1 IN THE HIGH COURT OF JUDICATURE OF BOMBAY BENCH AT AURANGABAD (CRIMINAL APPLICATIONS ) 1. APPLN/2835/2009 (BHALCHANDRA S/O. SONU WANI V/S THE STATE OF MAHARASHTRA AND ANR.) WITH 2. APPLN/2087/2009 ( ANIL NARHAR TOLKAR V/S THE STATE OF MAH AND ANR) WITH 3. APPLN/2110/2009 (SUHAS S/O. VASANT YEOLE V/S THE STATE OF MAHARASHTRA) WITH 4. APPLN/2147/2009 (SAU. VARSHA ANNASA KSHATRIYA V/S THE STATE OF MAHARASHTRA) WITH 5. APPLN/2155/2009 (VIDYA KANTILAL MANTRI V/S THE STATE OF MAH AND ANR) WITH 6. APPLN/2254/2009 (PRADIP RAGHUNATH BICHAVE AND ANR V/S THE STATE OF MAH AND ANR) WITH 2 7. APPLN/2449/2009 ( LAXMI SURESH HINDUZA V/S THE STATE OF MAHARASHTRA) WITH 8. APPLN/2588/2009 (YOGESH DATTATRAYA SONAR AND ANR V/S THE STATE OF MAH AND ANR) WITH 9. APPLN/2590/2009 (ASHOK S/O. MOTILAL LOHAR V/S THE STATE OF MAHARASHTRA AND ANR). WITH 10. APPLN/2844/2009 (ANNASA WAMANSA KSHATRIYA V/S THE STATE OF MAHARASHTRA) WITH 11. APPLN/2985/2009 ( SURESH S/O. BALCHAND HINDUJA AND OTHERS V/S THE STATE OF MAHARASHTRA AND ANR.) ... Mr. A.K.Tiwari, Advocate, for applicants in Cri.Application Nos. 2835/2009 and 2985/2009. Mr.R.S.Shinde, Adv., for applicants in Cri.Application Nos. 2087/2009 and 2254/2009. 3 Mr. R.S.Shinde, Adv., h/f Mr. N.L.Chaudhari, Adv., for the applicants in Criminal Application Nos.2844/2009, 2449/2009, 2147/2009. Mr. P.F.Patni, Adv., for applicant in Criminal Application no.2110/2009. Mr. Vinod Patil, Adv., for applicant in Criminal Application No.2155/2009. Mr. S.V.Gangapurwala, Adv., for the applicant in Criminal Application No. 2588/2009. Mr.U.S.Malte, Adv., for applicant in Criminal Application No.2590/2009. Mr. K.M.Suryawanshi, APP, for respondent State. CORAM : K.U.CHANDIWAL, J. DATE :30/9/2009 *** P.C.: 1. Heard Counsel for the respective applicants and learned A.P.P. The Special Auditor carried Audit of subject Credit Cooperative Society. He found, the Chairman, Managing Director, other Directors and staff have misappropriated depositors money as they invested around Rs.30 lacs in a Credit Society which was not approved and did not deposit in prescribed Nationalized Bank. Report vide Crime No.117/2009 is registered at Parola 4 Police Station against 19 Directors and 75 borrowers. (a) The applicant in Criminal Application No.2110/2009, was Vice Chairman for the period from 1998 to 2000 and Chairman for the period from 2005 to 2006. In his tenure, there were renewal of above deposits with non approved Credit Societies. (b) The Counsel submits that there are no loans availed by the accused/applicant. On the other hand, there is deposit of Rs.4,00,000/- with the society and after the FIR, an amount of Rs.One Crore, Thirty lacs is recovered from different borrowers. According to the Counsel, he has not released any new loan or recommended for the same. 2. (a) In Criminal Application No. 2155/2009, the applicant is a borrower having availed loan of Rs.1,60,000/- and the applicant has since deposited Rs.65,000/- on 27.8.2009, he has produced a receipt. (b) Learned A.P.P. has a grievance that this amount is in Savings account, however, it is clarified that, such deposit by the applicant herein is to be treated as adjustment of loan account. 5 3. (a) In Application No.2835/2009, applicant No.1 Bhalchandra s/o Sonu Wani, was a Director from 19.10.1995, thereafter, Vice Chairman from 19.10.1995 till 11.8.2009. He has not availed any loan. (b) Applicant No.2 Devendra s/o Ratilal Jain was a Vice Chairman. He availed loan for his family members, however, the loan is squared off. (c) Applicant No.3 Rajendra s/o Sharadchandra Kasar was a Director. No loan availed. He is no more Director of the Credit Society. (d) Applicant No.4 Ramesh s/o Nandram Pawar was a Director. He appointed his daughter as an employee in the society. Loan of Rs. 4,00,000/- (Rs.four lacs) was illegally disbursed to the daughter with lowest rate of interest. He managed his influence for appointment of his daughter Savita as an employee and did not venture to get the loans recovered, though it was his primary obligation. 4. (a) In Criminal Application No. 2087/2009, the applicant Anil s/o Narhar Tolkar is Director from 10.2.2006. Counsel submits, 6 that there are deposits Rs.3,00,000/- (Rs. three lacs) from his family members. He has not availed any loan. Allegation against him is, unauthorized deposits of Rs.31,00,000/- (Rs.thirty one lacs) in other Credit Cooperative Society, said society has turned into liquidation. An amount of Rs.31,00,000/- (Rs. thirty one lac) was allegedly disbursed during his tenure from which, due to his efforts, Rs. 26,00,000/- (Rs. twenty six lacs) are recovered. 5. (a) In Criminal Application No. 2254/2009, the applicant No.1 Pradip s/o Raghunath Bichave is a co-opt director. He is in service while applicant No.2 Mahesh s/o Shantilal Gujrathi is running a sweetmeat shop at Jalgaon. The allegations are, the applicant No.2 Mahesh while anointed as Vice Chairman from 11.4.2003 to 10.4.2004, has released loan of Rs. 17,25,000/- and there was unauthorized deposit of around Rs. 31 lacs in Credit Cooperative Society. The family members of applicant no.1 Pradeep Raghunath Bichave have fixed deposits of Rs. 1,00,000/-(Rs.one lac) with the Credit Cooperative Society. 6. (a) Applicant Varsha Annasa Kshatriya (Criminal Application No.2147/2009) is a borrower in the Credit Cooperative society, having availed loan of Rs.6,00,000/- (Rs. six lacs). Counsel 7 informs and not controverted an amount of Rs. 2,25,000/- is deposited which should have been Rs.3,00,000/- as per directions of this Court. This deposit to be adjusted towards loan account for which the applicant has no objection. There is no other irregularity that has been notified by the investigator or the auditor. Applicant has furnished her property as a security/mortgage with the credit Society. 7. (a) In Criminal Application No. 2449/2009, learned A.P.P. informs, the applicant (Laxmi Suresh Hinduza) though a borrower, inspite of Courts direction, she has not deposited the amount of loan of Rs.5,00,000/- (Rs.five lacs). (b) It is unfortunate, the accused/applicant, a borrower, while getting interim protection from this Court, did not comply direction of remittance. Such flouting cannot further be encouraged, though she claims protection, being a lady. (c) Considering the nature of allegations, she having availed housing loan on 25th March, 2006 and, during the course of submission, the Counsel shows bona fide to clear the amount within a reasonable time, I find custodial interrogation of accused/applicant not warranted. There was no irregularity committed 8 by the accused/applicant while furnishing details of the property. 8. In Criminal Application No. 2844/2009, the applicants are borrowers for housing loan. As against applicant no.2 Sharad Dagadu More, there was disbursement of Rs. 1,30,000/- (Rs.one lac, thirty thousand). Pursuant to grant of interim protection and condition, he has deposited Rs.75,000/- (Rs.seventy five thousand) in his Savings Account which the society will get transferred to the loan account. The applicant has not committed any other irregularity or illegality. 9. (a) In Criminal Application No.2590/2009 the applicant (Ashok s/o Motilal Lohar) was a Director from 7.2.2006. Deposits of Rs. 1,12,000/- (Rs. one lac, twelve thousand) are with the society by or in the name of his close relations. Applicant has not availed any loan. The general allegations are, around Rs. 31,00,000/- (Rs. thirty one lacs) are deposited in other Cooperative Credit society which was not eligible for such favour. 10. (a) In Criminal Application No. 2588/2009, the two applicants (Nitin s/o Rameshchandra Kasar, applicant no.2 and Yogesh s/o Dattatraya Sonar, applicant no.1) are the 9 directors of the credit society effective from 7.2.2006. They have not availed personal loan. Counsel for the applicant submits, supported by a certificate from the society that no loan is disbursed to any member or his relations at the behest of the accused/applicant Yogesh or Nitin. (b) The Counsel submits that the amount of Rs.31,00,000/- (Rs. thirty one lacs) diverted in other credit cooperative society was totally a decision of the Chairman and Manager, without there being any resolution. 11) (a) In Criminal Application No.2985 of 2009, three applicants are the borrowers. Applicant No.1 Suresh s/o Balchand Hinduja and applicant No.2 Arjun s/o Balchand Hinduja have put their property on sale and a statement is made by learned Counsel that no sooner the shops are sold, the sale proceeds will be deposited with the credit society. (b) So far as applicant No.3 Sham s/o Avdhuth Kulkarni is concerned, he has availed loan of Rs.50,000/- (Rs. fifty thousand). Counsel informs, he has got the voluntary retirement, expects his gratuity and provident fund amount within short duration and assures to 10 make the deposit. (c) Considering these aspects and since learned A.P.P. is unable to point any irregularity on the part of three applicants, they deserve protection. 12. After extensively hearing the learned Counsel for the respective Directors and the learned A.P.P., since learned A.P.P. has produced chart showing irregularity committed by each of the Director, I find that almost all the Directors, except applicant No.4 in Application No.2835/2009 (Ramesh s/o Nandram Pawar), have no active role in the irregularities committed at the Credit Cooperative Society. The diversion of Rs.31,00,000/- (Rs. thirty one lacs) to the non eligible credit society was a decision of the Chairman and the then Manager. It is correct that efforts should have been made by the present applicants as Directors for smooth redeposit of the said amount instead of renewing. 13. There are two loans to the employees. One of the employee Vinod Vasant Nerkar expired carrying liability. The other employee Sunil Gopal Gadhe is bestowed with loan of Rs. 3,00,000/- (Rs. three lacs) and present outstanding is Rs.2,77,655/-. Disbursement of 11 loan to the employees and keeping it struck was obviously flouting of Rules effected by the Directors of the Credit Cooperative Society for which they necessarily need to account for or make efforts for its recovery. 14. The overall survey of the matter indicates that it was the cumulative efforts after the FIR that an amount of Rs.1,30,00,000/- is recovered and few of the Directors have their deposits with the credit society either in their individual names or in the name of family members. Considering the present status of the credit society, which needs revival for its activities and generate confidence of the depositors who have been put to lot of financial difficulties and their faith in the system itself is attempted to be shattered, the directions for deposits by Directors as fixed deposit will meet ends of justice. Hence, order: ORDER (a) In the event of arrest of accused/applicant in Criminal Application No. 2155/2009 (Vidya w/o Kantilal Mantri), she be released on furnishing P.R. bond and surety in the sum of Rs.10,000/- (Rs.ten thousand), till chargesheet. 12 (b) The accused/applicant in Application No. 2155/2009 (Vidya w/o Kantilal Mantri) shall attend investigating officer, whenever so called. Accused/applicant shall ensure deposit of Rs. 60,000/- (Rs. sixty thousand) within three months. (c) Application (No.2155/2009) allowed in above terms. (d) In the event of arrest of accused/applicant in Criminal Application No. 2147/2009, she be released on furnishing P.R. bond and surety in the sum of Rs.10,000/- (Rs.ten thousand), till chargesheet. (e) The accused/applicant shall attend investigating officer, whenever so called. Accused/applicant (Sau.Varsha Annasa Kshatriya) shall ensure deposit of Rs.3,00,000/- (Rs. Three lacs) within three months. (f) Application (No.2147/2009) allowed in above terms. (g) In the event of arrest of accused/applicant in Criminal Application No.2449/2009 (Laxmi Suresh Hinduza), she be released on furnishing P.R. bond and surety in the sum of Rs.10,000/- 13 (Rs.ten thousand), till chargesheet. (h) The accused/applicant (Laxmi Suresh Hinduza) shall attend investigating officer, whenever so called. Accused/applicant shall deposit Rs.5,00,000/- (Rs. five lacs) within three months. (i) Application (No.2449/2009) allowed in above terms. (j) In the event of arrest of accused/applicants (Annasa Wamansa Kshatriaya and Sharad Dagadu More) in Criminal Application No. 2844/2009, they be released on each furnishing P.R. bond and surety in the sum of Rs.10,000/- (Rs.ten thousand), till chargesheet. (k) The applicant No.2 Sharad Dagadu More to deposit an amount of Rs.60,000/- (Rs. sixty thousand) within three months. (l) Applicant No.1 Wamansa Kshatriaya has deposited Rs.2,20,000/- (Rs. two lacs, twenty thousand) in his Savings Account, which will be transferred to the loan account. He will deposit Rs.3,00,000/- (Rs. three lacs) within three months. 14 (m) The accused/applicant shall attend investigating officer, whenever so called. (n) Application (No.2844/2009) allowed in above terms. (o) In the event of arrest, the applicants, ( Suresh s/o Bhalchand Hinduja, Arjun s/o Balchand Hinduja and Sham s/o Avdhuth Kulkarni) be released on each of them furnishing P.R. bond and surety in the sum of Rs.10,000/-, till chargesheet. (p) The applicant No.3 Sham Avdhuth Kulkarni shall deposit Rs.50,000/- (Rs. fifty thousand) within three months. Applicant No.2 Arjun Balchand Hinduja shall deposit Rs. 2,50,000/- (Rs. two lacs, fifty thousand) within three months. Applicant No.1 Suresh s/o Balchand Hinduja will deposit Rs.3,00,000/-(Rs. three lacs) within three months. (q) The accused/applicant shall attend investigating officer, whenever so called. (r) Application (No.2985/2009) allowed in above terms. (s) The applicants in Criminal Application Nos. 2110/2009, 2087/2009, 2254/2009, 2590/2009, 15 2588/2009, be released on each of them furnishing P.R. bond and surety in the sum of Rs.10,000/- each. (t) The application of Bhalchandra s/o Sonu Wani (applicant no.1), Devendra s/o Ratilal Jain (applicant no.2), Rajendra s/o Sharadchandra Kasar (applicant no.3) in Application No. 2835/2009 is allowed, they be released on bail, in the event of arrest, on each of them furnishing P.R. bond and surety in the sum of Rs. 10,000/-, while application of Ramesh s/o Nandram Pawar (applicant no.4) is rejected. (u) The Directors herein, except Ramesh Narayan Pawar, without prejudice to their rights, shall deposit with the Credit Cooperative Society an amount of Rs.2 lacs, as fixed deposit, within three months. In the event of results turning in favour of the accused/applicants, they will be entitled to receive the amounts, after trial. (v) So far as the Directors whose deposits are already with the credit society, they will be entitled for adjustment to the extent of Rs. 2,00,000/- (Rs. two lacs) as deposit, maturity value of such deposit is of no consequence. 16 Applications disposed of in above terms. ( K.U.CHANDIWAL) JUDGE agp/2835-09craplgr