CRI. BA 1487/2022
1
ORDER
MHCC020081132022
IN THE COURT OF SESSIONS FOR GREATER BOMBAY
AT MUMBAI
CRIMINAL BAIL APPLICATION NO. 1487 OF 2022
( CNR NO.: MHCC02­008113­2022 )
Harakchand Manmal Shah
Age:­ 65 years, Occ.:­ Business.
Address ­ Flat No.15,1st Floor,
Siddhi Apartment, 10 Khetwadi Lane,
Girgaon, Mumbai ­ 400 004.
V/s.
The State of Maharashtra,
(At the instance of Economic
Offences Wing (E.O.W. Banking),
vide C.R.No. 93/2015)
…Applicant/Accused
…Respondent/State.
Appearance:­
Adv. Satish Maneshinde along with Adv. Sujit Shelar for the
applicant/Accused.
Smt. Seema Deshpande, Ld. Addl. P.P., for the State/respondent.
CORAM : H.H. THE ADDL. SESSIONS JUDGE
ANAND PANDURANG KANADE (C.R.60)
DATE
: 08.07.2022.

CRI. BA 1487/2022
2
ORDER
ORDER
1.

The applicant/accused Harakchand Manmal Shah, filed this
bail application u/s. the 439 of Cr.P.C. for his release on bail. He was
arrested on 23.05.2022 by Economic Offences Wing (E.O.W.)
(Banking), Mumbai for commission of alleged offence. u/s. 120 (B)
r/w. 420, 467, 468, 465, 471 of Indian Penal Code. After his initial
remand period, the Ld. Trial Court was pleased to reject the bail
application
preferred
by
applicant/accused
vide
Order
dated
17.06.2022 and since then he is in judicial custody.
2.

The prosecution case in brief reveals that on receiving the
source information that M/s. Tejal Impex Pvt. Ltd., M/s. Latika Gems
Pvt. Ltd., M/s. Yogeshwar Diamonds Pvt. Ltd., M/s. Shree Charbhuja
Diamonds Pvt. Ltd. & M/s. Kanika Gems Pvt. Ltd. and its Directors Rajiv
Bharat Jangla, Proprietor of Shri. Sai Traders and unknown others
entered into a criminal conspiracy to cheat Government of India and
caused wrongful loss to it in the matter of Foreign Outward Remittances
through banks on the strength of false and forged import documents
and in furtherance of said conspiracy, cheated Government of India to
the tune of Rs.1,593 crores approximately.
3.

As per the prosecution case, Bank of India, ICICI Bank Ltd.,
Yes Bank & ING Vysya Bank, IndusInd Bank carry out Foreign Outward
Remittances for its customers, who are in the business of export and
import of goods.
4.

The accused in conspiracy with each others opened the
bank accounts in the above mentioned bank in order to make false
foreign remittances on the strength of forged documents during the
CRI. BA 1487/2022
3
ORDER
period from 13.12.2013 to 21.01.2014 and made huge foreign
remittances and for that purpose used forged Bill of Entry having
resemblance with the previous genuine Bill of Entry dishonestly
produced the same before the Banks to facilitate outward remittance. In
that process, the above mentioned companies and its directors forged
the signatures of the customs officials and also used their forged official
seals. The said documents then submitted to the above referred banks.
5.

The document used for the foreign outward remittances
which was made against Bill of Entry and Invoices or forged Proforma
Invoices for import of Rough Diamonds, Cut and polished Diamonds.
Multiple duplicates of genuine Bills of Entry have been made and the
same were submitted to different Banks to falsely show imports and to
remit huge foreign exchange outside India. The accused thereby
violated the circulars and regulations issued by the Reserve Bank of
India from time to time. The directors of the company by using above
modus operandi submitted forged shipping documents to the bank and
remitted valuable Foreign Exchange outside India without undertaking
any import transaction and thereby, caused wrongful loss to the
Government.
6.

The investigation further reveals that the bank accounts of
the above mentioned companies have been closed in the month of May,
2014 and proceeds of the account have been transferred to the accounts
of Rajiv Bharat Jangla, Proprietor of Shri Sai Traders.
7.

It is alleged against applicant/accused the he started
company by the name Top Nice International Trading Ltd. in Hong
Kong and also opened an account of the said company with HSBC Bank
CRI. BA 1487/2022
at
Hong
Kong.

4
The
said
ORDER
account
received
amount
of
Rs.19,47,05,089.28/­ by way of foreign outward remittances from M/s.
Yogeshwar Diamonds Ltd. It is contended that the detailed statement of
applicant/accused
has
been
recorded
before
the
‘Enforcement
Directorate’ (hereinafter referred to as ‘E.D.’) wherein he is one of the
witness. It is submitted that the E.O.W. Banking, Mumbai, has not taken
into consideration the fact that the company opened by the
applicant/accused in Hong Kong is at the instruction of co­accused
Manish Babel as the applicant/accused wanted to obtain the loan
amount from the bank at the lower rate of interest for the business
purpose and to show the transactions, which was required to obtain for
the loan. The applicant/accused has not forged any documents in the
process of opening the company or the bank account in the HSBC Bank
Hong Kong. The applicant/accused has further contended that he sold
out his company to one Sabirbhai of Masjid Bunder, in June, 2014 and
had
left
no
concern
with
it.

It
is
also
contended
by
the
applicant/accused that he had allowed Manish Babel, who operates his
said company and bank account for local trading in Hong Kong only.
However, said Manish Babel in breach of said understanding had sent
the remittances to his Hong Kong based companies account, behind his
back. The applicant/accused is not concerned with the remittances sent
to the Hong Kong based companies. The applicant/accused has
co­operated with the investigation agency by submitting the contact
details of Manish Babel. It is further submitted that applicant/accused is
not signatory to any of the document allegedly forged. On the aforesaid
grounds, it is prayed that the applicant/accused be released on bail.
8.

The respondent has resisted the application by filing
detailed reply at Exh ­ 2 by denying all adverse allegations. It is
CRI. BA 1487/2022
5
ORDER
contended that the applicant is the director of M/s. Top Nice
International Trading Ltd. at Hong Kong. He had visited Hong Kong to
open a company at the office of the Registrar at Hong Kong and then
submitted the documents in HSBC Bank at Hong Kong to open the
account. In the said account, foreign outward remittances from account
of M/s. Yogeshwar Diamonds Private Ltd., was sent, based on forged
and
fabricated
documents.

It
is
further
submitted
that
the
applicant/accused has been monetarily benefited from the scam, which
was based on forged and fabricated Bill of Entry and its enclosures.
These documents were used as genuine while submitting in the banks
and later on foreign outward remittances were sent to Hong Kong. It is
submitted that the co­accused in the case are yet to be arrested and
considering the role of applicant/accused, the application deserves to be
rejected.
9.

Heard both sides. Perused papers on record. It reveals that
the E.D. has recorded statements of applicant under provisions of
Section 50 of Prevention of Money Laundering Act, 2002 on
22.05.2017.
10.

On perusal of copy of said statement, it reveals that
accused has admitted the facts in respect of opening of the company by
name M/s. Top Nice International Trading Ltd. On the instructions of
co­accused Manish Babel, who was also working as a broker in Opera
House. In the said statement, he has said that as he wanted to obtain
the loan from the bank in Hong Kong at lower rate of interest for his
business purpose, therefore, he had opened the said company at the
instance of Manish Babel. He further stated that he got a device to
operate the said bank account from anywhere in the world. The said
CRI. BA 1487/2022
6
ORDER
device was used for transfer of funds. Thereafter, in the month of June,
2014, he had sold the said company to one Mr. Sabirbhai, but his name
was not changed from the directorship. He had closed the bank account
in the month of February, 2015. E.D. has further recorded the statement
of applicant on 23.05.2017 wherein he has clearly stated that he has
not signed on the documents like Bill of Entries and no export had
taken place against the said documents. The applicant/accused has
clarified that during the period October, 2012 to May, 2014, Manish
Babel had used his company account and sent remittances to the
company account from the Indian based companies.
11.

The E.D. has also recorded the statement of Manish Babel
on 23.05.2017 wherein, he has admitted that for transferring the funds
from the account of M/s. Top Nice International Ltd. to other local
companies as directed by Akash Jain and for that purpose, he used the
device given by the applicant/accused. He has further disclosed that on
account of using the said account, he had received a commission of
Rs.4,00,000/­ and from that he had paid an amount of Rs.2,50,000/­ to
the applicant/accused.
12.

On perusal of statement of applicant/accused, and Manish
Babel, it is clear that except by way of opening the account in the name
of company at Hong Kong and receiving the commission for use of said
account, no other role is attributed to the applicant/accused in the
commission of offence. From the statement of Manish Babel, it reveals
that he had handed over the device to Akash Jain for transfer of the
funds to the account of applicant/accused and in pursuance of thereof,
Akash Jain had remitted huge foreign remittances from its Indian based
company to the account of applicant/accused at Hong Kong. Thus, the
CRI. BA 1487/2022
7
ORDER
material placed on record reveals that the applicant/accused is not the
apparent beneficiary of crime proceeds. It is also not the case of
Investigating Agency that applicant/accused is the signatory of any of
the documents allegedly forged.
13.

In view of foregoing discussion, it is evident that no
purpose is going to be served by way of further detention of the
applicant/accused behind the bars. Considering the nature and extent
of role of the applicant/accused in the commission of offence, this court
is of view that he deserves to be released on bail but on certain
conditions. Hence, following order.
:ORDER:
1.

Bail Application No.1487 of 2022 is hereby allowed.

2.

The applicant/accused Harakchand Manmal Shah, arrested in
Case No. 93 of 2015, EOW, Mumbai, at the instance of CBI, EOW,
Mumbai, be released on bail on his executing P. R. Bond of Rupees One
Lakh only with one or two solvent sureties in the like amount, on the
following conditions:­
a.

The applicant/accused Harakchand Manmal Shah, shall
mark his attendance with the Investigating Officer as and when
required under written intimation by the Investigating Officer,
till further orders.
b.

The applicant/accused Harakchand Manmal Shah, shall
furnish
his
permanent
residential
address
alongwith
documentary proof of his address and cell number of himself and
CRI. BA 1487/2022
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ORDER
his two close relatives and change in address, if any, before the
Trial Court.
c.

The applicant/accused Harakchand Manmal Shah, shall
not leave the territory of India without prior permission of Trial
Court and surrender his Passport, if any, to the Registrar of the
Trial Court, as condition precedent for his release on bail.
d.

The applicant/accused Harakchand Manmal Shah, shall
not directly or indirectly make any inducement, threat or any
promise to any person acquainted with the facts of the case so as
to dissuade him from disclosing such fact to the Court or to any
Police Officer or tamper with the evidence.
e.

The applicant/accused Harakchand Manmal Shah, shall
not indulge into any criminal activities during the bail.
3.

In the event of breach of any of the conditions as above, the
prosecution is at liberty to move the Court for cancellation of bail.
4.

Application is hereby disposed off accordingly.

Anand
Pandurang
Kanade
Digitally signed
by Anand
Pandurang
Kanade
Date:
2022.07.25
15:04:43 +0530
(Anand P. Kanade)
Addl. Sessions Judge
Sessions Court,
Mumbai. C.R. 60
CRI. BA 1487/2022
Dictated on
Transcribed on
Date of sign
: 08.07.2022
: 11.07.2022
: 25.07.2022
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ORDER
CRI. BA 1487/2022
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ORDER
“CERTIFIED TO BE TRUE AND CORRECT COPY OF THE ORIGINAL
SIGNED JUDGMENT/ORDER”
25/07/2022
, 4.00 p.m.
UPLOAD DATE AND TIME
Mr. Prasad S. Pednekar
NAME OF STENOGRAPHER
Name of the Judge (with Court
Room No.)

HHJ Anand P. Kanade,(C.R.No.60)
Addl. Sessions Judge.,City Civil &
Sessions Court,
Date of pronouncement of /Order
08.07.2022
Order signed by P.O. on
25.07.2022
Order uploaded on
25.07.2022