High Court · 2024
Legal Reasoning
(4) ba-1867-2024.odtguarantors. The amount of Rs.142,21,57,405/- was receivable on31.03.2022 and there is no security to satisfy huge recovery. Theapplicant is also committee member of one of the company namelyAurangabad Jilha Krushi Audyogik Bahuddeshi Sahakari SanghMaryadit, who is beneficiary of dubious loan. The applicant wasworking as Chief Manager when 22 loans out of 24 loans weredisbursed and approved by Credit Society. The role of theapplicant has been endorsed by witnesses cited in the charge-sheet.6.Having considered submissions advanced and perusal of thematerial in the charge-sheet clinchingly depicts that applicant wasChief Manager of the Credit Society till 2021 and during his tenureas many as 24 loans were disbursed without requisite security andguarantors. Further record is created to show that aforesaid loansare cleared and at the end of financial year, fresh loans aredisbursed. In fact, no recovery of the amount in pursuance of theaforesaid loans could be made. No steps were taken for recovery ofdisbursed amount or secure such recovery. The applicant waspresent in person in the meeting of Board of Directors and playedkey role in disbursement of all the loans. The audit of the Societywas carried by informant for the period from 2018 to 2022, whichprima facie, indicates that 23 loan transactions at the end of31.03.2019 and one loan transaction as on 31.03.2021 were dubiousin nature involving total amount of Rs.99,07,90,579/-. The Auditornoted manipulation in the record and fraudulent approach whilegiving effect to the disbursement of loans. Apparently, applicantalongwith Chairman and some of the Directors were personalbeneficiaries of such dubious transactions. The fact remains thatCredit Society has suffered loss of crores. The small depositorsfrom rural area of Aurangabad District are major sufferers. Thearea is drought prone. The farmers and small businessmen (5) ba-1867-2024.odtdeposited hard earned money with Credit Society and today theyare helpless waiting to receive their money back from the CreditSociety. Prima facie, none other than the applicant and Chairmanof the Credit Society is responsible for loss of depositors. 7.It is informed that forensic audit regarding loan transactionsis still going on and it is expected to be completed soon. Onceforensic audit is over, charge can be framed in the crime.8.Although it is contended on behalf of the applicant that someof the Directors and employees have been already enlarged on bail,role of the applicant cannot be compared with them. Whilereleasing those Directors or employees, this Court observed thatthey have limited role and mostly such transactions weredominated by Chairman and some of the Directors, who were in-charge of day to day business. The applicant being Chief Managerof the Credit Society holding key post cannot be treated at par withthe other Directors.9.It is true that applicant is behind bar for more than one yearand possibly atleast six months time would require for forensicaudit and framing of charge. However, release of the applicant atthis stage is likely to hamper the forensic audit as well asproceedings initiated under MPID Act. Not only that, it is likely tohamper interest of large number of depositors from areas ofoperation of the Credit Society. Hence, no case is made out torelease applicant on bail.10.Consequently, Bail Application stands rejected. (S. G. CHAPALGAONKAR)JUDGEDevendra/December-2024
Arguments
(1) ba-1867-2024.odtIN THE HIGH COURT OF JUDICATURE AT BOMBAYBENCH AT AURANGABADBAIL APPLICATION NO.1867 OF 2024Devidas s/o Sakharam Adhane,Age: 48 years, Occupation: Business,R/o. Viramgaon Village, Tq. Khultabad, Dist. Aurangabad..ApplicantVersusThe State of Maharashtra..Respondent …Mr. A. K. Bhosle, Advocate for the Applicant.Ms. Komal Kandharkar, Special PP for Respondent-State. … CORAM : S. G. CHAPALGAONKAR, J.Reserved On : 13th DECEMBER 2024.Pronounced On : 18th DECEMBER 2024.ORDER:-1.The applicant seeks regular bail in connection with CrimeNo.455/2023 registered with CIDCO Police Station, Dist.Aurangabad for the offences punishable under Sections 406, 409,420, 465, 467, 468, 471, 120-B, 217 r/w 34 of the Indian Penal Code,Sections 3 and 4 of the M.P.I.D. Act and Sections 21 and 23 of theBanning of Unregulated Deposit Scheme Act, 2019.2.The investigation was set in motion on the basis ofinformation given by Mr. Sudhakar Karbhari Gaike, SpecialAuditor, Class-II, Cooperative Society, Aurangabad. It is allegedthat in pursuance of directions given by District Deputy Registrar,Co-operative Society, Aurangabad (for short ‘DDR, Aurangabad’),he conducted audit of Adarsh Nagari Sahakari Pat SansthaLimited for the period from 2018 to 2022 and submitted auditreport dated 13.06.2023 to DDR, Aurangabad. It is alleged that onexamination of various loan applications and relevant documents itwas noticed that cash credit loans were disbursed in contravention (2) ba-1867-2024.odtof provisions of Co-operative Societies Act, Rules and bye-laws ofthe Society. The accused persons who are Directors, employees,borrowers and guarantors of loans have misappropriated large sumby adopting fraudulent means and duped depositors and membersof the Society. It is alleged that during the period from March-2019 to 2021, in all 23 loans were disbursed without adequatesecurity. The Board of Directors during meeting dated 30.04.2019conveniently ignored serious irregularities and facilitateddisbursement of dubious loans, thereby causing serious prejudice tothe interest of depositors. It is further alleged that statutoryAuditors also failed to submit report to the Registrar and adherewith statutory obligations under Section 81(5)(b) of theMaharashtra Co-operative Societies Act. The accused persons areresponsible for misappropriation of amount of Rs.99,07,90,579/-.3.In pursuance to the aforesaid information, CrimeNo.455/2023 came to be registered with Police Station CIDCO,Aurangabad against accused persons. The applicant has beenarrested on 22.11.2022 being Chief Manager of Adarsh NagariSahakari Pat Sanstha till 2021. The investigation progressed inthe matter. The charge-sheet and supplementary charge-sheet isfiled. The gist of the allegations against applicant is that theapplicant was Chief Manager of the Credit Society. He inconnivance with the President and Director of Credit Society andAdarsh Nagari Mahila Co-operative Bank distributed cash creditloans without security and in contraventions of bye-laws of CreditSociety. All such loan transactions were dubious. Although noamounts were redeposited in pursuance of loans, record wascreated to show loans are cleared and fresh loans were againdisbursed on the basis of false entries. Although loan accountswere NPA, loans were re-sanctioned. The applicant himselfborrowed loan for purchase of plot and failed to re-deposit the (3) ba-1867-2024.odtsame. Consequently, applicant has actively and knowinglyparticipated in the process of disbursement of dubious loans andmisappropriated the amount.4.Mr. Bhosle, learned Advocate appearing for the applicantvehemently submits that applicant has been falsely implicated inaforesaid crime. He was employee of the Bank and discharged hisfunctions as per directions of Chairman and Directors of the CreditSociety. According to him, applicant resigned from the post in theyear 2021 and his resignation was accepted. The loans which weredisbursed during the tenure of applicant have been already repaidand false implication of applicant cannot be ruled out incommission of offence. Mr. Bhosle would submit that already someof the Directors are enlarged on bail by orders of this Court. Hewould further submit that applicant has suffered incarceration formore that one year by this time. The investigation is completed.The charge is not yet framed. The trial would take its own course.Further detention of the applicant would not be necessary.5.Per contra, Ms. Kandharkar, learned Special PP vehementlyopposes the prayer for grant of bail. She would submit thatapplicant was Chief Manager of the Credit Society till 2021. Theaudit was carried by Mr. D. H. Chavan for the period from 2018 to2022 noting serious objections as regards to the disbursement ofloans during aforesaid period. In all 24 loan transactions werefound dubious during the period when applicant was holding keypost of Chief Manager. She would submit that none of such loanwas having requisite security. Although there was no repaymentof loans, record was created depicting such repayment and again atthe end of the financial year loans worth Rs.78,44,34,689/- is shownto be disbursed. Many such loans are disbursed without even