High Court
Legal Reasoning
7 1812-23-ABA.odt8.As per the by-law No.53 Schedule c(5) of thePatasanstha, individual can be granted loan of Rs.60,00,000/- orabove and for family business the limit is upto Rs.75,00,000/-.Applicant Nos.1 and 2 are house wives and they do not do anybusiness, however, unsecured loan of Rs.1,00,00,000/- each wassanctioned to them. After sanctioning of loan, immediately amountsare withdrawn. All family members i.e. applicants have availedunsecured loans contrary to the by-laws. Promissory notes signedby applicants are seized during investigation, which show thatapplicants have availed loans sanctioned to them and withdrawnthe loan amounts in cash.9.Though on paper properties are shown to be mortgagedtowards security of loan amounts, no charge is recorded in therevenue record of the said properties. Some of the properties shownto have been mortgaged are sold by accused persons/applicants.Only on paper entries are taken to show that the loan is repaid, butin fact, loans are not repaid. Though loan amounts were outstandingagainst applicants, new loans were sanctioned to them and forgeddocuments and entries were created to show that earlier loans arerepaid. Illegal rebate is given by the Patasanstha and applicants incollusion with co-accused have misappropriated amount ofRs.1,58,67,975/-.10.Investigation papers prima facie reveal misappropriationSVH 8 1812-23-ABA.odtof huge funds of poor depositors by accused persons, which couldnot have been done without connivance of applicants. Sinceprovisions of M.P.I.D. Act are invoked, properties of applicants arerequired to be ascertained.11.Investigation is necessary to find out as to whereapplicants have spent misappropriated amounts and whether theyhave invested the same in properties, etc.12.Considering the complicity of applicants, extent ofmisappropriation and serious accusations against applicants, theydo not deserve discretionary relief of anticipatory bail. Theircustodial interrogation is necessary for effective investigation.Hence, the application is rejected. (NITIN B. SURYAWANSHI, J.)SVH
Arguments
1 1812-23-ABA.odtIN THE HIGH COURT OF JUDICATURE AT BOMBAYBENCH AT AURANGABADANTICIPATORY BAIL APPLICATION NO.1812 OF 20231.Shakuntala Bhausaheb Kute,Age: 63 years, Occ. Agri.2.Vimal Bhausaheb Kute,Age: 62 years, Occu. Agri.,3.Amol Bhausaheb Kute,Age: 39 years, Occu. Business,4.Sow. Sonali Dadasaheb Kute,Age: 42 years, Occu. Business & Agri.,5.Dadasaheb Bhausaheb Kute,Age: 43 years, Occu. Business,6.Sandeep Bhausaheb Kute,Age: 41 years, Occu. Business,All R/o. Ganpati Mala, Kute Wasti,Sukhewadi, Tq. SangamnerDist. Ahmednagar ...ApplicantsVersusThe State of Maharashtra …Respondent…Mr. Satej S. Jadhav, Advocate for ApplicantsMr. N.B. Patil, Advocate for Respondent/StateMr. Shrinivas S. Wagh, Advocate for Assist to APP... CORAM : NITIN B. SURYAWANSHI, J. RESERVED ON : 14th MARCH, 2024 PRONOUNCED ON : 04th APRIL, 2024ORDER : 1.Applicants apprehend arrest in C.R. No.740/2023,registered with Sangamner City Police Station, Dist. Ahmednagar,for offence punishable under Sections 420, 408, 409, 465, 467, 468,471, 477-A r/w 34 of the Indian Penal Code and Section 3 of theSVH 2 1812-23-ABA.odtMaharashtra Protection of Interest of Depositors (In FinancialEstablishments) Act, 1999.2.Rajendra Fakira Nikam, District Special Auditor (Class-1),Co-operative Societies, Ahmednagar, was authorised by DistrictDeputy Registrar, Co-operative Societies, Ahmednagar, to lodge FIRagainst 21 accused persons. He, therefore, lodged FIR alleging thathe conducted re-audit of Dudhganga Nagari Sahakari PatasansthaMaryadit, Sangamner (for short ‘the Patasanstha’) for the periodbetween 01/04/2016 to 31/03/2021 and he found that accusedpersons have misappropriated total amount of Rs. 80,79,41,981/-.Bhausaheb Damodar Kute, Chariman, Bhausaheb Vitthal Gunjal,Manager and Bhausaheb Santu Gaikwad, Chief Accountant, alongwith other accused persons have committed misappropriation in thefollowing manner:-Sr. No.Details of the amount misappropriatedAmount1The amount of term deposit receipts have beenwithdrawn by making forged signatures andissuing receipts in the name of depositors,without paying to the actual depositors3,96,425/-2Misappropriation by crediting the amounts ofFederation dues for recovery of loan to theaccounts of two saving account holders andwithdrawal from these accounts. 8,15,000/-3Misappropriation by crediting the interest andinterest payable to Account No.10352,72,21,968/-4Misappropriation by creating bogus term depositaccount with Union Bank of India to the tune of19,26,90,368/-SVH 3 1812-23-ABA.odtRs. 15,34,61, 875/- plus interest accrued thereonof Rs. 3,92,28,493/- 5Misappropriation by not crediting Bank overdraftto the ledger.19,60,82,097/-6Chairman in collusion with borrowers, formonetary interests, misused his powers andsanctioned loan in the name of Shri Kadam andhis family, despite of the objections of Board ofDirectors and Manager in illegal and out-of-waymanner and misappropriated amount18,30,42,901/-7Cash credit and fixed loan in the name ofChairman and his family members wereapproved, sanctioned and disbursed illegally andin out-of-way manner.12,04, 28,866/-8Sanctioning the loan in the name of Manager andMembers of Society illegally2,07,96,768/-9Illegal borrowing of the loan in the name of ChiefAccountant of the Society and his familymembers1,32,84,017/-10Personal greetings and advertisement arepublished in the newspaper and personalexpenses have been shown in revenueexpenditure of the Society and misappropriatedthe funds to that extent.6,90,719/-11Chetan Kapate has transferred amounts fromvarious savings and current accounts of theSociety through RTGS and cheques. Thismisappropriation has been admitted in the Pointno. 4 and 5. The loss of interest as per theprevailing rates of the Society on the amountmisappropriated is of Rs. 2,85,06,225/-2,85,06,225/-12Rebate given to the Chairman, Manager and theChief Accountant with prior approval of theRegistrar1,58,67,975/-SVH 4 1812-23-ABA.odt13Chairman of the society has charged personalexpenses into the revenue expenditure andcredited to own account and havemisappropriated the funds as a personal asset81,18,652/-3.Amount of maturity of fixed deposits was not paid to thedepositors and the same was withdrawn by making their bogussignatures. Accused persons in collusion have withdrawn amountsfrom saving accounts, current accounts and bank overdraftaccounts by cheques and entries in that regard have not beenshown in ledger. Misappropriation is done by showing credit entriesin ledger without actually crediting the amounts. No investment interm deposit has been made in the bank, but it was shown in thebalance-sheet and the said amount is misappropriated. Chairman ofthe Patasanstha has shown his personal expenses in revenueexpenditures of the Society and charged the same to Society andmisappropriated funds of the Society. Chairman for his extraneousfinancial considerations illegally sanctioned the loan to Mr. Kadamand his family members which was not secured, in spite ofobjections raised by the Board of Directors and misappropriatedfunds of the Society. Misappropriation is committed by sanctioningillegal bogus loans contrary to the by-laws and dispensing loanamounts in cash credit and fixed loans in the name of Chairman andhis family members, Manager and Chief Accountant. Funds of theSociety was misappropriated by extending rebates to the Chairman,SVH 5 1812-23-ABA.odtManager and Chief Accountant in illegal manner and without priorapproval of Registrar of the Societies. To conceal the illegaltransactions and entries, illegal accounting was done from time totime. Persons involved in misappropriation of Society’s funds are:1) Bhausaheb Damodar Kute, 2) Bhausaheb Vitthal Gunjal, 3)Bhausaheb Santu Gaikwad, 4) Chetan Nagraj Kapate alis SudarshanBaba, 5) Dadasaheb Bhausaheb Kute, 6) Sandip Bhausaheb Kute, 7)Amol Bhausaheb Kute, 8) Vimal Bhausaheb Kute, 9) ShakuntalaBhausaheb Kute, 10) Sonali Dadasaheb Kute, 11) KrushnraoShripatarao Kadam, 12) Pramila Krushnarao Kadam, 13) AjitKrushnrao Kadam, 14) Sujit Krushnrao Kadam, 15) Sandip DagaduJare, 16) Lahanu Ganpat Kute, 17) Uttam Shankar Landge 18) UlhasRaosaheb Thorat, 19) Somnath Karbhari Satpute, 20) Arun K. Burudand 21) Amol Prakash Kshirsagar.4.Heard learned advocate for applicants, learnedadvocate assisting learned APP and learned APP forrespondent/State. Perused the investigation papers.5.Applicants claim that they are family members ofChairman and they were not Board members at any point of time.Applicant Nos.1 and 2 are wives of Chairman. They contend that, atthe most it can be said that there are irregularities, but there is nowrongful loans from the Patasanstha. They claim that, in fact,Chairman had approached the Registrar of Co-operative SocietiesSVH 6 1812-23-ABA.odtand sought audit, complaints were also forwarded to the policeinspector and re-audit was done for the period from 2016 to March,2021. All the loans given to family members were repaid and allmembers were given rebate. It is further claimed that there arefixed deposits of applicants of Rs.2,00,00,000/- and on maturityapplicants are entitled to received Rs.6,00,00,000/-. ApplicantNos.1, 2 and 4 being woman, be granted anticipatory bail.6.Learned APP vehemently opposed the prayercontending that as per the by-laws Patasanstha can sanction loanupto Rs.60,00,000/- and for family business, loan of Rs.75,00,000/-can be sanctioned. It is revealed during investigation that applicantsbeing family members of Chairman were illegally sanctionedunsecured loan of Rs.1,00,00,000/-, Rs.50,00,000/- andRs.30,00,000/-, which were disbursed to them and only paperentries are taken about repayment of said loans. Also, paper entryon the voucher is taken that amount of Rs.2,75,00,000/- is given toManager Gunjal and the said amount is transferred to familymembers of Chairman. Provisions of M.P.I.D. Act, are attracted to thepresent crime and properties of others are yet to be ascertained.7.Learned advocate assisting learned APP submits thatthe trial Court while rejecting bail has observed that, in the loanaccounts of applicants no amount is deposited towards repayment.SVH