Anticipatory bail in economic offence cases may carry reasonable monetary conditions, while cancellation is not justified merely for recovery.

In alleged economic offences involving cheating and misappropriation of entrusted funds, anticipatory bail need not be cancelled merely to facilitate recovery, especially where the transaction is old and the amount is said to have been spent. The Delhi HC also indicated that a bail order may be modified if it does not adequately address the alleged misappropriated , and that reasonable monetary conditions can be imposed under Section 438(2) of the Code of Criminal Procedure, 1973 while granting anticipatory bail. The stated approach seeks to balance personal liberty with the interests of justice in cases involving alleged financial wrongdoing.

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Issues: Whether the grant of anticipatory bail to the accused should be cancelled, and whether the bail order should be modified by imposing a condition requiring deposit of money alleged to have been misappropriated.

Analysis: The allegations disclosed a serious economic offence involving alleged cheating and misappropriation of entrusted funds. Cancellation of anticipatory bail was not warranted merely to facilitate recovery, particularly when the transaction was old and the amount was said to have been spent. At the same time, the grant of bail without any condition addressing the alleged misappropriated amount was found to be unsound on the facts. The Court held that in an appropriate case, reasonable conditions may be imposed while granting anticipatory bail under Section 438(2) of the Code of Criminal Procedure, 1973.

Conclusion: The request for cancellation of anticipatory bail was rejected, but the bail orders were modified by directing each respondent to deposit Rs. 25 lakhs as a condition for release on anticipatory bail.

Ratio Decidendi: In cases involving alleged economic offences and misappropriation of entrusted funds, anticipatory bail need not be cancelled merely for recovery, but the Court may impose reasonable monetary conditions under Section 438(2) of the Code of Criminal Procedure, 1973 to balance liberty with the interests of justice.

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