Bombay High Court

PRAKASH RAMESHCHANDRA JAINversusSTATE OF MAHARASHTRA

Decided: 24 August 2026
Disposal: Disposed Off

Holding

Anticipatory bail is denied.

Summary

The applicants, partners of Spire Associates, were charged under multiple IPC sections for allegedly cheating a buyer of Rs.1.80 crore by selling a flat that had already been transferred to a third party. The prosecution presented a memorandum of understanding dated 29 December 2023 showing receipt of the full amount, contradicting the applicants' claim that it was merely an investment. The court noted the seriousness of the offences, the existence of several similar complaints, and the lack of any justification for bail. Consequently, the court found no merit in granting anticipatory bail. The anticipatory bail application and the related interim application were both dismissed.

Issues considered

Whether anticipatory bail should be granted to the accused in a fraud case involving alleged misrepresentation in a real‑estate transaction.

Legislation cited

Bharatiya Nagarik Suraksha Sanhita, 2023 — s. 482
Code of Criminal Procedure, 1973 — s. 438
Indian Penal Code, 1860 — s. 34, 406, 409, 420, 467, 468, 471, 504, 506

Subjects

anticipatory bail
fraud
real estate
IPC sections
criminal procedure
bail denial

Judgment

6.ABA-2415.25.DOC

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Digitally signed
by PRACHI
PRACHI
PRANESH
NANDIWADEKAR
PRANESH
NANDIWADEKAR CRIMINAL APPELLATE JURISDICTION
Date: 2026.08.27
15:38:44 +0530
ANTICIPATORY BAIL APPLICATION NO. 2415 OF 2025

Atul Ratnakar Mahashabde & Ors. … Applicants
V/s.
The State of Maharashtra & Anr. …. Respondents
WITH
INTERIM APPLICATION NO.3320 OF 2025
IN
ANTICIPATORY BAIL APPLICATION NO. 2415 OF 2025

Prakash Rameshchandra Jain … Intervenor
In the matter between
Atul Ratnakar Mahashabde & Ors. … Applicants
V/s.
The State of Maharashtra …. Respondent
______________________
Mr. Chaitanya Pendse a/w Mr. Vinod Kendre i/by Mr. Yogesh
Birajdar, for the Applicants.
Ms. S. M. Yadav, APP for the Respondent No.1-State.
Mr. Kuldeep S. Patil a/w Mr. Naagesh S. Khedkar, Mr. Gaurish
Vaidya and Mr. Rahil Mavale for the Respondent No.2-Intervenor.
Mr. B.P. Shirsat, PSI attached to Swargate Police Station, Pune City,
Pune present.
______________________

CORAM : MADHAV J. JAMDAR, J.
DATED : 24 AUGUST 2026

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6.ABA-2415.25.DOC

P. C. :-

1. Heard Mr. Pendse, learned Counsel appearing for the

Applicants, Ms. Yadav, learned APP appearing for the Respondent

No.1-State and Mr. Kuldeep Patil, learned counsel appearing for

the Respondent No.2-intervenor.

2. By this application filed under Section 438 of the Code of

Criminal Procedure, 1973 (Section 482 of Bharatiya Nagarik

Suraksha Sanhita, 2023), the applicants are seeking pre-arrest bail

in connection with C.R. No.159 of 2025 registered with Swargate

Police Station, Pune City, District Pune for the offences punishable

under Sections 406, 409, 420, 467, 468, 471, 504 and 506 read

with 34 of the Indian Penal Code, 1860.

3. The prosecution case is set out in paragraph 3 of the

affidavit dated 9 October 2025 of Mr. Yashwant G. Nikam, Senior

Police Inspector, Swargate Police Station, Pune City, District Pune.

The said paragraph 3 reads as under:-

“3. I say that the prosecution case in brief is as under:

(a) The FIR was lodged by the informant namely Prakash R.
Jain with Swargate Police Station inter alia stating therein that
in the year 2014 the Complainant deceased friend Ramesh
Solanki got acquainted with Atul Ratnakar Mahashabde, Arvind
Avati, Devendra Arvind Avati, Shrikant Anant Nagarkar and

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6.ABA-2415.25.DOC

thereafter they became good friends. They informed
Complainant that they are having construction business under
the name and style of Spire Associates and Om Developers in the
partnership. The Complainant came to know from said four
friends that in the year 2016 they have started construction
project namely "Citywood" on land bearing Survey No. 55/9,
CTS No. 548/C and Final Plot No. 448, at Gultekadi, Pune. The
Complainant and his brother Mahavir Jain were residing jointly
and due to increase in family members, both have decided to
purchase flat. It is the case of the informant that after came to
know said fact said Atul Ratnakar Mahashabde, Arvind Avati,
Devendra Arvind Avati, Shrikant Anant Nagarkar suggested
Complainant to purchase flat in the Citywood project and they
further stated that they will complete said project with one
Jayantilal Tarachand Oswa, partner of M/s. Spire Associates and
they informed price of flat of Rs. 1 Crore 80 Lakhs. Thereafter
the Complainant talked with his brother Mahavir and he gave
consent to purchase 2 flats in the said project.

(b) It is the case of the informant that thereafter after
negotiations, Atul Ratnakar Mahashabde, Arvind Avati,
Devendra Arvind Avati, Shrikant Anant Nagarkar asked
Complainant and his brother to pay Rs. 25 Lakhs and Rs. 1
Crore 55 Lakhs in cash for one flat. It is the case of the
informant that accordingly, the Complainant has paid Rs.
25,00,000/- vide two cheques from his bank account in the
name of Om Developers in which Atul Ratnakar Mahashabde,
Arvind Avati, Devendra Arvind Avati, Shrikant Anant Nagarkar
are the partners. Remaining balance amount of Rs. 1 Crore 55
Lakhs is paid by the Complainant in cash to all of them in the
year 2016 and 2017 from time to time by taking hand loan from
his friend Aniruddha Pradip Patwardhan. It is the case of the
informant that thus, the Complainant has paid total amount of
Rs. 1 Crore 80 Lakhs to the all partners of Om Developers and
Complainant is having acknowledgment of the same.

(c) It is the case of the informant that however in spite of
receipt of entire consideration of flat, Atul Ratnakar
Mahashabde, Arvind Avati, Devendra Arvind Avati, Shrikant
Anant Nagarkar were not ready to give possession of flat to the
Complainant. It is the case of the informant that the informant
went on the site but did not find no construction work is started

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6.ABA-2415.25.DOC

on the site and thereafter the Complainant asked Atul Ratnakar
Mahashabde, Arvind Avati, Devendra Arvind Avati, Shrikant
Anant Nagarkar that whey you are going to start construction,
when are you going to give possession from time to time but till
the year 2018-2019 they are avoiding to give possession of flat
by giving various excuses of Notbandi, Maha Rera permissions
etc., they also gave reasons change of partners and Corona in
the year 2020-2021 and are avoiding to handover possession of
flats to the Complainant. It is the case of the informant that
thereafter, they avoided by saying reason that one of the
partners out of them ie. Mr. Arvind Gajajn Avati expired on
05/10/2021. Thereafter also they did not give possession of flat
nor execute any document in respect of said flat in favour of the
Complainant.

(d) It is the case of the informant that thereafter mediator
Mr. Vijay Mantri made intervention in the said matter at that
time, all said partners and including complainant's friend
Aniruddha Patwardhan, brother Mahavir Jain were present. It is
the case of the informant that however after frequent follow ups
made by the Complainant with said partners, they executed
Memorandum of Understanding dated 29/12/2023 on the Rs.
500/- stamp paper in favour of Complainant and thereby they
have agreed that they have sold Flat No. 401 of Pine Building in
Citywood Co-op. Hsg. Society to the Complainant and Rs. 1
Crore 80 Lakhs is received towards consideration amount of said
flat. Atul Ratnakar Mahashabde and Devendra Arvind Avati have
signed on the said MOU and said MOU is duly notarized in the
Notary Register of Adv. Trupti Bhimrao Shinde.

(e) It is the case of the informant that in the month of July
2024 Devendra Avati called upon the Complainant and his
brother and friend Patwardhan at Salisbury Park and told that
they will execute Sale Deed and gave possession of flat till 15th
August 2024. It is the case of the informant that however
Complainant was not having any trust on him and after enquiry
Complainant did not receive any proper information and
therefore the Complainant took online search in August 2024
and came to know that Flat No. 401 was already sold to Vijay
Suresh Mantri and Anita Vijay Mantri vide Agreement dated
24/03/2022 which is duly registered in the Office of Sub
Registrar Haveli No. 4, Pune at Sr. No. 5098/2022. It is the case

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of the informant that in spite of that they have executed
notarized MOU in favour of Complainant in respect of said flat.

(f) It is the case of the informant that thereafter the
Complainant asked explanation to Atul Ratnakar Mahashabde,
Devendra Arvind Avati, Shrikant Anant Nagarkar about the flat
or asked to refund his money but they abused the Complainant,
his brother Mahavir and friend Aniruddha Patwardhan and
threatened to kill them by saying that they have good contacts in
senior officers in police department and we will lodge false
complaints against you and will send you in the jail. Thus Atul
Ratnakar Mahashabde, Devendra Arvind Avati, Shrikant Anant
Nagarkar have cheated Complainant for amount of Rs. 1 Crore
80 Lakhs by not giving flat in the said project and used said
amount for their personal benefit and committed fraud upon the
Complainant.

(g) On the basis of the complaint lodged by the Orig.
Complainant/informant, offence vide CR No. 159/2025 was
registered with Swargate Police Station, Pune City, Dist.: Pune
for the offences punishable under sections 420, 406, 467, 468,
471, 409, 506, 504, 34 of Indian Penal Code against (1) Atul
Ratnakar Mahashabde, (2) Devendra Arvind Awati, (3) Shrikant
Anant Nagarkar and (4) Others on 18.06.2025 and investigation
was commenced.”

4. The prosecution case that the First Informant has advanced a

total amount of Rs.1,80,00,000/- for purchase of a flat in a scheme

which is being undertaken by the Applicants is further

substantiated by the execution of Memorandum of Understanding

(MoU) dated 29 December 2023 by the Applicant Nos.1 and 2 in

their capacity as Partners of Spire Associates & OM developers. The

said MoU refers to receipt of Rs.1,80,00,000/- from the first

informant Prakash Rameshchandra Jain (Mandot)and his brother

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6.ABA-2415.25.DOC

Mahaveer R. Jain (Mandot). The said MoU specifically records that

Flat No.401 on fourth floor, in the said scheme known as ‘City

Wood Co-operative Society Ltd.’ admeasuring about 3435 sq.ft.

salable area including Terrace in Pine building is sold to the first

informant and his brother. During investigation, it transpired that

the said flat was already sold by the Applicants by registered Sale

Deed dated 24 March 2022 in favour of one Mr. Vijay Suresh

Mantri.

5. It is the submission of Mr. Pendse that even if entire

prosecution case is admitted then also said amount of

Rs.1,80,00,000/- is investment in the said scheme and not for the

purchase of the flat. The said contention, at this prima facie stage,

cannot be believed, in view of execution of the MoU dated 29

December 2023.

6. Perusal of the record shows that the offence is very serious.

In fact, learned APP states that after registrations of the offence,

there are total five complaints received from various persons

making the same allegations that some other flats are sold to these

purchasers and the same was again sold to third persons. In the

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facts and circumstances of the present case, no case is made out for

grant of anticipatory bail.

7. Anticipatory Bail Application is dismissed.

8. As Anticipatory Bail Application is dismissed, nothing

survives in the interim application and same is disposed of.

[MADHAV J. JAMDAR, J.]

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