BA-1358-2024.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIRCUIT BENCH AT KOLHAPUR CRIMINAL APPELLATE JURISDICTION CRIMINAL BAIL APPLICATION NO.1358 OF 2024 WITH INTERIM APPLICATION NO.3499 OF 2025 Shri Sahebrao Subrao Shelke ...Applicant Versus The State of Maharashtra ...Respondent —————— Mr. V. M. Thorat a/w. M. V. Thorat a/w. Harshvardhan Patil, Advocate for the 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 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. adn 1 of 12 BA-1358-2024.doc 3. Complaint was lodged by informant Rohit Sudhir Otari resident of Shukrawar Peth, Kolhapur dated 25/11/2022. The allegations were made against A.S. Traders and Developers and the directors of that Company. The informant was introduced about the different schemes of the said Company by Vijay Patil and was made to attend a seminar in May 2019 of the Company run by Lohitsing Dharmsing Subhedar, Director of the said Company. 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 the basis of the inducement and false information by Lohitsing Subhedar and others persons, the informant decided to invest the amounts in different plans and he invested Rs.25,00,000/ in his own name and also invested different amounts 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 Ltd., Vaibavlaxmi Finbiz Pvt.Ltd., Algowings Softech Pvt.Ltd., Tradewings Gurukul Foundation, A.S. Token, D.M. Traders. The informant initially received the returns but then the Company stopped to give the returns as per the adn 2 of 12 BA-1358-2024.doc 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 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. The learned counsel for the applicant Mr. Thorat submits that the applicant was neither an agent nor a servant of the Company. The applicant was merely working as a Tax Consultant. The applicant has been arrayed as an accused only on suspicion. 5. The Company, namely A.S. Traders, floated various investment schemes promising 3% return per month with double the investment adn 3 of 12 BA-1358-2024.doc fixed for three years and 5% return per month with double the investment fixed for five years. Several such schemes were floated by the Company. The applicant himself had invested substantial amounts, as reflected from the affidavit filed by the prosecution in the present crime. There are no allegations that the applicant had induced any investor to invest in the Company. 6. The investigation is complete and the charge-sheet came to be filed in December 2023. The charge-sheet runs into about 12,000 pages and several supplementary charge-sheets have also been filed. Nearly 500 witnesses are proposed to be examined by the prosecution and, therefore, the trial is likely to take considerable time to conclude. 7. The applicant further submits that he himself has invested substantial amounts and is entitled to recover more than Rs.3 Crores from the Company. However, he has been arrayed as an accused in the present crime. It is submitted that the offences under Sections 420 and 409 of the Indian Penal Code cannot simultaneously be attracted in the facts of the case. It is further submitted that the offence punishable under Section 467 of the Indian Penal Code is also not attracted against the present applicant. Likewise, according to the applicant, the provisions of Section 3 of the Maharashtra Protection of Interest of Depositors (In Financial Establishments) Act, 1999 (MPID Act) are also not attracted. adn 4 of 12 BA-1358-2024.doc The cash allegedly received by the applicant was towards distribution of incentives to the investors and the same cannot be attributed to him as the proceeds of the alleged crime. The applicant has no criminal antecedents and is ready to abide by any condition that may be imposed by this Court. Hence, the applicant prays to be released on bail. 8. Learned counsel for the applicant submits that the applicant was not even an agent of the Company but has deliberately been projected as an agent by the prosecution. It is submitted that the names of the commission agents and brokers are reflected in the audit report and the name of the present applicant, Sahebrao Shelke, does not appear in the list of agents or brokers mentioned therein. It is further submitted that merely because the applicant could not satisfactorily explain the source of the money invested by him in the Company, the same by itself cannot make him an accused in the present crime. The forensic report as well as the affidavit filed by the prosecution show that the applicant had made substantial investments in the Company. According to the learned counsel, this itself demonstrates that the applicant was an investor and not a commission agent or broker. His name does not appear either in Annexure-F or in Annexure-H submitted by the forensic expert. 9. Learned counsel for the complainant Mr. Ghatge on the other hand submits that the present applicant, Sahebrao Shelke, though adn 5 of 12 BA-1358-2024.doc described as a Tax Consultant, was fully aware of the intricacies of the investment business and had actively assisted the main accused, Lohitsingh Subhedar, in the commission of the alleged offence. It is submitted that the applicant cannot claim innocence merely by projecting himself as an investor. The applicant himself had purchased the franchise of A.S. Traders, as admitted in the present Bail Application, and was running the franchise in the name of Tradewings Solutions Private Limited. After conducting a detailed investigation, the Investigating Officer found sufficient material to array the applicant as an accused. The plea that the applicant himself is a victim is, therefore, misleading and the Bail Application deserves to be rejected. 10. The learned Public Prosecutor Mr. Shishir Hirey submits that the applicant was not only working as an agent of A.S. Traders and Developers and its subsidiary companies but was also operating the franchise of A.S. Traders in the name of Tradewing Solutions Private Limited. The statements of several witnesses and investors disclose the active role played by the applicant. Different IDs had been issued in the name of the applicants and his family members. During the search conducted at the residence of the applicant, Income Tax Returns of the co-accused, notarised affidavits of the main accused, papers relating to court proceedings, pamphlets, books of accounts and documents of adn 6 of 12 BA-1358-2024.doc Tradewing Solution Private Limited were recovered. The Prosecutor further submits that the applicant and his family members have received several vehicles, including cars, motorcycles and a Bullet motorcycle, from the proceeds of the crime. Cash amounting to Rs.1,27,95,308/- is also alleged to have been received by the applicant and cash vouchers evidencing the same were recovered during the search. The record further indicates that several crores were transferred to the applicant through banking channels. According to the prosecution, the applicant, being a Tax Consultant of the Company, was fully aware of the financial affairs of the Company and is also aware about the places where the investors' money had been diverted by the main accused. It is, therefore, submitted that if the applicant is released on bail, there is every likelihood of misuse of the said funds and prejudice being caused to the interests of the investors and depositors. It is further submitted that sufficient material is available to show that the applicant acted in conspiracy with the main accused in inducing gullible investors to invest in the fraudulent schemes. Hence, the Bail Application deserves to be rejected. 11. 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 adn 7 of 12 BA-1358-2024.doc 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 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. 12. Though the search conducted at the residence of the applicant adn 8 of 12 BA-1358-2024.doc reveals that the applicant was running Tradewing Solution Private Limited and that different IDs were issued in the names of the applicant and his family members, but no documents are placed on record to show that the applicant was Director of any company. A perusal of Annexures-F and H of the forensic report does not indicate that the applicant was working as an agent of the Company, as has been projected by the prosecution. The documents do not prima facie show any role of the present applicant in inducing the investors to invest in the Company. The applicant is not shown to be one of the Directors of A.S. Traders and Developers and has been projected by the prosecution merely as an agent, though his name does not appear in Annexures-F and H of the forensic report. The applicant himself has invested substantial amounts in the Company as reflected from the affidavit filed by the prosecution. 13. The applicant has also 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 Julh 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 and granted bail on the ground that the investigation was complete, the charge-sheet had already been filed, the offences included Section 467 of adn 9 of 12 BA-1358-2024.doc 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. 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 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. 14. The applicant is arrested on 16th September 2023 and is languishing in jail since last 2 years and 10 months without trial. I am thus 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 applicant has no criminal antecedents. The apprehension expressed by the learned Public Prosecutor can be adequately taken care of by imposing stringent conditions. Hence, the following order: adn 10 of 12 BA-1358-2024.doc ORDER (I) The Applicant – Shri Sahebrao Subrao Shelke, be released on bail 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, in connection with C.R. No.0917 of 2022, registered 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, 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, 15th and 28th 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 adn 11 of 12 BA-1358-2024.doc 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, 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. The Applicant shall also furnish all the bank account details and tax documents pertaining to the Company to the Investigating Officer. 15. The Bail Application is allowed in the above terms and stands disposed of. [MEHROZ K. PATHAN, J.] adn 12 of 12