Bombay CBI Court Grants Default Bail to Accused in Car Loan Fraud Case

On June 3, 2021, the Special CBI Court in Mumbai granted default bail to Sankeshwar Singh, a 38-year-old accused in a car loan fraud case registered by the Central Bureau of Investigation (RC No. 05/E/2020). Singh was arrested on March 13, 2021, for allegedly availing car loans using forged and fabricated documents, with charges under Sections 420, 465, 467, 468, 471, and 120-B of the Indian Penal Code, along with Sections 13(1)(d) and 13(2) of the Prevention of Corruption Act. He sought bail under Section 167(2)(a)(ii) of the Criminal Procedure Code, arguing that the CBI failed to file a charge sheet within the statutory 60-day period, which expired on May 12, 2021.

The prosecution opposed the plea, claiming the applicable period was 90 days due to the inclusion of Section 467 IPC, which carries a maximum punishment of life imprisonment.

However, relying on Supreme Court precedents, including Rakesh Kumar Paul v. State of Assam and Rajeev Chaudhary v. State (NCT of Delhi), the court held that since Section 467 does not prescribe a minimum sentence of 10 years, the 60-day limitation applied.

Observing that Singh’s right to default bail had accrued and was exercised within the valid period, the court granted him bail on execution of a ₹25,000 bond and one solvent surety.

He was also directed to surrender his passport, not leave India without permission, and refrain from influencing witnesses or committing further offences. The court concluded that in the absence of a timely charge sheet, the accused was entitled to release by law.