ba-185-2024.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIRCUIT BENCH AT KOLHAPUR CRIMINAL APPELLATE JURISDICTION BAIL APPLICATION NO.185 OF 2026 Mahesh Balwant Shevale ….Petitioners Versus State of Maharashtra & Ors ….Respondents. —————— Mr. Vikrant Chowdhary (Trhough V.C) with Adv. Amey Sirsikar (Trhough V.C.) with Preeti Dawada, Advocate for Applicant. Mr. Shishir Hirey, Public Prosecutor a/w. Veera Shinde, Anand Shalgaonkar, APP with Dr. Ashwini Takalkar, for respondents-State. Mr. Jayant Bardeskar (Through V.C.) with Adv. Ahilya Nalawade with Adv. Nakul V. Shukla, 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, learned Public Prosecutor for the respondent-State and learned counsel appearing for the intervenor. 2. The present application is filed under Section 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023, seeking regular bail in connection with adn 1 of 15 ba-185-2024.doc C.R. No.0917 of 2022 registered with Shahupuri Police Station, District Kolhapur, for the offences punishable under Sections 406, 409, 420, 120- B and 201 read with Section 34 of the Indian Penal Code and Sections 3, 4 and 8 of the Maharashtra Protection of Interest of Depositors (In Financial Establishments) Act, 1999. 3. The prosecution case, in brief, is that the original complainant, Mr. Rohit Otari, aged 25 years, engaged in the business of engraving silver jewellery and residing at Dhanavade Lane, D-Ward, Shukrawar Peth, Kolhapur, lodged the First Information Report on the basis of which the present crime came to be registered against the applicant and twenty- seven other accused persons. It is alleged that, in May 2019, the complainant received a telephone call from one Vijay Patil inviting him to attend a seminar at Market Yard, Kolhapur. The complainant attended the seminar along with his father, where about 1,200 persons were present. During the seminar, Vijay Patil introduced the complainant to Lohitsing Subhedar and others, who projected themselves as Directors of A.S. Traders and Developers and Tradewings Solutions. Lohitsing Subhedar represented that the company had been carrying on business since the year 2017 with all requisite licences and explained various investment schemes promising foreign tours, allotment of plots, notarised agreements and other lucrative benefits. Pamphlets containing details of adn 2 of 15 ba-185-2024.doc the investment schemes, incentives, bank account particulars and modes of payment were also distributed amongst the prospective investors. 4. It is further alleged that, acting upon the aforesaid representations, the complainant invested a sum of Rs.25,00,000/- through NEFT on 06.06.2019. Thereafter, in May 2022, he was persuaded to invest in a cryptocurrency scheme floated by A.S. Traders. It is alleged that on 27.05.2022 nearly 3,000 persons travelled to Dubai for the launch of the cryptocurrency scheme, though the complainant himself did not participate in the said event. Subsequently, the complainant was informed about twelve sister concerns of A.S. Traders. It is further alleged that on 05.01.2020 he invested an additional amount of Rs.24,50,000/- under the "Old Generation Plan" and continued to receive returns from January 2019 till August 2022. Thus, according to the complainant, he had invested an aggregate amount of Rs.49,50,000/-. Subsequently, he came to know that the company was allegedly bogus, whereupon he and nearly 200 other investors organised a meeting at Shivaji Market, Kolhapur, and learnt that the total investment of the affected investors was approximately Rs.4,89,72,649/-. Thereafter, the First Information Report came to be lodged at Shahupuri Police Station. 5. Mr. Vikrant Chowdhary, learned counsel appearing for the applicant, submitted that the applicant has been falsely implicated in the adn 3 of 15 ba-185-2024.doc present crime. According to him, the applicant is shown to be a Director of A.S. Traders Solutions, which is alleged to be one of the sister concerns of the principal company, namely A.S. Traders, promoted by Lohitsing Subhedar. It is submitted that the applicant is an agriculturist by profession. Though the prosecution alleges that cash exceeding Rs.2 crores was received by the applicant, all the cash vouchers admittedly bear the signatures of the principal accused, Lohitsing Subhedar. Learned counsel further submitted that the applicant himself had invested an amount of about Rs.28 lakhs in the schemes floated by the company and had received returns thereon. It is submitted that the applicant neither induced any investor nor conducted any seminar. According to the learned counsel, the role attributed to the applicant is similar to that of the investors. It is further submitted that the applicant was arrested on 17th August 2024 and has remained in custody since then. The charge- sheet runs into more than 12,000 pages and supplementary charge-sheets are still being filed. Though the investigation is stated to be continuing, charges have not yet been framed despite issuance of a notification under Section 4 of the MPID Act appointing the Competent Authority and attachment of the properties. It is, therefore, submitted that, there being no likelihood of an early conclusion of the trial, further incarceration of the applicant would amount to pre-trial detention and, therefore, he adn 4 of 15 ba-185-2024.doc deserves to be enlarged on bail. 6. Per contra, Mr. Shishir Hirey, learned Public Prosecutor, vehemently opposed the application and submitted that the applicant is involved in a serious economic offence in which a large number of investors have lost their hard-earned money after being induced by the representations and assurances extended by the accused persons. It was submitted that the applicant was instrumental in promoting another company, namely A.S. Traders Solutions, and is not merely an agent of A.S. Traders but was also one of the Directors of As Traders Solutions company. According to the prosecution, the material collected during the course of investigation prima facie establishes the active involvement of the applicant in the commission of the alleged offence. 7. The learned Public Prosecutor further submitted that the applicant has been arraigned as Accused No.21. It was contended that the applicant and his family members have acquired immovable properties from the proceeds of the crime generated by cheating the complainant and other investors. It was further submitted that a proposal for attachment of the said properties has already been forwarded to the State Government for appropriate orders. Two non-agricultural plots standing in the names of the applicant, his wife and his son have already been identified and proposed to be attached in connection with the present crime. adn 5 of 15 ba-185-2024.doc 8. It was further submitted by Mr. Hirey, the learned Public Prosecutor that the applicant was one of the Directors of A.S. Traders Solutions Limited LLP, which is a sister concern of the principal company, namely A.S. Traders, promoted by the main accused Lohitsing Subhedar. The documents obtained from the Registrar of Companies prima facie disclose that the applicant was one of the Directors of the said company. The statements of several witnesses indicate that the applicant had assured investors of substantial returns together with monthly income and profits. During the course of investigation, upon examination of the software and electronic records of the company, it was revealed that substantial amounts had been credited to the bank account of the applicant through cash vouchers. The investigation further discloses that the applicant and his family members received cash vouchers. It is further alleged that the applicant actively participated in organising large investment seminars at hotels and public places with a view to attracting investors by projecting lucrative returns under the investment schemes floated by the company. The prosecution has also pointed out that A.S. Traders and its sister concerns are involved in several similar offences registered in different districts. 9. The details of the criminal cases registered against A.S. Traders and its sister concerns are reproduced hereinbelow: adn 6 of 15 ba-185-2024.doc No districts & Crime No cases are registered under sections Status 01 Vazirabad Police Station, Nanded – Crime No. 18/2023 IPC sections 406, 420, 120(B) Spl.Case/173/2023 District and Session Court, Nanded Case Status - Production of Accused 02 Chaturshrungi Police Station, Pune Rural – Crime No. 320/2023 IPC sections 406, 420, 409,34 and Sections 3, 4 MPID Act Spl.Case/784/2023 17-DISTRICT JUDGE - 1 AND ADDL. SESSIONS JUDGE PUNE Case Status -N.B.W. Unready 03 Lonavala Police Station, Pune Rural – Crime No. 233/2023 IPC sections 406, 420, 34 1-DISTRICT JUDGE-1 AND ADDITIONAL SESSIONS JUDGE, VADGAON Case Status Court pending 04 Lonavala city Police Station, Pune – Crime No. 27/2024 IPC sections 406, 420, 409,34 and Sections 3, 4 MPID Act Case Status - Court pending 05 Sakkardara Police Station, Nagpur City– Crime No. 102/2024 IPC sections 406, 420, 409,34 and Sections 3, 4 MPID Act NAGPUR DISTRICT SESSIONS COURT, Spl.Case Case Status Court pending 06 Malegao Police Station, Pune Rural – Crime No. 32/2024 IPC sections 406, 420, 409,467,468,469, 471,120(B) and Sections 3,4 MPID Act Additional District Court, Baramati: 2 Case Status - Court pending 10. During the course of investigation, the Investigating Agency obtained the bank statements of IDFC First Bank, Federal Bank, RBL Bank and AU Small Finance Bank pertaining to A.S. Traders Solutions Limited, of which the applicant (Accused No.21) was one of the Directors. Upon scrutiny of the said bank accounts, it was revealed that the total credits amounted to Rs.235,45,27,021/-, whereas the total withdrawals aggregated to Rs.228,86,90,794/-. 11. The personal bank accounts of the applicant (Accused No.21) maintained with HDFC Bank were also examined and seized. The investigation reveals that the aggregate balance available in the said bank accounts was Rs.55,153/-. adn 7 of 15 ba-185-2024.doc 12. The learned Public Prosecutor, as well as the learned counsel appearing for the complainant, placed reliance upon the decisions of the Hon'ble Supreme Court in Manik Madhukar Sarve & Ors. v. Vithal Damuji Meher & Ors., reported in (2024) 10 SCC 753, and the decisions of this Court in Jayant Sanjeeva Shetty v. State of Maharashtra (Bail Application No.4989 of 2024) and Shrikant Gangadhar Rao v. State of Maharashtra (Bail Application No.4049 of 2024, decided on 30th June 2025). It was submitted that prolonged incarceration, by itself, cannot constitute a ground for grant of bail in serious economic offences involving large-scale cheating of innocent investors. It was further submitted that economic offences have far-reaching consequences on society and, therefore, deserve to be viewed differently while considering an application for bail. It was, therefore, prayed that the application be rejected. 13. I have considered the submissions advanced by the learned counsel Mr. Chowdhary and the learned APP. I have also considered the material placed on record. The material collected during the course of investigation prima facie indicates the active role of the applicant in inducing investors and in the formation and functioning of the company through which the alleged investment schemes were operated. 14. The applicant not only induced the investors to invest in the A.S. Traders company; however, the applicant has also started his new venture adn 8 of 15 ba-185-2024.doc company, namely A.S. Traders Solutions Limited, and became its Director and induced investors to invest in new company also. The documents of the Registrar of Companies, downloaded from the Registrar of Companies website, show the applicant as one of the Directors of the company A. A. Traders Solutions Limited. There are huge transactions shown in the account of AS Traders and Developers Solutions Limited company with the main company AS Traders run by Lohit Subhedar. The bank account of the AS Traders and Developers Solutions company of which Mahesh Shevale is a director maintained with Federal Bank. The the statement of account between 1st January 2017 to 30th April 2022 show huge transactions between AS Traders, Capitus Ceker Traders and Developers LLP and other subsidiary companies with the bank account of Solutions Limited company. Likewise, the bank account statement of AS Traders and Developers Limited run by Lohit Mujumdar was having its account maintained at HDFC Bank Limited. The statement from 11th August 2022 shows huge amounts transferred in the company run by present applicant namely Solutions Limited and other subsidiary companies like Capitus Ceker Traders and Developers LLP , AS Traders and Developers. 15. Thus, being a Director of the company, the applicant was himself responsible for floating the fraudulent and Ponzi schemes so as to induce gullible investors to invest in the schemes which the applicant knew adn 9 of 15 ba-185-2024.doc would not be successful in the long run. Thus, the intention to cheat the investors existed right from the inception. 16. The investigation further reveals that the accused persons and their agents organised large-scale promotional seminars in hotels and public places with a view to attracting investors. During such seminars, attractive investment schemes promising high returns were projected to the members of the public. Investors were assured of monthly returns under the guise of administrative expenses, repayment of the principal amount after a lock-in period of thirty-six months and other lucrative benefits. To inspire confidence, investment agreements and other documents resembling fixed deposit schemes were issued to the investors. 17. It is also pertinent to note that similar offences involving cheating through trading companies have been registered in several districts, including Pune, Nanded and Nagpur, against A.S. Traders and Developers and its sister concerns, namely A.S. Traders Solutions Ltd., Capitus Ceker Traders and Developers LLP and Tradewings Solutions Ltd., as well as their Directors. The registration of multiple crimes in different districts demonstrates the widespread nature of the alleged fraudulent activities. 18. The statement of witness Omkar Ashok Mandwardkar, who was handling the accounts of the company, had stated that in October 2021 adn 10 of 15 ba-185-2024.doc he was informed that A.S. Traders company was been divided into five different companies, namely, Gainerio Ventures LLP, Capitus Ceker Traders and Developers LLP, Diamond LLP, Trexum Ventures LLP and Comercio Vibrant LLP, and that separate websites were created for each of the said companies. He further stated that, as instructed, separate servers were created and handed over to TYMK Company, which was managing the servers of the accused company. The clone data panchnama prepared during the investigation reveals that the applicant (Accused No.34) had invested an amount of Rs.65,45,000/-, had received returns amounting to Rs.3,92,75,175/- in his personal accounts maintained with Axis Bank and Bank of Baroda and had further received Rs.1,92,07,349/- through cash vouchers. 19. The investigation further reveals that, considering the involvement of multiple companies and 676 investors, the Investigating Agency appointed Prass and Associates LLP to conduct a forensic audit. The audit was carried out after examining the bank account statements of the accused companies, information received from the Registrar of Companies, documents produced by investors, seized cash ledger records and the electronic data extracted through software cloning from TYMK Company, Gujarat. The forensic audit prima facie discloses that A.S. Traders and its associated companies had created approximately 1,17,655 adn 11 of 15 ba-185-2024.doc IDs, through which transactions aggregating to Rs.2,035.78 crores were carried out. The audit further reveals that A.S. Traders & Developers LLP, A.S. Traders Solutions Ltd., Comercio Vibrant LLP, Gainerio Ventures LLP, Trexum Ventures LLP, Tradewings Solutions Ltd. and Capitus Ceker Traders and Developers LLP maintained 26 bank accounts, wherein total credits amounted to Rs.15,42,08,91,931/- and total debits amounted to Rs.14,95,28,91,940/-. 20. The applicant is also seen to be an active partner of the main accused, Lohitsingh Subhedar, who was running the A.S. Traders Company Private Limited. Thus, taking into consideration the material available against the present applicant, the principle of parity would also not apply in favour of the applicant, unlike in the case of the other agents who have been released on bail. The Hon'ble Supreme Court, in Manik Madhukar Sarve & Ors. v. Vithal Damuji Meher & Ors., reported in (2024) 10 SCC 753, was pleased to set aside the order granting bail by observing that the High Court had completely overlooked the fact that the deposits were made by persons of modest means who had no other financial support and that the funds collected from such depositors had been systematically siphoned off with the assistance of other office- bearers. The interest of the victims of the scam is also a relevant consideration while deciding an application for bail. It has been observed adn 12 of 15 ba-185-2024.doc that economic offences are not merely offences against an individual but have the potential to erode the financial confidence of society at large. Such offences, therefore, deserve to be dealt with seriously while considering the prayer for bail. 21. The learned Single Judge of this Court, in Shrikant Gangadhar Rao v. State of Maharashtra (Bail Application No.4049 of 2022, decided on 30th June 2023), has observed as under: “16. Hence, mere custody since 2020 or completion of investigation cannot be viewed in isolation. These factors must be balanced with the gravity of the offence, the interst of the victims, and the societal impact of the crime.” 22. In the aforesaid decision, the learned Single Judge, even after taking into consideration that the applicant therein had remained in custody since the year 2020 and that the charge-sheet had already been filed though the trial had not commenced, declined to grant bail by observing that, in economic offences of such grave nature, the interest of the victims and the societal impact of the crime are required to be given due weight while considering an application for bail. 23. The Hon’ble Supreme Court in the case of Y.S. Jagan Mohan Reddy v. Central Bureau of Investigation, (2013) 7 SCC 439 and in the case of Tarunkumar Vs. Assistant Director Directorate of Enforcement, 2023 NSC 1006, was pleased to hold that the economic offences constitute a class adn 13 of 15 ba-185-2024.doc apart and need to be visited with a different approach in the matter of bail. The economic offences having deep-rooted conspiracies and involving huge loss of public funds need to be viewed seriously and considered as a grave offences affecting the economy of the country as a whole and thereby posing serious threat to the financial health of the country. 24. The Hon’ble Supreme Court in the case of Nimmagadda Prasad vs C.B.I., Hyderabad, (2013) 7 SCC 466, has held as under : 25. 23. Unfortunately, in the last few years, the country has been seeing an alarming rise in white-collar crimes, which has affected the fibre of the country's economic structure. Incontrovertibly, economic offences have serious repercussions on the development of the country as a whole. In State of Gujarat v. Mohanlal Jitamalji Porwal [(1987) 2 SCC 364 : 1987 SCC (Cri) 364] this Court, while considering a request of the prosecution for adducing additional evidence, inter alia, observed as under: "5. ... The entire community is aggrieved if the economic offenders who ruin the economy of the State are not brought to book. A murder may be committed in the heat of moment upon passions being aroused. An economic offence is committed with cool calculation and deliberate design with an eye on personal profit regardless of the consequence to the community. A disregard for the interest of the community can be manifested only at the cost of forfeiting the trust and faith of the community in the system to administer justice in an even-handed manner without fear of criticism from the quarters which view whitecollar crimes with a permissive eye unmindful of the damage done to the national economy and national interest." 26. Taking into consideration the principles laid down by the Hon'ble Supreme Court as well as this Court and having regard to the material collected during the course of investigation, I am of the prima facie opinion that the applicant is involved in a serious economic offence. While considering such an application for bail, a balance is required to be adn 14 of 15 ba-185-2024.doc maintained between the right to personal liberty of the accused and the larger societal interest. Economic offences involving public money ordinarily warrant a stricter approach, as they affect the community at large and have the potential to undermine public confidence in the financial system. Thus considering the aforesaid allegations and, in particular, the role attributed to the present applicant, who is alleged to be one of the Directors of the sister concern, A.S. Traders Solutions Limited LLP, I am not inclined to exercise my discretion in favour of the applicant. 27. In view of the aforesaid discussion, I am not inclined to release the applicant on bail. The Bail Application, being devoid of substance and merit, stands rejected. [MEHROZ K. PATHAN, J.] adn 15 of 15