The Bombay High Court has recently declared the arrest of businessman Hemang Shah illegal and ordered his immediate release in a case involving allegations of defrauding his elder brother, Mehul Shah, of Rs 67 crore. Justices Gauri Godse and Somasekhar Sundaresan presided over the matter and found that Hemang Shah's arrest was in violation of Article 22(2) of the Constitution, which mandates that an arrested person be produced before a magistrate within 24 hours.

Hemang Shah was detained at Delhi airport on May 17, 2025, at 5:30 pm. However, he was only produced in court at 10:45 pm on May 18, 2025, exceeding the 24-hour limit stipulated by law. This delay formed the basis of the High Court's decision to deem the arrest illegal. The court emphasized the importance of adhering to constitutional safeguards designed to protect individual liberties.

The case originated from a complaint filed by Mehul Shah, accusing his brother Hemang of financial fraud amounting to Rs 67 crore. According to the complaint, the Shah brothers had jointly received Rs 2,500 crore from the sale of their family business, Anchor Electricals, to Panasonic in 2007. Following the sale, they collaborated to form approximately 180 companies and continued joint investments. Mehul alleged that Hemang, who had control over their shared financial resources, promised to manage their surplus funds for higher returns through debentures and mutual fund investments. However, Hemang allegedly diverted a substantial portion of these investments into accounts under his own name, while providing Mehul with misleading updates about the investments' performance.

Suspicion arose in August 2024 when Hemang reportedly advised Mehul against liquidating his funds, citing adverse market conditions. Mehul later discovered major discrepancies in the financial records, revealing a significant shortfall of Rs 67 crore. This led to the filing of a complaint and the subsequent arrest of Hemang Shah.

The Bombay High Court's decision to declare the arrest illegal underscores the judiciary's commitment to upholding fundamental rights and ensuring that law enforcement agencies adhere to due process. The ruling serves as a reminder of the importance of producing an arrested person before a magistrate within the stipulated time frame, as enshrined in Article 22(2) of the Constitution. The court's order for Hemang Shah's immediate release from Arthur Road Jail highlights the significance of protecting individual liberties and preventing unlawful detention.

The case is still ongoing, and further investigations are expected to take place regarding the allegations of financial fraud.