B.A. 762 OF 2024
1
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MHCC020145742024
BEFORE THE DESIGNATED COURT UNDER M. P. I. D. ACT
CITY CIVIL & SESSIONS COURT, Gr. BOMBAY.
BAIL APPLICATION NO 762 OF 2024
IN
REMAND APPLICATION NO.1030 OF 2024
Prakash Aitappa Kotian
Age 56 years, Occupation : Business
Residing at B-6, Ambika Apartment,
Aachole Road, Nalasopara (East),
Taluka : Vasai, District : Thane,
( At present lodged in Arthur Road Jail at
Mumbai )
Applicant
Versus
The State of Maharashtra
(At the instance of M.I.D.C. police
station, Mumbai
The Senior Inspector of Police
Mulund police station, Mumbai
…Respondents
Coram : HHJ SHRI N.G. SHUKLA,
(Court No. 20)
Date
: 01.10.2024
Appearance:
Ld. Adv. Mr. Ravi Kotian for Applicant/accused.
Ld. APP. Mrs. Chaitrali Panshikar for the Respondent/State-EOW.
ORDER
(Dictated and pronounced in open court)
01.

By way of this application, applicant who is arrested in Crime No.

752 of 2021 of Mulund police station for the offences punishable under
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sections 406, 409 and 420 r/w 34 of The Indian Penal Code (hereinafter
referred as “IPC”) and Sections 3 and 4 of The Maharashtra Protection
of Interest of Depositors (in Financial Establishments) Act (hereinafter
referred as “MPID Act”) is seeking bail under Section 439 of the Code of
Criminal Procedure, 1973 (here in after referred as “Cr.P.C.” ).
02.

Prosecution filed reply (Exh.2) and opposed the application.

03.

Case of the prosecution in brief is that, applicant is director of
Malayaka Multi State Co-operative Credit Society (here in after referred
as “the said society” ). Accused No.1 Gilbert Paustine Baptis is the chairman
of the said society. It is alleged that, chairman and directors of the society
misrepresented to the 71 investors to invest money in the society. Applicant
and accused i.e other directors had not returned the money with interest to
the investors. Thereby applicant and other accused committed fraud of
Rs. 8,46,28,334/-.
04.

Ld. Advocate for applicant submitted that, applicant is not director but
he was employee in the society. He has no role in deception and inducement
of the investors. He had not siphoned money of the investors. Said allegation
is against accused Nos.1, his wife and accused no. 2. Similar crime arising out
of transaction of the society has been registered against the applicant and
other directors at Mira Road police station. Hon’ble High Court has granted
bail to the applicant in the said crime by order dated 06.11.2023, observing
the role that, applicant has not deceived and induced to investors. Therefore,
Ld. Advocate for applicant prayed to allow the application.
05.

Ld. APP submitted that, applicant was not simple employee but
he is director of the society. He was responsible for return of amount to
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the investors. Total 71 investors are cheated for amount of
Rs.8,46,28,334/-. If released on bail, applicant may tamper the
evidence. Hence Ld. APP prayed to reject the application.
06.

I have considered submissions and perused say of police. Charge
sheet is filed showing the applicant as wanted accused. It is alleged that
applicant is director of the society but no specific role attributed to
applicant in deception and actual collection of money from the investors
and in connection with misappropriation of said money by the
applicant. Such role is attributed to accused No.1, his wife and accused
No.2. It appears from copy of order dated 06.11.2023, passed by
Hon’ble High Court granting bail to the applicant in Criminal Bail
Application No. 974 of 2023 that, bail is granted to the applicant
considering the fact that no specific role is attributed to the applicant. In
the present crime also, except the vague allegation that applicant is
director of the society, no specific role is attributed showing that
applicant deceived and induced any investor to invest the money.
07.

Though prosecution has invoked sections 406 and 409 of the IPC
in this crime, but allegation leveled against all the accused is of
representation to the investors to give handsome benefit on investment
and thereby deceiving them to invest the money. Thus, there is no
entrustment of the property. Hence, sections 406 and 409 of the IPC
would not attract in the present crime. At the most Section 420 of IPC
would attract in the present crime. Reliance can be placed in on the
ruling in Delhi Race Club & Ors. Vs. State of Uttar Pradesh & Anr.
Decide on 23.08.2024 passed in Criminal Appeal No. 3114 of 2024,
wherein Hon’ble Supreme Court has reiterated the fine distinction
between the offences under Sections 409 and 420 of the IPC.

B.A. 762 OF 2024
08.

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As observed above, no specific role of deceiving and inducing the
investors is attributed to applicant. Even if he being employee or
director of the society, some responsibility would caste upon the
applicant which attract Section 3 of the MPID Act, punishment provided
to this offence is of six years. Hence considering nature of accusation
against the applicant and punishment provided to the offence which
would attract against him, I am of the view that applicant is entitled for
bail. Conditions can be imposed on the applicant to avoid tampering of
evidence and securing his presence for trial. Hence, I pass following
order.
ORDER
1.

Bail Application 762 of 2024 is allowed.

2.

Applicant/accused namely Prakash Aitappa Kotian be
released on bail on executing personal bond of Rs. 50,000/- (Rs.
Fifty Thousand Only) with one or two solvent sureties of the like
amount in Crime No. 752 of 2021 registered at Mulund Police
Station for the offences punishable under Sections 406,409 and
420 r/w 34 of the IPC and section 3 and 4 of The MPID Act.
3.

Applicant/accused shall attend each and every date of this
case and also attend Mulund Police Station on every second
Saturday in between 10.00 am to 11.00 am so as to ensure his
presence during trial.
4.

Applicant/accused shall not leave India without prior
permission of this court and deposit his passport with the
investigating officer.
5.

Applicant/accused shall submit residential proof of his
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address and his contact mobile numbers to the investigating officer
within two weeks after release from jail and update the same time to
time whenever it will be changed.
6.

Applicant/accused shall not threaten or influence the prosecution
witnesses and hamper further investigation.
7.

Applicant/accused shall not alienate his any immovable property
without prior permission of this court.
8.

The Bail Application 762 of 2024 stands disposed of accordingly.

(This order is directly dictated and typed on computer.)
Digitally signed by
NITIN GANGADHAR
SHUKLA
Date: 2024.10.04
15:44:47 +0530
( N.G. SHUKLA )
Designated Judge
(MPID Court), C.R.NO. 20
City Civil & Sessions Court,
Gr. Bombay.

Dt. 01.10.2024
Dictated on
Transcribed on
Submitted on
Signed on
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01.10.2024
01.10.2024
03.10.2024
04.10.2024
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CERTIFIED TO BE TRUE AND CORRECT COPY OF THE
ORIGINAL SIGNED JUDGMENT/ORDER”.
01.10.2024
Mrs. R. R. Hate
Name of the Judge
HHJ Shri N.G. SHUKLA
Date of Pronouncement of
judgment/order
01.10.2024
Judgment/order signed by P.O. 04.10.2024
(2.10.2024 holiday 03.10.2024 steno
was on dais till 1.30pm as typist and
sheristedar were doing their pending
office work)
Judgment/order uploaded on
04.10.2024