Mumbai, July 19, 2023 – Ramsingh Rangilal Chaudhary, 39, accused in a case involving alleged financial irregularities at a Credit Society, has been granted conditional bail by the Designated Court under the Maharashtra Protection of Interest of Depositors (MPID) Act, City Civil & Sessions Court, Mumbai. The order, passed today in Bail Application No. 549 of 2023, provides relief to Mr. Chaudhary, who was arrested in connection with C.R. No. 1284 of 2022 registered at Malad Police Station.

The case stems from allegations made by informant Sandeep Sitaram Nivadunge, who claimed that Mr. Chaudhary promised handsome returns on investments made by him, his family, and friends, ultimately leading to a total investment of ₹35,95,968. The FIR alleged that Mr. Chaudhary subsequently cheated these individuals, leading to the registration of offenses under Sections 406 (criminal breach of trust), 420 (cheating) read with Section 34 (acts done by several persons in furtherance of common intention) of the Indian Penal Code,¹ 1860, and Sections 3 and 4 of the² MPID Act, 1999.

Mr. Chaudhary, through his Advocate Safiullah Mansuri, vehemently denied all allegations, asserting that the FIR presented a false narrative lacking the essential ingredients of cheating and criminal breach of trust. The defense argued that the transactions were purely civil in nature, unjustifiably converted into a criminal case to harass the applicant. It was also contended that the MPID Act was not applicable due to the absence of any fraudulent intent or default on Mr. Chaudhary’s part, and that the Credit Society’s financial difficulties were a consequence of the Covid-19 pandemic, with efforts underway to recover outstanding loans.

The prosecution, represented by Ld. SPP Malankar, strongly opposed the bail, citing the serious allegations against Mr. Chaudhary and the ongoing nature of the investigation. The prosecution argued that substantial documentary evidence had been collected, and releasing Mr. Chaudhary could lead to witness intimidation and obstruction of the investigation, particularly concerning the tracing and securing of properties allegedly acquired through misappropriated funds. The possibility of Mr. Chaudhary absconding was also raised.

However, His Honour Judge Shri S. B. Joshi, after hearing both sides and considering the facts on record, granted conditional bail to Mr. Chaudhary. A key factor influencing the court’s decision was the recent filing of the charge sheet by the concerned Police Station. The court emphasized that the filing of a charge sheet constitutes a significant change in circumstances that warrants a reconsideration of the bail application on its merits.

The court noted the defense’s argument that while there were ten accused in the case, only Mr. Chaudhary had been arrested, and his continued detention after the charge sheet filing served no investigative purpose. While the prosecution expressed concerns about securing properties and apprehending other accused, the court stated that these reasons alone were insufficient to keep Mr. Chaudhary incarcerated once the investigation concerning him was largely complete. The court affirmed that the prosecution retained the right to pursue the recovery of properties under the MPID Act separately.

Drawing support from the Hon’ble Apex Court’s observations in Sanjay Chandra V/s. CBI (2012) and Satender Kumar Antil Vs. CBI & Anr., the court reiterated the principle that bail is the general rule and refusal an exception, especially at the trial stage. The presumption of innocence and the potential for prolonged incarceration exceeding a possible sentence were also considered. The court acknowledged the seriousness of economic offenses but emphasized that the completion of the investigation and filing of the charge sheet often negate the necessity of continued custodial detention for investigative purposes.

Consequently, Bail Application No. 549 of 2023 was allowed, and Mr. Ramsingh Rangilal Chaudhary was ordered to be released on a Personal Recognizance (PR) bond of ₹5,00,000 with one or two surety bonds of a like amount. The release is subject to several stringent conditions aimed at ensuring his cooperation with the ongoing legal process and preventing any potential obstruction of justice. These conditions include:

• Regular attendance at all trial dates.
• A written undertaking not to tamper with further investigation or evidence and not to pressurize any witnesses from the Economic Offences Wing (EOW).
• A written undertaking not to travel abroad without the court’s prior permission.
• Deposit of his passport with the EOW (or its retention if already seized).
• Provision of his residential address and phone numbers of two close relatives to the EOW.
• A prohibition on alienating any valuable movable or immovable property in his name or that of his blood relatives without prior permission from the Trial Court.
• A stipulation that any breach of these conditions would entitle the prosecution to seek cancellation of his bail.

The court directed the Respondent/EOW to take note of the order, and the bail application was accordingly disposed of. This order signifies a temporary reprieve for Mr. Chaudhary, emphasizing the importance of the charge sheet filing as a crucial juncture in the criminal justice process and balancing the need for investigation with the individual’s right to liberty. The case will now proceed towards trial, where the allegations against Mr. Chaudhary will be adjudicated on their merits.