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In one of the major scams of Uttar Pradesh in the recent past, the Allahabad High Court recently granted bail to Parveen Kumar Gupta, former secretary of UP State Power Employees Trust and UP Power Corporation Limited’s Provident Fund Trust. 

It is alleged that money from state power employees’ provident fund (EPF) was diverted through wrong investments in Dewan Housing Finance Limited (DHFL) which had resulted in the scam of over rupees 2,600 crores. Gupta is one of the key accused persons who gained illegal commissions through this scam.

Keeping in mind the magnitude and the gravity of the offence, the bench of Justice Pankaj Bhatia granted Gupta bail on the condition of his furnishing personal bonds and two reliable sureties of Rs.5,00,000 each. Court noted,

"There is nothing on record to demonstrate that the applicant if enlarged on bail can in any way adversely affect the investigation or the trial which has not even started, merely because of the quantum involved....an applicant cannot be continued in detention indefinitely without there being any likelihood of trial commencing which is evident from the facts of the case."

Matter in brief

Allegedly in December 2016, in a meeting of the Trustees, of which Gupta was the Secretary, a decision was taken with regard to the investment of funds available with the Trust. One of the said decisions was to invest the funds in DHFL.

Allegedly this was an illegal investment, done in abject violation of the Companies Act, 1956, Employees Provident Fund and Misc. Provisions Act, 1952 and provisions of the Indian Trust Act, 1882.

Initially, the matter was investigated by the Economic Offences Wing of the State Police and along with the Managing Director, the General Manager, Gupta was also arrested in November 2019. The first chargesheet in the case was filed against three persons, namely Gupta, Sudhanshu Dwivedi (the MD), and Ayodhya Prasad Mishra (the GM) in February 2020.

Subsequently, the Central Bureau of Investigation (CBI) took over the investigation in August 2020. It was allegedly found that Gupta, along with his co-conspirators had misappropriated corporation employees' fund money to invest in private sector entities in order to incur huge illegal commissions.

During the course of the hearing in the matter, the CBI had submitted before the court that although the decision was taken by the Committee of Trustees, Gupta had benefited out of the said decision, in as much as, Gupta's son in his statement had stated that around 30 crores commission was obtained from DHFL which was divided in between Ayodhya Prasad Mishra, Gupta and Sudhanshu Dwivedi.

However, taking note of the delay in the trial and the fact that the co-accused have already been enlarged on bail, the court decided to release Gupta on bail. 

Case Title: Parveen Kumar Gupta v. State Of U.P.Thru C.B.I./A.C.B. Lucknow