Mumbai, January 25, 2024 – In a significant legal development, the Sessions Court has granted bail to Deepak Prataprai Dani, the accused in a large-scale financial fraud case involving a forged Life Insurance Corporation (LIC) policy and fraudulent bank loans. Dani is accused of being involved in a conspiracy to defraud Punjab and Sind Bank by using fake documents to secure loans totaling Rs. 1.32 crore.

The case, which was registered at Dadar Police Station in April 2023, involves allegations of fraud, forgery, and criminal conspiracy under Sections 406, 420, 465, 467, 468, 471, and 34 of the Indian Penal Code. According to the prosecution, Dani, along with co-accused Rani Durairaj and Sonali Borse, used forged LIC policies to avail loans from the bank. These loans were sanctioned against fake policies, and the money was subsequently misappropriated.

Allegations and Investigation

The fraud came to light when the bank’s manager, Raghav Shambunath Rajan, discovered that the LIC policy used to secure Dani’s loan was forged. The policy, which was purportedly issued in Dani’s name, was found to be non-existent, and further investigation revealed that other policies in the names of co-accused were either forged or had lapsed. In total, a loan of Rs. 1.32 crore was disbursed by the bank, based on these fraudulent policies.

The applicant, Dani, was arrested and charged in connection with the case. However, his defense lawyer, Advocate Kapil Dave, argued that Dani was not directly involved in the forgery and that he was deceived by the main conspirator, Rani Durairaj. Dani contended that he was unaware of the fraudulent nature of the documents submitted to the bank and had only received a sum of Rs. 1.5 lakh from the loan proceeds. Dani also asserted that he was an aggrieved party in the conspiracy, having been manipulated by the co-accused.

Prosecution’s Response

The prosecution, represented by APP Pankaj Chavan, opposed the bail application, citing several key points:

• Dani’s involvement in the loan process, including his submission of key identification documents such as his Aadhaar and PAN cards, and his presence at the bank to sign the loan documents.
• Evidence that Dani transferred the loan amount to various bank accounts and received a portion of the funds.
• Dani’s alleged false representation of his address to the bank, and his absconding after being issued a notice under Section 41(A)(1) of the Criminal Procedure Code.
• Previous criminal charges against Dani, including two separate cases of cheating and forgery registered against him in Gujarat and Mumbai.

Additionally, the prosecution argued that Dani might attempt to flee justice, as he had not cooperated with the investigation in the past.

Court’s Observations and Decision

After considering the arguments from both sides, Additional Sessions Judge S.B. Pawar observed that while Dani was involved in the loan transaction, it appeared that he was not the primary beneficiary of the fraudulent scheme. The judge noted that the main role in the fraud was played by Rani Durairaj and Sonali Borse, who were the masterminds behind the forged LIC policies and the fraudulent loan process.

Despite the applicant’s involvement in the fraudulent transaction, the court noted that Dani was not the primary beneficiary of the entire loan amount. Dani had only received Rs. 1.5 lakh, and he had already undertaken to repay this amount to the bank. The court also took into account that the investigation was complete and a charge-sheet had been filed against Dani and the main accused.

The judge ultimately granted bail, considering that the applicant had no previous criminal history of similar fraud and had already repaid part of the amount. The court outlined several conditions for bail, including a bond of Rs. 30,000 and sureties, and ordered that Dani must refrain from tampering with evidence, contacting witnesses, or committing similar offenses while on bail.

Bail Conditions

Dani was released on bail under the following conditions:

1. He must execute a personal bond of Rs. 30,000 and furnish one or two sureties in the same amount.
2. He must refrain from making any attempts to intimidate or influence witnesses or tamper with evidence.
3. Dani is prohibited from contacting the informant or witnesses until the trial concludes.
4. He is required to provide his permanent address and contact details to the police within seven days of his release.
5. Dani must attend all trial proceedings regularly.
6. He must comply with the undertaking to repay the loan amount of Rs. 1.5 lakh, as mentioned in his application.

Additionally, the court granted provisional cash bail of Rs. 30,000 for a period of six weeks, with the condition that failure to adhere to the bail conditions will result in cancellation.

Implications and Future Developments

The case continues to unfold as investigations into the roles of the other co-accused progress. The main conspirators, Rani Durairaj and Sonali Borse, are already in custody, and their involvement in forging multiple documents has been revealed in statements from other witnesses. Dani’s role in facilitating the loan process appears to have been one of unwitting involvement, though the court has emphasized that he was still complicit in the fraudulent transactions.

As the trial continues, the court will examine further details of the conspiracy, including the role of other individuals who may have been used to launder the stolen funds through mule accounts. Dani’s bail is contingent on his continued cooperation with the legal process and the fulfillment of all conditions set by the court.

This ruling sheds light on the complex nature of financial fraud schemes and underscores the court’s careful consideration of both the applicant’s involvement and the broader context of the crime.