Mumbai, January 23, 2018 – A Special CBI Court in Mumbai today rejected the bail application of Kalpesh Jayram Koshti (41), an Ahmedabad-based businessman, who has been implicated in a significant bank fraud case amounting to ₹17 crores. Koshti was arrested by the Central Bureau of Investigation (CBI), Economic Offences Wing (EOW), Mumbai, in connection with R.C. No. 14/E/2017-CBI, EOW, Mumbai. He is accused of offences including criminal conspiracy, cheating, forgery, and offences under the Prevention of Corruption Act.
The bail application, No. 39 of 2018, was heard by H.H. the Special Judge Shri. Jayendra C. Jagdale. Mr. S. P. Parab, the learned Advocate, represented the applicant/accused, while Mr. J. K. Sharma, the learned Special Public Prosecutor (S.P.P.), appeared on behalf of the CBI/Respondent.
The prosecution’s case revolves around overdraft facilities obtained from Central Bank of India by Ashok Kumar Singh and his son Aashish Kumar Singh through their respective firms, M/s. Ashoka Property Developers and M/s. Aashish Communication Systems. Allegedly, fraudulent documents were submitted to secure these loans, which eventually turned into Non-Performing Assets (NPAs), causing a substantial loss to the bank. The total amount availed through various loans by the father-son duo is reported to be ₹17 crores.
The CBI’s investigation revealed that Kalpesh Jayram Koshti, the owner of Ahmedabad Express News Paper Press, allegedly played a crucial role in siphoning off the defrauded money. The prosecution claimed that Koshti instructed his employee, Ravikumar Ashokbhai Bhil, to open two bank accounts purportedly for “money transaction business” (Havala business). Subsequently, significant amounts of money, specifically ₹3,23,75,641, were allegedly transferred from the account of M/s. Aashish Communication to an account in the name of M/s. Ahmedabad Sales Corporation. Further transactions reportedly involved the transfer of ₹1,35,25,641 to the account of a co-accused, Janardhan Pandey, and the remaining amount was allegedly withdrawn in cash. The prosecution argued that Koshti received a commission for facilitating the siphoning of these “crime proceed money” and that all transactions were carried out under his instructions.
The defense counsel argued that even if the prosecution’s case is taken at face value, Koshti was never a direct party to the initial fraud of obtaining the overdraft facilities. It was contended that he was not involved in any of the representations made to the bank or the alleged forgery of documents. The defense further argued that there was no evidence to establish a conspiracy between Koshti and the primary accused. They highlighted that Ravi Kumar Bhil, through whom the money was transferred, was not arrested by the CBI, and that Koshti himself did not retain the money, as it was transferred to company or individual accounts. The defense also claimed that Koshti was unaware of the initial fraud and had no nexus with it. Furthermore, it was stated that Koshti had already repaid the amount involved, and the details of this repayment were provided to the investigating agency. The defense asserted that Koshti never benefited from the alleged transactions and that the entire case against him was based on documentary evidence, which was already in the CBI’s possession, negating the need for further custodial interrogation. Finally, it was pointed out that the charge sheet had already been filed in the matter.
However, the Special Judge Shri. Jagdale, after hearing the arguments and perusing the documents, rejected the bail application. The court noted the serious allegations against Koshti, indicating his vital role in siphoning off a substantial amount of the defrauded money. The court also took cognizance of the fact that the investigation was still ongoing at the time of the bail hearing. Consequently, the court concluded that releasing Koshti on bail at this stage was not appropriate.
In the oral order pronounced in open court on January 22, 2018, the Special Judge stated, “In the result, the application deserves to be rejected. Accordingly, in the interest of justice, I proceed to pass the following order: Bail Application No. 39/2018 in CBI Remand Application No. 40/2018 (RC No. 14/E/2017-C.B.I., E.O.W., Mumbai) is hereby rejected. Bail Application No. 39/2018 in CBI Remand Application No. 40/2018 stands disposed of accordingly.”
The order was dictated on January 22, 2018, transcribed on January 23, 2018, and signed and uploaded on the court’s website on the same day. This decision underscores the court’s stringent stance against economic offences and the importance of the ongoing investigation in such complex financial fraud cases. Kalpesh Jayram Koshti will remain in judicial custody pending further proceedings.