SC grants bail to Manipal group's ex-DGM in cheating case

The Supreme Court on Monday granted bail to Sandeep Gururaj, former deputy general manager of the Manipal Education and Medical Group, who was accused of siphoning off Rs 70 crore from the company accounts.

A bench presided over by Justice Sanjay Kishan Kaul noted that the supplementary chargesheet had been filed in the case and the accused had been in jail for over two years. The court also considered the fact that no public money was involved in the matter and that "whatever was alleged against the appellant was continuing for almost 4-5 years".

In his submission, Gururaj contended that "he was being made a scapegoat arising from what appeared in public domain in “paradise papers” where the conduct of the management was being called into question in respect of mobilisation of resources through offshore entities".

His counsel also submitted that none of his assets was in his control.

Solicitor General Tushar Mehta opposed his bail on the grounds that the amount involved in the matter was not brought back while some of the co-accused were still absconding, creating a possibility of him also fleeing from justice.

Senior advocates A M Singhvi and Mukul Rohatgi, appearing for the company, claimed the appellant-accused must bring in some money as he did not make fair disclosure of his assets.

The bench, however, said, "we are inclined to grant bail to the appellant."

"We would not like to further comment on the merits of the controversy as that has the propensity to affect the trial. Suffice to say that that the assets in the country of the appellant are attached, his passport is stated to be with the complainant company which shall be deposited in court and no public money is involved," the bench added.

In December, the court has told the Karnataka police that it would grant no further time beyond January 2021 to complete the investigation against Gururaj.

The appellant has challenged the Karnataka High Court's order of September 25, 2020, declining him the relief.

Vatheswaran S, CEO of the company, had lodged a complaint with the Cubbon Park police station in Bengaluru against Gururaj, former deputy general manager, Finance, for diversion of huge funds through shell companies created abroad.

The petitioner-accused has been in custody since December 26, 2018.

The first chargesheet was filed on March 26, 2019, a supplementary chargesheet on September 14, 2019. However, the police had sought further time to file a final charge sheet.