Mumbai, February 3, 2024: In a significant development in the Rs. 11.94 crore loan fraud case involving Rajkot Nagarik Sahakari Bank Ltd, the Mumbai Sessions Court has granted bail to one of the accused, Smt. Geetanjali Santosh Shrivastav, a 41-year-old businesswoman. The court, presided over by Additional Sessions Judge S.M. Tapkire, passed the order in Criminal Bail Application No. 55 of 2024 on January 31, 2024. The detailed order was uploaded on February 3, 2024.
Background of the Case
The case, registered under C.R. No. 738/2022 at Pant Nagar Police Station, revolves around an alleged conspiracy involving 32 accused, including bank employees, agents, and borrowers, to siphon off large sums of money using forged documents. The main allegations stem from fraudulent transactions facilitated by former Branch Manager Vipul Patel and agents Rani Durairaj and Rajiv Biswas.
According to the prosecution, the accused created fake LIC policies, Aadhaar cards, PAN cards, and other documents to secure loans and overdraft facilities from the bank, misappropriating funds worth nearly Rs. 11.94 crore. The investigation revealed that these funds were routed through various bank accounts, making it a complex financial crime.
Court Proceedings and Arguments
The prosecution, represented by Special Public Prosecutor S.V. Kekanis, strongly opposed Shrivastav’s bail plea, arguing that she was an active conspirator in the fraudulent scheme. They contended that:
- She had fraudulently secured an overdraft facility of Rs. 30 lakh using forged documents.
- Despite being aware of the illegitimacy of the transaction, she utilized and diverted the loan amount.
- She had been absconding for over a year before being arrested on December 9, 2023.
- Although she had repaid Rs. 5.61 lakh, the remaining amount was yet to be recovered.
On the other hand, Shrivastav’s defense counsel, Advocate S.P. Ramdasi, argued that:
- She was merely a borrower and had no direct role in document forgery.
- The primary conspirators were the bank manager and agents who facilitated the fraudulent loan approvals.
- She had been making repayments and intended to continue clearing her dues.
- Other co-accused, including bank manager Vipul Patel and borrowers Mangesh Mhatre and Vasant Mhatre, had already been granted bail, making her eligible for bail on parity grounds.
Court’s Rationale for Granting Bail
After examining the submissions and evidence, the court noted that while the allegations were serious, several key accused had already secured bail. The judge acknowledged that Shrivastav had repaid a portion of the loan and expressed willingness to continue repayments. Considering these factors, the court found her eligible for bail, subject to stringent conditions to ensure her cooperation with the legal proceedings.
Bail Conditions Imposed
The court imposed the following conditions on Shrivastav:
- She must furnish a personal bond of Rs. 10 lakh along with one or two solvent sureties of the same amount.
- She must not tamper with evidence or contact prosecution witnesses.
- She is required to attend every trial hearing without fail.
- She must refrain from any criminal activity.
- She cannot leave India without prior court permission.
- She must provide verified residential proof and contact details to law enforcement authorities.
- She must comply with all court directives regarding surety submission.
Legal and Public Repercussions
The case has garnered significant attention due to the large-scale financial fraud involved. With several accused still in judicial custody, the prosecution is expected to intensify its efforts to trace misappropriated funds and establish the extent of individual liabilities. Legal experts suggest that while granting bail does not equate to exoneration, it allows the accused to prepare their defense more effectively.
Conclusion
The Mumbai Sessions Court’s decision to grant bail to Geetanjali Santosh Shrivastav highlights the complexities of financial fraud cases and the balance courts seek between legal rights and investigation integrity. With the trial set to continue, all eyes remain on the unfolding judicial process in one of Mumbai’s most significant bank fraud cases in recent years.