Mumbai, June 15, 2023 – The Designated Court under the Maharashtra Protection of Interest of Depositors (MPID) Act, at the City Civil & Sessions Court in Mumbai, rejected the bail application of Pinky Naresh Gundecha, a 41-year-old housewife, accused in a multi-million rupee investment fraud case. The order, passed by His Honour Judge Shri S. B. Joshi (Court Room no. 7), pertains to C.R. No. 631 of 2022 registered with the Kurla Police Station.
Pinky Gundecha, along with her husband Naresh Gaharilal Gundecha and his brother-in-law Kamlesh Jain, are accused of offences punishable under Sections 406 (criminal breach of trust) and 420 (cheating) read with Sections 34 (acts done by several persons in furtherance of common intention) and 120-B (criminal conspiracy) of the Indian Penal Code,1 1860, and Section 3 of the MPID Act, 1999.
The prosecution’s case stems from a complaint filed by Balu Poonaji Rokade, a retired Air India official. Rokade alleged that in June 2020, he was introduced to Naresh Gundecha, the proprietor of a cloth shop named M/s. Rashi Designer, while searching for accommodation. After agreeing to purchase a room from Gundecha and paying a deposit of ₹18,00,000, Rokade was later informed by Naresh Gundecha that he, his wife Pinky (the applicant), and his wife’s brother Kamlesh Jain were directors of M/s. Rashi Designer, a registered company with a substantial annual turnover.
Rokade further stated that he was lured into an investment scheme offered by the directors, promising unusually high returns (three times the bank rate for a one-year investment and five times for a two-year investment). Believing in the credibility of his landlord and the proprietor of M/s. Rashi Designer, Rokade invested a total of ₹27,50,000 in the name of the company through RTGS and cash transactions between September 2020 and February 2021, receiving monthly returns initially.
However, the returns ceased after February 2021. Upon inquiry, Rokade requested the return of his invested sum, leading to verbal disputes. Subsequently, an agreement was made on June 16, 2021, with post-dated cheques issued by Naresh Gundecha as a guarantee for the invested amount.
The situation took a turn on July 24, 2021, when Rokade discovered that Naresh Gundecha had allegedly absconded with his family after closing his businesses, M/s. Rashi Designer and Kayara Collection. The room he resided in was found locked, and attempts to contact Naresh, Pinky, and their daughter via mobile phone proved futile as their phones were switched off. Rokade later learned that Naresh Gundecha had changed the SIM card in his phone.
Rokade’s complaint detailed that he was allegedly cheated of ₹18,00,000 (the accommodation deposit) and ₹27,50,000 (the investment), totaling ₹45,50,000. Furthermore, the complaint revealed that Naresh Gundecha, his wife Pinky, and Kamlesh Jain had allegedly defrauded several other residents from the Kurla area, amounting to a total of ₹1,26,00,000.
In her bail application, Pinky Gundecha denied all allegations, claiming she was falsely implicated and a victim of circumstances. She argued that no money or documents were recovered from her, and the transactions were primarily between her husband and the complainant. She also contended that there was no evidence to suggest M/s. Rashi Designer was a private limited company or that investments were made therein, thus questioning the applicability of the MPID Act. Her counsel, Ld. Advocate Imran Shaikh, submitted that she has small children to care for and offered to deposit ₹2,00,000 as a condition for bail.
The Learned SPP Malankar, representing the State, and the Investigating Officer opposed the bail, citing the ongoing investigation and the need to recover the proceeds of the alleged crime. They argued that releasing the applicant could lead to tampering with evidence and threatening witnesses. The prosecution also highlighted that the applicant had been absconding for approximately one and a half years, raising concerns about her potential to flee again.
Ld. Advocate V. T. Dubey appeared for the intervenor-complainant, echoing the prosecution’s arguments and emphasizing the seriousness of the alleged fraud. He referred to an agreement dated July 2, 2021, indicating the applicant and her husband’s obligation to pay monthly profits to the complainant.
Judge S. B. Joshi, after hearing all parties and examining the documents, including the FIR, agreements, bank statements, and bounced cheques, framed the key question: whether the applicant was entitled to bail under Section 439 of the Cr.P.C.
In his reasoning, Judge Joshi noted the complainant’s allegations in the FIR, which clearly implicated the applicant, her husband, and Kamlesh Jain in introducing the high-interest investment scheme. The FIR also established that the complainant did receive initial returns on his investment until February 2021. The court pointed out the absence of any document from the applicant proving the legal registration of M/s. Rashi Designer, suggesting it was a scheme designed to defraud depositors.
The court further acknowledged the Investigating Officer’s report, which stated that the investigation was ongoing, the assets acquired through the alleged fraud were yet to be traced and secured, and the total amount involved was substantial (over ₹1.26 crore). The fact that the applicant had allegedly been absconding for an extended period also weighed against granting bail, raising concerns about her potential to abscond again. No independent undertaking to repay the depositors was provided by the applicant.
Considering these circumstances, Judge Joshi concluded that the applicant had failed to make a case for the grant of bail. Consequently, Bail Application No. 411 of 2023 was rejected. The Investigating Officer was directed to take note of the order, and the application was disposed of accordingly.
This order underscores the court’s cautious approach in cases involving significant financial fraud and the protection of depositors’ interests, especially when there are allegations of absconding and the investigation is still underway.