Mumbai, May 2, 2023 – The Designated Court under the Maharashtra Protection of Interest of Depositors (MPID) Act, at the City Civil & Sessions Court in Mumbai, granted bail to Rahul Harishankar Tiwari, an adult businessman, who was implicated in an investment fraud case registered with the Bhoiwada Police Station. The order was passed by His Honour Judge Shri S. M. Tapkire (Court Room no. 7) in Bail Application No. 316 of 2023.
Tiwari was arrested in connection with C.R. No. 339 of 2022 for offences punishable under Sections 419 (cheating by personation), 420 (cheating) read with Section 34 (acts done by several persons in furtherance of common intention) of the Indian Penal Code, 1860 (IPC), and Section 3 of the MPID Act, 1999.
The prosecution strongly opposed the bail application, citing their written objection. However, after considering the submissions from both sides and the available records, the court leaned towards granting bail, noting the limited role attributed to Tiwari in the alleged fraud.
The case originated from a complaint filed by Smt. Charulata Shrikant Joshi, who alleged that one Sunil Vishwanath Yevla introduced her to Rajkumar Manohar Singh, claiming he had expertise in share market trading and owned a financial establishment named M/s. Trade Money Company. This company allegedly offered an investment scheme promising a 40% return within five months.
Based on the assurances of accused no. 1, Sunil Yevla, Smt. Joshi initially invested ₹7 lakhs and received an agreement and post-dated cheques. Subsequently, having received some initial returns, she invested an additional ₹16 lakhs through cheques and RTGS. Between June 2020 and September 2020, accused no. 3, Rajkumar Singh, disbursed ₹9,19,000 as returns but later stopped. Despite assurances from Rajkumar Singh to return the principal and interest, the investment was not honored. Smt. Joshi alleged that she was induced, lured, deceived, and cheated, leading to the misappropriation of her funds.
Rahul Tiwari, in his bail plea, argued that he was merely an employee of M/s. Trade Money Company, owned by accused no. 3, Rajkumar Singh. He claimed he was neither a director nor a partner and had no involvement in the business activities or transactions of the company. Tiwari’s defense highlighted that the main allegations were directed towards accused no. 3, Rajkumar Singh, and accused no. 1, Sunil Yevla. The only involvement attributed to Tiwari was that he was present in the company’s office when Smt. Joshi visited, and at that time, he and accused no. 5, Utsav Sawant, assured her about the return of her investment.
Furthermore, Tiwari’s counsel pointed out that the alleged main accused, Rajkumar Singh, had passed away. Accused no. 4, Komal Mehta, had already secured anticipatory bail from the Hon’ble High Court. At the time of the bail application, only Tiwari was under arrest (since March 29, 2023), while two other accused were yet to be apprehended. The defense argued that the investigation concerning Tiwari’s limited role was likely complete, making further custodial detention unnecessary.
The prosecution countered by stating that the accused, including Tiwari and M/s. Trade Money Company, had collectively received a substantial amount of deposits (₹69,24,000) from numerous depositors through bank transactions. They alleged that the accused reneged on their promises of high returns and conspired to defraud the depositors. The prosecution argued that the investigation was ongoing and opposed granting bail.
However, Judge S. M. Tapkire, after careful consideration, noted that the alleged mastermind, Rajkumar Singh, was deceased, and another accused had already obtained anticipatory bail. Regarding Tiwari, the court observed that the allegations against him were limited to being an employee present in the office who offered assurances to the complainant. The court found no seriously considerable reason for further custodial detention of Tiwari, especially considering the investigation into his specific role appeared to be complete.
Acknowledging the seriousness of the allegations and the need for further investigation concerning the remaining accused, the court decided to grant bail to Tiwari subject to stringent conditions to ensure his cooperation and prevent any tampering with the investigation or witnesses.
The court passed the following order:
- Bail Application No. 316 of 2023 is allowed, subject to the following conditions: i. Rahul Harishankar Tiwari is to be released on executing a PR Bond of ₹1,00,000/- (Rupees One Lakh Only) with one or two solvent sureties in the like amount in C.R. No. 339 of 2022 registered with Bhoiwada Police Station. ii. Tiwari shall not tamper or hamper the prosecution witnesses and evidence or pressurize any prosecution witness. iii. Tiwari shall record his attendance with the Respondent/I.O. every Tuesday between 11:00 a.m. and 5:00 p.m. until the filing of the charge sheet. iv. Tiwari shall cooperate in the investigation and be available for interrogation as and when required. v. Tiwari shall not leave India without prior permission of the Court. vi. Tiwari shall submit his proper residential address proof and telephone/cell numbers to the Respondent/I.O. for contact purposes. vii. Tiwari shall submit his passport with the Respondent/I.O., if he possesses one. viii.Tiwari shall not indulge in any criminal activity. ix. Any disobedience or breach of these conditions will render the bail order liable to cancellation.
- The Respondent/I.O. is directed to take note of the order.
- Bail Application No. 316 of 2023 stands disposed of accordingly.
This order highlights the court’s meticulous approach in examining the specific role attributed to each accused in financial fraud cases before deciding on bail, even when a large number of individuals are allegedly defrauded. The granting of bail with stringent conditions reflects a balance between the liberty of the individual and the need for a fair and thorough investigation.