HC grants bail to four arrested in ₹225-crore fraud at Malaika Credit Society

The Bombay High Court has granted bail to four individuals arrested in connection with a ₹225 crore fraud at Malaika Multistate Co-operative Credit Society. The court granted bail on the grounds of parity, as other accused in the case had already been released on bail.

MUMBAI: The Bombay high court has granted bail to four persons arrested in connection with the ₹225 crore fraud at Mira Road-based Malaika Multistate Co-operative Credit Society (MMCCS).

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A single judge bench of justice GA Sanap granted bail to Noel Mascarenhas, Prakash Aitappa Kotian, Dinesh Timappa Pujaari and Elcy John Rodrigues primarily on the ground of parity, as some other accused arrested in the case were already released on bail.

According to the FIR registered at the Mira Road police station, the society had duped investors to the tune of ₹225.53 crore and in the Mira Road branch of the society alone deposits of ₹158.95 crore were received.

The quartet had moved high court contending that they were roped in the offence registered with the Mira Road police station on October 2, 2020, merely because they were associated with the Credit Society as officer bearers or employees.

They claimed that they were not direct beneficiaries of the amounts allegedly misappropriated and no specific role had been attributed to them by the police and sought to be released on bail on the grounds that a similarly placed accused in the case – Lovel Baptist had been released on bail.

The police opposed their pleas by pointing out the enormity of the crime – the fact that thousands of depositors have lost over ₹225.53 crore and claimed that the ground of parity was not available to the four, as role attributed to them was somewhat different.

An assistant public prosecutor for the police, however, conceded that the role attributed to Marceline Baptist, wife of the society chairman Manohar Shetty, was more serious than the one attributed to them and still she has been granted bail.

Justice Sanap accepted the arguments advanced on behalf of the accused and noticed that on perusal of the record it becomes clear that no specific role had been attributed to them in actual collection of money from the investors and misappropriation of the money.

“The evidence on record indicates that there is no clarity about their (of the four accused) position in the Society,” and “the ground of parity put-forth by the accused needs to be appreciated keeping in mind the role attributed to them.”

The court has ordered that the four be released on furnishing personal bond of ₹25,000 and one or two sureties in the same amount but restrained them from leaving Mumbai without prior permission of the trial court.