A Delhi court rejected the Economic Offences Wing’s police custody application in a forged bank guarantee case, finding no justification for arrest of two cooperating accused.
The ruling parallels an earlier decision declaring arrests of Ravinder Pal Singh Chaddha and Manoj Pongde illegal and ordering release. Magistrates distinguished between suspects who obstruct investigations and those who comply with summons and document requests.
EOW investigators sought custodial interrogation to trace financial instruments allegedly used to secure fraudulent guarantees. The court determined that cooperation milestones had been met without need for detention.
Rejection of custody applications constrains investigators who rely on in-person questioning to unravel complex paper trails. Prosecutors may still pursue charges while accused remain on bail subject to appearance conditions.
White-collar defendants increasingly challenge arrest as disproportionate when summons suffices under criminal procedure reforms emphasized by higher courts.
Defence lawyers cited prior Supreme Court guidance discouraging automatic arrest in cooperative white-collar inquiries while arguing against EOW custody. The forged bank guarantee file remains active, with prosecutors preparing to examine whether charges can proceed without renewed detention of the two accused.
The EOW may appeal or file supplementary applications if new evidence emerges in the forged bank guarantee matter after the custody rejection.
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Sources:
https://www.news9live.com/india/breaking-news-headlines-today-11-06-2026-updates-in-english-india-world-politics-crime-2979081