Mumbai, Maharashtra [India] – [April 10, 2023]: A designated court under the Maharashtra Protection of Interest of Depositors (MPID) Act in Mumbai has granted bail to Kiran Vishwas Bhosale, a 36-year-old director of Shubharambh Nagari Ram Sanstha Maryadit (a co-operative society), who was arrested in connection with a multi-lakh fraud case. The order, passed by His Honour Judge Shri S. M. Tapkire (Court Room No. 7), was issued on March 10, 2023.

Bhosale (Accused No. 4) was arrested in connection with C.R. No. 149/2021, dated March 27, 2021, registered at the Ghatkopar Police Station. He is accused of offences punishable under Sections 409 (criminal breach of trust by a public servant or by a banker, merchant or agent), 420 (cheating¹ and dishonestly inducing delivery of property) read with Section 34 (acts done by several persons in furtherance of common intention)² of the Indian Penal Code (IPC), 1860, and Section 3 of the MPID Act, 1999, which deals with fraudulent default by financial establishments.

The Economic Offences Wing (EOW), Unit-3, Mumbai, strongly opposed Bhosale’s bail plea, citing their written objections.

According to the FIR filed by the informant, Rajesh Gavane, the applicant and other accused, as directors of the said co-operative society, allegedly induced him and his family members to deposit a total of ₹29,40,000 by promising a high interest rate of 15% per annum. When the informant needed ₹13,00,000 in 2018 for house renovation and approached the society and the applicant along with another accused, Naresh Kadam, they allegedly neglected him and failed to return his deposited amount. The informant alleged that the applicant and 13 other directors transferred the deposited amounts to their personal bank accounts, thereby cheating and misappropriating the funds, leading to the registration of the crime against all directors and managing directors.

The applicant, Kiran Bhosale, argued that despite the alleged deposits being made in 2016, the FIR was lodged in 2021, indicating a significant delay. He claimed he had not committed any crime and, although he was a director, he did not misappropriate any funds or commit any fraudulent default. He contended that substantial deposited amounts were given as loans to members of the society, and the financial crisis arose due to the non-recovery of these loans, leading to the inability to repay depositors. He pointed out that only three accused had been arrested, and the main allegations were against the managing director, Shankar Shedge, against whom accusations of transferring ₹94,000 to his personal account were made. Bhosale also highlighted that he and his relatives had deposited a significant amount in fixed deposits with the same society, which remained unpaid to them. He further argued that despite the crime being registered in March 2021, he was arrested in January 2023, and the chargesheet had not yet been filed. He suggested that the subsequent addition of the offence under Section 409 IPC was an afterthought to bypass the requirements of Section 41A of the Cr.P.C. He pleaded for bail, stating no further reason for his custodial detention existed.

The prosecution countered, stating that Ramesh Shendge and Naresh Kadam were the masterminds behind the crime, conspiring with other directors to lure depositors with unrealistic interest rates. They alleged that the deposited amounts were given as loans to the directors themselves, including Naresh Kadam, who had taken a substantial loan and not repaid it. The prosecution further alleged that the applicant and other accused had transferred and diverted significant amounts of the society’s funds to their personal accounts and those of other directors. They pointed to an audit report from 2016-2017 that allegedly recorded serious allegations of default, improper transactions, and intentional mistakes against the applicant and other directors, asserting his active involvement in the crime and thus opposing his liberty.

After carefully considering the rival submissions and the available records, Judge Tapkire noted that the crime was registered against 14 individuals, all managing directors and directors of the society. While the applicant was a director, the principal allegations, as per the record, appeared to be directed towards Ramdas Shendge, Naresh Kadam, and Shankar Shandge. Against the applicant, the primary allegations were his consent to a loan of ₹8,50,000 to Naresh Kadam (which was not repaid) and the transfer of ₹94,000 to his personal account.

In response, the applicant claimed he was neither a borrower nor a beneficiary of any misappropriated amount, and the investigating agency had not collected significant evidence against him in this regard. The court also acknowledged the substantial deposits made by the applicant and his relatives in the society, which they were unable to recover. The court noted the delay between the registration of the crime in March 2021 and the applicant’s arrest in January 2023, and the non-filing of the chargesheet.

Considering the prima facie material, the court found that the serious and considerable reasons for further custodial detention of the applicant were not strongly established at this stage. However, given the seriousness and gravity of the crime and the alleged role attributed to the applicant, the court deemed it appropriate to grant bail with stringent conditions to ensure his cooperation and prevent any obstruction of justice.

Order:

1. Bail Application No. 109 of 2023 is allowed, subject to the following conditions for applicant/accused No. 4, Kiran Vishwas Bhosale: i. He shall be released on executing a PR Bond of ₹5,00,000 (Rupees Five Lakhs Only) with one or two solvent sureties of the same amount in connection with C.R. No. 149/2021 registered at Ghatkopar Police Station. ii. He shall not tamper with prosecution witnesses or evidence, nor shall he pressurize any prosecution witness in any manner. iii. He shall attend the Respondent/Investigating Officer (I.O.) every Wednesday between 11:00 a.m. and 2:00 p.m. until the filing of the chargesheet. iv. He shall not indulge in any criminal activity. v. He shall cooperate in the investigation as and when required for interrogation. vi. He shall not leave India without prior permission of the Court. vii. He shall submit his proper residential address proof and telephone/cell numbers to the Respondent/State for contact. viii.He shall submit his passport to the Respondent/State, if he possesses one. ix. He shall not alienate, transfer, or create any third-party interest in his movable/immovable properties or those of his blood relatives. x. In case of disobedience or breach of any of these conditions, this bail order will be liable to be canceled.
2. The Respondent/EOW is directed to take note of this order.
3. Bail Application No. 109 of 2023 stands disposed of accordingly.

The order was dictated and pronounced in open court on March 10, 2023, and subsequently signed and uploaded on April 6, 2023.

This case illustrates the judiciary’s cautious approach in granting bail in economic offences, especially those involving public deposits under the MPID Act. While the court found grounds for granting bail to Kiran Bhosale based on the current evidence and the stage of investigation, the imposition of stringent conditions underscores the seriousness of the allegations and the need to ensure the accused’s cooperation and the protection of the depositors’ interests.