Manipal Fraud Case: Supreme Court Grants Bail To Former Employee Sandeep Gururaj

The Supreme Court has granted bail to Sandeep Gururaj, Former Deputy General Manager of Manipal Education and Medical Group (MEMG), accused of siphoning off funds (reportedly 62 Crores) from the company accounts.

While granting bail, the court noted that the instant case is not one of public money being involved but monies of the concerned corporate entities. 

"We have given a thought to the matter in issue and in view of the investigation being complete and supplementary charge sheet being filed, we are inclined to grant bail to the appellant who has been in custody for over two years subject to certain terms and conditions", the bench comprising Justices Sanjay Kishan Kaul, Dinesh Maheshwari and Hrishikesh Roy observed.

Sandeep, while he was working as Deputy General Manager of Manipal Integrated Services Private Limited, allegedly diverted certain amount of Manipal Group Companies and also personal account of the Chairman of Manipal Group Companies in favour of other accused. He was arrested on 26th December 2018.

His first bail application was dismissed by the Karnataka High Court which was confirmed by the Supreme court in March, last year. Thereafter, he again filed another bail application on the ground of changed circumstances, which was also dismissed by the High Court. 

Before the Apex Court, it was contended that he is being made a scapegoat arising from what appeared in public domain in pursuance to what has been called "paradise papers" where the conduct of the management was being called into question in respect of mobilization of resources through offshore entities. Solicitor General opposed his bail plea contending that prima facie case is made out against the appellant, the amounts in question have not been brought back by the appellant, some of the co-accused are absconding and there is a possibility of the appellant fleeing from justice in view of his strong connects outside the country.

"We have given a thought to the matter in issue and in view of the investigation being complete and supplementary charge sheet 3 being filed, we are inclined to grant bail to the appellant who has been in custody for over two years subject to certain terms and conditions. We would not like to further comment on the merits of the controversy as that has the propensity to affect trial. Suffice to say that that the assets in the country of the appellant are attached, his passport is stated to be with the complainant company which shall be deposited in Court and no public money is involved. The fact that the appellant is being called to trial for criminal offences is a matter which would be adjudicated during the criminal trial and the only endeavour can be is to ensure that the appellant remains within the country to face the trial", the court said while granting him bail on terms and conditions to the satisfaction of the trial Court.

Case: Sandeep Gururaj vs. State of Karnataka [CRIMINAL APPEAL NO. 49 OF 2021] 
Coram: Justices Sanjay Kishan Kaul, Dinesh Maheshwari and Hrishikesh Roy
Counsel: Sr. Adv V. Mohana, SG Tushar Mehta
Citation: LL 2021 SC 24 

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