Bombay High Court
ATEEV VRAJLAL GALAversusSTATE OF MAHARASHTRA
- Decided
- Disposal
- Allowed
- Bench
- R M JOSHI
Holding
The court held that, in the absence of prima facie evidence of document fabrication and with the offence essentially limited to cheating under Section 420, the applicant is entitled to bail.
Summary
The High Court considered three criminal bail applications filed by Ateev Vrajlal Gala and co‑accused, who were charged under IPC sections 420, 406, 34, 465, 467 and 471 for allegedly misrepresenting that flats were free of mortgage and forging a ‘no due’ certificate. The prosecution alleged that the applicant induced purchasers to pay large sums while the flats were mortgaged to banks, and that a forged NOC was used to deceive them. The defence argued that the sale agreement disclosed the mortgage, that only Section 420 was applicable, and that there was no prima facie evidence of document fabrication, further emphasizing the applicant’s willingness to cooperate and the unreasonable delay in trial. The court examined the evidence, found no material proving forgery of the NOC and held that the only charge was cheating under Section 420, which carries a maximum of seven years’ imprisonment. Considering the lack of prima facie evidence of forgery and the prolonged pre‑trial detention, the court granted bail with conditions.
Issues considered
- Whether the applicant is entitled to bail despite charges of cheating, forgery and criminal conspiracy under IPC sections 420, 406, 34, 465, 467 and 471.
- Whether there is prima facie evidence that the applicant fabricated or forged the No Objection Certificate.
- Whether the alleged offences are limited to Section 420 of the IPC, affecting the severity of the bail consideration.
- Whether the delay of over one year in trial commencement justifies the grant of bail.
- Whether the applicant’s assurances to cooperate with the flat purchasers influence the bail conditions.
Legislation cited
- Indian Penal Code, 1860 — s. 34, 406, 420, 465, 467, 471
Subjects
- bail
- cheating
- misrepresentation
- forgery
- mortgage
- real estate fraud
- IPC Section 420
- encumbrance
- no objection certificate
- pre‑trial detention
Judgment
901-BA-4060-2025+.DOC
Shivgan
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CRIMINAL APPELLATE JURISDICTION
CRIMINAL BAIL APPLICATION NO. 4060 OF 2025
WITH
CRIMINAL BAIL APPLICATION NO. 4061 OF 2025
WITH
CRIMINAL BAIL APPLICATION NO. 4063 OF 2025
Ateev Vrajlal Gala …Applicant
Versus
State Of Maharashtra …Respondent
WITH
INTERIM APPLICATION NO. 4805 OF 2025
IN
CRIMINAL BAIL APPLICATION NO. 4061 OF 2025
Ankur Kapoor and Anr. …Applicants
Versus
State Of Maharashtra …Respondent
WITH
INTERIM APPLICATION NO. 4383 OF 2025
IN
CRIMINAL BAIL APPLICATION NO. 4063 OF 2025
Kuwar Yadav …Applicant
Versus
The State of Maharashtra …Respondent
Mr. Girish Kulkarni, Senior Advocate, with Harshad Sathe and
Saurabh Butala, Aishwarya Hinge for the Applicant in B.A. 4060 of
2025, 4061 of 2025 & 4063 of 2025.
Mr. H. J. Dedhia, APP for the Respondent-State in all Bail
Applications.
Mr. Devakinandan R. Singh, for the Intervener in I.A. 4805 of
2025.
Ms. Sandhya A. Mailagir for Anil. D. Joshi for the Intervener in I.A.
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4383 of 2025.
Mr. Vivek Patil, with Afsar Ansari, Apurva Renge, i/b Vivek Patil &
Associates, for the Informant/Intervenor in B.A.4060/2025.
Mr. V. S. Shirsat, API attached to Kasarwdavali Police Station,
present.
CORAM: R. M. JOSHI, J.
DATED: 18th APRIL, 2026.
PC:-
1. By these Applications, the Applicant seeks bail in connection
with C.R. No. 261 of 2022 for the offences punishable under
Sections 420, 406 read with 34 of Indian Penal Code, 1860 (for
short “IPC”), C.R. No. 0318 of 2022 for the offences punishable
under Sections 420, 465, 467 and 471 of the IPC and C.R. No.
0283 of 2022 for the offences punishable under Sections 420, 406
read with 34 of the IPC, all registered with the Kasarwdavali Police
Station, Thane City.
2. Since all these Applications involve similar facts, by consent
of both sides, they are heard and decided together.
3. In short, it is the case of the prosecution that in three
different First Information Reports (FIRs) lodged by the
Informants, there is an allegation against the present Applicant
that though the Applicant and the Co-accused received amounts of
consideration towards the sale of flats, the Applicant suppressed
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the fact that mortgage has been created in respect of said flats and
sold them to the Informants. There is further allegation in one of
the FIRs that the Applicant prepared a false ‘no due’ certificate
issued by the J.M. Finance in order to dupe the Informant of the
amount. The offence came to be registered as mortgages were
created in respect of the same and the banks/financial institutes
initiated the recovery proceedings against the said flats. In short,
the details in respect of each of the FIR is recorded herein-below:-
4. The Applicant, Director/Chairman of M/s. Vijay Group Con-
struction Pvt. Ltd., undertook the project “Vijay Enclave”, Waghbil,
Thane. The Informants/Original Complainants purchased the flats
in the said “Vijay Enclave”. The Applicant induced the Informant to
make the investment of Rs.1,10,00,000/- in C.R.No. 261 of 2022;
Rs.1,07,40,000/- in C.R.No. 318 of 2022 and Rs. 1,17,00,000/- in
C.R.No. 0283 of 2022 respectively by making false representation
that the property would be free from encumbrances. However, the
said flats were mortgaged with Axis Bank and the “No Objection
Certificate” of the “No Due Certificate” of the Axis Bank was forged
by the Applicant. In this manner, the Applicant has cheated several
flat purchasers. In pursuance of the FIR, investigation was carried
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out and the charge-sheet came to be filed. The Applicant was ar-
rested on 16th April 2025. Notably, while the FIR originally impli-
cated four other individuals, only the present Applicant was ulti-
mately arqraigned in the final charge-sheet.
5. The learned Senior Counsel appearing on behalf of the
Applicant, submits that though it is alleged that the Applicant had
misrepresented with regard to the status of flats that it being not
mortgaged, there is a categoric statement in the agreement to
sale/sale deed indicating that such mortgage exists. It is his further
submission that in any case, the present offence cannot be tried
beyond Section 420 of the ‘IPC’, which is punishable with
maximum 7 years imprisonment. It is his submission that in fact,
no offence has been committed by the Applicant for the reason that
the effect of non-payment of the money in respect of one of the
projects, has resulted into creation of the situation in question. It is
his further submission that once, there is evidence to indicate that
flat purchasers were duly informed about the mortgage, question
of any misrepresentation and cheating does not arise. He further
argues that intention of cheating the Informants must exist from
the inception of the transaction and the disclosure of mortgage
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clearly shows that no such intention was present at the time of
entering into transactions in question. He also drew attention of
the Court to various proceedings initiated by the flat purchasers
against the Applicant as well as banks/financial institutions. It is
his submission, on instructions, that the Applicant is ready to
extend all co-operation to the Informants/Flat Purchasers in order
to ensure that they get flats free from encumbrances or refund of
the money as the case may be. In this regard, on instructions, he
makes statement to have exchanged communication with one of
the Flat Purchasers/Informants. A photo-copy of the said
communication is on record. It is his submission that in any case,
the Applicant cannot help investors unless he is released from jail.
It is claimed that the Applicant is arrested on 16 th April 2025 and
for over period of one year, he is in jail. According to him, since the
offence charged against him is punishable with maximum
imprisonment of 7 years and, as there is no possibility of
commencement and conclusion of trial in a reasonable period of
time, the Applicant deserves bail.
6. Learned counsel for the Informant/Intervenor in Criminal
Bail Application No. 4060 of 2025 contends that the Applicant has
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accepted entire amount of consideration and it was necessary for
him to sell the flat free from encumbrances. It is his submission
that the intention of the Applicant to cheat can be gathered since
inception in view of the fact that he sold flat to the Informant,
which was mortgaged to the bank/financial institution. It is sought
to be argued that the Applicant has misrepresented about
obtainment of ‘No Objection Certificate’ (‘NOC’) in respect of Flat
No.11 from the Axis Bank. It is his submission that relying upon
the said NOC and the representation made by the Applicant, the
Informant believed that the flat sold to him would not have any
mortgage or loan. In any case, it is his submission that the
Applicant needs to be put to conditions in order to safeguard the
interests of the Informant. He confirms the fact on behalf of the
Applicant that communication is received as stated by the learned
Senior Counsel appearing on behalf of the Applicant.
7. The counsel for the Intervenor in Criminal Bail Application
No.4061 of 2025 submits that there is evidence on record to
indicate that the offence of forgery of the certificate of ‘No
Objection’ issued by the J. M. Finance is proved by way of evidence
collected during the investigation. Thus, it is argued that since
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such serious offence is made by the Applicant, he is not entitled to
bail. In this regard, statements of witnesses are also referred to by
the counsel.
8. In Criminal Bail Application No.4063 of 2025, learned
counsel for the Informant/Intervenor further submitted that the
‘NOC’ issued by the Axis Bank is doubtful. To support his
submission, reference is made to the statements of witnesses and
observations made by the Trial Court in it’s order. It is argued that
the date on which the NOC was issued by the Axis Bank, differs
and, therefore, there is a case made out against the Applicant of
fabrication of documents. It is submitted that since consideration
has been received on misrepresentation, there is prima-facie
evidence against the Applicant showing his involvement in the
crime in question.
9. The learned APP opposes all the Bail Applications by
contending that herein in this case, on account of
misrepresentation made by the Applicant, Informants/Flat
Purchasers were induced to make the payment of considerations. It
is further pointed out that since the Applicant has sold flats, which
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were already mortgaged with the Banks/Financial Institutions, the
offence of cheating is made out against him.
10. At the outset, this Court would like to deal with the
contention of the learned counsel Informant in Criminal Bail
Application No. 4063 of 2025 with regard to any case being made
out against the Applicant of fabrication of documents. Prima-facie,
perusal of the documents indicate that though, it is the case of the
Informant that one ‘NOC’ purported to be issued by J.M. Finance
was seen on the mobile phone of the Informant by the Applicant,
there is absolutely no investigation carried out in this regard. In
order to allege any fabrication of documents, there must be
investigation indicating the existence of the document by itself.
Herein in this case, except for the statement of the Informant,
there is no material in order to show that any document was
prepared by the Applicant and on the basis of which the Informant
was induced to make payment. On the contrary, agreement to sale
of the Informant indicates that there is no mention about any such
‘NOC’ being obtained from the financial institutions. The relevant
clause in the said agreement is kept blank. Thus, there is nothing
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on record to show that there is fabrication of document of ‘NOC’ of
the said financial institutions.
11. Insofar as the ‘NOC’ of Flat No.11 issued by the Axis Bank is
concerned, there is a statement of witness from the Axis Bank
confirming the fact that ‘NOC’ has been issued in respect of Flat
No.11. Thus, it cannot be said that the Applicant fabricated ‘NOC’
of Flat No.11 in order to induce the investors to pay considerations
towards the purchases of the flats.
12. Once, there is no prima-facie material on record to indicate
involvement of the Applicant in fabrication of any
record/document, the offence remains against him is the offence
punishable under Section 420 of the IPC, which is punishable with
maximum imprisonment of 7 years.
13. The Applicant is in jail for a period of above one year. During
the course of hearing, the learned Senior Counsel appearing on
behalf of the Applicant, on instructions, has given an assurance to
the Informants about extending his co-operation for making the
flats of the Informants free from encumbrances. Similarly, written
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communication is sent on behalf of the Applicant to one of the
Informants.
14. Having regard to the aforesaid facts and also in view of the
fact that the there is not even remote chance of commencement
and conclusion of trial within a reasonable period of time, the
Applicant is entitled to bail. Hence, following order:-
ORDER
(i) The Bail Applications stand allowed in connection with
C.R. No. 261 of 2022, C.R. No. 0318 of 2022, C.R.No. 0283
of 2022 registered with the Kasarwdavali Police Station,
Thane City;
(ii) The Applicant be released on bail on furnishing P .R.
Bond of Rs.30,000/- with one or two sureties in the like
amount to the satisfaction of the Trial Court;
(iii) The Applicant not to interfere into the evidence of the
prosecution in any manner whatsoever;
(iv) The Applicant to attend all the dates of hearing before
the Trial Court except exempted by a specific order by the
Trial Court;
(v) The Applicant shall be bound by the assurances given to
the Informants before this Court, by written communication
as well as oral statements to co-operate to them.
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15. The Bail Applications stand disposed of with Interim
Applications therein.
16. The observations made herein-above are prima-facie in
nature and won’t bind parties or Trial Court during trial.
(R. M. JOSHI, J.)
{
SHAMBHAVI
NILESH
SHIVGAN
Digitally signed by
SHAMBHAVI
NILESH SHIVGAN
Date: 2026.04.20
20:01:36 +0530
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