PF scam: Hiranandani brothers get anticipatory bail

Hiranandani Group directors Niranjan and Surendra Hiranandani were today granted anticipatory bail by a special court in connection with an alleged provident fund scam to the tune of over Rs 9 crore.

The duo had approached the court seeking anticipatory bail after CBI issued look out notices against them to all the airports on August 4.

Both the brothers have been named as accused in an FIR lodged by CBI on March 29, 2008 for an alleged fraud of provident fund deposits.

While granting the duo bail on a surety of Rs 1 lakh each, Special CBI judge S P Hayatnagarkar observed that their custodial interrogation was not required.

Niranjan's lawyer Harshad Ponda had argued that both Niranjan and Surendra have been in constant touch with CBI in connection with the case and have also been attending the investigating agency's office several times for questioning.

CBI counsel Bharat Badami had, however, opposed the duo's bail plea stating that they have not been cooperating with the investigation and that their custody was required to gather more information regarding the scam.

"The court has held that the provident fund liability was on the contractor and not the Hiranandani Group. We will continue co-operating with CBI for investigations," Niranjan said.

According to CBI's anti-corruption wing, Hiranandani Group had not deposited provident fund of their employees in 2003-06.

The alleged non-payment, as per a report filed by the Employee Provident Fund Organisation (EPFO) in its departmental enquiry, is to the tune of Rs 9.36 crore.

Apart from the two directors, two employees of the Group and four officers from EPFO have also been shown as accused in the case.