HC denies anticipatory bail to Logicash director in Hiatchi multi-crore scam

Bombay HC denies anticipatory bail to Logicash director for alleged ₹9.84 crore fraud against Hitachi. Serious allegations prompt rejection of protection.

Mumbai: The Bombay high court recently denied anticipatory bail to Karanraj P Sahi, one of the directors of Logicash Solutions Private Limited, accused of orchestrating a multi-crore fraud against Hitachi Payment Company, stating the seriousness of the allegations against him.

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The case involves the alleged misappropriation of ₹9.84 crore, which was supposed to be deposited in ATMs. Instead, the funds were diverted into different accounts, including the perpetrator’s own.

Justice Sarang V Kotwal presided over the hearings involving another director, Swati Rajput. While Rajput was granted bail, Sahi was denied protection due to the seriousness of the allegations against him.

On February 19, 2024, the vice president of Hitachi, James Philip, lodged a First Information Report. As per the FIR, Logicash, tasked with replenishing ATMs, failed to deposit cash in 2020, leading to substantial losses for Hitachi. Logicash had taken an insurance policy from ICICI Lombard to cover such risks, but the promised compensation was never transferred to Hitachi.

During the court proceedings, it was revealed that Logicash had initially informed ICICI Lombard to make Hitachi the beneficiary of the insurance policy. However, this instruction was allegedly revoked without notifying Hitachi. The insurance payout of ₹9.49 crore was instead diverted to various accounts, including ₹5.35 crore to NISA Industrial Services Pvt. Ltd., a company connected to the accused directors.

Sahi received over ₹57 lakh from the insurance payout, raising questions about his role in the fraud. Despite Sahi’s claims that the funds were used to pay secured creditors of Logicash, the court noted the lack of transparency and the substantial sums deposited into his personal account, indicating dishonest intentions. “A substantial amount of more than ₹57 lakhs come into his account. That also shows his dishonest intention. The money was misappropriated,” the order stated.

In contrast, Rajput, who allegedly played a minor role and received only ₹3 lakh, was granted bail. The court acknowledged the lesser degree of her involvement and her status as a female accused in its decision. “Considering the lesser role played by the Applicant Swati and also because she is a lady arraigned as an accused having received only ₹3 lakh out of the total amount, I am inclined to grant protection to her,” said Justice Kotwal.

The court’s order emphasised the severity of the fraud and the substantial financial losses suffered by Hitachi. With Sahi’s anticipatory bail rejected, the investigation is expected to gain momentum as authorities delve deeper into the fraudulent scheme that defrauded Hitachi of crores. “The offence is quite serious. The amount is huge. The informant’s company has lost that amount. There is a clear dishonest intention and execution on the part of these Applicants,” Justice Kotwal observed.