MADHAVI MADHAV SHETYEversusTHE STATE OF MAHARASHTRA AND ANR.

                                                907-913-507-2026 & Ors..docx


             IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                     CIRCUIT BENCH AT KOLHAPUR
                   CRIMINAL APPELLATE JURISDICTION


      (907) CRIMINAL ANTICIPATORY BAIL APPLICATION NO. 507 OF 2026

Rakesh Prakash Kotiya                       … Applicant
             Versus
The State of Maharashtra & Ors.             … Respondents

                                 WITH
      (908) CRIMINAL ANTICIPATORY BAIL APPLICATION NO. 508 OF 2026

Prasad Suryakant Mehta & Ors.               … Applicants
             Versus
The State of Maharashtra & Anr.             … Respondents

                                 WITH
      (910) CRIMINAL ANTICIPATORY BAIL APPLICATION NO. 515 OF 2026

Sudhir Sadanand Talathi                     … Applicant
             Versus
The State of Maharashtra & Ors.             … Respondents

                                 WITH
      (911) CRIMINAL ANTICIPATORY BAIL APPLICATION NO. 516 OF 2026

Shaila Alias Shailaja Prabhakar Mehta       … Applicant
             Versus
The State of Maharashtra & Ors.             … Respondents

                                 WITH
      (912) CRIMINAL ANTICIPATORY BAIL APPLICATION NO. 517 OF 2026

Madhavi Madhav Shetye                       … Applicant
             Versus
The State of Maharashtra & Ors.             … Respondents




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                                 WITH
      (913) CRIMINAL ANTICIPATORY BAIL APPLICATION NO. 523 OF 2026

Supriya Balkrishna Talathi                      … Applicant
             Versus
The State of Maharashtra & Ors.                 … Respondents



Mr. Siddharth Mehta i/by Mr. Mandar Khambete for the
Applicant in ABA/507/2026.
Mr. Harshad Bhadbhade (through V.C.) with Mr. Siddharth Mehta
and Mr. Shubham Gangan i/by Mr. Shreyas S. Butala for the
Applicants in ABA/508/2026.
Mr. Shreyas Butala (through V.C.) with Mr. Mandar Khambete
for the Applicants in ABA/515/2026, ABA/516/2026,
ABA/517/2026 and ABA/523/2026.
Ms. S. N. Deshmukh, APP for the State in ABA/507/2026,
ABA/515/2026 and ABA/523/2026.
Mr. S. S. Chaudhari, APP for the State in ABA/516/2026 and
ABA/517/2026.
Mr. N. B. Patil, APP for the State in ABA/508/2026.
Kale A. N., EOW Ratnagiri, is present.
Ms. Shriya J. Zagde, Government Auditor Cooperative Society,
Dapoli is present.
                               -------
                             CORAM          : ASHWIN D. BHOBE, J.

                             DATED          : OCTOBER 7, 2026
P.C.:


1.      Heard, Mr. Siddharth Mehta, learned Advocate for the Applicant in

ABA No. 507 of 2026, Mr. Harshad Bhadbhade, learned Advocate for the

Applicants in ABA No. 508 of 2026, Mr. Shreyas Butala, learned Advocate for

the Applicants in ABA No.515 of 2026, ABA No. 516 of 2026, ABA No. 517 of


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2026 and ABA No. 523 of 2026, Ms. S. N. Deshmukh, learned APP for the

State in ABA No. 507 of 2026, ABA No. 515 of 2026 and ABA No. 523 of

2026, Mr. S. S. Chaudhari, learned APP for the State in ABA No. 516 of 2026

and ABA No. 517 of 2026 and Mr. N. B. Patil, learned APP for the State in

ABA No. 508 of 2026.


2.    The learned Advocates for the Applicants and the learned APPs submit

that the subject matter of these six Applications pertains to Crime No. 162 of

2026 dated 16th      August 2026 registered with Dapoli Police Station,

Ratnagiri, for the offences punishable under Sections 406, 409, 417, 418,

465, 468, 471, 120-B and 34 of the Indian Penal Code, 1860 and Sections

146 and 147 of the Maharashtra Co-operative Societies Act, 1960. They,

therefore, request that all these Applications be taken up together and

disposed of by a common order. At the request of the learned Advocates for

the Applicants and the learned APPs, these six Applications are taken up

together and disposed of by a common order.


3.    Applicants in these six Applications are members of the Managing

Committee of “Shri Gopalkrishna Gramin Bigarsheti Sahakari Patsanstha

Maryadit”, Dapoli (“Patsanstha”). The Chairman is the Applicant in

Anticipatory Bail Application No. 508 of 2026; the Vice-Chairman is the

Applicant in Anticipatory Bail Application No. 508 of 2026; and the Directors



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are the Applicants in Anticipatory Bail Applications Nos. 507, 515, 516, 517

and 523 of 2026. All these Applicants seek pre-arrest bail under Section 482

of BNSS 2023, apprehending arrest in Crime No. 162 of 2026.


4.    In brief, the prosecution case, as revealed in the FIR, is that

Respondent No. 3 (Informant), an Auditor in the Cooperative Department,

Dapoli, pursuant to an order of the District Deputy Registrar, Ratnagiri,

conducted a audit of the Patsanstha for the period from 2018-19 to 2022-23.

During the audit, irregularities were noticed in several loan transactions,

including sanctioning loans before borrowers were admitted as members,

failure to verify salary certificates and other documents and submission of

false or fabricated documents. The audit also noted that several borrowers

obtained loans based on purported guarantee letters and salary certificates

bearing forged signatures/seals of Government authorities. The audit further

revealed that 30 loan accounts, with a total sanctioned amount of

₹2,69,50,000/-, were allegedly irregular. Of this amount, only ₹20,17,148/-

had been recovered and about ₹4,98,16,748/- was outstanding, as per the

statement. That the concerned Office-bearers, Directors, Manager and Loan

Officer failed to properly scrutinise the loan documents and facilitated the

sanction and disbursement of loans on the basis of those documents. That

Government documents, seals and signatures were misused, thereby cheating

the Patsanstha. Accordingly, on the basis of the audit findings and the


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material collected during the audit, the Respondent No. 3 lodged the FIR

against the Office-bearers/Directors and other concerned persons for offences

punishable under Sections 406, 409, 417, 418, 465, 468, 471, 120-B and 34

of the IPC and Sections 146 and 147 of the Maharashtra Cooperative

Societies Act, 1960.


5.    Mr. Siddharth Mehta, Mr. Harshad Bhadbhade and Mr. Shreyas Butala,

learned Advocates for the Applicants, have submitted that the Applicants,

being members of the Managing Committee of the Patsanstha, as referred to

in paragraph no. 4 hereinabove, the sanctioning and the disbursement of the

loan by the Patsanstha, which is the subject matter of the Audit Report dated

29th September 2025, are not in dispute.


6.    Mr. Siddharth Mehta, Mr. Harshad Bhadbhade and Mr. Shreyas Butala,

learned Advocates for the Applicants, submit that the Managing Committee

of the Patsanstha performed its duties and acted in accordance with the

Patsanstha's bye-laws while passing the resolution sanctioning the loans to

the borrowers. They submit that the documentation placed before the Board

of Directors of the Patsanstha at the time of the resolution had passed

through the various levels, i.e. the clerical and managerial staff. They submit

that after due scrutiny by the clerical and managerial staff of the Patsanstha,

who are responsible for scrutinizing the documents, verifying the same,



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checking eligibility, etc., the matter was placed before the Managing

Committee of the Patsanstha. They therefore submit that the Managing

Committee of the Patsanstha acted bona fide while sanctioning the loans.


7.    Mr. Siddharth Mehta, Mr. Harshad Bhadbhade and Mr. Shreyas Butala,

learned Advocates for the Applicants, submit that in 2024, the Board of

Directors of the Patsanstha, having noticed the illegalities and irregularities

committed by the borrowers, initiated steps to recover the amounts and a

Recovery Certificate under Section 101 of the Maharashtra Co-operative

Societies Act, 1960, was issued on 19.09.2024. They further submit that on

14.12.2025, the Board of Directors of the Patsanstha, through its Chairman,

filed a police complaint with Respondent No. 1, informing the police that a

criminal case be lodged against the borrowers of the said loans and that

appropriate action be initiated against them. They submit that the police did

not take cognisance of the said complaint. Accordingly, the Patsanstha,

through its Board of Directors, is before the Magistrate having jurisdiction

under Section 156(3) of the Code of Criminal Procedure, 1973, requesting

the registration of an FIR. They submit that these proceedings are still

pending adjudication before the Judicial Magistrate First Class, Dapoli.


8.    Mr. Siddharth Mehta, Mr. Harshad Bhadbhade and Mr. Shreyas Butala,

learned Advocates for the Applicants, by referring to the Auditor's report,



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submit that the person instrumental in committing the act which is the

subject matter of the Auditor's report is one Dinesh Sabale, who, though

initially not named in the FIR, was subsequently arrested and is presently in

custody. They further submit that the entire Auditor's report contains no

allegation that the Applicants are the beneficiaries of the amount.


9.    Ms. S. N. Deshmukh, Mr. S. S. Chaudhari and Mr. N. B. Patil, learned

APPs for the State, submit that the FIR has been lodged on the basis of the

Auditor's report dated 29th September 2025. They submit that during the

investigation, various borrowers stated that they were simply made to sign

documents, after which their loan applications were processed, the loan

amounts were sanctioned and disbursed by transferring them into their

accounts. They submit that a major portion of the sanctioned and disbursed

loan amounts has thereafter been transferred to the account of Dinesh

Sabale. They submit that the offence is an economic offence and therefore,

the Investigating Officer should be afforded a reasonable opportunity to

thoroughly investigate the crime. They submit that the custodial interrogation

of the Applicants is required to ascertain the modus operandi in sanctioning

such loans and further to determine how such loans were sanctioned and

granted to persons who were not eligible and not entitled to such loans from

the Patsanstha.




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10.   Perused the records with the assistance of the learned Advocates.


11.   Crime No. 162 of 2026 was registered based on the Auditor's report

dated 29th September 2025. A perusal of the Auditor's report does not

indicate any allegations of misfeasance by the Managing Committee of the

Patsanstha i.e. Applicants (Accused Nos. 1 to 11) in these Applications.


12.   Though the Ms. S. N. Deshmukh, Mr. S. S. Chaudhari and Mr. N. B.

Patil learned APPs by referring to the Auditor's report dated 29th September

2025, submit that the Auditor in his report, has stated that for the

disbursement or sanction of a loan not in terms of the bye-laws, etc. action is

required to be initiated against the Managing Committee of the Patsanstha,

however, as on date, as submitted by Mr. Siddharth Mehta, Mr. Harshad

Bhadbhade and Mr. Shreyas Butala, there is no order passed by the

competent Authority under the Maharashtra Co-operative Societies Act,

1960, disqualifying the Board of Directors of the Patsanstha. Mr. Siddharth

Mehta, Mr. Harshad Bhadbhade and Mr. Shreyas Butala, state that Applicants

(Accused Nos. 1 to 11) continue to be the Managing Committee of the

Patsanstha.


13.   Be that as it may, the allegations, as they stand in the Auditor's report

dated 29th September 2025, which forms the basis for the registration of

Crime No. 162 of 2026, are that there has been irregularity in the



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disbursal/sanctioning of loans to persons who may not be eligible or entitled.

The   prosecution   case   in   Crime   No.   162   of    2026   is   based    on

documents/documentary evidence, which the learned APPs, on instructions,

submit are already seized by the Investigating Officer.


14.   Considering the nature of the allegations in the FIR, the absence of any

specific allegations against the Applicants, who are members of the Managing

Committee of the Patsanstha, of misfeasance or of the Applicants being

beneficiaries of the loan amounts, the submissions of Mr. Siddharth Mehta,

Mr. Harshad Bhadbhade and Mr. Shreyas Butala that matters placed before

the Board of Directors of the Patsanstha for decisions pass through a process

which scrutinizes the documents and further, the Patsanstha having on

14.12.2025 filed a police complaint against the beneficiaries of the subject

loan, which is presently pending before the Judicial Magistrate First Class,

Dapoli, under Section 156(3) of the Code of Criminal Procedure, 1973, the

custodial interrogation of the Applicants in Crime No. 162 of 2026 is not

necessary, subject to the Applicants cooperating with the investigation.


15.   Mr. Siddharth Mehta, Mr. Harshad Bhadbhade and Mr. Shreyas Butala,

learned Advocates for the Applicants, state that the Applicants shall appear

before the Investigating Officer in Crime No. 162 of 2026 as and when

required by the Investigating Officer, cooperate with the investigation in



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Crime No. 162 of 2026 and render all assistance to the Investigating Officer

by submitting the documents/ information pertaining to the Patsanstha that

the Investigating Officer may require for the purpose of the investigation of

Crime No. 162 of 2026. Ms. S. N. Deshmukh, Mr. S. S. Chaudhari and Mr. N.

B. Patil, learned APPs, submit that the statements made by the Advocates for

the Applicants be taken on record and accepted by this Court. Mr. Siddharth

Mehta, Mr. Harshad Bhadbhade and Mr. Shreyas Butala state that these

statements are made on specific instructions from the Applicants and

therefore, be taken on record. Statements made on behalf of the Applicants

are accepted.


16.      In view of the above, these Applications are allowed on the following

terms:


      a. In the event of the arrest of the Applicants in Crime No. 162 of 2026

         registered with Dapoli Police Station, Ratnagiri, the Applicants shall be

         released on bail upon each Applicant furnishing a PR bond of Rs.

         1,00,000/-, with two sureties in the like amount, to the satisfaction of

         the Investigating Officer, Dapoli Police Station, Ratnagiri.


      b. The Applicants shall report to the Investigating Officer at Dapoli Police

         Station, Ratnagiri, on 12th, 13th, 14th, 15th and 16th October 2026, from

         10.00 a.m. to 1.00 p.m. and thereafter as and when required by the



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         Investigating Officer. Applicants shall cooperate with the investigation

         in Crime No. 162 of 2026.


      c. The Applicants shall not directly or indirectly make any inducement,

         threat or promise to any person/s acquainted with the facts of the case

         to dissuade such person/s from disclosing the facts to the Court or any

         police officer.


      d. The Applicants shall not tamper with evidence in any manner.


      e. The Applicants shall provide the Investigating Officer, Dapoli Police

         Station, Ratnagiri, with their residential addresses along with proof,

         their contact numbers, WhatsApp number and must inform the

         Investigating Officer of any changes to this information from time to

         time.


      f. In the event of any default in complying with the conditions or misuse

         of the liberty granted to the Applicants, the prosecution shall be at

         liberty to seek the cancellation of this bail.


17.      The observations made in this order are prima facie and are meant for

the purpose of deciding the Bail Application and would not have any impact

or effect on the trial


18.      Criminal Anticipatory Bail Application No. 507 of 2026, Criminal



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                      Anticipatory Bail Application No. 508 of 2026, Criminal Anticipatory Bail

                      Application No. 515 of 2026, Criminal Anticipatory Bail Application No. 516

VAIBHAV
                      of 2026, Criminal Anticipatory Bail Application No. 517 of 2026 and Criminal
RAMESH
JADHAV
Digitally signed by
VAIBHAV RAMESH
JADHAV
Date: 2026.10.08
10:32:31 +0530
                      Anticipatory Bail Application No. 523 of 2026 are disposed of.




                                                                      (ASHWIN D. BHOBE, J.)




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