Court grants interim protection from arrest to 2 accused in Medikabazaar `fraud' case

Mumbai, Nov 19 (PTI) A court here has directed the police not to arrest two accused in the Rs 264 crore Medikabazaar `corporate fraud' case.

The court granted the interim relief on Tuesday while hearing pre-arrest bail applications of the accused.

Mumbai Police's Economic Offences Wing (EOW) is investigating an alleged Rs 264 crore corporate fraud linked to Boston Ivy Healthcare Solutions Pvt Ltd, the parent company of B2B (business to business) medical-supplies platform Medikabazaar.

The probe stems from a complaint filed by co-founder and former CEO Vivek Tiwari who accused the company's current management and foreign investor partners of large-scale financial misconduct and an attempt to forcibly remove him.

The FIR, initially filed at MIDC Police Station and later transferred to the Corporate Fraud Cell, names several board members and investor representatives.

According to the complaint, the alleged offences occurred in 2024 and 2025, shortly after both founders, Tiwari and Ketan Malkan, were abruptly stripped of their managerial roles.

The complainant has accused the management of creating an ESOP trust in January 2025 without proper approvals, followed by a Rs 15 crore loan from the company to the trust to buy shares at heavily undervalued rates, allegedly diluting each founder's stake by around 13 per cent.

They have also been accused of diversion of more than Rs 264 crore to shell companies or non-existent entities.

Fearing arrest, two of the board members, Ravishankar Gopalakrishnan and Pinak Ashok Shrikhande, sought anticipatory bail.

On Tuesday, the accused, represented by counsels Amit Desai and Pramod Dubey, sought interim relief on the ground that they have cooperated with the probe.

The investigating officer, however, opposed their pleas, contending that they were not giving relevant information.

The court, after hearing both the sides, directed the investigating officer not to take any coercive action against the accused such as arrest.

The accused shall surrender their passports to the police and attend the EOW office daily till the next hearing on December 1, the court said. PTI AVI KRK