Bombay High Court

KISAN SHRIPATI GALAVEversusSTATE OF MAHARASHTRA

Disposal: Allowed

Holding

The Court allowed the anticipatory bail application, confirming the earlier interim order, subject to specified conditions.

Summary

The High Court considered an anticipatory bail application filed by Kisan Shripati Galave, a director of a cooperative society, after an FIR was lodged based on an audit alleging misappropriation of Rs.4.97 crore through unauthorised loan disbursements. The applicant contended that he was merely a director and not directly involved, attributing the alleged irregularities to the manager and other employees. The State argued that the offences under Sections 420, 406, 409, 467, 471 read with 34 of the IPC were alleged and that collective responsibility under the Maharashtra Co-operative Societies Act, 1960 could apply. The Court, noting the lack of specific allegations against the applicant and the pending investigation, granted interim bail and subsequently confirmed anticipatory bail with conditions of reporting, non‑tampering with evidence, and furnishing address details. The bail was ordered to remain in force subject to compliance with these conditions.

Issues considered

Whether anticipatory bail should be granted to a director of a cooperative society alleged to be involved in misappropriation of funds under IPC Sections 420, 406, 409, 467, 471 read with 34.
Whether the collective responsibility provision under the Maharashtra Co-operative Societies Act, 1960 precludes granting bail to an individual director.

Legislation cited

Indian Penal Code, 1860 — s. 34, 406, 409, 420, 467, 471
Maharashtra Co-operative Societies Act, 1960

Subjects

anticipatory bail
cooperative society
misappropriation
director liability
IPC offences
bail conditions
collective responsibility

Judgment

26-1967-2023.doc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIRCUIT BENCH AT KOLHAPUR
CRIMINAL APPELLATE JURISDICTION
ANTICIPATORY BAIL APPLICATION NO. 1967 OF 2023
Kisan Shripati Galave … Applicant
Versus
The State of Maharashtra … Respondent
_______________________________________________________________
Mr. Ranjeet Patil i/b Ganesh Bhujbal, Advocate for the Applicant.
Dr. A. A. Takalkar, APP for the Respondent – State.
_______________________________________________________________

CORAM : ASHWIN D. BHOBE, J.
DATE : 21st September, 2026.
P.C. :

1. Heard Mr. Ranjeet Patil, learned Advocate for the Applicant and

Dr. A. A. Takalkar, learned APP for the Respondent – State.

2. On 20.07.2023, the following order was passed :-

1. Heard learned Advocate Shri. Bhujbal for Applicant
and learned APP. Investigating Officer is present.

2. The FIR is lodged by the auditor on the basis of audit
done in respect of Shree Ganesh Gramin Bigarsheti Patsanstha
Maryadit Gokul Tarfe Patan, Taluka: Pathan, District: Satara. The
audit is conducted for the year 2020-2021. The resolution to
appoint the First-Informant was made in the meeting dated 10th
June, 2021. The auditor submitted a report mentioning that
there is misappropriation to the extent of Rs.4,97,07,907/-. A
copy of the report is annexed on Page No.34.

3. The sum and substance of the allegations can be
summarized as follows:-

(a) Certain loans are disbursed without sanction of
the Managing Committee.

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26-1967-2023.doc

(b) Certain loans are sanctioned by the Managing
Committee but there is no documentation.

4. The contention of the Applicant is that there are no
specific allegations and he was simple director and in fact, it is
done by the Manager and other employees of the Society.
Whereas, learned APP tried to explain before me what was the
modus operandi followed. It is shown as the loans were
sanctioned in the name of the persons /members, but few of the
statements are recorded which depicts that in fact, they have not
applied for loan. Even there is allegation that the persons who
have deposited the amount with the Patpedhi have not returned
the amount and they revealed that against them, loans are
shown as outstanding even though they have not applied.

5. The FIR also mentions that there are earlier audit
reports conducted by one Pravin Bhosale and N.S.Shaikh but
their audit report does not mention about misappropriation.
They are also joined as Accused persons. A query is made to
learned APP as to when these loans were shown as sanctioned,
that is to say, within a tenure of this Applicant as a director or
earlier, learned APP submitted that list of those particulars is
taken out from the computer of the Patpedhi, for want of time, it
cannot be produced.

6. It is true that as per the provisions of Maharashtra Co-
operative Societies Act, 1960 ["MCS Act"], there is collective
responsibility of the members of the Director Board. There may
be allegation that individual director has failed to perform his
duties by way of supervision also. These issues an be gone into
once all the materials are produced before the Court. So, today, I
am inclined to grant an interim protection.

7. It is true that there are other applications pending for
a similar relief before the Court of Additional Sessions Judge. It
is made clear that this Court has granted an interim protection
as all the materials are not placed before him. However, if all the
materials are placed before the Additional Sessions Judge, they
are at liberty to take an appropriate decision. They need not be
influenced by these observations. Hence, order :-

ORDER

(i) In case of an arrest in connection with C.R. No.
112 of 2023 registered with Patan Police Station:
District Satara for the offences punishable under
Sections 420, 406, 409, 467, 471 read with 34 of
IPC, the Kisan Shripati Galave be released on

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26-1967-2023.doc

Applicant furnishing personal bond and surety bond
of Rs.25,000/-.

(ii) Applicant is directed to give attendance to Patan
Police Station: District Satara on 24th and 26th July,
2023 from 10.00 to 12.00 noon.

8. Matter be kept on 27th July, 2023.

9. All the parties to act on an authenticated copy of this
order.

3. Mr. Ranjeet Patil, learned Advocate for the Applicant states that

the Applicant has appeared before the Investigating Officer, Patan Police

Station, Satara, investigating Crime No. 112 of 2023. He, on

instructions from the Applicant, states that the Applicant shall appear

before the Investigating Officer as and when required and shall co-

operate with the investigation in Crime No. 112 of 2023.

4. Dr. A. A. Takalkar, learned APP for the Respondent – State, on

instructions from the Investigating Officer, Patan Police Station, Satara,

submits that the Applicant has appeared before the Investigating Officer

and the investigation in Crime No. 112 of 2023, is ongoing.

5. The interim bail granted to the Applicant is operating since

20.07.2023, the Applicant has appeared before the Investigating Officer,

Patan Police Station and there being no allegations of the Applicant

having breached the liberty granted by this Court, this Application is

allowed by confirming the order dated 20.07.2023 and making the

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26-1967-2023.doc

same absolute in terms of paragraph nos. 7(i) with the following

additional conditions :-

(a) Applicant shall appear and report to the

Investigating Officer, Patan Police Station, Satara, on

28th, 29th and 30th September, 2026, from 10:00 am to

12:00 pm and thereafter as and when required by the

Investigating Officer. The Applicant shall cooperate

with the investigation in Crime No. 112 of 2023.

(b) Applicant shall not tamper with evidence in

any manner.

Officer, Patan Police Station, Satara, with his

residential address along with proof, his contact

number and must inform the Investigating Officer of

any changes to this information from time to time.

6. Anticipatory Bail Application No. 1967 of 2023 is allowed and

disposed of.

(ASHWIN D. BHOBE, J.)
Digitally
signed by
ARJUN
ARJUN KRISHNA
KRISHNA RODGE Arjun 4
RODGE Date:
2026.09.23
10:18:07
+0530

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