The Designated Court under the Maharashtra Protection of Interest of Depositors Act, which also presides over economic offences in Mumbai, has granted regular bail to Romin Chandrakant Chheda, an accused in a significant case involving allegations of forgery and cheating related to the installation of oxygen generation plants during the 2021 COVID-19 surge. The order, delivered on April 19, 2024, in Bail Application No. 844 of 2024, emphasizes the judiciary’s adherence to the principle that a person cannot be subjected to indefinite pre-trial detention once the core investigation is complete and the charge-sheet is filed. This ruling offers crucial insights into how courts balance the severity of economic crimes against an accused’s fundamental right to liberty.
Allegations of Fraudulent Evasion of Penalty from
The applicant, Romin Chandrakant Chheda, was facing severe charges under various sections of the Indian Penal Code (1860), including Sections 218 (Public servant framing an incorrect record or writing with intent to save person from punishment or property from forfeiture), (Cheating with knowledge that wrongful loss may ensue to person whose interest the offender is bound to protect), (Forgery), (Forgery of valuable security), (Forgery for purpose of cheating), and (Using as genuine a forged document), all read with Sections 34 and (Criminal Conspiracy). The case stemmed from No. 65 of 2023, initially registered at Nagpada Police Station and subsequently investigated by the Economic Offences Wing, Mumbai.
The prosecution’s narrative detailed that the applicant’s firm had secured two tenders from the Municipal Corporation of Greater Mumbai in 2021 for installing oxygen generation plants at nine hospitals and several Jumbo Covid Centers. The contract stipulated a strict -day completion deadline. Allegedly, the applicant failed to commission the plants within this period, resulting in the levy of a substantial penalty amounting to . The central accusation was that to circumvent this massive penalty, the applicant colluded with others, possibly authorities, to prepare and submit forged documents, specifically the “handing over and taking over reports,” which either lacked dates or were manipulated to suggest timely completion before the actual commissioning in October 2021. The total financial loss was estimated by the prosecution to be around Crores due to the fraudulent evasion of the penalty amount.
Judicial Review on Completion of Investigation
This was not the first attempt at securing bail for the applicant, who had been in judicial custody since November 24, 2023. His previous application, filed before the submission of the charge-sheet, was rejected on merit, acknowledging the prima facie nature of the alleged economic offence. However, the dynamics of the judicial process shifted significantly with the filing of the charge-sheet. Ld. Advocate Rizwan Marchant successfully argued this key change in circumstances.
Her Honour Judge Aditee Uday Kadam carefully noted that the investigation against the applicant was “admittedly, charge-sheet has been filed and thereby, investigation against the applicant is complete.” While acknowledging that the investigation regarding other potential co-accused, including officials, was ongoing, the Court underscored a fundamental legal precedent: the accused “cannot be languished behind bar for securing presence of other accused.”
Furthermore, the Court found that all relevant contractual documents pertaining to the oxygen plants were already seized. With the investigation complete, the Court determined that “nothing to be recovered or discovered from the applicant” and that the question of the alleged penalty evasion was the “subject matter of full fledged trial.” The Court concluded that detaining the applicant further would serve “no purpose” as the period of detention had already exceeded four months. Considering the lack of criminal antecedents and the applicant’s status as a local resident, the Court decided that liberty, subject to stringent conditions, was appropriate.
Imposing Stern Conditions to Secure Justice
In a balanced ruling that protected the judicial process while upholding the accused’s rights, the Court allowed the bail application. Romin Chandrakant Chheda was ordered to be released on a Personal Release Bond of Rs.5,00,000/-with one or more sureties in the like amount, with a three-month provision for a cash bail of the same amount.
Recognizing the gravity of the economic offence and the substantial amount involved, the Court imposed stringent, non-negotiable conditions. Notably, the applicant was directed to surrender his passport to the Investigating Officer within one week of his release and was explicitly prohibited from alienating any movable or immovable property in his name or in the name of his wife or children without the express permission of the Court. This financial restriction is a critical safeguard in white-collar crime cases. Additionally, the applicant was instructed to make himself available for interrogation as required, not to tamper with evidence or pressurize witnesses, and to attend all trial dates regularly. This landmark decision demonstrates the judiciary’s measured approach, affirming that detention is justified primarily to facilitate investigation, not as a pre-emptive punishment.