incarceration was not warranted at this stage.

The Court observed that the rigours of the Prevention of Money Laundering Act (PMLA) had to be balanced against the applicant's right to personal liberty under Article 21 of the Constitution, particularly in view of his prolonged custody and the likely delay in conclusion of trial.