Mumbai, Nov 12 (PTI) The Bombay High Court has directed asessions court to return a sum of Rs 59 crore with interestdeposited by Vyomesh Shah, owner of a real estate firm who isaccused in a fraud and embezzlement case.
Former NCP MLA Ramesh Kadam is also an accused in thecase. Kadam, who is in jail, has been accused of divertingfunds from a Maharashtra government body to acquire a realtyfirm in which Shah had some stake.
In February last year, a city sessions court, whilegranting bail to the realtor, had ordered him to deposit a sumof Rs 59 crore.
Shah, owner of Hubtown Ltd (previously known as AkrutiCity Ltd), this year, approached the HC seeking quashing ofthe condition imposed by the sessions court. In his petition,Shah also sought a direction to defreeze the bank accounts ofhis firm.
After hearing the petition, a division bench ofJustices R V More and P D Naik on November 10 accepted thecontentions raised in the plea.
"It appears that arrest of the petitioner was notnecessary and the conditions of bail are excessive, which arehereby quashed and set aside.
"We direct the Respondents and Registrar of SessionsCourt to return to the petitioners the monies deposited by himalong with interest accrued thereon," the HC said.
"From the record before us it does not appear at thisstage that the petitioner had knowledge about the motives orintentions of Ramesh Kadam and his allies.
"The petitioner seems to be only unfortunate victim ofthe circumstances as it is apparent that they have enteredinto pure commercial transaction, which is valid and legal inthe eyes of law and not benami or illegal transaction asalleged," the court said in its order.
The bench also noted that in a case of cheating, thesessions court cannot go on to recover the alleged amountwhile granting bail.
"Courts are expected to put reasonable conditions inexercise of judicial discretion and such conditions should beaimed at securing the presence of the accused at the time oftrial and he should not hamper the evidence or prosecutionwitnesses during pendency of trial.
"The court is not expected to recover the amount incriminal proceedings by putting condition to deposit moneywhile granting bail," the judges said.
Shah, in his petition, claimed he got acquainted to Kadamonly in November 2014 when the latter sought to acquire acompany, Comral Realty Pvt Ltd, in which Shah had some controland also an 800 square yards plot of land in Peddar Road,south Mumbai, owned by this firm.
The property at Peddar Road was acquired by Hubtown in2010. "In the similar fashion it has been transferred toRamesh Kadam. We see no illegality in the manner of transferof shares of Comral Realty Pvt Ltd," the court said.
Shah's lawyer Aabad Ponda argued that Shah was arrestedonly to recover the amount allegedly misappropriated by Kadam.
Shah had no role to play in the offence ofmisappropriation, cheating and forgery committed by Kadam andthe petitioner cannot be made to lose the land as well as themoney, he told the court.
The HC, after perusing the facts of the case, observedthat the petitioner as well as Hubtown were into the businessof real estate for many years and there were attempted made inthe past to sell the land at Peddar Road.
"We are, therefore, not inclined to believe that thepetitioner has hatched a conspiracy with common intention tocheat the Corporation (a government body for Matangs) or tomisappropriate its funds," the court said.
According to the state CID, Shah, arrested in Februarylast year, had created a subsidiary company that allegedlyreceived money routed through three cooperatives set up byKadam.
Kadam was arrested in August 2015 for allegedlymisappropriating funds from the Sahityaratna LokshahirAnnabhau Sathe Development Corporation, the government bodyset up for welfare of the Matang community. Kadam is a formerchairman of the corporation.
According to the CID, the money that Shah received forhis subsidiary company was part of the at least Rs 250 croreKadam allegedly siphoned off from the corporation. PTI SP RSYDV.
This is unedited, unformatted feed from the Press Trust of India wire.
