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[Cites 14, Cited by 0]

Bombay High Court

Sunil Devakinandan Zawar vs The State Of Maharashtra on 7 December, 2021

Author: V.G.Bisht

Bench: V.G.Bisht

                                             J-BA-3910-2021.DOC




         IN THE HIGH COURT OF JUDICATURE AT BOMBAY
               CRIMINAL APPELLATE JURISDICTION

              BAIL APPLICATION NO. 3910 OF 2021
Sunil Devakinandan Zawar                      ...Applicant
         Versus
State of Maharashtra                          ...Respondent
                           ......
Mr. Aniket U. Nikam a/w. Mr. Ravindra K. Adsure, Mr. Yash P.
Sonavane and Mr.Sidheshwar N. Biradar for the Applicant.
Mr. Pravin Chavan, Special Public Prosecutor a/w. Mr. H.J.
Dedhia, APP for the Respondent -State.
                           ......
                    CORAM     :   V.G.BISHT, J.
             RESERVED ON      :   23RD NOVEMBER, 2021
             PRONOUNCED ON :      7TH DECEMBER, 2021
PC:-

1.       The present application has been moved by the

applicant under Section 439 of the Code of Criminal

Procedure in Crime No. 673 of 2020 registered with Deccan

Police Station, Pune City for offences punishable under

Sections 420, 464, 465, 467, 468, 471, 406, 409, 474, 477A,

225, 120B read with 34 of the Indian Penal Code (the IPC)

and Section 3 of the Maharashtra Protection of Interest of

Depositors (In Financial Establishments) Act, 1999 (for short,

"MPID Act").




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2.       It is the case of prosecution that the informant and her

sister had invested monies with Bhaichand Hirachand Raisoni

Multi State Co-operative Credit Society, Jalgaon (for short,

BHRMSCCS). In all they had deposited Rs. 16,90,142/-. They

were promised that they would get more than Rs. 19 lacs,

however, the money was not returned.               According to

prosecution, in the meantime, some investigation started and

consequently, a Liquidator, namely, Jitendra Kandhare was

appointed for BHRMSCCS.


3.       The prosecution further alleges that the Liquidator

Jitendra Kandare, who is co-accused, along with applicant and

other co-accused hatched a conspiracy and in furtherance of

that created a fabricated website and thereby siphoned off the

monies of the BHRMSCCS by selling its property in less price,

also the monies of depositors and further bought receipts of

investors by paying them 30% of original amount and thereby

misappropriated remaining 70%.




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4.       It is further seen that after conclusion of the

investigation, it revealed that all the accused including

applicant      had    misappropriated    total      amount      of

Rs. 61,90,86,163/-. Accordingly, the First Information Report

came to be lodged.


5.       Mr. Nikam, learned Counsel for the applicant, invited

my attention that the applicant purchased three properties by

following uniform process of E-tender. Learned Counsel also

invited my attention to the various charts filed on record

(Exhibit -C) to substantiate his submission. Further, learned

Counsel invited my attention to the List No. II (Exhibit -Y and

Z collectively) and then would submit that those sale deeds

till date are not challenged before the Competent Civil Court.

Even otherwise, according to learned Counsel, no offence

under the Maharashtra Protection of Interest of Depositors (in

Financial Establishments) Act, 1999 is made out inasmuch as

the applicant was not involved in collection of deposits on

behalf of BHRMSCCS with assurance of 13% per annum




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interest nor in any manner had accepted deposits from the

depositors. For all these reasons, the applicant deserves to be

enlarged on bail, argued learned Counsel. Learned Counsel

placed reliance in Ravindra Babulal Jain v. State of

Maharashtra1, K. Virupaksha and Another Versus State of

Karnataka and Another2, Virendra Khanna Versus State of

Karnataka by Banasawadi Police and Another3, Sanjay

Chandra Versus Central Bureau of Investigation4, Sheila

Sebastian Versus R. Jawaharaj and Another5, P. Chidambaram

Versus Director of Enforcement6 and Arnab Manoranjan

Goswami Versus State of Maharashtra and Others7



6.       Learned Spl. PP, on the other hand, vehemently opposes

submissions by inviting my attention to the affidavit in reply

filed by the respondent -State.      Learned Spl.PP impressed

upon me that whole tender process was manipulated by the

1        2015 SCC OnLine Bom 5002
2        (2020) 4 Supreme Court Cases 440
3        2021 SCC OnLine Kar 5032
4        (2012) 1 Supreme Court Cases 40
5        (2018) 7 Supreme Court Cases 581
6        (2020) 13 Supreme Court Cases 791
7        (2021) 2 Supreme Court Cases 427




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applicant in collusion with other accused. The Liquidator,

namely, Jitendra Kandhare and the applicant colluded with

each other to misappropriate the properties and funds of

BHRMSCCS and illegally disposed of the properties by

creating a manipulated website on which they had full control

and further illegally projected the loans to be repaid by

creating false entry that too by adjusting fixed deposit

receipts.


7.       According to learned Spl. PP, while manipulating the

website, they took help of Krunal Shah, resident of

Ahmedabad, who was looking the business of applicant at

Ahmedabad.       The said Krunal Shah was preparing website

and software for BHRMSCCS and had also installed software

at the office of applicant.   Huge data has been found in the

hard disks seized from the office of applicant.


8.       Learned Spl. PP has also indicated at paragraph 9.6 to

17 as to how the properties of         BHRMSCCS were sold.

Although the property purchased by applicant may show a bit




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higher      valuation      than   the    market     price   but    during

investigation, it revealed that the valuation was on higher side

than what was shown by the applicant at the time of

purchase.


9.       Learned Spl. PP lastly submits that the offence

committed by applicant and others are of very serious in

nature as the same is against whole society.                   The whole

process of liquidation was frustrated by entering into a

systematic conspiracy aimed at misappropriating the public

monies. In such circumstances, the application deserves to be

rejected, argued learned Spl PP.            Learned Spl. PP placed

reliance      in   Dukhishyam           Benupani,     Asstt.      Director,

Enforcement Directorate (FERA) Versus Arun Kumar Bajoria 8,

State Rep. By the C.B.I. Versus Anil Sharma 9, Adri Dharan Das

Versus State of West Bengal10, Abhay R. Sinha and others Vs.

State of Maharashtra and others11, Harshad S Mehta Vs. Union



8        (1998) 1 SCC 52
9        (1997) 7 SCC 187
10       (2005) Cri.LJ SC 1706
11       (2000) O BomCR (Cri) 307




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of India Anr.12 and Ajay Kumar Jain, I.P.S. Vs. State of

Maharashtra13.


10.      During the course of submission, learned Spl. PP filed

certain statements of prosecution witnesses so as to bring

home charges against the applicant.


11.      The first statement is of Rajendra Vasantrao Ingole.

According to this witness, he had invested Rs. 3,60, 59, 357/-

and as he was in need of moneys so he went to the office of

BHRMSCCS. However, later on, he came to know about the

registration of offence against the Directors of BHRMSCCS. In

the month of November, 2015, after the appointment of

Liquidator, namely, Jitendra Kandare, he met him, however,

Kandare told him that since BHRMSCCS have gone into

liquidation, he would not get anything. At the same time, he

also suggested that he may get his amount in a phased

manner that too without interest and within a period of 10

years. The said Kandare then rang up a party and took this

12       (1992) 3 Crimes 645
13       (2000) 4 Crimes 27




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witness to his house, who is none other than the present

applicant and another was Suraj Zawar, son of applicant. The

applicant purportedly told this witness that BHRMSCCS is

almost gone and asked him to give his deposit receipts to him

and that he would give him 30% of the total deposit receipts.

When this witness refused, the applicant offered him 40%.

When this witness further refused, Jitendra Kandare told him

that he would get whole amount and thus obtained all the

deposit receipts from him.



12.      The above statement prima facie goes to show that the

Liquidator, namely, Jitendra Kandare was well connected with

the applicant and therefore, had taken this witness to the

latter's house so that they can bargain the deposit receipts by

making payment of only 40% of the original amount

deposited by this witness.



13.      Next witness is Ramesh Shantaram Umale, who at the

relevant time was working as a computer operator with Shree




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Sai Marketing and Trading Company belonging to applicant.

His statement shows that the applicant had got prepared all

the documents of the investors of BHRMSCCS, namely,

consent letter, affidavit, and nil loan certificates on the basis

of drafting supplied by Jitendra Kandare. His statement

further shows that Krunal Shah of Ahmedabad had also

prepared software of BHRMSCCS having all the information

of the investors and the said software was online connected to

BHRMSCCS. The password was known to Mahavir Jain and

he had taught this witness as to how to view all the

information.      His statement further shows that Jitendra

Kandare always used to visit his office.


14.      From the above statement, it is very much clear that it

was the accused Jitendra Kandare, who had provided all the

information of the investors to the applicant and the

applicant, on his part, had asked this witness, after supplying

all the documents relating to BHRMSCCS, to prepare those

documents.




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15.      The third statement is that of Anil Shrikant Sutar, an

investor, who had invested Rs. 50,000/- in BHRMSCCS.

According to him, he has been given only Rs. 10,000/- till

date and not the remaining amount by the BHRMSCCS.

16.      Dheeraj Ramchandra Joshi is a tenderer, who had

participated in a bid and had deposited necessary amounts of

the tender amount. However, his tender was rejected. He

alleges that his tender was illegally rejected by Jitendra

Kandare.


17.      Ketan Vijay Malu states that he knows applicant. In the

year 2017, he was told by applicant that BHRMSCCS has

gone into liquidation and the tender in respect of its property

is to be published and therefore, asked him to fill the tender

on his behalf.      Accordingly, he participated in the tender

process on his behalf.

18.      His statement lastly shows that when he was shown the

tender form, he found that it was not having his signature

although it was having his name, email id and phone number

etc.




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19.      This also goes to show that the applicant had made this

witness to stand as a dummy tenderer in his place inasmuch

as rest of the thing like deposit amount of the tender and

other formalities were done by applicant so as to grab the

property of BHRMSCCS. Similar are the statements of Kailash

Omprakash Dhut, Rohit Pravin Kothari, Niranjan Pravin

Kothari, Prashant Prabhakar Mahamunkar, Anupam Sharad

Kulkarni and Arun Natthu Sonar.

20.      Lastly, there are supplementary statements of Deepak

Shreepatrao Shinde and Sunil Shamlal Kalantri.

21.      The statement of Deepak S. Shinde also shows that he

had also participated in a tender on the say of applicant. It is

also his statement that Jitendra Kandare and Mahavir Jain

used to bring all the papers pertaining to BHRMSCCS to the

office of applicant.

22.      Similarly, the supplementary statement of Sunil S.

Kalantri shows that Jitendra Kandare always used to visit the

office of applicant and have meeting with applicant in his

chamber.




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23.      From the above, it is prima facie clear that the

Liquidator and other officials were closely hand in glove with

the applicant.      Not only the Liquidator provided all the

necessary information of investors of BHRMSCCS to the

applicant but also used to regularly visit and had meeting with

the applicant. It is also clear that the applicant, at the instance

of Jitendra Kandare, was in habit of offering 30% to 40% of

the fixed deposit receipts to the hapless investors. Even they

had prepared the website with all necessary details inasmuch

as the same was connected to official website of the

BHRMSCCS. The modus operandi appears to be very much

clear and prima facie the participation and main role of

applicant along with Liquidator, namely, Jitendra Kandare is

there.


24.      The learned Counsel for the applicant has filed List No.

II showing the purchase price and as also Government

valuation which apparently shows that the purchase price is

more than the Government valuation. I have pointed out from

the affidavit of the investigating officer that in respect of




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certain properties the Government valuation was shown less

than the original price of the properties. It is also revealed

during investigation that the valuation was much on the

higher side than the valuation shown at the time of sale.


25.      It may be noted that the provision of MPID Act will not

be attracted against applicant but then provisions of IPC are

already there to take care of role of applicant in whole

episode.


26.      I have carefully gone through the judgments filed by

either side. In view of facts and circumstances of the case, I do

not find applicable to the case in hand.


27.      Having regard to the material on record, in my

considered opinion, the offence is of grave nature involving

crores of public monies and as also the involvement of

properties belonging to BHRMSCCS.


28.      Having regard to the material on record, in the light of

above discussion, I do not find this is a fit case where the

applicant can be enlarged on bail.




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        29.      For the aforesaid reasons, I do not find merit in the

        application and therefore, I am not inclined to allow the

        application. Hence the following order :


                                      ORDER

The bail application is rejected.

(V.G.BISHT, J. ) Digitally signed by TRUPTI TRUPTI SADANAND SADANAND BAMNE BAMNE Date:

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