Supreme Court Recalls Bail Order, Directs Promoter to Surrender After Siphoning Rs 75 Crore
In a significant ruling, the Supreme Court of India on Thursday recalled its bail order granted six years ago to Satinder Singh Bhasin, the promoter of Bhasin Infotech and Infrastructure Private Limited. The court directed him to surrender and return to jail after finding that he had violated bail conditions and siphoned Rs 75 crore of homebuyers' money while out on bail.
Court's Decision and Surrender Timeline
A bench comprising Justices Sanjay Karol and N K Singh granted Bhasin one week to surrender. The bench mandated that he must spend at least one year in jail before he can apply for regular bail afresh, subject to fully complying with orders in the insolvency proceedings. Additionally, the court ordered that his passport not be released by the trial court without its permission.
Violation of Bail Conditions and Deflection of Responsibility
The court noted that six years had passed since bail was granted, with the condition that Bhasin make every possible attempt to settle the claims of complainants. However, the bench observed, "Allegedly, the Petitioner has been deflecting responsibility, while the onus for delay has been attempted to be shifted onto the allottees themselves or Uttar Pradesh State Industrial Development Authority (UPSIDA), which is perhaps unacceptable."
Background of the Grand Venice Project and Insolvency
Bhasin's company had launched the ‘Grand Venice' housing and commercial project in Greater Noida. The company is now under insolvency, and homebuyers have been waiting for over 15 years to get possession of their flats. The court highlighted that Rs 50 crore deposited by Bhasin with the court as part of his bail conditions in 2019 was also taken from the company's account.
Forfeiture of Funds and Distribution
The court directed the forfeiture of the Rs 50 crore amount. It ordered that Rs 5 crore be given to the National Legal Services Authority (NALSA) and the remaining Rs 45 crore be paid to the resolution professional conducting insolvency proceedings against Bhasin's company.
Siphoning of Rs 74 Crore and Unsatisfactory Explanations
Regarding the siphoning of Rs 74 crore, the bench stated, "While the legality and nature of these transactions would be examined in appropriate proceedings, for the present purpose, it is sufficient to note that the transfer of Rs 74 crore to the entities in question is an admitted position. These entities are prima facie shown to be controlled by persons closely related to the petitioner. The explanation offered that the said transfers were made as ‘commercial advances' or towards ‘repayment of dues' remains unsatisfactory. The absence of supporting material makes us wonder about the manner in which the affairs of the corporate debtor were managed."
This ruling underscores the Supreme Court's firm stance against financial misconduct and violations of bail terms, aiming to provide justice to long-suffering homebuyers in the Grand Venice project.
