1 ABA : 434-435/2011 IN THE HIGH COURT OF JUDICATURE AT BOMBAY CRIMINAL APPELLATE JURISDICTION ANTICIPATORY BAIL APPLICATION NO.434 OF 2011 WITH CRIMINAL APPLICATION NO. 344 OF 2011 Shri Dayanand Moreshwar Bhagat .... Applicant (Ori. accused) Vs. The State of Maharashtra .... Respondent Mr. A.P. Mudargi, Senior Counsel i/by Mr. S.M. Sabrad for applicant. Mrs. A.A. Mane, APP for State. ALONGWITH ANTICIPATORY BAIL APPLICATION NO.435 OF 2011 WITH CRIMINAL APPLICATION NO. 345 OF 2011 Shri Rajan Yashwant Kale .... Applicant (Ori. accused) Vs. The State of Maharashtra .... Respondent Mr. Shirish Gupte, Senior Counsel with Racheeta Dhuru i/by Mr. V.V. Purwant for applicant. Mrs. A.A. Mane, APP for State. 2 ABA : 434-435/2011 Coram : Smt. R.P. SondurBaldota, J. Date : 4th August, 2011 P.C. 1. The two applicants in the above applications are the directors of Pen Co-operative Urban Bank Limited. They seek anticipatory bail in connection with C.R. No.34 of 2011 registered with Pen Police Station, for the offences punishable under Sections 418, 420, 465, 467, 468, 471, 477, 409, 163 read with 34 Indian Penal Code. There are in all 41 persons accused in the complaint most of whom have been released on bail either by the Sessions Court or by this Court. Four persons who are members of the High Power Committee, the Chairman and C.E.O. of the bank are still in custody. The Police have filed charge-sheet. 2. The facts giving rise to the present applications state in brief are as follows: The Pen Co-operative Urban Bank Limited, a 75 years old institution is presently under acute financial crisis on account of the mis-management and fraudulent acts committed during the management of the bank. A sum of Rs.50 Crores was illegally advanced to M/s Sky Lab Builders. The C.E.O. of the bank had entered into transaction amounting to Rs.25 Crores without prior 3 ABA : 434-435/2011 permission of the Board of Directors. The bank had disbursed loans to the extent of Rs.5.11.54 crores by crossing its lending limits and without verifying the capacity of the debtors to repay the loan. The bank had encashed government securities in violations of the guidelines of the Reserve Bank of India resulting into loss of Rs.12.18 Crores by way of penalty paid for the same. The statutory Auditor of the Bank had filed false audit reports for the financial years 2008-2009 and 2009-2010 showing the bank to be in profit, when it was actually running in substantial losses to the extent of more than Rs.400 Crores. All these misdeeds came to light in the re-audit of the accounts of the bank for the two financial years by the Chartered Accountant appointed by Commissioner of Co-operatives and Registrar for Co-operative Societies, Government of Maharashtra. Then pursuant to the authorisation given by the Commissioner, the complaint at C.R. No. 34 of 2011 came to be filed. The applicants herein were elected as directors of the bank in February 2009. They contend that the Chairman of the bank and few of the directors who have been members of the High Power Committee are responsible for the misappropriation of the bank funds. The entire authority for lending amounts was concentrated in their 4 ABA : 434-435/2011 hands. The applicants alleged that all the lending activities had taken place during the relevant period without holding meetings of the Board of Directors. They contend that no meeting of the Board of Directors has taken place since the date of their election. After the report of the special auditors was received, the Chairman and the members of the High Power Committee has got antedated minutes of the meeting of Board of Directors prepared and pressurised the directors to sign them. The report of the special auditors does not specifically indict the applicants. The investigation so far done by the police does support, to some extent, the contentions of the applicants. Mr. Mundargi and Mr. Gupte, the learned Senior Counsel appearing for the applicants further submit that in fact the applicants herein are also victims of the Chairman and his Coterie since a substantial amount deposited by them in the bank is almost lost to them. 3. Hence, in the event of their arrest in connection with C.R. No. 34 of 2011 registered with Pen Police Station, for the offences punishable under Sections 418, 420, 465, 467, 468, 471, 477, 409, 163 read with 34 Indian Penal Code, the applicants be released on bail in the sum of Rs.50,000/- each with one solvent surety each in the like amount. The applicants shall make themselves 5 ABA : 434-435/2011 available for interrogation by the Investigation Officer as and when required. They shall not directly or indirectly, make any inducement, threat or promise to any person acquainted with the facts of the case so as to dissuade him for disclosing such facts to the Court or to any Police Officer. The applicants shall not leave India without the previous permission of the Court. (Smt. R.P. SondurBaldota, J.)