HC grants bail to ex-chairman of Shivajirao Bhosale Co-op Bank in ₹494 crore fraud

The Bombay High Court granted bail to Anil Bhosale, former MLC, in a ₹494 crore money laundering case, citing prolonged incarceration and age.

MUMBAI: The Bombay High Court on Saturday granted bail to former Member of the Legislative Council (MLC) Anil Bhosale, chairman of the Pune-based Shivajirao Bhosale Cooperative Bank, in a high-profile money laundering case. Bhosale is accused of orchestrating a conspiracy that resulted in the siphoning of ₹494 crore from the bank between 2016 and 2019.

HC grants bail to ex-chairman of Shivajirao Bhosale Co-op Bank in ₹494 crore fraud

The court’s decision to grant bail was primarily based on the grounds of prolonged incarceration, noting that Bhosale had served over half of the maximum sentence applicable under the Prevention of Money Laundering Act (PMLA), 2002. Justice Madhav Jamdar, in his detailed order dated January 24, stated, “The maximum punishment which can be imposed on the applicant is seven years, and the applicant has completed about three years and ten months of imprisonment, i.e., more than half of the punishment.”

The case originated from a complaint filed by chartered accountant Yogesh Lakade at the Shivaji Nagar police station. The complaint highlighted a ₹71 crore shortfall discovered during a Reserve Bank of India (RBI) scrutiny of the bank’s accounts. Subsequent audits revealed that Bhosale, along with other officials, had manipulated the bank’s records by creating fraudulent entries and sanctioning dubious loans.

According to the Enforcement Directorate (ED), Bhosale colluded with several bank officials to sanction fraudulent loans for personal gain. These actions led to a significant portion of the loans turning into Non-Performing Assets (NPAs). The ED estimates that Bhosale’s direct involvement resulted in the misappropriation of ₹147.30 crore. Investigators allege that he committed acts of money laundering by acquiring, concealing, and misusing funds while attempting to disguise them as legitimate property.

Bhosale’s lawyer, Niranjan Mundargi, sought bail on humanitarian grounds, citing his client’s advanced age of 60 and prolonged detention. Mundargi pointed out that Bhosale had already served three years and ten months in jail, surpassing half of the potential sentence. He also presented evidence of funds recovered by the ED in connection with the case.

The ED strongly opposed the bail plea, arguing that Bhosale, as the chairman of the bank, was the primary architect of the fraud. The prosecution accused him of engaging in multiple illegal activities, including misappropriation of cash, manipulation of cheques, sanctioning unauthorised loans, and falsifying financial records. They also highlighted that the investigation remains ongoing, with plans to file a supplementary chargesheet.

In its submission, the prosecution stated, “The material on record clearly shows that the applicant, at the relevant time, was the chairman of the Shivajirao Bhosale Cooperative Bank and, by misusing his position, committed fraud, misappropriation of funds, and other offences amounting to money laundering under Section 3 of the PMLA, 2002.”

While granting bail, the court imposed stringent conditions on Bhosale to prevent interference with the investigation. He has been barred from entering Pune district, except when reporting to the investigating officer. The court also directed him to refrain from tampering with prosecution evidence and to ensure regular attendance at the trial.

The initial FIR, registered at Shivaji Nagar police station, named Bhosale, his wife Jyotsa, and several others, including former Pune Zilla Parishad chairman Mangaldas Vitthalrao Bandal and Tanaji Dattu Padwal. The case was later transferred to the Economic Offences Wing, leading to the ED’s registration of an Enforcement Case Information Report (ECIR).