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Order on BA No.668/24
MHCC020132142024
BEFORE THE DESIGNATED COURT UNDER M.P.I.D. ACT
CITY CIVIL & SESSIONS COURT, MUMBAI
ORDER ON BAIL APPLICATION NO.668 OF 2024
IN
C.R. No.59 of 2024
Manickam Velayutham Udaiyar
Age : 40 years, Occ : Business
Residing at Room No.1905, 19th Floor,
Tapasya Co-operative Housing Society,
S. V. P. Nagar, MHADA, Andheri (W),
Mumbai-400053.
(Presently at Arthur Road Jail, Mumbai)
]
]
]
]
]
] Applicant/
]… Accused no.2
Versus
The State of Maharashtra
(Through D.C.B. C.I.D. Police Station)
]
]… Respondent
Appearances:Ld. Advocate Vinod P. Sangvikar along with Ld. Advocate Yuvraj A.
Tajane for the Applicant.
Ld. SPP Suryawanshi for the State/ Respondent.
CORAM : HIS HONOUR JUDGE
N. P. MEHTA,
(Court Room no. 7)
DATE : 21st September, 2024.
ORAL ORDER
1.

The present application is moved by the Applicant/Accused
Manickam Velayutham Udaiyar, under Section 439 of The Code
of Criminal Procedure, 1973 for grant of regular bail.

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2.

Order on BA No.668/24
A case bearing C.R. No.59 of 2024 is registered with D.C.B.
C.I.D. Police Station (C.R. No.398 of 2024 registered with Varsova
Police Station) against the present Applicant for the offence
punishable under Sections 201, 406, 409, 420, 506(2) r/w
Section 120-B of the Indian Penal Code, 1860 (hereinafter
referred as “IPC”) as well as Sections 3 and 4 of The Maharashtra
Protection of Interest of Depositors Act, 1999 (hereinafter
referred as “MPID Act”).

3.

Application is resisted by the Prosecution by filing its say at
Exhibit No.02.

4. Prosecution case in nutshell is as under :-
Depositors were induced by making representation that,
Ashish Shah is trading in share market and for that he collects
money from people and invest their money in their name in share
market and give them good returns. On such inducement
informant and other investors deposited money with Ashish Shah
for making investment in share market. In the year 2020, there
was Covid-19 induced lockdown due to which share trading
business was affected. At relevant time accused Ashish Shah used
to visit informant’s locality and was providing them with financial
support. Ashish Shah used to advice people residing in
informant’s locality to invest in share market. As and when
accused Ashish Shah is to visit Anna Nagar locality, he used to
lure people of that locality to invest money in share market
through Samaryash Trading Society which as per accused is
registered with SEBI. In the year 2022, accused Ashish Shah
visited house of informant and gave information regarding nature
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Order on BA No.668/24
of business in share market. Accused Ashish Shah told informant
that, if they invest money through his trading Company by name
Samaryash Traders LLP which is SEBI registered then they will
get interest @ 84% p.a. Both informant and wife got impressed
with the returns on investment money as suggested to them by
accused Ashish Shah. On 01.09.2022, informant handed over
cash of Rs.10 Lakhs to accused Ashish Shah for investment in his
Company. When informant visited the office of accused Ashish
Shah to enquire about his investment money at that time he told
informant that he has received profit of Rs.1 Lakh on his
investment of Rs.10 Lakhs. Accused Ashish Shah did not inform
him about the share in which informant money has been
invested. He told informant that now his invested money in share
trading is Rs.11 Lakhs.
5.

On 28.11.2022, informant’s wife transferred Rs.3 Lakhs in
ICICI Bank account of accused Ashish Shah for making
investment in share market. After few days, accused Ashish Shah
told informant that he had earned Rs.3 Lakhs on investment
amount. Again on 16.12.2022, informant by keeping trust in
accused Ashish Shah invested Rs.1,75,000/- from his bank
account. In the month of January 2023 informant asked accused
Ashish Shah about his investment, at that time informant was
told that, he has earned huge profit on his invested money in
shares. Again, informant, his friends, relatives have invested
Rs.42,06,371/-,
Rs.17,46,615/-,
Rs.14,95,000/-,
Rs.60,000/-,
Rs.27,91,559/-,
Rs.2,55,000/-,
Rs.50,35,500/-
and
Rs.9,63,36,763/- in the share trading business of accused Ashish
Shah on different dates.

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6.

Order on BA No.668/24
When informant and other investors demanded their deposits
back, accused Ashish Shah avoided to return their invested
money. On 23.05.2024, accused Ashish Shah tried to flee away
with money of depositors. The applicant is agent of accused
Ashish Shah, who accepted huge deposits from various investors
by showing rosy picture of handsome return on their invested
amount and defrauded investors’ money for his own use.
Applicant came to be arrested. During interrogation of applicant /
accused it came to fore that applicant has gained wrongfully with
the help of depositors money. Applicant is not having any source
of business to earn money. He did not explain as to how come
huge money came or diverted to his bank account. Applicant
purchased properties at Ashish Building, JTH Society, Andheri,
Mumbai, Shivshakti Society, Anna Nagar, and 4 Kg gold.

7.

During the course of investigation, it was found that present
applicant collected money from various depositors and diverted it
separately in his bank account and in the bank account of his wife
amounting to Rs.16.11 Crores in aggregate. Further, it is found
that, accused has transferred money of depositors in their
relatives bank account and their details are being collected by
investigating officer.

8.

During the course of hearing, Investigating Officer has
brought on record bank statement to show the amount of money
credited and debited from account of applicant which runs into
crores. Applicant is not having any independent source of income.
The firm in the name of applicant’s wife, nowhere depict the
nature of business being carried out by the said firm. On perusal
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Order on BA No.668/24
of witnesses’ statement recorded by police during the course of
investigation, it seems that those witnesses were induced by
applicant to deposit money in share trading business of Ashish
Shah and gave them his bank account number for transfer of
deposit in his account.
9.

It is submitted by accused / applicant that, accused Ashish
Shah is main accused and present applicant was his mere agent.
Applicant has also relied upon the judgment of Hon’ble Supreme
Court in Sanjay Chandra’s case reported in 2012(2) SCC (Cri) 26.

10.

It is matter of record that investigation of the instant crime
is in progress. It is not disputed that applicant / accused was
agent with accused no.1 Ashish Shah. Applicant / accused was
assigned job of convincing depositors to deposit money in trading
company of accused Ashish Shah. Applicant has collected money
of depositors for which have received commission from accused
Ashish Shah. The said money came to be deposited in his bank
account and bank of account of his wife. Applicant failed to
account for huge money which came to be diverted in his
account. It needs to be ascertained in whose account applicant
subsequently diverted money which he received from accused
Ashish Shah. As investigation is in progress, at this stage this
Court is not inclined to grant bail to the applicant as there is
apprehension that applicant may pressurize witnesses not to
approach Investigating Officer. Hence, I proceed to pass the
following order :ORDER
1. The present Bail Application No.668 of 2024 filed by the
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Order on BA No.668/24
Applicant Manickam Velayutham Udaiyar in connection with C.R.
No.59 of 2024 is registered with D.C.B. C.I.D. Police Station (C.R.
No.398 of 2024 registered with Varsova Police Station) against
the present Applicant for the offence punishable under Sections
201, 406, 409, 420, 506(2) r/w Section 120-B of the Indian Penal
Code, 1860 as well as Sections 3 and 4 of The Maharashtra
Protection of Interest of Depositors Act, 1999 is hereby rejected.
2. The present Bail Application No.668 of 2024 stands disposed of
accordingly.
(Dictated and pronounced in the open Court.)

Date: 21/09/2024
Mumbai
Dictated on
: 21/09/2024
Draft given on
: 23/09/2024
Signed by HHJ on : 23/09/2024
Digitally signed
by NIKHIL
PRAKASH
MEHTA
Date:
2024.09.23
17:48:34 +0530
(N. P. Mehta)
Designated Judge under
The Maharashtra Protection of
Interest of Depositors Act, 1999,
for Gr. Bombay
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Order on BA No.668/24
“CERTIFIED TO BE TRUE AND CORRECT COPY OF THE ORIGINAL SIGNED
JUDGMENT /ORDER”
23.09.2024 at 5.45 p.m.
UPLOADED DATE AND TIME
Ms. R. D. Tari
NAME OF STENOGRAPHER
Name of the Judge (with Court Room no.)

H.H.J. N. P. Mehta
C.R. No.07
Date of Pronouncement of Judgment/Order
21.09.2024
Judgment /Order signed by P.O. on
23.09.2024
Judgment/Order uploaded on
23.09.2024