New Delhi, March 17 A Delhi court has dismissed the bail plea of Kallarachal Abraham Johnson, a director of Exclusive Capital Limited (ECL), in a case related to the alleged cheating of investors based in Kolkata.
Chief Judicial Magistrate Niharika Kumar Sharma rejected the bail application, stating that Johnson's previous attempts to evade arrest demonstrate that his presence at the trial cannot be guaranteed without his being in custody.
"Considering the nature of the allegations, the stage of the investigation, and the conduct of the accused, this Court is not inclined to grant bail to the applicant at this stage," the court stated in its order dated March 13.
Johnson, a director of the non-banking financial company ECL, had been on the run for over a month and was arrested on February 13 in Kerala for allegedly diverting and siphoning investor funds from ECL amounting to nearly Rs 315 crore.
The defense counsel argued that the complainants had not acquired any property, and the investment instruments, namely, the Compulsorily Convertible Preference Shares (CCPS), had been cancelled by the National Company Law Tribunal (NCLT).
However, the court dismissed this argument, stating that the FIR primarily deals with allegations of diverted funds being used for personal gain, and requires further investigation.
The court also rejected the argument that the complainant is "giving a criminal color to a civil dispute," as several proceedings related to financial irregularities cited in this case are already pending before other forums.
"The mere pendency of civil or regulatory proceedings does not prevent the initiation or continuation of criminal proceedings if the allegations disclose the commission of an offense," the court stated.
It said that the allegations of misuse of position and siphoning of company funds for personal use "cannot be treated as purely civil in nature."
The court also dismissed the argument that the dispute is simply a civil matter, stating, "Although the transactions arise out of a commercial setting, the allegations go beyond a simple civil dispute… Civil and criminal proceedings can proceed simultaneously."
The court also disapproved of Johnson's attempts to evade investigation, as he had been on the run for over a month and did not cooperate with the investigation until he was arrested after non-bailable warrants were executed.
"One of the purposes of custody is to ensure the presence of the accused during the investigation and trial. Considering the conduct of the accused in evading investigation, this Court is of the view that his presence cannot be guaranteed without custody at this stage," the judge said.
Earlier on February 21, a sessions court had denied bail to ECL director and co-accused Satya Prakash Bagla.
The case was based on a complaint filed by a Kolkata-based senior citizen couple, Suresh Kumar Agarwala and Kanta Agarwala, in October 2025, against the directors of ECL, including Abraham, Bagla, and Achal Kumar Jindal.
They were charged under Sections 420 (cheating), 409 (criminal breach of trust), and 125B (criminal conspiracy) of the erstwhile Indian Penal Code (IPC).
The couple had accused the directors of misleading them into investing in Exclusive Capital. They later found themselves embroiled in a multi-crore fraud as the three directors diverted the investments to purchase luxury cars, electronic goods, and provide sham loans to their connected entities.