The Supreme Court on Friday granted bail to Benoy Babu, an executive at liquor giant Pernod Ricard, in a money laundering case linked to the Delhi excise policy scam.
A bench of Justices Sanjiv Khanna and SVN Bhatti observed that Babu had been in custody for over 13 months, and the trial had yet to commence in the case.
The bench acknowledged contradictions between the cases investigated by the CBI and the ED concerning Babu.
Addressing Additional Solicitor General SV Raju, representing the Enforcement Directorate (ED), the bench emphasized the impropriety of prolonged pre-trial detention, stating, “You can’t keep people behind bars before trial for long. This is not proper. We still don’t know how this will go. There seems to be some contradiction between what the CBI is alleging and the ED is alleging in the case.”
Senior advocate Harish Salve, representing Babu, argued that the case against his client was entirely “bogus” and pointed out a discrepancy in the ED’s timeline. According to Salve, the ED claimed that Babu met Vijay Nair, an accused in the Delhi excise policy case, on March 27, 2021, even though the draft excise policy had been announced on March 22, 2021.
The bench inquired about Salve’s submission, and Raju acknowledged that the meeting had indeed taken place on March 27, 2021. Justice Khanna asserted that the ED cannot detain someone for an extended period without commencing the trial and directed Babu’s release on bail.
The decision came after Babu challenged the Delhi High Court’s July 3 order, which denied him bail in the case. The high court had determined that there was sufficient evidence to support the ED’s claim that Babu was involved in or knowingly assisting activities linked to the proceeds of crime.
The Delhi excise policy, implemented on November 17, 2021, was later revoked in September 2022 due to corruption allegations. Both Benoy Babu and Vijay Nair were arrested by the ED in November of the previous year.
