1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY CRIMINAL APPELLATE JURISDICTION CRIMINAL APPLICATION NO.2976 OF 2009 1. Gurudatta Shripatrao Mhangore 2. Sundar Shivaji Jadhav ....Applicants Vs. The State of Maharashtra ....Respondent ----- Mr. D.A. Patil i/b. Mr. Milind D. Parab for Applicants Mr. H.J. Dedhia -APP for State ------ CORAM: V.M. KANADE J. DATED: 2ND DECEMBER, 2009 P.C. 1. Heard the learned Counsel appearing on behalf of the Applicants and the learned APP for the State. 2. The Applicants have been arrested in connection with an offence punishable under sections 406, 408, 420, 471, 477-A r/w. 34 of the Indian Penal Code which is registered vide C.R. No. 53 of 2009 with Bhudargad Police Station. 1 3. The Applicants were the directors of erstwhile Mahalaxmi Nagarik Sahakari Credit Society Limited, which is now merged with Bhedesgaon Nagari Sahakari Credit Society. A complaint was filed by the Government Auditor, in which he has alleged that the chairman and directors of the said credit society had disbursed the loan to the tune of Rs.12,42,521/- without following the procedure laid down under the Act and Rules. As a result, the directors of the said credit society were arrested. 4. The learned Counsel appearing on behalf of the Applicants submitted that now the entire amount which was disbursed to these persons by the directors has been recovered and, further, the directors of the said credit society have also deposited a huge amount in the account of the credit society after withdrawing certain amounts from other credit societies. He further submitted that, as of today, there is no financial loss to the credit society on account of the amount which has been deposited by the directors. 5. The Applicants have filed an additional affidavit dated 30th November, 2009. The other directors have been released on bail. Taking into consideration the affidavit filed by the Applicants herein, custodial interrogation of the Applicants, in my view, is not 1 necessary, more particularly because the amount which was disbursed to various borrowers has now been secured by the Applicants and other directors. Orders have been passed by the appropriate authorities under section 101 of the Maharashtra Co-operative Societies Act and the Assistant Registrar has initiated the proceedings for the recovery of the said amount from the borrowers. In this view of the matter, the Applicants deserve to be released on bail. 6. The Applicants shall be released on bail in C.R. No. 53 of 2009 registered with Bhudargad Police Station. in a sum of Rs.10,000/- each with one or two sureties each in the like amount. They shall report to the concerned police station once in a month. 7. Application is disposed of. (V.M. KANADE J.)