In a judicial order passed on April 24, 2024, the XXVII Additional City Civil and Sessions Judge (CCH 9) holding concurrent charge of the LXIX Additional City Civil & Sessions Judge, Bengaluru City (CCH 70), Sri Hareesha A., B.A., LL.B., allowed the anticipatory bail application in Criminal Miscellaneous No. 3040/2024. The court granted pre-arrest bail protection to Vishnu Mahadev Matere (Accused No. 3), Ms. Sindhu Vishnu Matere (Accused No. 4), and Mahesh Maruti Matere (Accused No. 5) in connection with Crime No. 53/2024 registered by the Indiranagar Police Station, Bengaluru.

The petitioners face allegations under Sections 120B (criminal conspiracy), 421 (dishonest or fraudulent removal or concealment of property), 406 (criminal breach of trust), 420 (cheating and dishonestly inducing delivery of property), and 468 (forgery for purpose of cheating) read with Section 34 of the Indian Penal Code (IPC).

Factual Matrix and Allegations

The criminal proceedings originated from a complaint lodged by the Manager of Pragathi Inframaterials Trading Pvt. Ltd., having its office at Indiranagar, Bengaluru.

• Business Intermediary Relationship: According to the complainant, Zetwerk Pvt. Ltd. (Accused No. 1) acts as a business-to-business platform connecting raw material suppliers and buyers. Zetwerk connected the complainant company with M/s. V.M. Matere Infrastructures (India) Pvt. Ltd. (Accused No. 2), a Pune-based construction firm involved in major road, bridge, flyover, and building infrastructure projects in Maharashtra (including the NH-50 Khed-Sinner section/Kalamb bypass).
• Supply and Payment Default: Pragathi Inframaterials supplied construction raw materials (cement, steel, bitumen, sand, etc.) on trade credit based on assurances that payments would be disbursed via an escrow account. However, starting in April 2023, payments ceased. As of March 31, 2023, the outstanding arrears stood at ₹8,50,92,423/- (approx. ₹8.51 Crore).
• Allegations of Forged NHAI Escrow Letter: When pressed for payment, Zetwerk allegedly shared a copy of a letter dated March 23, 2022 (bearing an NHAI receiving seal dated March 25, 2022) indicating that an escrow account empanelment request had been submitted to the National Highways Authority of India (NHAI) to shift the payment mechanism to a YES Bank escrow account. An internal inquiry by the complainant revealed that NHAI had never received such a communication and that the seal on the letter was forged, prompting the registration of the FIR against Zetwerk, V.M. Matere Infrastructures, and its directors.

Details of the Petitioners

• Vishnu Mahadev Matere (Petitioner No. 1 / Accused No. 3): Aged 66 years, Managing Director, M/s. V.M. Matere Infrastructures (India) Pvt. Ltd.
• Ms. Sindhu Vishnu Matere (Petitioner No. 2 / Accused No. 4): Aged 57 years, Director, M/s. V.M. Matere Infrastructures (India) Pvt. Ltd.
• Mahesh Maruti Matere (Petitioner No. 3 / Accused No. 5): Aged 44 years, Director, M/s. V.M. Matere Infrastructures (India) Pvt. Ltd.
• Registered Address: Matere House, Sector No. 14, Pradhikaran Gate No. 62, Boradewadi, Moshi, Taluka-Haveli, Pune – 412 105, Maharashtra.
• Legal Representation: Sri Anand Muttalli, Advocate.

Arguments Advanced

On Behalf of the Petitioners

1. Absence of Direct Contractual Privity: The defence pointed out that a Material Supply Agreement dated March 16, 2022, existed between Zetwerk (Accused No. 1) and V.M. Matere Infrastructures (Accused No. 2). No direct contract existed between the complainant company (Pragathi Inframaterials) and the Matere Directors (Accused Nos. 3 to 5).
2. Civil Commercial Dispute: The transaction is a commercial supply conflict regarding outstanding trade invoices, which the complainant sought to criminalize.
3. No Financial Misrepresentation: There were no assertions that the petitioners directly supplied false financial statements to induce material delivery.
4. Documentary Evidence: The investigation relies entirely on written supply logs, contracts, and banking correspondence; hence, custodial interrogation is unnecessary.
5. Non-Capital Offences: The alleged offences under Sections 120B, 421, 406, 420, and 468 IPC do not carry penalties of death or life imprisonment and are triable by a Magistrate.

On Behalf of the Respondent (State)

1. Commercial Fraud and Forgery: The Public Prosecutor argued that the accused entities collectively used a forged NHAI seal and false escrow assurances to induce the supply of goods worth over ₹8.5 Crore without intending to settle the bills.
2. Apprehension of Non-Cooperation: Given that the petitioners reside in Pune, Maharashtra, the prosecution expressed concern over potential flight risk, non-appearance, or interference with documentary evidence.

Judicial Findings and Legal Reasoning

The Sessions Court evaluated the complaint, the Material Supply Agreement dated March 16, 2022, corporate records, and rival submissions to decide whether the petitioners made out a case for pre-arrest protection under Section 438 Cr.P.C.

1. Absence of Direct Contractual Framework

Judge Hareesha A. observed that the supply agreement was executed between Accused No. 1 (Zetwerk) and Accused No. 2 (V.M. Matere Infrastructures). There was no direct supply contract executed between the complainant and the individual directors of Accused No. 2.

2. Commercial Nature Given Criminal Complexion

The court noted that the dispute centered around unpaid commercial supply accounts totaling ₹8.50 Crore and contractual escrow mechanisms. The court observed that the allegations primarily exhibited characteristics of a civil commercial dispute that the complainant attempted to imbue with a criminal complexion.

3. Documentary Evidence & Lack of Custodial Need

Since the prosecution’s case hinges on examining trade agreements, delivery receipts, bank accounts, and letters, the court held that physical custodial interrogation of the Pune-based directors was unwarranted.

4. Non-Capital Penalties & Conditional Safeguards

Highlighting that the alleged IPC offences are triable by a Magistrate and do not attract death or life imprisonment sentences, the court concluded that the prosecution’s concerns regarding non-appearance or flight risk could be managed by imposing reporting conditions.

Final Pre-Arrest Bail Order and Imposed Conditions

Answering Point No. 1 in the affirmative, XXVII Additional City Civil & Sessions Judge Sri Hareesha A. allowed the petition filed under Section 438 Cr.P.C. and passed the following order:

In the event of arrest in connection with Crime No. 53/2024 of Indiranagar Police Station, Vishnu Mahadev Matere (Accused No. 3), Ms. Sindhu Vishnu Matere (Accused No. 4), and Mahesh Maruti Matere (Accused No. 5) shall be released on bail upon executing a personal bond for ₹1,00,000/- (Rupees One Lakh only) each with one surety for the likesum, subject to the following conditions:

1. Appearance before I.O.: The petitioners shall appear before the police within 15 days from the date of the order and as and when summoned for the purpose of investigation or trial.
2. Witness Protection: The petitioners shall not directly or indirectly threaten or tamper with prosecution witnesses.
3. Non-Recidivism: The petitioners shall not commit similar offences in the future.
4. Investigation Cooperation: The petitioners shall fully cooperate with the ongoing investigation.