Panchkula, June 15 -- A Panchkula court on Saturday granted default bail to a former controller (finance and accounts) with the Haryana state agriculture marketing board (HSAMB) in the Rs.504-crore bank fraud case after the Central Bureau of Investigation (CBI) failed to file a final report against him within the statutory period prescribed under law. Rajesh Sangwan, 51, moved an application seeking statutory/default bail in a case registered by the CBI on April 8, 2026, arguing that the investigating agency failed to file a final report against him within the mandated period. The case pertains to an alleged fraud involving IDFC First Bank and AU Small Finance Bank, in which bank employees, government officials and private individuals are accused of causing wrongful loss through fraudulent transactions. Sangwan was booked under Section 13(2) and 13(1)(a) of the Prevention of Corruption Act and Sections 316(5), 318(4), 336(3), 338, 340(2) and 61(2) of the Bharatiya Nyaya Sanhita (BNS). The FIR was originally registered by the state vigilance and anti-corruption bureau (ACB) on February 23, 2026. Sangwan was arrested on March 14 and produced before a magistrate the following day, after which he remained in custody. The investigation was subsequently transferred to the CBI, which also obtained a three-day police remand of the accused. Sangwan's counsel contended that since the first remand order was passed on March 15, the statutory period under Section 187 of the Bharatiya Nagarik Suraksha Sanhita (BNSS) expired on June 12. Opposing the plea, the CBI submitted that it had filed a final report on May 21 against 13 accused persons and two private firms. It further stated that a supplementary final report was filed on June 12 against two more accused and further investigation concerning Sangwan was still underway. However, the court observed that the statutory period for filing a final report is calculated from the date of the first remand, not from the date a new agency takes over the investigation. It held that once the statutory period expires and the accused exercises the right before a chargesheet or final report is filed against him, the right to default bail becomes indefeasible. The court noted that neither the final report filed on May 21 nor the supplementary report filed on June 12 pertained to Sangwan. It further held that the transfer of investigation from the ACB to the CBI did not terminate the custody already undergone by the accused or grant a fresh statutory period to the successor investigating agency. While allowing the bail application on June 13, the court observed that the gravity of allegations, seriousness of the offence and pendency of investigation may be relevant while considering regular bail on merits, but cannot override the legislative mandate governing default bail when statutory requirements have notbeen met by the investigating agency....