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1. Petitioner, a non-banking financial company, is aggrieved by the order dated 03.03.2021 passed by the learned trial court, vide which respondent No.2- Shivender Mohan Singh, has been granted bail in FIR No. 50/2019, under Sections 409/420/120-B IPC, registered at Economic Offences Wing (EOW), New Delhi. The aforesaid order dated 03.03.2021 passed by the learned trial court is under challenge in this petition.

2. As per the final report dated 06.01.2020, the facts of the present case are that complainant-company- Religare Finvest Limited (RFL) is registered with the Reserve Bank of India (RBI) and is licensed to undertake the business of financial services as a non-deposit taking/lending Non-Banking Financial Company (NBFC). It operates as a small and medium enterprise (SME) financing focused NBFC and is in the business of extending SME working capital loans, secure SME business expansion, loans, short term trade finance and other loans to various entities. The complainant-company is classified as a 'systematically important NBFC' by the RBI and is a subsidiary of Religare Enterprises Limited (REL), which is a public company, listed on stock exchanges.

7. The complainant-company believed that the illegal transactions were caused by respondent No.2 in connivance with his brother- Malvinder Mohan Singh so as to siphon away the funds of the company before they ceased to be in control over the complainant-company. In this background, a complaint was made by petitioner/company to the EOW, which resulted in the FIR in question against the accused persons, including respondent No.2 herein for allegedly misappropriating, siphoning off and diverting through a labyrinth of financial transactions, the funds of petitioner- Religare Finvest Limited (RFL).

47. In the case in hand, the Religare Enterprises Ltd. (REL) is a public listed company and Core Investment Company (CIC) which has made investments in its subsidiary companies, of which Religare Finvest Ltd. (RFL) is the one. Respondent No.2 having absolute control over REL and its subsidiary companies, put RFL in poor financial condition by way of disbursing the loans to the entities having no financial standing. It has been revealed that high amount of shareholder's funds of REL have been invested in RFL. In this manner, the diversion of funds from RFL caused a direct loss to the shareholders of REL.

49. A report was obtained by SEBI with respect to financial management and diversion of funds in Religare Finvest Ltd. Accordingly, a Forensic Auditor was appointed by SEBI and forensic audit was conducted. According to the said report, the utilization of the loans disbursed by RFL (complainant-company) to the tune of Rs.1250 crores, was ultimately done by the company RHC Holding Pvt. Ltd., which belonged to its Promoters - Shivinder Mohan Singh and Malvinder Mohan Singh. A cursory perusal of letter dated 27.01.2017 issued by Reserve Bank of India to the Managing Director of Religare Finvest Ltd. as well as copies of SEBI's orders dated 14.03.2019 and 1.09.2019 strengthens the case of prosecution against respondent No.2 and his brother Malvinder Mohan Singh, who allegedly, in connivance with co-accused Rajendera Prasad Aggarwal, Narender Kumar Ghoushal and Maninder Singh hatched a conspiracy to divert the funds of complainant-company. Hence, the plea put-forth on behalf of respondent No.2 that he cannot be held vicariously liable for the acts of the company, shall be tested during trial.