Court Grants Interim Protection from Arrest to Two Accused in Medikabazaar Fraud Case

Two individuals implicated in a Rs 264 crore fraud case involving Medikabazaar have been granted interim relief by a court, preventing their arrest. This decision came during a hearing on their pre-arrest bail applications. The Economic Offences Wing (EOW) of Mumbai Police is investigating the alleged corporate fraud linked to Boston Ivy Healthcare Solutions Pvt Ltd, the parent company of Medikabazaar.

Representative image

The investigation began after co-founder and former CEO Vivek Tiwari filed a complaint. He accused the current management and foreign investors of significant financial misconduct and attempting to oust him from the company. The FIR, initially lodged at MIDC Police Station, was later transferred to the Corporate Fraud Cell. It names several board members and investor representatives as involved parties.

Allegations of Financial Misconduct

The complaint details alleged offences occurring in 2024 and 2025, soon after Tiwari and fellow founder Ketan Malkan were removed from their managerial positions. It accuses the management of establishing an ESOP trust in January 2025 without necessary approvals. Subsequently, a Rs 15 crore loan was allegedly taken from the company to purchase shares at undervalued rates, diluting each founder's stake by approximately 13%.

Further accusations include diverting over Rs 264 crore to shell companies or non-existent entities. In response to these allegations, board members Ravishankar Gopalakrishnan and Pinak Ashok Shrikhande sought anticipatory bail, fearing arrest. They argued that they had cooperated with the investigation.

Court's Decision on Interim Relief

During the hearing on Tuesday, counsels Amit Desai and Pramod Dubey represented the accused, seeking interim relief based on their cooperation with the probe. However, the investigating officer opposed their pleas, claiming they were withholding relevant information. After considering both sides, the court instructed the investigating officer not to arrest the accused.

The court also mandated that the accused surrender their passports to the police and report daily to the EOW office until the next hearing scheduled for December 1. This directive aims to ensure their compliance with ongoing investigations while preventing any coercive actions against them.

With inputs from PTI