Grave economic offence allegations can justify refusal of bail despite non-arrest during investigation and routine assurances.

Regular bail was refused in a fraud prosecution alleging fraudulent transfer and pledging of mutual fund units, where the Court treated the accusations as disclosing grave economic offences involving alleged breach of fiduciary trust and public confidence. The scale of the alleged transaction, supported by forensic and regulatory material, weighed against bail, and the fact that the applicant was not arrested during investigation did not create any automatic entitlement to release. General assurances against flight risk, evidence tampering, or witness influence were found insufficient on the facts. The prayer for interim bail was not pursued.

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Issues: Whether regular bail should be granted in an fraud prosecution involving alleged fraudulent transfer and pledging of mutual fund units, and whether the applicant's plea for interim bail could be entertained.

Analysis: The applicant was alleged to have acted in a fiduciary capacity and to have facilitated a large-scale fraud involving mutual fund units worth about Rs. 344.07 crores. The Court treated the allegations as disclosing grave economic offences affecting public confidence and considered the alleged breach of trust, the scale of the transaction, and the investigative material including forensic and regulatory findings. It held that the fact that the applicant had not been arrested during investigation did not create an automatic entitlement to bail where the gravity and magnitude of the alleged offence justified refusal. The Court also found that the general assurances against flight risk, tampering with evidence, or influencing witnesses were insufficient in the facts of the case. The prayer for interim bail was not pressed.

Conclusion: Regular bail was rejected, and the interim bail prayer was not pursued.

Ratio Decidendi: In cases involving grave economic offences and alleged breach of fiduciary trust, non-arrest during investigation does not by itself entitle the accused to bail, and bail may be refused where the seriousness of the allegations and the surrounding material outweigh the usual bail considerations.

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