Court denies bail to educationist who duped MBBS aspirants of ₹65.7 crore

Court rejects bail plea of Mahadev Deshmukh, president of Shri Chhatrapati Shivaji Education Society, accused of cheating students of ₹65.7 crore for fake MBBS seats.

MUMBAI: A court designated under the Prevention of Money Laundering Act (PMLA) on Wednesday rejected the bail plea of Mahadev Deshmukh, the president of Shri Chhatrapati Shivaji Education Society in Satara, who was arrested by the Enforcement Directorate (ED) for allegedly cheating several students to the tune of ₹65.7 crore.

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Deshmukh allegedly collected the amount by promising them MBBS seats in the medical college run by the trust.

Special judge AC Daga rejected Deshmukh’s bail plea, observing that the students at large had suffered due to the funds siphoned off by Deshmukh.

As per the prosecution, the accused along with others, under the guise of providing MBBS seats to students at the Institute of Medical Science and Research, Mayani which is run by the education society, collected crores of rupees from them from 2011 to 2016. However, the students were neither given admission nor was their money refunded to them, alleged the prosecution.

The amount given by the students was allegedly shown as hospital income in the society’s balance sheet, adding that the amounts were diverted in the guise of salary payment, payment for building construction and payment for medical equipment. Further, the prosecution alleged that Deshmukh hired agents who promised admission to students based on commission.

Deshmukh submitted that he has been in custody for the past two years, adding that the predicate offence has already been stayed. Observing that such a long incarceration goes against article 21 of the Constitution (protection of life and personal liberty), the defence stated that, “there cannot be an unexplained, unavoidable and prolonged delay in concluding a trial.”

The court observed that even though a predicate offence has been stayed, it does not mean that the stay won’t be lifted, and the trial will not begin. Stating that the court is required to consider grounds of bail from case to case, it noted that the accused has not completed one-half of his sentence.

“It is found that the accused is the main decision maker in the education society and all the activities were carried out in the society as per his directions,” the special court said while rejecting the bail plea.

It added that he was involved in the proceeds of crime, including its possession, acquisition and use and projected the same as untainted. The court also rejected the claim of a medical emergency, observing that Deshmukh’s condition was not life-threatening. While noting that Deshmukh has played with the future of children, the court rejected the bail plea.