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Bombay high court holds businessman's arrest in Rs 67 crore case illegal, orders his release

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MUMBAI: The Bombay high court vacation bench on Friday declared the arrest of Anchor Group director Hemang Shah , 50, by Mumbai Police's Economic Offences Wing (EOW) as illegal, citing failure by police to produce him before a magistrate in 24 hours. The court ordered his immediate release from Arthur Road Jail .

The vacation bench, comprising Justices Gauri Godse and Somasekhar Sundaresan, noted that chat messages between the wives of the two brothers supported Hemang Shah's claim that his arrest and continued custody were intended to recover the settlement amount in mediation between family members. The arrest was based on allegations of defrauding his elder brother, Mehul Shah , of Rs 67 crore.

Hemang Shah petitioned the HC, arguing that his arrest was illegal since he was not produced before a magistrate within 24 hours as required by law. He was detained at Delhi airport at 5.30 pm on May 17 and produced in court only at 10.45 pm on May 18. The HC agreed, stating that his arrest "without producing him before the nearest magistrate within 24 hours is completely illegal" and infringes on fundamental rights under Article 22(2), which mandates such production.

The FIR by the elder brother was lodged with Malabar Hill police station in South Mumbai at 2.14 am, and a Look Out Circular (LOC) was issued at the police station's request. The dispute, being resolved before a mediator, is between Hemang on one side and his brother and their father on the other. The FIR was filed during mediation, and 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 the immigration department handed him over at 4.30 am, and then he was brought to Mumbai. Senior counsel for the elder brother-the complainant-argued that the immigration officers cannot be considered police officers, and hence his custody after being "accosted" at the airport was not an "arrest" by cops.

The EOW's arrest memo states he was arrested on May 18 at 7.30 pm. The HC bench said, "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."
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