CRI. BA 1498/2022
1
ORDER
MHCC020081702022
IN THE COURT OF SESSIONS FOR GREATER BOMBAY
AT MUMBAI
CRIMINAL BAIL APPLICATION NO. 1498 OF 2022
( CNR NO.: MHCC02­008170­2022 )
Ramesh Vitthal Shirgaonkar
Address ­ Flat No. 404, B­ Wing,
4th Floor, Madhuvan, Shimpoli,
Gorai Road, Chickuwadi,
Borivali (W), Mumbai ­ 400 086
V/s.

…Applicant/Accused
The State of Maharashtra,
(At the instance of Economic Offences
Wing (E.O.W.) vide C.R.No. 14/2020)
…Respondent/State.

Appearance:­
Shri. Waghmare , Advocate 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 : 30.07.2022.
ORDER
1.

Vide present application under Section 439 of Code of
Criminal Procedure, the applicant requested to release him on bail in
Crime No. 14 of 2020 registered at Economic Offences Wing (E.O.W.)
for offences punishable under Sections 420, 409, 120­B r/w. Sec. 34 of
CRI. BA 1498/2022
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ORDER
Indian Penal Code.
2.

Anandrao Vithoba Adsul is the chairman of the City Co­
operative Bank Ltd. He filed report with N.M. Marg Police Station. On
that basis, crime No. 204 of 2020 has been registered against the
applicant/accused. Thereafter, that crime was transferred to the EOW,
Mumbai. On that basis of crime no. 504 of 2022 has been registered.
The applicant/accused came to be arrested on 16.05.2022 and on
25.05.2022, applicant/accused is in judicial custody.
3.

In brief, prosecution case is as under:­
It is alleged that due to Reserve Bank of India audit in the
year 2014­2015, it was learnt to the complainant that there were illegal
transactions done by present applicant/accused and Mr. Vinayak Joshi.
Accordingly, on 02.06.2006, complainant lodged complainant at EOW,
Mumbai. The applicant and Vinayak Joshi were the General Manager
and Chief Executive Officer of the bank from 10.11.2010 to 31.05.2015
and they had recommended loan proposals to the directors by abusing
their posts, since the loan were not repaid therefore, the borrowers have
cheated the Bank and complainant therefore, complainant requested to
EOW, Mumbai to inquire in the same. As such, the EOW, Mumbai vide
their letter dated 04/07/2017 had asked the complainant to get the
Special Audit Report from Co­Operative Commissioner and Registrar.
4.

Accordingly, complainant vide his letter dated 15.07.2017
had requested Co­Operative Commissioner and Registrar of the Co­
Operative Societies, Maharashtra State, Pune to appoint auditor for
conducting inquiry against the mismanagements by its Ex­General
Manager/CEO for the period from 10.11.2010 to 31.05.2015.

CRI. BA 1498/2022
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ORDER
Accordingly, Mr. Ramrao Shirke Special Auditor, Class – I was
appointed as Special Auditor. Thereafter, said Special Auditor had
submitted his report on 10.12.2018 by making thorough inquiries in
respect of NPA loan files to the Commissioner and Registrar of Co­
Operative Society and copy of the same was forwarded to the
complainant as he being chairman of City Co­operative Bank Limited. In
the special auditor’s report, it reveals that bank officers did not ascertain
the KYC from the borrowers and they did not update the same. The
senior management officials were aware that borrowers and their
guarantor have not repaying capacity even then they recommended
such loan proposals. The present applicant/ accused who was the
Ex­CEO of Maratha Co­Operative Bank Ltd had brought take over loans
from the Maratha Co­Operative Bank Ltd and in those loans, he had
shown bogus stock and book debts. It was incumbent upon the branch
managers to take possession of the stocks of materials when the
accounts were NPA. After selling out the said stock to the sale price was
not deposited in the outstanding loans accounts. Therefore, the loans
become unsecured and caused financial loss to the bank. In the relevant
period, cash credit accounts were shown along with bogus stocks
statement and book debts and thus, bank was cheated with common
intention. In the take over loans, it has been revealed that the loan
amount was used to repay the loan of the borrower. The present
applicant/accused and Joshi had extended additional adhoc limits to
the cash credit and other loans without taking Board of Directors into
confidence, just because the said cash credit and other loan account
cannot be seen NPA’s. Some new loans as well as renewal of loan
amounts have been disbursed to the said borrowers, who have
outstanding and NPA loan accounts and therefore, loss has been caused
to the bank. Present applicant/accused is also figured as an accused in
CRI. BA 1498/2022
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ORDER
the case of Maratha Co­Operative Bank Ltd and it was mentioned in the
same that while he was CEO in that Bank had illegally disbursed the
loan. In the special audit report, it reveals that the applicant/accused,
Vinayak Joshi concerned officer and employee and others were the
trustees of the amounts of depositors, have mingled their minds with
the authorised valuer and the concerned borrowers have caused loss of
Rs. 96,45,47,785/­ to the bank.
5.

Applicant/accused has filed the present application to
enlarge him on bail. He raised grounds that he is innocent and has
nothing to do with alleged offence. Duties casted upon the present
applicant was to supervise the work and therefore, it was not at all
possible to look into each and every proposals minutely. None of the
loan
transaction
has
been
initiated
and/or
finalised
by
the
applicant/accused independently. All the loans proposals were being
brought before the Board of Directors and the same were initiated by
the concerned branch manager of the bank and routed through their
immediate senior supervisory officials and lastly it used to come before
the present applicant/accused, therefore, the applicant/accused did not
have much role to play in preparation of the loan proposal or to make
any favour to any borrower in their proposals. The board of directors
was the final authority to sanction and/or order the disbursement of the
loan by verifying the reports submitted to them and thus, just tossing
the responsibility over the shoulder of the present applicant/accused
would not suffice the purpose and the same thing is required to be
taken adversely. The period of audit alleged to have been commenced
from 10.11.2010 till 31.05.2015. The complaint lodged in the year
2020 and there is delay in lodging the complaint by 10 years. The
applicant is aged about 79 years and suffering from severe physical
CRI. BA 1498/2022
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ORDER
illness. He has to undergo continuous medication. Nothing has been
recovered or discovered at the instance of applicant/accused. The
applicant do not possess his passport, therefore, there is no possibility
of his abscondence. The allegations of irregularities or negligence are in
respect of 56 loan proposals out of which only 12 have been sanctioned
during the service period of present applicant and that too the loans
have been sanctioned by the Board of Directors at their exclusive
discretion. On the aforesaid grounds, applicant prayed to enlarge him
on bail.
6.

The Ld. Addl. P.P. and I.O. submitted their say at Exh – 2
and resisted the bail application. It is submitted that the present
applicant has played the major role in the said offence. The
applicant/accused has misused his position for sanctioning illegal loans
and that loans have not been repaid by the borrowers, therefore, the
bank has sustained loss. In the audit report, it reveals that 56 loans
were sanctioned illegally. Many of the irregularities and illegalities
found in the said loan sanction files. Due to which approximately more
than Rs.96 crores loss has been caused to the bank. In the said
transaction present applicant accused has received commission amount
of Rs. 88 lakhs. There is possibility of tampering of prosecution evidence
if the applicant/accused is enlarged on bail. There is huge amount of
public involved in the offence. On the aforesaid grounds it is prayed to
reject the bail application.
7.

Heard both the sides. Perused police papers on record. It
reveals from the model bylaws of the bank, that the CEO shall be
functional director of the board. Applicant has admitted that he was
CEO of bank. During the course of investigation, I.O. recorded the
CRI. BA 1498/2022
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ORDER
statement of one borrower Hitesh Pandya. He stated that after sanction
of loan proposals in June, 2014. He paid amount of Rs. 24 lakhs to the
applicant. It also reveals that on 20.04.2014 Hitesh Pandya applied for
cash credit loan of Rs.3.5 crores and present applicant/accused
recommended for sanction of loan of Rs. 3 crores. In the audit
conducted for the period 10.11.2010 to 31.05.2015 conducted by
Ramrao Shirke. It was transpired that present applicant and other
officer of the bank recommended the loan proposals without verifying
the documents and without verification the stock and mortgage. In the
forensic audit report so far as staff accountability is concerned, it is held
that at the time of sanction of loan to Manohar Ahuja group, Thakkar
Group and Bharat Satra group present applicant was general manager
and CEO and has sanctioned and approved loans of above groups. After
going through the papers on record it reveals that allegations against
the present applicant accused are well founded. The investigation in the
present crime is going on. Huge amount of public is involved in the
present case. Considering the serious nature of offence, huge amount
involved in the present case and direct involvement of present
applicant/accused in the crime, I am of view that applicant/accused is
not to be enlarged on bail. In the result, I pass the following order.
:ORDER:
Criminal Bail Application No.1498 of 2022 is rejected.
Anand
Pandurang
Kanade
Digitally signed
by Anand
Pandurang
Kanade
Date:
2022.08.01
12:20:45 +0530
(Anand P. Kanade)
Addl. Sessions Judge
Sessions Court,
Mumbai. C.R. 60
CRI. BA 1498/2022
Dictated on
Transcribed on
Date of sign
: 30.07.2022
: 30.07.2022
: 30.07.2022
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ORDER
CRI. BA 1498/2022
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ORDER
“CERTIFIED TO BE TRUE AND CORRECT COPY OF THE ORIGINAL
SIGNED JUDGMENT/ORDER”
30/07/2022
, 5.40 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
30.07.2022
Order signed by P.O. on
30.07.2022
Order uploaded on
30.07.2022