Ex-U.P. official gets bail in PF scam
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Noting that no evidence of a money trail involving him was yet unearthed by the CBI, the Allahabad High Court has granted bail to a former top official of Uttar Pradesh in an alleged provident fund scam worth crores.
Justice Dinesh Kumar Singh granted bail to Ayodhya Prasad Mishra, the former managing director of the Uttar Pradesh Power Corporation Limited (UPPCL).
Mr. Mishra and other officials of the UPPCL were accused of investing the money from the gratuity and pension funds of the state power sector employees in private sector companies in an illegal and mala fide manner to earn huge illegal commission in violation of the provisions of the Companies Act, Employees Provident Fund and Misc. Provisions Act, 1952 and provisions of the Indian Trust Act, 1882.
It was also alleged that according to the records available that General Provident Fund contributions amounting to ₹2,631 crore were invested in DHFL, out of which only ₹1,185 crore were received by the trust office and an amount of ₹1,445 crore plus interest was yet to be received. A total amount of ₹2,267 crore plus interest was yet to be received from the DHFL.
The CBI has been investigating the case for almost two years. Mr. Mishra has also spent almost two years in jail.
The court took note of the accused Mr. Mishra’s age (70) and that he has been suffering from various ailments including heart disease.
“Except for few documents allegedly signed by him, authorizing investment in PNB Housing, LIC Housing and DHFL, there is no document on record regarding his involvement in the commission of the offence,” the court said.
A co-accused Abhinav Gupta in his statement to the police stated that around ₹30 crore commission was obtained from DHFL and this commission was divided amongst Mr. Mishra, his father and two senior officials — P.K. Gupta and Sudhanshu Dwivedi — but the CBI has not been able to unearth any money trail so far involving the accused-applicant to have received part of the commission allegedly given by the DHFL or the PNB Housing Company, the court said.
Considering the age of the accused, his health condition and his long incarceration in jail and so far, no evidence of money trail involving him having been unearthed by the CBI, it would be appropriate to enlarge him on bail, the court said on July 13.
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