1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY NAGPUR BENCH, NAGPUR Criminal Application [ABA] No. 122 of 2011 (Yashwant S/o. Kashinath Shrotri Vs. The State of Maharashtra) with Criminal Application [ABA] No. 123 of 2011 (Seema W/o. Dinesh Rathi Vs. The State of Maharashtra) Office Notes, Office Memoranda of Coram, Appearances, Courts orders or directions Court’s or Judge’s orders and Registrar’s orders. Mr. M.G. Sarda, Advocate for the appellant in ABA No. 122/2011 Mr. A.S. Mardikar, Advocate for the applicant in ABA No. 123/2011. Mr. S.S. Doifode, APP for the State/respondent. CORAM : M.N. GILANI, J. DATE : 2nd AUGUST, 2011. Heard. Both these applications are arising out of Crime No. 21/2011, registered with the Police Station City Kotwali, Akola, under Sections 406, 409, 420, 120-B, 166, 167, 217, 218 read with 34 of the Indian Penal Code. Hence they are being disposed of by this common order. Brijlal Biyani Credit Co-operative Society, Akola (for short “Society”) through an advertisement and also through personal contacts invited public at large to make deposits with it. The Society promised to give a very attractive interest ranging from 10 to 15%. The F.I.R. 2 enumerates names of 36 persons who had made deposits during the period from 2007 to 2009. Total deposits made by these 36 gullible persons come to Rs.39,73,877/-. When these depositors went to withdraw their amounts, with accrued interest, their requests for withdrawal of the amount, were turned down on the ground that the Society has been closed. The Joint Registrar, Co-operative Societies had ordered the audit of the Society, which was accordingly conducted. Following irregularities surfaced during audit : (i) Loan granted more than prescribed credit deposit cash ratio. (ii)Loan sanctioned and granted more than the loan capacity of the Society. (iii)The gross capital of the Society showed disproportionate depreciation which is because of deliberate and advertent acts and omissions of Directors and Manager. (iv)The loan limit has been exceeded the prescribed ratio. That means, the amount of the loan should not have exceeded more than 10 times of the deposits in the Society. (v)The non performance account (NPA) percentage is 3 abut 74%. That means, as against the loan of about 8 Crores disbursed, non performance accounts are in the tune of Rs.6 Crores. This is an act of deliberate and systematic plan of the accused persons which invited such situation. (vi)The loan amount about 55 Lakhs is outstanding and the record of this amount is misplaced. (vii)Although the Society was not in a capacity to declare dividends, 10 % dividends was declared and Board of Directors caused wrongful loss to the Society and wrongful gain to themselves. The cash amount of about Rs.5 Lakhs was illegally withdrawn. In the balance sheets of the year 2006-2007, 2007-2008 the Society was shown in profit, whereas it was in loss. (viii)Maximum loan disbursement is without security and mortgage and therefore, majority of the loan account has become non performing accounts. (ix)At the instance of Board of Directors and Managers misappropriation of 19 Lakhs has been noticed during audit. This Court (Coram : P.D. Kode, J) on 8th April, 2011, granted interim protection to the applicant till 4 11/04/2011, and thereafter it was extended from time to time. The allegations are based on the audit reports of the year 2007-08 and 2008-09. Whatever the mismanagement or irregularities, were of the period prior to 31st March, 2009. To be more precise, Mr. S.S. Doifode, the learned A.P.P., states on instructions that the date of last loan transaction is 25/02/2008. Then there are general allegations like inaction or omission in taking prompt and proper recourse in the matter of recovery of loan amount. The fact remains that considering the period of irregularities and the fact that the applicants Yashwant Shrotri was appointed as Board of Director on 21st August, 2008, his case has to be distinguished from the cases of other accused persons. Therefore, I do not find any hurdle in confirming the interim protection granted by this Court (Coram : P. D. Kode, J) with a direction that in the event of his arrest in Crime No. 21/2011, he be released on his furnishing P.R. Bond of Rs.50,000/- (Rupees Fifty Thousand Only) with two sureties in the like amount. With regards to the applicant-Mrs. S.D. Rathi, she is a part-time teacher in Kothari Convent at Akola. There appears substance in her case that at the instance of one Manohar Kothari, she accepted the post of Director. 5 Although, she did not know about the Banking and Cooperative laws, in good faith, she used to sign the documents. It is her case that none of the borrowers of the society is directly or indirectly related to her. On the contrary, she has her fixed deposits in the society to the tune of Rs.87,000/-. In view of this and the fact that she being a woman and working as a teacher and the circumstances in which she joined as director and had been working, the interim protection granted to her by this Court (Coram : P.D. Kode, J) has also been confirmed in the following terms. In the event of her arrest in the said crime, she be released on her furnishing P.R. Bond of Rs.50,000/- (Rupees Fifty Thousand Only) with two sureties in the like amount. JUDGE *sdw