Justice Madhu Jain ruled that Jhunjhunwala qualifies for the statutory exception under the Prevention of Money Laundering Act (PMLA) that allows bail for persons who are "sick or infirm," overturning the Enforcement Directorate’s objection.
The court’s order listed a combination of health issues: advanced age, a serious spinal condition, osteoporosis, a pre‑existing cardiac ailment and the requirement for supervised rehabilitation, all of which, the judge said, necessitate ongoing medical treatment.
Jhunjhunwala was first arrested by the Enforcement Directorate on April 15 in connection with an alleged bank‑loan fraud involving Anil Ambani group entities such as Reliance Home Finance Ltd and Reliance Commercial Finance Ltd, and he had subsequently applied for regular bail on medical grounds.
The Enforcement Directorate argued that the accused did not meet the threshold of being "sick" or "infirm," contending that his condition could be managed within the custodial medical system. The High Court rejected this view, stating that the law does not require an "irreversible or imminent danger to life" before the medical exception can be invoked.
Despite the bail in the PMLA case, Jhunjhunwala will remain in custody for a separate investigation by the Central Bureau of Investigation, where he was arrested on June 1. That probe also concerns the alleged loan fraud, which is said to have involved the use of shell or dummy companies to siphon funds from the group’s finance subsidiaries.
The bail decision underscores the judiciary’s willingness to apply health‑based exemptions in financial crime cases, while the ongoing CBI investigation suggests that Jhunjhunwala’s legal battles are far from concluded.