Mumbai, Maharashtra [India] – [March 3, 2024]: A designated court in Mumbai, under the Maharashtra Protection of Interest of Depositors (MPID) Act, has granted bail to Anand Baburao Jadhav, a 44-year-old businessman, who was arrested in connection with a multi-crore investment fraud case. The order, passed by Her Honour Judge Aditee Uday Kadam of the City Civil & Sessions Court, Court Room No. 7, was delivered on February 29, 2024.

Jadhav was implicated in C.R. No. 133 of 2023, registered at the N. M. Joshi Marg Police Station. He is accused of offences punishable under Sections 406 (criminal breach of trust), 409 (criminal breach of trust by public servant, or by banker, merchant or agent), and 420 (cheating¹ and dishonestly inducing delivery of property)² read with Section 34 (acts done by several persons in furtherance of common intention) of the Indian Penal Code (IPC), as well as Sections³ 3 and 4 of the MPID Act, 1999.

The prosecution’s case, based on the First Information Report (FIR) and the complaint filed by Dr. Bharti Ravindra Barge, alleges that between July 15, 2022, and January 25, 2023, the prime accused, Mahadev Pandurang Jadhav, induced Dr. Barge, his niece Vaishali Pawar, and his granddaughter Sakshi Durgule to invest a total of ₹1.4 Crore (₹50 Lakhs, ₹75 Lakhs, and ₹15 Lakhs respectively) in various investment schemes purportedly run by his companies: M/s. Rehan Enterprises, Rohan Enterprises, and Atulya Group of Companies. The investors were allegedly lured with the promise of a fixed return of 5% per month.

According to the complaint, out of the ₹50 Lakhs invested by Dr. Barge, only ₹7,37,500 was returned. The accused allegedly failed to return the remaining substantial amount of ₹1,32,62,500 to the three complainants. The FIR names Mahadev Pandurang Jadhav, Madhura Mahadev Tari, and the current applicant, Anand Jadhav, as directors of the aforementioned companies, accusing them of defrauding the investors through cheating.

The prosecution strongly opposed the bail application, citing the seriousness of the offences and the ongoing investigation, although the charge-sheet has now been filed. They highlighted that the applicant’s anticipatory bail application was previously rejected, and he was subsequently arrested on November 4, 2023, indicating his prima facie involvement in the alleged offences. The prosecution also emphasized the aspect of recovery of the defrauded amount.

However, a significant development during the bail hearing was the submission of a pursis (a written statement presented to the court) by the applicant’s advocate, Vinay Bhanushali. In this pursis, Anand Jadhav offered an undertaking to deposit ₹29,21,995, which, according to the charge-sheet, was received in his personal account from the alleged fraudulent activities. He proposed to deposit this amount within six months of his release from prison, with an upfront payment of ₹5 Lakhs.

While acknowledging the initial concerns, the court noted that with the filing of the charge-sheet, the investigation is essentially complete. Her Honour Judge Aditee Uday Kadam stated that keeping the applicant in custody would serve no further purpose at this stage. More importantly, she recognized that the proposed undertaking by the applicant to partially repay the defrauded amount could help secure the investors’ money, which is the primary objective of the MPID Act.

Furthermore, the court took into consideration the submission by the applicant’s counsel that Anand Jadhav has no prior criminal record and is willing to abide by any conditions imposed by the court if granted bail.

Considering all these aspects, the court deemed it appropriate to grant the bail application with specific conditions aimed at ensuring the applicant’s cooperation with the ongoing legal process and safeguarding the interests of the victims.

The Court’s Order:

1. Bail Application No. 3 of 2024 is hereby allowed and disposed of.
2. The applicant, Anand Baburao Jadhav, is to be released on bail in connection with C.R. No. 133 of 2023 registered at N. M. Joshi Marg Police Station, upon furnishing a Personal Recognizance (PR) bond of ₹1,00,000 (Rupees One Lakh only) with one or more sureties of the same amount.
3. The applicant is permitted to furnish a provisional cash bail of ₹1,00,000 (Rupees One Lakh only) for a period of three months.
4. The applicant must surrender his passport to the Investigating Officer within one week of his release.
5. The applicant is required to make himself available for interrogation by the Investigating Officer as and when needed, under written intimation.
6. The applicant is prohibited from leaving India without the prior permission of the court.
7. The applicant is restrained from alienating any movable or immovable property in his name or in the name of his wife/children, if any, without the court’s permission.
8. The applicant shall not tamper with the prosecution evidence or pressurize any prosecution witnesses in any manner until the conclusion of the trial.
9. The applicant must furnish his contact number and residential address to the Investigating Officer and keep him updated of any changes.
10. The applicant is required to attend all dates of the trial regularly.

The order was dictated and pronounced in open court on February 29, 2024, and subsequently signed and uploaded on March 1, 2024.

This case underscores the complexities involved in economic offenses and the balancing act the courts must perform between individual liberty and the protection of depositors’ interests, especially under stringent legislations like the MPID Act. The applicant’s offer for partial repayment appears to have played a significant role in the court’s decision to grant bail, signaling a potential avenue for some relief to the alleged victims. The strict conditions imposed on the applicant aim to ensure his presence during the trial and prevent any further actions that could prejudice the case or the victims.