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Order on BA 38-24
MHCC020002292024
BEFORE THE DESIGNATED COURT UNDER M.P.I.D. ACT
CITY CIVIL & SESSIONS COURT, MUMBAI
ORDER ON BAIL APPLICATION NO.38 OF 2024
IN
C.R. NO.65 OF 2023
Romin Chandrakant Chheda
Aged : 42 years, Occ : Business
Residing at 2101-2102, Kent Garden CHSL,
TPS Road, Next to BES College,
Borivali (W), Mumbai 400 092
(At present in judicial custody and lodged at
Arthur Road Central Prison)
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Applicant/
]… Accused
Versus
The State of Maharashtra
(Through EOW, Mumbai)
]
]… Respondent
Appearances:Ld. Advocate Ayush S. Pasbola a/w Ld. Advocate Prajyot Srivastav for
the Applicant.
Ld. SPP Seema Deshpande for the State/ Respondent.
CORAM : HER HONOUR JUDGE
ADITEE UDAY KADAM,
(Court Room no. 7)
DATE : 30th January, 2024.
ORAL ORDER
1.

The present application is moved by the Applicant/Accused
Romin Chheda resident of Borivali (W), Mumbai under Section
439 of The Code of Criminal Procedure, 1973 for grant of regular
bail.

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2.

Order on BA 38-24
A case being C.R. No.65 of 2023 is registered with EOW,
Mumbai (F.I.R. No.0929 of 2023 registered with Nagpada Police
Station) against the present Applicant for the offences punishable
under Sections 218, 418, 465, 467, 468, 471 r/w Sections 34 and
120(B) of the Indian Penal Code, 1860 (hereinafter referred as
“IPC”).

3.

Application is resisted by the Prosecution by filing it’s say at
Exhibit-2.

4. Prosecution case in nutshell is as under :-
During Covid-19 upsurge in 2021, the Municipal Corporation
of Greater Mumbai (hereinafter referred as ‘M.C.G.M.) approved
two (2) tenders in favour of applicant for installation of oxygen
generation plants. Out of these two (2) tenders for installation of
oxygen generation plants, one was for installation at nine (9)
M.C.G.M. Hospitals and other was for installation at Jumbo Covid
Centers and the contractor had to complete the installation work
of the oxygen generation plants within thirty (30) days at the site
hand over to the contractor. As per the tender conditions the
oxygen generation plants were not commissioned within thirty
(30) days and therefore a penalty of Rs.3,16,32,426/- (Rupees
Three Crores Sixteen Lakhs Thirty Two Thousand Four Hundred
Twenty Six only) was levied. Subsequent to the completion of
installation the applicant’s firm delivered the oxygen generation
plant to the respective hospitals by way of handing over and
taking over report. It is alleged that the said report was not
signed by the Designated Authorities with dates except for three
MCGM hospitals and therefore, the oxygen generation plant was
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not completed prior to 01.09.2021 and it was completed during
October 2021, but to reduce penalty forged documents were
prepared without putting dates on it. Thereby, huge financial
scam is done by the applicant by making collusion with other
accused who may be the authorities of MCGM or of hospitals.
5.

Heard the Ld. Advocate for the Applicant and Ld. SPP for the
State at length.

6.

Ld. Advocate for the applicant submitted that the allegations
in the report are based on contractual liability of the applicant in
respect of agreement for installation of oxygen generation plants.
Pressurized Swing Absorption (PSA-2) was allotted to the
applicant on 27.09.2021 with purchase order value of Rs.53
Crores. There is no case against PSA-2 but in respect of PSA-1
value of Rs.68.88 Crores, there was penalty for delay in
commissioning was 1% per week on PO value to maximum of
10% of it. There is difference in the say by Investigating Agency
that initially it contended that the oxygen is generated only in
October but now it is the contention of Investigating Agency that
oxygen samples were collected from 4 hospitals on 12.08.2021
and from 5 hospitals on 13.08.2021. In fact, all test reports are
subsequent to collection of oxygen samples of the said dates.
There is no allegation as to purity of oxygen or that the test
report is fabricated. In such circumstances, prima facie case is
vitiated. PSA-1 arranged the supply of copper pipes to third party
vendor and therefore, document for copper pipe for PSA-1 was
not readily available for the applicant. Later on, applicant was
able to locate the third party copper pipe vendor viz. Janya
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Extrusions Pvt. Ltd. and collate the copies of invoice for copper
pipes supplied for PSA-1 dated 15.07.2021. Ocular evidence to
that effect is readily available through you-tube ABP news report
published on 29.07.2021. Furthermore, it is submitted that
handing over and taking over reports were of certain past events.
The HOTOR records the report number and the date of report
and also states that installation includes oxygen pipeline. Thus, it
clarifies all the transactions. Howsoever it may be, the State
/Respondent has already recovered penalty. The allegations of
forgery cannot hold because there is no basis that the applicant
has either forged any signature or document etc. Other charges
leveled against applicant are bailable one. Applicant is behind
bar since 24.11.2023. Most of the investigation is completed and
therefore, there is no need to languish the applicant behind bar.
Hence, it is submitted that the applicant be released on bail. In
support of his contention, he relied on the following authority:1.

7.

Md. Ibrahim and Ors. Vs. State of Bihar reported in AIR
2010 SC (SUPP) 347 wherein it is held that, ‘a person is said
to have made a ‘false document’, if (i) he made or executed
a document claiming to be someone else or authorised by
someone else; or (ii) he altered or tampered a document; or
(iii) he obtained a document by practicing deception, or
from a person not in control of his senses.’
Per contra, Ld. SPP argued that the applicant on behalf of
Highway Construction Company had completed the project.
There is evidence to indicate that he has made collusion with
MCGM officials. There are suspicious circumstances that he has
obtained oxygen sample report within 2 days from Highdel
Laboratories Ltd. from Gaziyabad, Uttar Pradesh. In that regard,
investigation is going on. Further it is pointed out that the
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applicant has supplied the goods to the hospitals during
September 2021 to December 2021 whereas, it should have been
completed within 30 days i.e. upto 16.07.2021. Handing over and
taking over reports does not bear signatures of concern
authorities. Only in GTB, Kasturba and KEM hospitals, there are
dates mentioned as 12.10.2021, 11.10.2021 and 30.10.2021
which is after the limitation prescribed as per agreement. In fact,
huge financial scam is committed during the span. Thorough
investigation is to be done. Such plants were installed in 9 MCGM
hospitals and thereby, it is necessary to collect documentary
evidence from the various departments of those hospitals.
Therefore, it the applicant would be released on bail, there is
every possibility that he may tamper with prosecution evidence.
Applicant is not qualified person to obtain such tender but he has
manipulated the process and secured the same for unlawful gain.
Investigation is in progress. Therefore the application filed by the
applicant be rejected.
8.

On perusal of record it reveals that the applicant has
obtained the contract and penalty to the tune of Rs.3.16 Crores
for default / delay in installation of oxygen plants is levied. He
has duped additional penalty of Rs.6 Crores by making collusion
with other accused. Statements of witnesses recorded by the
Investigating Officers clearly indicates that the handing over and
taking over report were obtained in the month of October 2021.
Suspect is created since inception i.e. obtaining tender without
possessing sufficient qualification for the same and obtaining
reports from the Laboratories at another State. Some reports of
handing over and taking over does not bear dates of signing the
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same. It cannot be taken as mere irregularity. It seems that this is
not only in regard with duping substantial amount of fine and
causing loss of public money but much more than that.
9.

All these transactions / activities were done during April
2021 to January 2022, but it was revealed in 2023. In all, 9
hospitals are involved along with MCGM authorities. Reason for
delay, intention behind the act committed by applicant and
whether there was misuse of grant of tender during the Covid
period is to be find out. Applicant is regular contractor of MCGM.
Admittedly, he has secured 57 tenders from MCGM though 117
tenders of the applicants were refused. As per the prosecution,
applicant has received tender price to the tune of near about
Rs.130 Crores. Thus, huge public fund is involved in the case.
Forensic audit is yet to be done. Possibility of tampering of
document for disappearing the evidence of offence, cannot be
ruled out. Therefore, at this stage, final remark as to applicability
of forgery cannot be passed on.

10.

Allegations in the F.I.R. and the investigation, the statement
of witnesses corroborates the case of prosecution as to swindle
committed during the process of installation of oxygen plants,
obtaining tender, supply and completion of the procedure of
handing over and taking over etc. Prima facie it reflects that the
act is committed with pre-planned – conspiracy. Merely because
the fine would be imposed, it cannot be termed as ‘civil dispute’.
On the contrary, acuity of the offence is much more than it prima
facie looks. Uncontroverted allegations reflected in the material
on record, prima facie reveals the complicity of the applicant in
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the alleged offence which involves huge financial scam of public
fund. It is necessary to investigate the matter in it’s true sense. In
such circumstances, if the applicant would be released on bail,
there is every possibility that he may flee away from justice and
tamper with the prosecution evidence. Hence, the following order
is passed :ORDER
1. The present Bail Application No.38 of 2024 filed by the
Applicant/ Accused Romin Chandrakant Chheda in connection
with C.R. No.65 of 2023 is registered with EOW, Mumbai (C.R.
No.929 of 2023 registered with Nagpada Police Station) against
the present Applicant for the offences punishable under Sections
218, 418, 465, 467, 468, 471 r/w Sections 34 and 120(B) of the
Indian Penal Code, 1860 is hereby rejected
2. The present Bail Application No.38 of 2024 is disposed off
accordingly.
(Dictated and pronounced in the open Court.)

Date: 30/01/2024
Mumbai
(ADITEE UDAY KADAM)
Designated Judge under
The Maharashtra Protection of
Interest of Depositors Act, 1999,
for Gr. Bombay
Dictated directly on computer: 30/01/2024
Signed by HHJ on
: 30/01/2024
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Order on BA 38-24
“CERTIFIED TO BE TRUE AND CORRECT COPY OF THE ORIGINAL SIGNED
JUDGMENT /ORDER”
30.01.2024 at 10.31 a.m.
UPLOADED DATE AND TIME
Ms. R. D. Tari
NAME OF STENOGRAPHER
Name of the Judge (with Court Room no.)

H.H.J. A. U. Kadam
C.R. No.07
Date of Pronouncement of Judgment/Order
30.01.2024
Judgment /Order signed by P.O. on
30.01.2024
Judgment/Order uploaded on
30.01.2024