The Supreme Court on Thursday continued the interim pre-arrest bail granted to businessman Arif Merchant and another accused in a Mumbai fraud case, while pushing for a faster trial. The bench of Justice Sanjay Karol and Justice Nongmeikapam Kotiswar Singh heard both sides briefly before issuing directions. The matter relates to an FIR registered at Phydhonie Police Station in 2023, in which the petitioners were accused of financial wrongdoing by another private party.
Background
The case began when a complainant, identified in earlier proceedings, alleged financial misappropriation and criminal breach of trust. The Bombay High Court had granted interim pre-arrest bail in April 2025. The complainant later challenged some aspects of the decision, leading to the current appeal before the Supreme Court. Meanwhile, police have already completed the investigation and filed their report. The trial court is now preparing to frame formal charges.
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Court’s Observations
The bench noted that there had been no complaint from the prosecution side that the accused misused bail or avoided cooperation. “It is not in dispute that the petitioners have joined the investigation and have not misused the liberty granted,” the bench recorded. The justices further remarked that since the case has reached the stage of framing charges, delaying the trial would not serve any purpose.
One advocate for the complainant argued that the accused should not get continued protection. However, the Court did not find a sufficient basis to interfere with the earlier relief.
“The order of pre-arrest bail has been in operation for a considerable period. We see no reason to disturb it at this stage,” the bench observed.
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Decision
The Supreme Court disposed of the petition without cancelling bail. The Court allowed the interim pre-arrest bail to continue, directed that the trial be expedited, and instructed the accused to cooperate fully without seeking unnecessary adjournments. The Court also clarified that the prosecution is free to seek modification of the bail terms later if the accused fail to cooperate or if new circumstances emerge.
The Court’s directions concluded the matter at this stage.
Case Title: Arif Merchant & Anr. vs. State of Maharashtra & Anr.
Case Type: Special Leave Petition (Criminal)
Court: Supreme Court of India
Bench: Justice Sanjay Karol and Justice Nongmeikapam Kotiswar Singh
SLP No.: SLP (Crl.) No. 6318 of 2025
Related Case: Criminal Application No. 46/2024 (Bombay High Court)
FIR: No. 174/2023, Phydhonie Police Station, Mumbai
Order Date (SC): 06 November 2025
