Bombay High Court

NILAMKUMAR POPATLAL BHANDARI AND ANRversusTHE STATE OF MAHARASHTRA AND ANR

Decided: 20 August 2026
Disposal: Disposed Off

Holding

The High Court quashed the FIR and set aside the criminal prosecution on the basis that the victims had been fully compensated and the matter was settled.

Summary

The petitioners, who were the original accused in FIR No.165/2024 alleging offences under IPC sections 409, 420 r/w 34 and the Maharashtra Depositors Act, filed a writ petition under Articles 226 and 227 of the Constitution and Section 528 of the Bharatiya Nagrik Suraksha Sanhita, 2023 seeking quash of the criminal proceeding. Six investors submitted affidavits confirming that they had received their monies back, and the police report corroborated that the consent terms were complied with and the amounts were returned. The court held that, given the settlement and return of money, there was no basis to continue the prosecution. Consequently, the court quashed the FIR and ordered the criminal case set aside, while directing the petitioners to pay a modest cost to a special school for disabled children. The writ petition was allowed and the matter disposed.

Issues considered

Whether an FIR can be quashed on the ground that the alleged victims have received full restitution and the matter is settled.
Whether the High Court has jurisdiction under Articles 226/227 and Section 528 of the Bharatiya Nagrik Suraksha Sanhita, 2023 to set aside a criminal prosecution.
Whether the police report and investors' affidavits constitute sufficient ground to dismiss the criminal proceeding.

Legislation cited

Bharatiya Nagrik Suraksha Sanhita, 2023 — s. 528
Indian Penal Code, 1860 — s. 34, 409, 420
Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act, 1999 — s. 3, 4

Subjects

quash FIR
criminal proceeding
settlement
Article 226
Section 528
IPC 409
IPC 420
Maharashtra Depositors Act
writ petition
costs order

Judgment

41.WP.2876.2025.doc

HARSHADA H. SAWANT
(P.A.)
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CRIMINAL APPELLATE JURISDICTION

WRIT PETITION NO.2876 OF 2025

Nilamkumar Popatlal Bhandari and Ors. .. Petitioners
Versus
The State of Maharashtra and Anr. .. Respondents
....................
 Mr. Harsh Rathod a/w. Mr. Nitin Gaware Patil, Advocates i/by Mr.
Jay Salunkhe for Petitioners.
 Mr. Yogesh Nakhwa, APP for Respondent No.1 – State.
 Mr. Bajrang M. Solanke, Advocate i/by Mr. Prashant Darandale for
Respondent No.2.
 WPC 9227 – Priyanka Pawar, Economic Offences Wing (Pune City).
 Parties appearing through Video Conferencing.
...................

CORAM : MILIND N. JADHAV, J.
DATE : AUGUST 20, 2026
P.C.:

1. Heard Mr. Rathod, learned Advocate for Petitioners; Mr.

Nakhwa, learned APP for Respondent No.1 – State and Mr. Solanke,

learned Advocate for Respondent No.2.

2. Petition is filed under Articles 226 and 227 of the

Constitution of India read with Section 528 of the Bharatiya Nagrik

Suraksha Sanhita, 2023 for quashing of First Information Report

bearing Crime No.165 of 2024 dated 17.10.2024 registered with

Market Yard Police Station, Pune City for offences punishable under

Sections 409 and 420 read with Section 34 of the Indian Penal Code,

1860 and Sections 3 and 4 of the Maharashtra Protection of Interest of

1 of 4
41.WP.2876.2025.doc

Depositors Act, 1999.

3. Separate Affidavits of all 6 Investors of having received their

monies are appended to the Petition which are placed from page

Nos.84 onwards. I have perused the same with the able assistance of

the learned Advocate for the Petitioners and Respondent No.2 and

learned APP for Respondent No.1.

4. Police has also filed report dated 19.08.2026 which is

handed over by learned APP, inter alia, stating that monies have been

received according to the Consent Terms, copy of which is appended

from page No.68 onwards. It is seen that Consent Terms were infact

filed on 29.04.2025 and there are statements made in the said Consent

Terms that certain amounts will be received after signing of the

Consent Terms. Mr. Rathod informs the Court that the all the terms

and conditions of the said Consent Terms stands duly complied with

and the Investors have got back all their money.

5. In that view of the matter, they would all persuade the Court

to quash the present criminal proceeding. Petitioners who are original

Accused Nos.1 and 2 are appearing through Video Conferencing and

their Power of Attorney Holder Kiran Popatlal Bhandari is present in

person before the Court. They inform the Court that the issues have

been settled fully and the monies have been returned albeit a little late.

2 of 4
41.WP.2876.2025.doc

6. In that view of the matter and report dated 19.08.2026 by

Mr. Nakhwa, there cannot be no impediment in putting an end to the

present case.

7. Writ Petition therefore deserves to be allowed. Hence, Writ

Petition is allowed in terms of prayer clause (B) which reads thus:-

“(B) Quash and set aside the impugned criminal prosecution in the
nature of F.I.R. bearing Crime No. 165/2024 dated 17.10.2024
registered with Market Yard Police Station, Pune for an offence
punishable U/Sec. 409, 420 r/w 34 of Indian Penal Code and
U/Sec. 3 and 4 of the Maharashtra Protection of Interest and
Depositors (in Financial Establishments) Act, 1999 the petitioners
and further proceedings based upon said FIR also may kindly be
quashed and set aside and for that purpose issue necessary
orders.”

8. However, I am of the opinion that determining the present

matter without any costs on the parties will not be appropriate course

of action since the parties have set the criminal law into motion.

Hence, I direct the Petitioners to pay costs of Rs.50,000/- to A.K.

Munshi Yojana’s J.T. Sheth Mandbuddhi Vikas Kendra, a Special School

imparting education and training to the needs of 150 special children

in the field of Education (Classes for 6 to 18 years), early intervention

(upto 6 years) and vocational training (18 years above) having its

school address and building at A.K. Munshi Yojana Chowk, 3rd

Panjarapole Lane, C.P. Tank, Mumbai – 400 004 [Contact Nos.

22425513 / 22423654] registered under the Society Registration Act,

XXI of 1980 under No. : 387/81 GBBSD and the Public Trust Act, XXIX

3 of 4
41.WP.2876.2025.doc

of 1950 under No. F-6809. RCI Reg. No. 0163 within a period of two

weeks from today. List the Petition for compliance of this order after

two weeks on 03rd September 2026.

9. With the above directions, Writ Petition is disposed.

H. H. SAWANT [ MILIND N. JADHAV, J. ]

Digitally signed
by HARSHADA
HARSHADA HANUMANT
HANUMANT SAWANT
SAWANT Date:
2026.08.21
15:10:53 +0530

4 of 4

Continue reading with your account

Checking your session…