Bombay HC: ₹67 Crore Case Arrest Illegal – Release Ordered
Breaking: Anchor Group director Hemang Shah’s arrest declared illegal by the Bombay High Court. The Mumbai Police’s Economic Offences Wing (EOW) failed to produce Shah before a magistrate within the crucial 24-hour legal timeframe, leading to his immediate release. This ruling, focused on Article 22(2) of the Constitution, stems from a Rs 67 crore fraud allegation by Shah’s brother. The court determined the detention at Delhi airport constituted an arrest, triggering the 24-hour rule.Learn how the court scrutinized the arrest procedures, emphasizing the protection of individual rights. News Directory 3 brings you this breaking legal growth. For the latest, stay tuned as the legal proceedings continue regarding the fraud case and family dispute. Discover what’s next…
Bombay HC Declares Hemang Shah Arrest Illegal
Updated May 31, 2025
The Bombay High Court‘s vacation bench on Friday ruled the arrest of Anchor Group director, Hemang Shah, 50, as illegal. The court cited that Mumbai Police’s Economic Offences Wing (EOW) failed to produce Shah before a magistrate within 24 hours of his detention, a violation of legal procedure. Justices Gauri Godse and Somasekhar Sundaresan ordered his immediate release from Arthur Road Jail.
The High Court (HC) bench highlighted that messages between the wives of the brothers supported Hemang Shah’s claim. He argued his arrest and continued custody were intended to pressure him in a family mediation regarding a settlement amount.The arrest stemmed from allegations by his elder brother, Mehul Shah, who claimed Hemang defrauded him of Rs 67 crore. The court focused on article 22(2) of the constitution, which protects essential rights.
Shah petitioned the HC, asserting his arrest was illegal as he wasn’t presented before a magistrate within the legally mandated 24-hour period. He was detained at Delhi airport at 5:30 p.m. on May 17 but only produced in court at 10:45 p.m. on May 18. The HC agreed, stating the arrest “without producing him before the nearest magistrate within 24 hours is completely illegal.” This infringes on fundamental rights.
The elder brother’s FIR was lodged at the Malabar Hill police station in South Mumbai.A Look Out Circular (LOC) was issued at the station’s request.The dispute, under mediation, involves Hemang, his brother, and their father. The FIR was filed during mediation. Hemang, scheduled to fly to Muscat from Delhi on May 17, was apprehended at the airport due to the LOC. Police stated they arrested him on May 18 after immigration officials handed him over at 4:30 a.m., bringing him to Mumbai.
Senior counsel for the complainant argued immigration officers aren’t police officers. Therefore, his custody after being “accosted” at the airport wasn’t an “arrest” by police. The EOW’s arrest memo states Shah was arrested on May 18 at 7:30 p.m. The HC bench stated, “In our view, the act of the Immigration Officers to accost the petitioner or detain him on 17th May 2025 at 1730 hours is the act of arrest, and therefore the period of 24 hours as contemplated under Section 58 of BNS and Article 22(2) of the Constitution of India shall begin on 17th May 2025 at 1730 hours.” This ruling highlights the importance of adhering to arrest procedures and protecting individual rights in cases involving financial disputes and allegations of fraud.
What’s next
The legal proceedings related to the alleged fraud and family dispute are expected to continue, with further investigations and court hearings scheduled to determine the next steps in the case.