Mumbai, January 21, 2022 – James John Kuttan, accused of defrauding depositors through a double income scheme, has been granted bail by the Designated Court under the Maharashtra Protection of Interest of Depositors (MPID) Act. Additional Sessions Judge C.V. Marathe allowed Kuttan’s bail application (Bail Application No. 109 of 2022), citing his efforts to repay depositors and the completion of the investigation.

Kuttan was arrested in connection with C.R. No. 818 of 2021, registered at Malad Police Station, for offenses punishable under sections 406 (criminal breach of trust), 420 (cheating), read with 34 (acts done by several persons in furtherance of common intention) of the Indian Penal Code (IPC), and sections¹ 3 and 4 of the MPID Act.

Prosecution’s Case:

The prosecution alleged that Kuttan and his wife, Jacklin, floated a double income scheme promising returns in three months, along with other schemes. They collected approximately ₹28,67,500 from the complainant, Velankani, and other depositors with the intention to cheat them and defaulted on repayments.

Defense Arguments:

Kuttan’s advocate, Nilesh Dave, argued that his client was falsely implicated. He stated that Kuttan had been in custody for over three months and that the complainant, Velankani, had filed a no-objection affidavit to his bail application before the Metropolitan Magistrate. He also pointed out that Kuttan’s wife had been granted protection from arrest.

Dave asserted that Velankani was initially an agent for Kuttan’s investment schemes and was responsible for repaying depositors. When Velankani failed to do so, Kuttan began making repayments through online transfers until July 2021. He also argued that witnesses recorded by the police had no direct involvement in the case. Kuttan expressed willingness to repay depositors by liquidating his assets and discontinuing his investments. He emphasized that he was a permanent resident of Mumbai, the sole breadwinner for his family, and had no criminal record.

Prosecution’s Objections:

The prosecution, represented by Special Public Prosecutor (SPP) Mrs. Tendulkar, opposed the bail, arguing that Kuttan had committed a serious economic offense and was not cooperating with the investigation. They also claimed he was not a resident of Mumbai and had no relatives there.

Court’s Decision:

Judge Marathe, after reviewing the application and hearing both sides, noted that the charge sheet had been filed and that Kuttan was not charged with an offense punishable by death or life imprisonment.

The court acknowledged the complainant’s no-objection affidavit and Kuttan’s efforts to repay depositors through online transfers. The court also noted that while the charge sheet was wrongly filed before the Metropolitan Magistrate instead of the Designated Court, the investigation was complete, and the trial was likely to take a long time.

Considering these factors, the court concluded that Kuttan was entitled to bail, subject to stringent conditions.

Conditions of Bail:

Judge Marathe granted Kuttan bail on the following conditions:

• He must furnish a Personal Recognizance (P.R.) Bond and one or more sureties of ₹50,000.
• He must not commit similar offenses.
• He must not influence witnesses or tamper with evidence.
• He must surrender his passport to the Investigating Officer.
• He must not leave India without court permission.
• He must attend court dates regularly.
• He must provide a list of his movable and immovable properties to the Investigating Officer for potential repayment to depositors and cooperate with the attachment of properties.

Significance of the Order:

This order highlights the court’s emphasis on repayment efforts in financial fraud cases. The court’s decision to grant bail reflects its consideration of the complainant’s no-objection and Kuttan’s demonstrated intent to repay depositors. The order also underscores the importance of adhering to procedural requirements, even while considering the merits of the case.