ba-1471-2024.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIRCUIT BENCH AT KOLHAPUR CRIMINAL APPELLATE JURISDICTION BAIL APPLICATION NO.1471 OF 2024 WITH INTERIM APPLICATION NO.3500 of 2025 Balaso Krushnat Dhangar ...Applicant Vs. The State of Maharashtra ...Respondent —————— Mr. N. D. Patil (Through VC), Advocate for Applicant Mr. Shishir Hirey, Public Prosecutor a/w. Veera Shinde, Anand Shalgaonkar, APP for respondents-State. Mr. Aditya S. Ghatge, Advocate for Intervenor. Ms. Suvrana Patki, Dy. S.P. EOW Kolhapur present. —————— Coram : MEHROZ K. PATHAN, J., Reserved On : 14th July 2026 Pronounced On : 27th July 2026. P. C. : 1. Heard learned counsel for the applicant and learned Public Prosecutor for the respondent-State. 2. The applicant has approached this Court seeking regular bail in connection with C.R. No.0917 of 2022, registered with Shahupuri Police adn 1 of 12 ba-1471-2024.doc Station, District Kolhapur, for the offences punishable under Sections 406, 409 and 420 read with Section 34 of the Indian Penal Code and Sections 3 and 4 of the Maharashtra Protection of Interest of Depositors (In Financial Establishments) Act, 1999. 3. The informant Rohit Sudhir Otari lodged a complaint on 25/11/2022. The allegations are made against A.S. Traders and Developers and the Directors of that Company. The informant was introduced regarding different schemes of the said Company by Vijay Patil and who alleged then he attended a seminar in May 2019 of the Company run by Lohitsing Dharmsing Subhedar. Other persons, who were introduced as Directors of the said Company had also attended the seminar. Different plans were introduced and the benefits which were to be given to the investors were also disclosed in the seminar. On basis of the disclosure made and information provided by Lohitsing Subhedar and others persons, the Complaint decided to invest the amount in different plans and he invested Rs.25,00,000/ in his own name and also invested different amount in the name of his relatives. The informant had then come to know from others that there are different subsidiary Companies having names A.S. Traders and Developers LLP, A.S. Traders Solutions Limited, Comercio Vibrant LLP, Gainero Ventures LLP, Trexum Ventures LLP, Capitus Ceker Traders and Developers LLP, Tradewings Solutions adn 2 of 12 ba-1471-2024.doc Ltd., Vaibavlaxmi Finbiz Pvt.Ltd., Algowings Softech Pvt.Ltd., Tradewings Gurukul Foundation, A.S. Token, D.M. Traders. The complainant initially received the returns but then the Company stopped to give the returns as per the assurance. The informant then started inquiry and came to know that there are different persons, who have invested their amount in different plans of the Company. On inquiry the total investment of different persons was found to be Rs.4,89,72,649/ . He also came to know the names of different persons as a directors of A.S. Traders and Developers and subsidiary Companies. The informant accordingly lodged the complaint to police station Shahupuri on 25/11/2022. On basis of the same C.R. No. 917/2022, u/s. 406, 420 r.w. 34 of the Indian Penal Code and U/s. 3, 4 of the M.P.I.D. Act came to be registered. During investigation section 409 of Indian Penal Code was added in the crime. The persons named earlier and different other persons who were found as agents or partner of the main Company and subsidiary Companies were added as an accused. The applicant is arrested on 16/09/2023. The chargesheet is also submitted against the applicant and some of the co- accused persons. 4. Mr. N.D. Patil, learned counsel appearing for the applicant, submitted that the chart annexed to the bail application itself demonstrates that the applicant had invested a substantial amount of adn 3 of 12 ba-1471-2024.doc Rs.63,34,360/- in A.S. Traders and Developers. According to the learned counsel, the fact that the applicant himself invested such a huge amount clearly indicates that he was also a victim of the fraud and had no intention whatsoever to cheat any investor. 5. He further submitted that the applicant is neither a Director of A.S. Traders and Developers nor of any of its subsidiary companies. He was never a Manager, employee or a person responsible for the day-to-day affairs of the Company. The applicant had neither conducted any seminar nor executed any agreement with the investors. He is not a signatory to any cheque or bank account of the Company. 6. Learned counsel further submitted that the applicant has remained in judicial custody since 8th August 2023. The charge-sheet runs into more than 12,000 pages and the prosecution has cited nearly 500 witnesses. Charges have not yet been framed and, therefore, the trial is not likely to conclude within a reasonable period. Since the investigation is complete and no further custodial interrogation is required, continued detention of the applicant would amount to pre-trial incarceration. It is, therefore, prayed that the applicant be enlarged on bail. 7. Learned counsel for the applicant further submitted that the learned Sessions Judge, while rejecting the bail application, has erroneously recorded that the applicant was a Director of Capitus Ceker adn 4 of 12 ba-1471-2024.doc Traders and Developers LLP. He submitted that the records maintained by the Registrar of Companies clearly indicate that one Babaso Bhopal Dhangar, and not the present applicant, was the Director of the said Company. According to him, the finding recorded by the learned Sessions Judge is factually incorrect and has seriously prejudiced the case of the applicant. 8. Learned counsel further submitted that the investigation is complete and no further recovery remains to be effected from the applicant. Consequently, there is no possibility of the applicant tampering with the prosecution evidence. The applicant has deep roots in society, has no criminal antecedents and is willing to abide by any condition that may be imposed by this Court. He further submitted that the applicant is also entitled to claim parity with the co-accused, particularly Ms. Suvarna Shrirang Sarnaik and others, who have already been enlarged on bail by the learned Sessions Judge, Kolhapur. 9. Per contra, Mr. Aditya Ghatge learned counsel appearing for the complainant, vehemently opposed the bail application. He submitted that the applicant cannot portray himself as a mere investor, as the material collected during the course of investigation prima facie indicates that he was an active participant in the affairs of A.S. Traders and Developers. According to the learned counsel, the applicant was well aware of the adn 5 of 12 ba-1471-2024.doc manner in which the investment schemes were operated and the role played by the Company and its associates in collecting deposits from innocent investors. 10. Learned counsel for the complainant further submitted that the applicant himself claims to have invested a substantial amount in the Company. However, such investment, by itself, would not exonerate the applicant from criminal liability if the material collected during the course of investigation prima facie indicates his active participation in the commission of the alleged offences. 11. Placing reliance upon the judgment of this Court in Shrikant Gangadhar Rao v. State of Maharashtra, Bail Application No.4049 of 2024, decided on 30th June 2025, learned counsel submitted that this Court has held that where a large number of innocent investors have been duped and huge public funds have been misappropriated, prolonged incarceration by itself cannot be a ground to enlarge an accused on bail. He submitted that although the accused in the said case had remained in custody for a considerable period, this Court refused to grant bail after balancing the gravity of the offence, the interest of the victims and the larger societal impact of such economic offences. 12. Mr. Shirish Hirey, learned Public Prosecutor appearing for the respondent-State, also opposed the application. Placing reliance upon the adn 6 of 12 ba-1471-2024.doc judgment of the Hon'ble Supreme Court in Manik Madhukar Sarve & Ors. v. Vitthal Damuji Meher & Ors reported in (2024) 10 SCC 753, he submitted that economic offences constitute a class apart and are required to be viewed with greater seriousness, as they undermine the financial confidence of the public and have far-reaching consequences on society. 13. Mr. Hirey, learned Public Prosecutor further submitted that the material collected during the course of investigation discloses that the applicant, along with his wife and son, was acting as an agent of A.S. Traders and Developers. During the house search of the applicant, several incriminating documents were recovered. The investigation further reveals that the applicant had received commission, cash incentives and other benefits, including a motorcycle and a car, on account of the investment schemes floated by the Company. It is further alleged that the applicant was associated with Tradewing Solutions Ltd., one of the subsidiary companies, and had actively participated in the activities of the Company. The vouchers recovered during the investigation also prima facie indicate that substantial amounts of cash were received by the applicant in his own name as well as in the names of his family members. It is, therefore, submitted that having regard to the gravity of the allegations and the material collected during the course of investigation, adn 7 of 12 ba-1471-2024.doc this is not a fit case for grant of bail. 14. I have gone through the documents produced by the prosecution in support of the charges. The documents reveal that the main accused, Lohitsingh Dharmisingh Subhedar, Amar Vishwas Chowgule, Bhikaji Shivaji Kumbhar, Baburao Krishna Hazare, Vijay Jyotiram Patil, Adinath Patil, along with other agents, directors and associates, were operating the Company namely A.S. Traders and Developers, which had floated various investment schemes by fraudulently inducing investors to deposit their hard-earned money. The schemes promised returns ranging from 3% to 5% per month, along with incentives such as vehicles, foreign tours and cruise trips. The accused had also floated and operated various subsidiary companies, namely A.S. Traders Solutions Ltd., Vibrant Trading LLP, Gainero Ventures LLP, Capitus Ceker Traders & Developers LLP, Tradewing Solutions Ltd., Vaibhavlaxmi Finbiz Pvt. Ltd., Algowings Softech Pvt. Ltd. and others. Prima facie, the modus operandi adopted by the accused was to collect funds through banking channels as well as cash. Initial returns were paid so as to build confidence amongst the investors and thereafter the repayment of the principal amount and promised returns was defaulted, resulting in the present fraud. The bank accounts and other documents further reveal that the funds were routed through various accounts of the Company, its directors, relatives and adn 8 of 12 ba-1471-2024.doc agents and part of the funds were diverted towards payment of commission to agents, investment in cryptocurrency, acquisition of various assets and transfer to related entities. 15. The applicant has relied upon the judgment of the Aurangabad Bench of this Court in Sudhir s/o. Ramrao Devkate vs. State of Maharashtra, Bail Application No. 735 of 2024 with Bail Application NO.742 o 2024 decided on 20th July 2024 wherein reliance has been placed upon the judgment of the Hon'ble Supreme Court in Javed Gulam Nabi Shaikh vs. State of Maharashtra, reported in (2024) 9 SCC 813. This Court upon Javed’s Gulam Nabi Shaikh vs. State of Maharashtra (cited supra) granted bail on the ground that the investigation was complete, the charge-sheet had already been filed, the offences included Section 467 of the Indian Penal Code, the charge-sheet was voluminous, a large number of witnesses were cited and there were no criminal antecedents against the accused. The Hon'ble Supreme Court held that the right to a speedy trial is a fundamental right of the accused as enshrined under Article 21 of the Constitution of India. 16. In the present case also, it appears that though a Notification dated 7th March 2025 has been issued appointing the Sub-Divisional Magistrate, Karvir as the Competent Authority under the MPID Act, and the properties standing in the name of A.S. Traders and Developers LLP adn 9 of 12 ba-1471-2024.doc and its subsidiary companies have been attached by Notifications issued under Sections 4 and 5 of the MPID Act, till date, both the learned Public Prosecutor and the learned counsel for the applicant submit that the charges are yet to be framed. The applicant is arrested on 8/8/2023 12,000 papers charge sheet is filed. The trial will take its own time to conclude. 17. The applicant was not a Director of A.S. Traders Compnay or any other subsidiary company which had floated the ponzi shcmes. The applicant himself has invested substantial amounts in the Company as reflected from the affidavit filed by the prosecution. The applicant has no criminal antecedents the applicant is behind bars since last 3 years without trial.. I am inclined to exercise the discretion under Section 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023, to release the applicant on bail on the ground of prolonged incarceration by placing reliance upon the judgment of the Hon'ble Supreme Court in Javed Gulam Nabi Shaikh (supra). The apprehension expressed by the learned Public Prosecutor can be adequately taken care of by imposing stringent conditions. Hence, the following order: ORDER (I) The Applicant, Balaso Krushnat Dhangar, shall be released on regular bail in connection with C.R. No.0917 of 2022 registered adn 10 of 12 ba-1471-2024.doc with Shahupuri Police Station, District Kolhapur, for the offences punishable under Sections 406, 409 and 420 read with Section 34 of the Indian Penal Code and Sections 3 and 4 of the Maharashtra Protection of Interest of Depositors (In Financial Establishments) Act, 1999, on furnishing a P.R. Bond in the sum of Rs.50,000/- (Rupees Fifty Thousand only) with two solvent sureties in the like amount, subject to the following conditions: A) The Applicant shall attend the concerned Police Station and report to the Investigating Officer twice in a month, i.e. on the 1st and 15th of every month, commencing from 1st August 2026, between 12.00 noon and 2.00 p.m., till the conclusion of the trial. B) The Applicant shall not enter the jurisdiction of Shahupuri Police Station, except for attending the Police Station as directed hereinabove, till the conclusion of the trial. C) The Applicant shall not pressurize the prosecution witnesses and shall not tamper with the prosecution evidence in any manner. D) The Applicant shall furnish copies of his Aadhaar Card and PAN Card to the Investigating Officer and shall also furnish his detailed residential address, mobile number and the names, adn 11 of 12 ba-1471-2024.doc addresses and mobile numbers of two of his near relatives. E) A single violation of any of the aforesaid conditions shall entitle the prosecution to seek cancellation of the bail granted to the Applicant. F) The Applicant shall deposit his Passport, if any, with the Trial Court and shall not leave the country without prior permission of the Trial Court. 18. The Bail Application is accordingly allowed in the aforesaid terms. The Interim Application, if any, does not survive and is accordingly disposed of. [MEHROZ K. PATHAN, J.] adn 12 of 12