Mumbai, Maharashtra – May 11, 2022 – Devanand Shabaji Pachpute, accused in a multi-million rupee fraud case involving the Pfizer Employees Cooperative Credit Society Ltd., 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. 989 of 2022, related to C.R. No. 335 of 2018 registered with BKC Police Station.
Pachpute, accused No. 3, 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 originated from a complaint filed by Sushil Kumar Shridhar Shelar, alleging fraud and misappropriation by the directors of the Pfizer Employees Cooperative Credit Society Ltd. The High Court directed the Central Registrar, Agricultural Ministry, New Delhi, to investigate the matter.
The investigation revealed that the society’s directors had failed to maintain proper financial records and had engaged in 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 also discovered that co-accused Ashish Arvind Bhatt had prepared and encashed cheques totaling ₹2,80,000 from the society’s funds.
Arguments and Court’s Reasoning:
Pachpute’s counsel, Adv. Sachhidanand P. Dalvi, argued that his client was falsely implicated, played no vital role, and was arrested on suspicion. He also contended that the investigation was practically over, the charges were triable by a Magistrate, and no specific role was attributed to Pachpute.
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.
- Co-accused Sachin Sakpal, the then Treasurer, had implicated Pachpute in fraudulent activities and unauthorized withdrawals.
- Financial transactions of the society were made with Pachpute’s signature.
- The lower court had already rejected Pachpute’s bail application, citing his involvement and potential to tamper with evidence.
- The amount involved was substantial.
“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 Pachpute 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 Pachpute’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.