Mumbai, Maharashtra [India] – [Insert Date of News Publication, likely late January 2018]: A Special Judge for the Central Bureau of Investigation (CBI) in Greater Bombay has rejected the bail application of Shri. Hitendra Virendra Gangwar, an accused in a significant bank fraud case amounting to approximately ₹17 crores. The order, passed by H.H. the Special Judge Shri. Jayendra C. Jagdale (C. R. No. 51), was delivered on January 22, 2018.

Gangwar, a resident of Mira Road, Thane, was arrested in connection with R.C. No. 14/E/2017-CBI, EOW, Mumbai, and is facing charges under various sections of the Indian Penal Code (IPC), including 120(B) (criminal conspiracy), 406 (criminal breach of trust), 409 (criminal breach of trust by a banker, merchant or agent), 420 (cheating and dishonestly inducing delivery of property), 465 (forgery), 467 (forgery of valuable security, will, etc.), 468¹ (forgery for purpose of cheating), and 471 (using as genuine a forged document or electronic² record).

The applicant’s counsel, Mr. Santosh Singh, argued for bail under Section 439 of the Code of Criminal Procedure, emphasizing that Gangwar worked on the panel of several banks, estimating valuations based on comparable instances and ready reckoner rates. He stated that an inquiry had already been conducted, and all loan transaction details and bank statements were part of the records. Furthermore, he highlighted that Gangwar was the sole earning member of his family.

However, the Special Public Prosecutor (S.P.P.) for the CBI/EOW, Mr. J. K. Sharma, strongly opposed the bail application, outlining the details of the alleged fraud. According to the prosecution, Shri. Ashok Kumar Singh, through M/s. Ashoka Property Developers, availed an overdraft facility of ₹2 crores from the Central Bank of India’s Peddar Road Branch in Mumbai in 2011, with his wife Smt. Philomino Dias acting as guarantor and mortgaging three properties as collateral. This loan eventually became a Non-Performing Asset (NPA) with an outstanding amount of over ₹2.09 crores.

Subsequently, in the same year, Shri. Aashish Kumar Singh, son of Smt. Philomina Dias, through M/s. Aashish Communication Systems, obtained another overdraft facility of ₹2.75 crores from the Central Bank of India’s Tardeo Branch, with Smt. Philomina Dias again as the guarantor and four properties mortgaged. This account also turned into an NPA with an outstanding amount.

During the investigation, the bank discovered that the documents submitted for these loans were allegedly forged and fabricated, and the purported firms and membership numbers did not exist. The prosecution further revealed that both Ashok Kumar Singh and Aashish Kumar Singh had availed various other loans from the bank, collectively amounting to ₹17 crores.

Crucially, the CBI alleged that Hitendra Gangwar was a close associate of wanted accused persons Shri. Mehul @ Sadashiv D. Pandey and Shri. Janardhan Pandey. The prosecution contended that Gangwar had provided an inflated valuation report for a property in Goregaon (E), Mumbai, belonging to co-accused Ashok Kumar Singh, which was used as collateral for the loan account of M/s. Aashish Communication Systems.

The CBI further alleged that Gangwar, as part of the criminal conspiracy to defraud the Central Bank of India, had received ₹10 lakhs from the wanted accused, Mehul @ Sadashiv D. Pandey and Janardhan Pandey, with the said amount being deposited in his wife’s bank account. The prosecution emphasized that Gangwar, being a panel valuer for the complainant bank, had betrayed their trust by submitting an overvaluation report, causing unlawful loss to the bank and unlawful gain to himself and other co-accused.

In his order, Special Judge Shri. Jayendra C. Jagdale acknowledged the arguments presented by both sides and perused the relevant documents. He noted the prosecution’s contention that Gangwar was a close associate of the absconding main accused and had allegedly submitted an inflated valuation report to facilitate the fraudulent loan disbursal.

The court highlighted the fact that the main accused, Mehul @ Sadashiv D. Pandey and Janardhan Pandey, remained untraceable, and the investigation into Gangwar’s role was still ongoing. Furthermore, the court recognized the significant amount of public money involved in the alleged fraud.

Considering these factors, the Special Judge concluded that releasing Gangwar on bail at this stage could potentially hamper the ongoing investigation, especially with key accused still at large. Therefore, in the interest of justice, the court deemed it unsafe to grant bail to the applicant.

Order:

1. Criminal Bail Application No. 45/2018 in CBI Remand Application No. 40/2018 (RC No. 14/E/2017-C.B.I., E.O.W., Mumbai) is hereby rejected.
2. Criminal Bail Application No. 45/2018 in CBI Remand Application No. 40/2018 stands disposed of accordingly.

The order was dictated and pronounced in open court on January 22, 2018, and the certified copy was made available on January 23, 2018.

This case underscores the serious implications for professionals like valuers who are accused of colluding in financial crimes. The court’s decision to deny bail emphasizes the gravity of the alleged ₹17 crore bank fraud and the ongoing efforts by the CBI to apprehend all those involved. The continued search for the main accused remains a crucial aspect of this high-profile investigation.