( 1 ) IN THE HIGH COURT OF JUDICATURE OF BOMBAY BENCH AT AURANGABAD CRIMINAL APPLICATION NO. 4603 OF 2010 1. Sharad s/o Madhavrao Jinsiwale, R/o Milan Road, Yawal, Dist. Jalgaon. 2. Fajalu Rehaman Khan Hussain Khan, R/o Babujipura, Yawal, Tq. Yawal, District Jalgaon. 3. Rajendra s/o Nilkanth Mahajan, R/o Opp. S.T. Stand, Yawal, Tq. Yawal, District Jalgaon. APPLICANTS VERSUS The State of Maharashtra & another RESPONDENTS .... Smt. Sadhana S. Jadhav, advocate for the applicants. Mr. N.H. Borade, APP for the respondents. .... WITH CRIMINAL APPLICATION NO. 4589 OF 2010 1. Deoram Krishna Rane 2. Shashikant Annantrao Deshpande 3. Deepak Gangadhar Saraf 4. Dilip Padmakar Neve 5. Vijay Trambak Saraf 6. Shahaji Pandurang Yeole 7. Bhagwat Rama Koli All r/o Yawal, Tq. Yawal, District Jalgaon. APPLICANTS VERSUS The State of Maharashtra RESPONDENT .... Mr. V.B. Patil, advocate for the applicants. Mr. N.H. Borade, APP for the respondent/State. .... ( 2 ) WITH CRIMINAL APPLICATION NO. 4591 OF 2010 Prakash Mahadeo Deshpande, R/o Yawal, Taluka Yawal, District Jalgaon. APPLICANT VERSUS The State of Maharashtra RESPONDENT .... Mr. V.B. Patil, advocate for the applicant. Mr. N.H. Borade, APP for the respondent/State. .... [CORAM : V.R. KINGAONKAR, J.] [DATE : 30th November, 2010] PER COURT : 1. These are applications under section 438 of the Criminal Procedure Code. 2. Heard learned advocates for the applicants and learned A.P.P. Perused the investigation papers. 3. The applicants apprehend their arrests in connection with Crime No. 104/2010, registered at Yawal Police Station for various offenses. The applicants were said to be Directors of Cooperative Credit Society and allegedly committed financial irregularities and illegalities which resulted into loss to the Credit Society. It is alleged that loans were ( 3 ) disbursed improperly without obtaining securities and at a times, outside the jurisdiction or the permissible limits. 4. So far as the applicants in Criminal Application No. 4603/2010 are concerned, it appears that they were the Directors during the period prior to the period covered by the Audit Inspection Report. They are not the Directors during the relevant period in which the alleged transactions of loans were done. 5. So far as the other applicants are concerned, what is alleged in the FIR Is that there were excessive loans granted by them. The FIR is based on Enquiry Report dated 20/22-08-2010 submitted by the Enquiry Officer Shri M.M. Patil. That is the foundation of the FIR. The effect of the Enquiry Report is stayed vide order dated 26th October, 2010 rendered by this Court in writ petition No. 10116/2010. Needless to say, the purport and tenor of the Enquiry Report is subject matter of challenge in the writ petition and effect thereof has been stayed under the orders of this Court. 6. Though the Enquiry Report prima facie shows that some loans were granted to 25 borrowers, without obtaining ( 4 ) proper securities, yet, it appears from the approved resolution of the Cooperative Credit Society that in the Annual General Meeting dated 14th June, 1999, it was resolved that loan to the extent of Rs. 30,000/- could be given for repairing of the house property, purchasing of domestic articles, educational purposes, marriage purpose, medical purpose, etc. without obtaining separate security and on obtaining security of only two (2) members. It appears that there are only few cases of the loans granted in excess of Rs. 30,000/-. However, in such case, there were deposits of those borrowers which could meet substantial part of the repayment. There is hardly any prima facie evidence to show that the applicants personally were beneficiaries of any illegal transactions of disbursements of the loans. As stated before, the Enquiry Report itself is stayed by ad-interim orders of this Court and as such, the basis of the FIR Is rather on shaky foundation. 7. Considering the foregoing reasons, the applicants in the context of other two (2) applications are also entitled to seek directions under section 438 of the Criminal Procedure Code. In view of the reasons ascribed hereinbefore, all the three applications are allowed. The applicants are directed ( 5 ) to be released on bail, in the event of their arrest, on furnishing of bail bonds in sum of Rs. 20,000 (rupees twenty thousand) each, with one surety bond in the like sum, before the Arresting Officer, and on further condition that they shall attend the concerned Police Station on each Sunday between 10 a.m. and 2 p.m. and shall actively participate in the course of investigation. They shall attend the concerned Police Station for four (4) consecutive Sundays hereafter. They shall produce the necessary documents as may be required by the Investigating Officer. [V.R. KINGAONKAR] JUDGE NPJ/criapln4603-4589-4591-10