Chandigarh, June 14 -- Amit Dewan, the former director (finance) of the Haryana Power Generation Corporation Limited (HPGCL) and an accused in two criminal cases involving a nearly Rs.600-crore IDFC First Bank fraud, has been granted bail by the Punjab and Haryana high court. "The principal allegation of the prosecution is that the petitioner was a beneficiary of the conspiracy and had received illegal gratification. However, despite extensive investigation and custodial interrogation, no money trail leading to the petitioner has been brought to the notice of this court. No recovery has been effected from him and no bank account, property or asset has been identified as representing the alleged proceeds of crime," the bench of justice Sandeep Moudgil observed while allowing his bail plea. Dewan was arrested on March 18 this year, while the case was being probed by the Haryana state vigilance and anti-corruption bureau (ACB) following a February 23 first information report (FIR). In May, Uttar Haryana Bijli Vitran Nigam (UHBVN) dismissed Dewan from service for misusing his position to compromise utility interests. He was later arrayed as an accused in two FIRs--one involving alleged misappropriation of funds reported in Haryana and second criminal case involving alleged misappropriation of funds worth Rs.86 crore at Chandigarh Renewable Energy and Science and Technology Promotion Society (CREST), a Chandigarh administration entity. Now both the cases are being probed by the central bureau of investigation (CBI). The allegations in the fraud broadly pertain to unauthorised opening and operation of bank accounts with private banks, transfer of public funds into such accounts, fraudulent withdrawal of funds and related banking transactions allegedly carried out in conspiracy with IDFC and AU Small Finance Bank officials and other accused persons in Chandigarh and Haryana. Dewan had claimed that he was not named in the original FIRs and no specific role was attributed to him at the initial stage of investigation. The allegations levelled in both cases essentially arise from the same set of banking transactions. "The petitioner was neither a signatory to the bank accounts in question nor the custodian of the cheque books allegedly misused. The officials who opened and operated the accounts, handled the banking transactions, and maintained custody of the relevant instruments have not been proceeded against, though they occupied a more proximate position in relation to the alleged transactions," submitted his lawyer, Salil Dev Singh Bali. The CBI counsel submitted that the probe points to his involvement in a larger conspiracy relating to unauthorised banking transactions and the diversion of public funds. Because the probe in one FIR is still underway, and certain aspects concerning the flow of funds, the role of beneficiaries, and the inter-se involvement of the accused persons are yet to be fully unraveled, the counsel urged that bail not be granted. It was further informed that one HPGCL employee, Balwant Singh, who died by suicide on May 8 in Chandigarh, had allegedly attributed a specific role to the petitioner in relation to the misuse of cheque books and forged signatures, it was claimed by CBI. The court pointed out that at this stage, the allegation of receipt of illegal gratification appears to rest primarily upon statements of certain witnesses claiming to have extended benefits in kind to the petitioner. "The correctness, admissibility, and evidentiary value of such statements are matters to be tested during trial. Presently, this court does not find any tangible material demonstrating that the petitioner was a direct beneficiary of the alleged siphoned funds," the court said. It added that it found substance in the submission that the opening of the accounts and the placement of public funds were not matters falling exclusively within the domain of the petitioner. "The record indicates that the proposals ultimately required approval of the managing director (MD). Significantly, the MD, whose approval forms part of the decision-making process, has not been arrayed as an accused. Equally, the petitioner is admittedly not a signatory to the account-opening forms. Various officials connected with operation of the accounts and processing of banking transactions have also not been proceeded against," the court noted. As of alleged suicide note of Balwant Singh indicting Dewan, the court said, the evidentiary value, authenticity and legal effect of the document are matters which can only be examined during trial after the parties are afforded an opportunity to lead evidence. It further noted that a probe in one FIR has been completed. Further, the allegations are predominantly founded upon documentary and electronic evidence already collected by the investigating agency....