MAHESH BALWANT SHEVALEversusTHE STATE OF MAHARASHTRA AND ANR.

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            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



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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


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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


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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


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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.


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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:


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No    districts & Crime No    cases are registered     Status
                              under sections
01    Vazirabad Police        IPC sections 406, 420,   Spl.Case/173/2023
      Station, Nanded –       120(B)                   District and Session
      Crime No. 18/2023                                Court, Nanded
                                                       Case Status - Production of Accused
02    Chaturshrungi Police    IPC sections 406, 420,   Spl.Case/784/2023
      Station, Pune Rural –   409,34 and Sections 3,   17-DISTRICT JUDGE
      Crime No. 320/2023      4 MPID Act               - 1 AND ADDL. SESSIONS JUDGE
                                                       PUNE
                                                       Case Status -N.B.W. Unready
03    Lonavala Police         IPC sections 406, 420,   1-DISTRICT JUDGE-1 AND
      Station, Pune Rural –   34                       ADDITIONAL SESSIONS JUDGE,
      Crime No. 233/2023                               VADGAON Case Status Court pending
04    Lonavala city Police    IPC sections 406, 420,   Case Status - Court pending
      Station, Pune – Crime   409,34 and Sections 3,
      No. 27/2024             4 MPID Act
05    Sakkardara Police       IPC sections 406, 420,   NAGPUR DISTRICT
      Station, Nagpur City–   409,34 and Sections 3,   SESSIONS COURT, Spl.Case
      Crime No. 102/2024      4 MPID Act               Case Status Court pending
06    Malegao Police          IPC sections 406, 420,   Additional District
      Station,                409,467,468,469,         Court, Baramati: 2
      Pune Rural – Crime      471,120(B) and           Case Status - Court pending
      No.                     Sections 3,4 MPID
      32/2024                 Act
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/-.



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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


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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


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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


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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


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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


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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



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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



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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.]




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