RAJENDRA DADOBA PATILversusTHE STATE OF MAHARASHTRA

                                                           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.


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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


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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


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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.


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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


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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


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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


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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


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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


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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:


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                                       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


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       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.]




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