Mumbai, March 6, 2024 — The Sessions Court of Greater Bombay has granted bail to businessman Arun Kumar, who was arrested in connection with an alleged investment fraud case amounting to Rs. 18.2 crore. The court approved Kumar’s bail plea on March 2, 2024, imposing strict conditions, including a personal bond of Rs. 10 lakh and compliance with a repayment schedule.
Background of the Case
The case, registered under C.R. No. 21/2023 with the Economic Offences Wing (EOW), involves allegations against Kumar and two co-accused, Pritesh Mungmode and Shreyas Salao. The complainant, Saroj Bhosale, along with other investors, claimed they were lured into investing in Kumar’s stone crusher business under the promise of high returns.
According to the prosecution, Kumar and his associates allegedly persuaded investors to invest substantial amounts, promising returns of Rs. 7.5 lakh per quarter. While initial payments were made to some investors, the accused later defaulted on both the principal and promised returns. Bhosale alone had invested Rs. 1 crore through bank transfers to Popular Infracon, a partnership firm linked to Kumar and Mungmode.
Court Proceedings and Bail Conditions
During the bail hearing, Kumar submitted a voluntary affidavit-cum-undertaking stating his willingness to repay the invested amount in nine installments. The prosecution and the complainant filed objections but later recorded ‘No Objection’ to Kumar’s conditional release, provided he adheres to the repayment schedule.
Judge S.M. Tapkire of the Additional Sessions Court, in granting bail, considered the following factors:
- The charge sheet was filed on September 28, 2023.
- Kumar had been in custody since November 21, 2023.
- The co-accused, Mungmode, is also in custody, while Salao remains absconding.
- Kumar’s undertaking to repay the complainant was taken into account as a sign of good faith.
The bail was granted under the following conditions:
- Kumar must execute a personal bond of Rs. 10 lakh with one or two solvent sureties.
- He must not tamper with evidence or influence witnesses.
- He must comply with his repayment schedule without fail.
- He must attend all trial dates regularly.
- He must not engage in any criminal activities.
- He cannot leave India without prior court permission.
- He must provide proof of residence and contact details to the authorities.
Legal Implications and Next Steps
While Kumar’s release brings temporary relief, the case against him and his co-accused remains ongoing. Investigators are still pursuing absconding accused Shreyas Salao, while Mungmode awaits further legal proceedings. The court has also mandated strict adherence to the repayment plan, failing which Kumar could face further legal consequences.
The case highlights the risks associated with high-return investment schemes and underscores the importance of investor due diligence. The trial will proceed with further hearings to determine the full extent of the alleged fraud and the accountability of those involved.
