The Bombay High Court has granted interim bail to businessman Priyavrat Mnadhana in a money laundering case, citing concerns over the basis of his arrest. Mandhana, former vice-president of Mandhana Industries, was arrested by the Enforcement Directorate (ED) on July 29 in connection with an alleged Rs. 975 crore bank loan fraud.
The court criticized the arrest, noting it lacked a rational basis and was based on “subjective satisfaction”. It also questioned the necessity of the arrest following a recent release of Mandhana’s father, who was arrested during an earlier search. The court highlighted that the ED’s reasons for the arrest did not meet the required legal threshold under the Prevention of Money Laundering Act (PMLA).
Mandhana had claimed that the ED’s actions violated his constitutional right to liberty. He argued that the arrest lacked proper justification and was not supported by adequate grounds. The court granted bail on a personal bond of Rs. 1 lakh, imposing conditions to prevent evidence tampering, ensure cooperation with the ED, and restrict travel outside Mumbai. The next hearing is scheduled for November 12.