Bombay High Court grants bail to promoter in ED's Rs 764 crore SBI loan case

The Bombay High Court on 12 October 2026 granted regular bail to the chief promoter of the Vindhyavasini Group of Companies in a money-laundering case brought by the Enforcement Directorate (ED). The case concerns loans of Rs 764.44 crore that the group took from the State Bank of India (SBI), which later turned into non-performing assets, or bad loans. The promoter had been in custody for one year and seven months.

What Happened

According to the prosecution, the promoter, a director of the group's seven entities, obtained the loans from SBI on the basis of forged and fabricated financial documents with the help of some bank officers. The prosecution has also alleged that those officers were paid Rs 59 lakh and Rs 2.79 crore for helping approve the term loans and cash credit limits. Per the order, the prosecution's case is not that no security was given, but that it was inadequate.

The promoter was arrested in the original case in 2017 and released on bail in 2018. The ED registered its case record, called an ECIR, in 2019 and arrested the promoter under Section 19 of the Prevention of Money Laundering Act (PMLA) on 26 March 2025. The ED opposed bail, saying its investigation and the tracing of the proceeds were still under way.

The court found this reason hard to accept because the ECIR was registered seven years ago. It noted that the promoter had appeared on seven occasions when summoned, was the only accused arrested, and that substantial properties had already been attached, with the valuation of the group's mortgaged properties under way. The court held that custodial interrogation was not required.

What It Means

The bail comes with conditions: a provisional cash bail of Rs 1 lakh, sureties within four weeks, deposit of the passport, no foreign travel without permission, and full cooperation with the investigation and trial. The court said its observations are limited to bail and are not a view on the merits; the trial will decide the case on the evidence.

These are allegations, not findings of guilt; the accused are presumed innocent until proven guilty in court, and due process continues.

Source: High Court judgment