Mumbai, December 23, 2015 – The Designated Court under the Maharashtra Protection of Interest of Depositors (MPID) Act, at the Bombay City Civil & Sessions Court, granted bail to Akashrai Subodh Tyagi @ Harshit Atre, a 35-year-old unemployed individual, who was arrested in connection with a multi-crore investment fraud case (C.R. No. 33 of 2012) registered with the Economic Offences Wing (EOW), Unit-11. The order was passed by Special Judge, MPID Act, D. P. Surana (C. R. No. 36).

Tyagi, a director of the financial establishments “Red Carpet Entertainment Private Limited and Red Carpet Finance Pvt. Ltd.,” was arrested on December 8, 2015. The prosecution alleged that these establishments fraudulently defaulted on deposits from around 25,000 investors, amounting to ₹117.90+ crores, with approximately ₹40 crores of investors’ deposits being duped. Tyagi was booked under sections 420 (cheating), 406 (criminal breach of trust), 120-B r/w. 34 (criminal conspiracy with common intention) of the Indian Penal Code (IPC), sections 3, 4, 5, and 6 of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978, and section 3 of the MPID Act.

Advocate Karnik appeared for the applicant, while SPP Advocate Malankar and IO API Dhus represented the Respondent/State and the investigating agency, respectively.

Despite opposition from the prosecution, the court noted that none of the offenses leveled against Tyagi carried a punishment exceeding 7 years. The court also observed that the applicant had been sufficiently interrogated since his arrest on December 8, 2015, and the case primarily involved documentary evidence. Furthermore, significant properties of the financial establishments had already been secured in connection with the crime.

The Investigating Officer (IO) himself informed the court that ₹7.5 crores in cash was still in the bank account, ₹8 crores had been sent to the Delhi Patiala Court, 31 immovable properties of the financial establishments were secured for attachment, and a substantial amount of ₹77.74+ crores had already been refunded to investors by the applicant. The applicant’s residential address in Andheri (West), Mumbai, was also not disputed.

The court opined that the seized properties and the amount in the bank could potentially address the depositors’ losses. Under these circumstances, Special Judge Surana found no justifiable reason to keep the applicant in custody.

Consequently, the court ordered the release of Akashrai Subodh Tyagi @ Harshit Atre on bail, subject to the following conditions:

• He shall execute a Personal Bond (PB) of ₹5 lakhs with one or more sureties of a like amount.
• He shall mark his presence with the IO on alternate days at the office of EOW, Unit-11, between 10:00 am and 1:00 pm, and as and when called by the IO.
• He shall cooperate with the investigating agency.
• He shall not tamper with the evidence or witnesses in any manner.
• He shall not dispose of any immovable properties in his name or in the name of the financial establishments without the permission of the Designated Court.
• He shall surrender his passport to the IO and shall not leave Mumbai until the filing of the chargesheet, and thereafter, shall not leave India without the permission of the Designated Court.

On the request of Advocate Karnik, the court also allowed the provisional release of the accused on a cash bail of ₹5 lakhs for a period of 8 weeks. This amount was to be accepted even after treasury hours.

This order highlights the court’s consideration of factors such as the nature of the offenses, the progress of the investigation, the recovery of funds and assets, the accused’s cooperation, and the potential for securing the depositors’ interests while deciding on bail in MPID Act cases. The imposition of stringent conditions aims to ensure the accused’s presence for trial and prevent any obstruction of justice.