Citation : 2025 Latest Caselaw 700 Guj
Judgement Date : 9 July, 2025
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Reserved On : 30/06/2025
Pronounced On : 09/07/2025
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/CRIMINAL MISC.APPLICATION (FOR ANTICIPATORY BAIL) NO. 4725
of 2025
With
R/CRIMINAL MISC.APPLICATION NO. 4727 of 2025
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR. JUSTICE DIVYESH A. JOSHI Sd/-
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Approved for Reporting Yes No
No
========================================================== MADHAV PRIYA SWAMI @ M.P. SWAMI Versus STATE OF GUJARAT ========================================================== Appearance:
MR YOGESHKUMAR A RATANPARA(7260) for the Respondent(s) No. 1 MR. HARDIK SONI, LD. ADDL. PUBLIC PROSECUTOR for the
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CORAM:HONOURABLE MR. JUSTICE DIVYESH A. JOSHI
1. Rule returnable forthwith. Learned APP waives service of notice of rule for respondent - State of Gujarat and Mr. Yogeshkumar A. Ratanpara waives service of notice of rule for and on behalf of the original complainant.
2. Since the issues involved in both the captioned applications are interconnected, those were heard analogously and are being disposed by this common judgment.
3. For the sake of convenience, the Criminal Misc. Application No.4725 of 2025 is treated as the lead matter.
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4. By way of the present application under Section 482 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (for short "BNSS"), the applicant has prayed for anticipatory bail in the event of arrest in connection with the FIR being C.R. No.11201002240046 of 2024 registered with Ahmedabad Zone Police Station, Ahmedabad for the alleged offences as mentioned in the FIR.
5. The gist of the allegations made in the FIR is that the applicants herein, along with the other co-accused, hatched a criminal conspiracy, and as a part of the said conspiracy, approached the complainant and induced the complainant that if he will make investment in the land situated at Mathasuliya village which is approximately about 500 vigha, he will get a good profit from the same as they want to build a huge temple like Poicha Swami Narayan upon the said land, and thereby, to become financially strong, illegally took a huge amount of Rs.1,76,00,000/- from the complainant by creating false and fabricated agreement to sell of the original owners/agriculturists, and out of the said amount, only an amount of Rs.21,00,000/- was returned back, and rest of the amount of Rs.1,55,00,-000/- was not repaid by the accused persons, and thereby committed the offence of cheating and breach of trust with the complainant. The complainant was also threatened to face dire consequences if he makes any demand of returning back the said money. Not only that, the accused persons have also swindled the other persons and thereby committed a huge financial scandal. With this sort of allegations, the present FIR has been registered.
6. Thus, apprehending their arrest pursuant to the registration of the aforesaid FIR, the applicants preferred anticipatory bail before the trial court, however, the trial court has not entertained
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the said applications and rejected the same.
7. Being aggrieved, the applicants are here before this Court with the present applications.
8. Learned advocate Mr. A.S. Timbalia appearing for the applicants submits that the allegations made in the FIR are of such a nature, for which, custodial interrogation of the applicants at this stage is not necessary. He further submits that the applicants will keep themselves available during the course of investigation as well as the trial proceedings and will not flee from justice. He further submits that total eight persons have been arraigned as accused in the FIR, wherein the present applicants have been shown as accused Nos.1 and 2. Learned advocate Mr. Timbalia also submits that the incident in question took place during the period between 01.12.2023 and 12.03.2024, for which, the FIR came to be lodged on 20.09.2024, and as such, there is a gross delay of almost six months in registering the FIR, without there being any explanation worth the name about such delay in registering the FIR. He further submits that the FIR came to be lodged against in all eight persons, out of which, except the present applicants, rest of the accused persons have already been enlarged on bail. Moreover, all the alleged offences are triable by the Court of Magistrate. Learned advocate Mr. Timbalia submits that even otherwise the applicants herein are also the victim s and they have been made a scapegoat in the present offence. Though, they have not received a single penny or any monetary benefit out of the transaction in question, they have already paid Rs.21,00,000/- to the complainant, and are also ready and willing to pay the remaining amount of Rs.1,55,00,000/-, and are also shown their willingness to file undertaking to that effect. Even, the applicants
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tried to contact the complainant to settle the dispute, however, the complainant did not pay any heed and was demanding very exorbitant amount from the applicants, and therefore, the settlement could not have been taken place. Moreover, the applicants herein are priest by profession and a respected person in the Society. Moreover, except the applicants herein, all the accused persons have already been released on regular bail by the trial court. To buttress his submissions, learned advocate Mr. Timbalia has relied upon the decision in the case of P. Krishna Mohan Reddy vs. The State of Andhra Pradesh, Special Leave Pettiion (Cri.) No.7532 of 2025, decided on 16.05.2025.
9. In such circumstances, referred to above, learned advocate Mr. Timbalia for the applicants prays that there being merit in the present application, the same be allowed and the applicants be released on anticipatory bail.
10. On the other hand, the present application has been vehemently opposed by the learned APP. Learned APP submits that the present applicants have been named in the FIR along with their specific role. Learned APP submits that the applicants herein are not as innocent as projected by their learned advocate. They are the kingpin of the entire episode, at whose instance, the entire plan has been organized. He further submits that there are in all twenty applications of similar nature have been given against the applicants, out of which, seven to eights FIRs have been registered against them, wherein in some of the FIRs, they have got the bail, and as such, the applicants seem to be habitual in committing such kind of offence, and by adopting the same modus operandi they have duped number of gullible persons and thereby usurp their hard-earned money. Learned APP further submits that initially, the FIR came to be lodged
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under the different penal provisions, however, during the course of investigation, on the basis of certain materials collected by the investigating officer, it filed a report before the learned Magistrate for addition of Section 3 of the G.P.I.D Act, which was allowed by the learned Magistrate, and therefore, Section 3 of the G.P.I.D Act came to be incorporated, and as such, there is a bar under Section 17(2) of the G.P.I.D Act in granting anticipatory bail by the Designated Court to the accused charged with the offence under the said Act.
11. In such circumstances, referred to above, learned APP prays that there being no merit in the present applications, the same be rejected.
12. This application has also been vehemently opposed by learned advocate Mr.Yogeshkumar Ratanpara appearing for the original complainant. He submits that almost all the points have been covered by the learned APP and he is adopting all the arguments canvassed by the learned APP, and prays not to exercise discretion in favour of the applicants.
13. Heard the learned counsel appearing for the parties and perused the record.
14. It is well settled that, among other circumstances, the factors to be borne in mind while considering an application for bail are (i) whether there is any prima facie or reasonable ground to believe that the accused had committed the offence;
(ii) nature and gravity of the accusation; (iii) severity of the punishment in the event of conviction; (iv) danger of the accused absconding or fleeing, if released on bail; (v) character, behaviour, means, position and standing of the accused. Though at the stage of granting bail execution and
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appreciation of evidence is not permissible. Hence, custodial interrogation is required.
15. It appears from the record that there is a huge scam of crores of rupees alleged to have been committed by the present applicants along with the other co-accused under the guise of giving huge profit upon investment being made in their scheme, and thereby the complainant has been duped with an amount of Rs.1,55,00,000/-. It also appears from the record that the applicants herein are saints of Swami Narayan sect, and over and above the present FIR, other seven to eight FIRs have also been registered against them levelling similar kind of allegations by some other individuals, and in some of the FIRs, referred to above, they have obtained bail. Not only the complainant, the applicants have also duped number of other persons by adopting the same modus operandi, and the statements of those persons have also been recorded by the investigator, wherein they have clearly stated they have been duped by the applicants in the same manner.
16. It also appears from the record that to achieve their illegitimate goal, the applicants, in collusion with the other co- accused, have created a false and fabricated agreement to sell in the name of the farmers, on the basis of which, they have deceived the complainant, and relying upon such false and fabricated documents, the complainant invested such a huge amount. It is not a coincident that six to seven similar kind of FIRs have been registered against the applicants, but is indicating of the fact that the applicants herein have played with the sentiments of the people at large, and many ignorant
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and innocent people are being cheated in the name of spirituality and religion. Thus, from the materials collected so far and the arguments advanced by the counsel for the parties, as well as the conduct of the applicants being brought on record, it can be said that there appears to be the elements of mens rea on the part of the applicants from the very inception to deceive the complainant in order to gain some monetary benefits for their own. The applicants are committing such type of offences one after another, despite FIRs having been registered against them, and are being released on bail pursuant thereto, which is also indicative of the fact that they are taking the law for granted. Further, the offence with which the applicants are charged with is an economic offence and is against the interest of the society. Thus, looking to the totality of the facts and circumstances which are brought to the notice of this Court along with all material particulars as well as the mode and manner in which the complainant has been duped, I am of the view that the contentions raised by the counsel for the applicants are not so meritorious, on the basis of which, the applicants can be awarded with any respite.
17. Moreover, the applicants have also been charged with the offence under the provisions of the G.P.I.D Act, and the exercise of power under Section 482 of the BNSS, 2023 (Section 438 of the Cr.P.C.) is inapplicable in the offences under the provisions of the G.P.I.D. Act. In this regard let me refer to and rely upon the decision of this Court in the case of Geetaben Manishkumar Shah vs. State of Gujarat, Special Criminal Application No.212 of 2018, decided on 15.03.2028, wherein in Para-44, this Court has observed as under;
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"44. The entire argument inviting me to specifically decide whether a court of a Designated Judge, for a certain purpose, is a court of Magistrate or a court of Session revolves round a mistaken belief that a Designated Judge has to be one or the other, and must fit in the slot of a Magistrate or a Court of Session. Such an approach would strangulate the functioning of the court and must be eschewed. Shorn of all embellishment, the court of a Designated Judge is a court of original criminal jurisdiction. As a court of original criminal jurisdiction in order to make it functionally oriented some powers were conferred by the statute setting up the court. Except those specifically conferred and specifically denied, it has to function as a court of original criminal jurisdiction not being hide bound by the terminological status description of Magistrate or a Court of Session. Under the Code, it will enjoy all powers which a court of original criminal jurisdiction enjoys save and except the ones specifically denied. Without causing any violence to the words of section 17(2) of the Act, 2003, the plain reading of the same would indicate that the Court of the original criminal jurisdiction has been denuded of the power to grant anticipatory bail to an accused under section 438 of the Cr.P.C. To put it in other words, the power to grant anticipatory bail appears to have been specifically denied to the court of the original criminal jurisdiction."
18. It goes without saying that the alleged offence of misappropriating crores of rupees of the complainant as well as the other gullible people is quite grave in nature. Hence, while it is extremely important to protect the personal liberty of a person, it is equally incumbent upon me to analyze the seriousness of the offence and determine if there is a need for custodial interrogation.
19. In Siddharam Satlingappa Mhetre v. State of Maharashtra, (2011) 1 SCC 694, the Supreme Court carefully considered the principles established by the Constitution
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Bench in Gurbaksh Singh Sibbia v. State of Punjab, (1980) 2 SCC 565. After a thorough deliberation, the Supreme Court arrived at the following conclusion:
"112. The following factors and parameters can be taken into consideration while dealing with anticipatory bail:
(i) The nature and gravity of the accusation and the exact role of the accused must be properly comprehended before arrest is made;
(ii) The antecedents of the applicant including the fact as to whether the accused has previously undergone imprisonment on conviction by a court in respect of any cognizable offence;
(iii) The possibility of the applicant to flee from justice;
(iv)The possibility of the accused's likelihood to repeat similar or other offences;
(v) Where the accusations have been made only with the object of injuring or humiliating the applicant by arresting him or her;
(vi)Impact of grant of anticipatory bail, particularly in cases of large magnitude affecting a very large number of people.
xxx xxx xxx"
20. In Sushila Aggarwal v. State (NCT of Delhi), (2018) 7 SCC 731, the Constitution Bench of the Hon'ble Apex Court reaffirmed that when considering applications for anticipatory bail, courts should consider factors such as the nature and gravity of the offences, the role attributed to the applicant, and the specific facts of the case.
21. In Satpal Singh vs. State of Punjab, (2018) 13 SCC 813,
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the Supreme Court has held that the satisfaction of the court for granting protection under Section 438 Cr.P.C. is different from the one under Section 439 Cr.P.C. while considering regular bail.
22. In Pratibha Manchanda and another Vs. State of Haryana and another, (2023) 8 SCC 181, the Supreme Court has opined that "the relief of anticipatory bail is aimed at safeguarding individual rights. While it serves as a crucial tool to prevent the misuse of the power of arrest and protects innocent individuals from harassment, it also presents challenges in maintaining a delicate balance between individual rights and the interests of justice. The tight rope we must walk lies in striking a balance between safeguarding individual rights and protecting public interest. While the right to liberty and presumption of innocence are vital, the court must also consider the gravity of the offence, the impact on society, and the need for a fair and free investigation. The court's discretion in weighing these interests in the facts and circumstances of each individual case becomes crucial to ensure a just outcome."
23. This Court after considering number of decisions of the Apex Court as well as of this Court, has observed in case of MOHMED SALIM ABDUL RASID SHAIKH V. STATE OF GUJARAT reported in 2001 [2] GLR 1580 as under;
"13. There is no scope for present applicant to urge that he may be saved from disgrace or unwarranted hardship. While entertaining the anticipatory bail application of the accused, the Court should consider various aspects such as;
[i] earlier offences registered against the applicant
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accused and the nature thereof including the area of activity, modus etc. if brought to the notice of the Court;
[ii] gravity of the circumstances in which the offence is committed. Whether custodial interrogation is, prima facie, unavoidable ?
[iii] likelihood of the accused fleeing from justice;
[iv] position and status of the accused individually and also with reference to the victim and witnesses; [v] likelihood of repetition of similar type of offence;
[vi] whether he would jeopardise his own life being faced with grief or grim prospects of possible conviction in the case;
[vii] likelihood of tampering with the evidence or witnesses during the process of investigation, status and stage of investigation;
[viii] plea of false implication on some special vendetta, if taken.
[ix] other relevant grounds which may apply to facts and circumstances of that particular case; "
24. Similarly, the Apex Court has also considered the scope of Section 438 in case of DUKHISHYAM BENUPANI, ASSTT DIRECTOR, ENFORCEMENT DIRECTORATE [FERA] V. ARUN KUMAR BAJORIA reported in 1998 [1] SCC 52. The relevant observations made in para-7 are quoted as under :-
"7. It seems rather unusual that when the aggrieved party approached the High Court challenging the order passed by a subordinate court the High Court made the position worse for the aggrieved party. The officials of the Directorate are now injuncted by the Division Bench from
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arresting the respondent and the time and places for carrying out the interrogations were also fixed by the Division Bench. Such kind of supervision on the enquiry or investigation under a statute is uncalled for. We have no doubt that such type of interference would impede the even course of enquiry or investigation into the serious allegations now pending. For what purpose the Division Bench made such interference with the functions of the statutory authorities, which they are bound to exercise under law, is not discernible from the order under challenge. It is not the function of the Court to monitor investigation processes so long as such investigation does not transgress any provision of the law. It must be left to the investigating agency to decide the venue, the timings and the questions and the manner of putting such questions to persons involved in such offences. A blanket order full insulating a person from arrest would make his interrogation a mere ritual."
25. Now again reverting to the case on hand, from the allegations levelled in the FIR and the materials placed on record, it appears that very serious allegations of misappropriation of crores of rupees have been made against the applicants. Moreover, the present case also falls within the category of economic offences and the amount involved in the present case is quite huge, and it is trite law that in economic offences, benefit of pre-arrest bail should not be extended in favour of the accused in a casual manner. Further, there is a bar under Section 17(2) of the G.P.I.D Act in granting pre-arrest bail to the accused charged with under the provisions of the said Act. Further, the offence as alleged is also non-bailable and punishable with life imprisonment. Moreover, the co- accused have been released on regular bail after being arrested and interrogated, and in the case on hand, the applicants are evading their arrest and are still absconding.
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Thus, considering the above stated aspects as well as the precedent cited above, in my view, at this stage, custodial interrogation of the applicants is very much necessary.
26. So far as the submission of learned counsel for the applicants to grant bail to the applicants on the ground that the other co-accused have been granted bail, also cannot be accepted as parity is not the law. While applying the principle of parity, the Court is required to focus upon the role attached to the accused whose application is under consideration. In this context, I would like to refer to and rely upon some of the relevant observations made by the Hon'ble Apex Court in the case of Tarun Kumar vs. Asst. Director, Directorate of Enforcement, Special Leave Petition No.9431 of 2023, decided on 20.11.2023, which read thus;
"18. The submission of learned Counsel Mr. Luthra to grant bail to the appellant on the ground that the other co-accused who were similarly situated as the appellant, have been granted bail, also cannot be accepted. It may be noted that parity is not the law. While applying the principle of parity, the Court is required to focus upon the role attached to the accused whose application is under consideration. It is not disputed in that the main accused Sh. Kewal Krishan Kumar, Managing Director of SBFL, and KMP of group companies and the other accused Devki Nandan Garg, owner/ operator/ controller of various shell companies were granted bail on the ground of infirmity and medical grounds. The co-accused Raman Bhuraria, who was the internal auditor of SBFL has been granted bail by the High Court, however the said order of High Court has been challenged by the respondent before this Court by filing being SLP (Crl.) No. 9047 of 2023 and the same is pending under consideration. In the instant case, the High Court in the impugned order while repelling the said submission made on behalf of the appellant, had distinguished the case of Raman Bhuraria and had
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observed that unlike Raman Bhuraria who was an internal auditor of SBFL (for a brief period statutory auditor of SBFL), the applicant was the Vice President of Purchases and as a Vice President, he was responsible for the day-
to-day operations of the company. It was also observed that the appellant's role was made out from the financials, where direct loan funds have been siphoned off to the sister concerns of SBFL, where the appellant was either a shareholder or director. In any case, the order granting bail to Raman Bhuraria being under consideration before the coordinate bench of this Court, it would not be appropriate for us to make any observation with regard to the said order passed by the High Court.
19. It is axiomatic that the principle of parity is based on the guarantee of positive equality before law enshrined in Article 14 of the Constitution. However, if any illegality or irregularity has been committed in favour of any individual or a group of individuals, or a wrong order has been passed by a judicial forum, others cannot invoke the jurisdiction of the higher or superior court for repeating or multiplying the same irregularity or illegality or for passing similar wrong order. Article 14 is not meant to perpetuate the illegality or irregularity. If there has been a benefit or advantage conferred on one or a set of people by any authority or by the court, without legal basis or justification, other persons could not claim as a matter of right the benefit on the basis of such wrong decision."
27. Lastly, it may be noted that as held in catena of decisions, the economic offences constitute a class apart and need to be visited with a different approach in the matter of bail. The economic offences having deep-rooted conspiracies and involving huge loss of public funds need to be viewed seriously and considered as grave offences affecting the economy of the country as a whole and thereby posing serious threat to the financial health of the country. Undoubtedly, economic offences have serious repercussions on the
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development of the country as a whole. To cite a few judgments in this regard are Y.S. Jagan Mohan Reddy vs. Central Bureau of Investigation, reported in (2013) 7 SCC 439, Nimmagadda Prasad vs. Central Bureau of Investigation, (2013) 7 SCC 466, Gautam Kundu vs. Directorate of Enforcement (Prevention of Money- Laundering Act), Government of India Through Manoj Kumar, Assistant Director, Eastern Region, (2015) 16 SCC 1, State of Bihar and Another vs. Amit Kumar alias Bachcha Rai, (2017) 13 SCC 751. The Supreme Court taking a serious note with regard to the economic offences had observed as back as in 1987 in case of State of Gujarat vs. Mohanlal Jitamalji Porwal and Another, (1987) 2 SCC 364 as under:-
"5... The entire community is aggrieved if the economic offenders who ruin the economy of the State are not brought to books. A murder may be committed in the heat of moment upon passions being aroused. An economic offence is committed with cool calculation and deliberate design with an eye on personal profit regardless of the consequence to the community. A disregard for the interest of the community can be manifested only at the cost of forfeiting the trust and faith of the community in the system to administer justice in an even-handed manner without fear of criticism from the quarters which view white collar crimes with a permissive eye unmindful of the damage done to the National Economy and National Interest..."
28. Moreover, when the Court is satisfied that a prima facie case of custodial interrogation of the accused is made out by the prosecution for securing the incriminating materials from the information likely to be received from the accused, then
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the power under Section 482 should not be exercised in a routine manner. The presence of the applicants, in the peculiar facts and circumstances of the present case, seems to be necessary to uncover the truth. Further, the discretion under Section 482 cannot be exercised with regard to offences punishable with death or imprisonment for life, unless the court at that very stage is satisfied that such a charge appears to be false or groundless. The larger interest of the public and State demand that in serious cases like economic offences involving cheating and misappropriation of huge volume of amount, the discretion under Section 482 of the BNSS should not be exercised.
29. Thus, what is discernible from the above is that while deciding anticipatory bail application, it is the first duty of the Court to see seriousness of the offence, prima facie case and interest of the society at a large. Therefore, when no special and compelling circumstances are made out and no case of false implication of present applicants in the alleged offence is made out before this Court, I am of the opinion that this Court should refrain itself from exercising discretion in favour of the present applicants at this stage.
30. Further, as per the allegations made in the FIR, the present applicants are involved in a white collar socio- economic offence which constitute a class apart and needs to be viewed with a different approach. The economic offences adversely affect the economic and social fabric of the country. In such circumstances also, grant of anticipatory bail at this stage would frustrate the investigation.
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31. In view of above discussion and considering the materials produced before this Court, I am of the opinion that there seems to be a prima facie involvement of the present applicants in the commission of the alleged offence. Thus, this Court is of the opinion that at the initial stage of the investigation of the offence, grant of anticipatory bail in favour of the applicants is likely to hamper the investigation and investigating agency is likely to lose an opportunity to exploit all the fact situation, probabilities or opportunities which the Agency may get during the custodial interrogation of a person, and therefore, keeping in mind all the factors, no interference is required at this stage. The impugned orders passed by the trial court, rejecting anticipatory bail application of the applicants are just and proper and do not require any interference at the end of this Court.
32. In the result, both the applications, being devoid of any merit, are hereby rejected. However, it is made clear that the observations made by this Court herein above at this stage while deciding the anticipatory bail applications, would not come in the way of the applicants at the time as and when if ultimately the trial court is proceeded with the trial, and at the stage of consideration of regular bail application, if preferred by the applicants. Rule is discharged.
(DIVYESH A. JOSHI,J)
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