January 22, 2024 | Mumbai: In a significant legal development, the Additional Sessions Court in Mumbai has granted bail to businessman Krishna Bhagar Dalai, who was arrested in connection with a cyber fraud case involving a forged cheque of Rs. 1.63 crore. The court allowed his bail application on the grounds that the investigation had been completed and a charge sheet had already been filed.
Case Background
The case originated from an alleged fraudulent transaction reported by the Chief Manager of the Bank of Baroda. Between August 14 and August 24, 2023, a forged cheque worth Rs. 1,63,61,040/- was processed through the bank’s Cheque Truncated System (CTS). The cheque, issued in favor of YS Apparels of Ujeevan Small Finance Bank, was identified as fraudulent, prompting the bank to lodge an official complaint with the South Zone Cyber Police Station in Mumbai. Consequently, a criminal case (C.R. No. 24/2023) was registered under multiple sections of the Indian Penal Code (IPC) and the Information Technology (IT) Act.
Allegations Against the Accused
Krishna Bhagar Dalai, aged 45, a resident of Kalyan (West), was arrested on August 26, 2023, in connection with the case. The prosecution contended that a substantial portion of the defrauded amount—Rs. 1,15,50,000/-—was transferred to Dalai’s bank account. Given the serious nature of the allegations, including forgery, fraud, and conspiracy, the authorities opposed his bail plea, arguing that releasing him could impact the ongoing investigation and allow him to tamper with evidence or threaten witnesses.
Court’s Observations
During the bail hearing, Dalai’s defense, led by Advocate S.A. Dubey, argued that he had been falsely implicated and that he had already undergone custodial interrogation. The defense pointed out that since no further recovery was pending and the charge sheet had been filed, continued incarceration was unnecessary.
Judge Rajesh A. Sasne of Court Room No. 30 acknowledged that Dalai had been in custody for more than three months and emphasized that the trial would likely take a long time. The court ruled that at this stage, it was not necessary to assess the merits of the case but rather to ensure that appropriate conditions were imposed to secure Dalai’s presence at trial.
Bail Conditions
The court granted bail to Dalai under the following conditions:
- He must furnish a personal bond and a surety bond of Rs. 50,000/- with one or two sureties.
- He is prohibited from tampering with prosecution witnesses or evidence.
- He must regularly attend court hearings unless exempted by the court.
- He must provide his contact details and current address to the investigating officer and inform the court of any changes.
- He is not permitted to leave India without prior court approval.
- He has been granted provisional cash bail, but he must furnish surety within four weeks of release. Failure to do so will result in the forfeiture of the cash bail.
Legal Implications
The case highlights the growing concerns regarding financial fraud and cybercrimes in India, particularly those involving banking institutions. While the bail decision offers temporary relief to Dalai, the trial proceedings will determine his ultimate fate. The prosecution is expected to present evidence linking him to the fraudulent transaction, while the defense will continue to argue his innocence.
Conclusion
As cyber-related financial crimes continue to rise, legal and banking institutions are under increased pressure to implement stringent measures to prevent fraud. The outcome of this case will be closely watched as it may set a precedent for similar cases in the future.
For now, Krishna Bhagar Dalai walks free on bail, but the legal battle ahead remains significant.