Mumbai, Maharashtra – May 11, 2022 – Ashish Bhatt, accused in a multi-million rupee fraud case involving a cooperative credit society, has been denied bail by the Sessions Court for Greater Bombay. Additional Sessions Judge M.G. Deshpande (C.R. No. 16) rejected Bail Application No. 991 of 2022, related to C.R. No. 335/2018 registered with BKC Police Station.
Bhatt, accused No. 1, was arrested and charged under Sections 406 (criminal breach of trust), 408 (criminal breach of trust by clerk or servant), 420 (cheating), and 34 (acts done by several persons in furtherance of common intention) of the Indian Penal Code (IPC).
Case Background:
The case stemmed from a complaint filed by Sushil Kumar Shridhar Shelar, who alleged that Laxman Dharma Patil had filed a writ petition on behalf of members of the Pfizer Employees Cooperative Credit Society Ltd., accusing the society’s directors of fraud and misappropriation. The High Court directed the Central Registrar, Agricultural Ministry, New Delhi, to investigate the matter.
The investigation revealed that the society’s directors had not maintained proper financial records and had made unauthorized transactions. A Chartered Accountant’s report indicated a fraud of ₹2,24,79,692.37. The High Court then directed legal action based on the Central Registrar’s report.
It was discovered that Ashish Bhatt had prepared seven cheques totaling ₹2,80,000 from the society’s funds in his own name and deposited them into Bharat Co-operative Credit Bank, subsequently withdrawing the amount.
Arguments and Court’s Reasoning:
Bhatt’s counsel, Adv. L.H. Atar, argued that Bhatt had cooperated with the investigation, was falsely implicated, and had no criminal antecedents. He contended that the FIR did not mention Bhatt’s name and that he was merely a clothes store employee who had assisted Sachin Sakpal in withdrawing the cheques in good faith. He also highlighted that a co-accused had been granted bail.
The prosecution, represented by Addl. P.P. Rashmi Tendulkar, strongly opposed the bail, citing the severity of the offense and the ongoing investigation.
The court, after reviewing the facts and arguments, noted the following:
- The High Court had directed the investigation due to allegations of fraud in the cooperative society.
- The investigation revealed a significant fraud of ₹2,24,79,692.37.
- Ashish Bhatt had prepared and encashed cheques from the society’s funds.
- The lower court had already rejected Bhatt’s bail application, citing his involvement and potential to tamper with evidence.
- The amount involved was very large.
“All this primafacie indicates gravity, seriousness and magnitude of the offence alleged against the applicant,” Judge Deshpande stated.
The court also emphasized the importance of a thorough investigation, which would be hindered if Bhatt were released on bail. “It is necessary to investigate the matter thoroughly, which is not possible if applicant is released on bail. There is every possibility that, he would interfere the investigation and try to disappearance of material evidence,” Judge Deshpande concluded.
Decision:
Judge Deshpande rejected Bhatt’s bail application, concluding that he had not established a strong prima facie case for bail and that the severity of the offense and the ongoing investigation warranted his continued detention.
The certified copy of the judgment was issued on May 11, 2022. This decision underscores the court’s consideration of the gravity of the offense, the stage of the investigation, and the potential for tampering with evidence when denying bail in a financial fraud case.