Kolkata court has rejected the bail plea of businessman Mahendra Goenka, accused of fraud of about Rs 1000 crore. Describing the investigation as being in the initial stage, the court has sent Goenka to police custody till August 1, 2026. He was absconding for two years.
New Delhi [भारत]July 29 (ANI): A Kolkata court on Tuesday sent businessman Mahendra Goenka to police custody till August 1, 2026. The court said the allegations reveal an economic crime involving misappropriation of funds worth crores of rupees in which a bank was allegedly defrauded and the accused was evading the process of law for the last two years. The court acknowledged that the investigation is still in its initial stage and custodial interrogation is necessary for an effective investigation.
The Chief Judicial Magistrate of Calcutta rejected Goenka’s bail plea and extended his police custody till August 1, accepting the request of the investigating agency. The court said that considering the nature and gravity of the crime, the evidence gathered so far and the fact that the investigation is still in the initial stage, it is not in favor of granting bail. The court held that further police custody was necessary for effective investigation. Goenka was recently arrested by Kolkata Police from Delhi.
What are the allegations?
Goenka, a resident of Raipur, Chhattisgarh, is accused of defrauding the companies of the family of Sanjay Pathak, BJP MLA from Vijayraghavgarh, Madhya Pradesh, to the tune of Rs 1,000 crore. He is also accused of trying to illegally take control of the companies. According to the allegations, Goenka held a senior management position in Euro Pratik Ispat India Private Limited, a Kolkata-headquartered company owned by Pathak’s family. It is alleged that Goenka, along with his wife and associates, used forged documents and signatures to remove two directors of the company and appoint four others in their place. He is also accused of trying to illegally take control of the company, manipulating its financial transactions and dishonestly selling company assets, resulting in alleged misappropriation of funds.
What arguments did both sides give in the court?
During the hearing, Goenka’s counsel argued that further police custody was unnecessary as all relevant documents had already been seized. The defense argued that the complainant was not the owner of the shares, no adverse order had been passed by the National Company Law Tribunal (NCLT), and the company records filed before the Registrar of Companies supported the defence. It was also argued that Goenka has cooperated in the investigation and should be granted bail.
The original complainant strongly opposed the bail plea, saying that the original share certificates recognized by the NCLT establish the ownership of the complainant, while the records including Form BEN-1 show Goenka as the beneficial owner. It was also alleged that a large amount of money was embezzled, a bank was defrauded, and the accused was evading the process of law for the last two years. The complainant also argued that the money trail involving crores of rupees is yet to be fully investigated.
Court rejected bail petition
Accepting these submissions, the court rejected Goenka’s bail plea and sent him to police custody till August 1, 2026, for further investigation.
The court directed the investigating officer to release D.K. during the period of police custody. It also directed to strictly follow the Supreme Court guidelines in the case of Basu vs State of West Bengal and ensure the safety, security and regular medical check-ups of Goenka. He has been directed to appear in court again on August 1, 2026. (ANI)
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