On August 28, 2024, the Supreme Court of India canceled the bail granted by the Bombay High Court to Vitthal Damuji Meher, an accused in a multi-crore financial scam involving Jai Shriram Urban Credit Co-operative Society. The judgment, delivered by Justice Ahsanuddin Amanullah, highlights serious concerns about the involvement of the accused in a conspiracy that led to the misappropriation of over ₹79 crores from the cooperative society.
Background of the Case
The scam came to light when it was discovered that Khemchand Meharkure, the President of Jai Shriram Urban Credit Co-operative Society, along with his associates, misappropriated a staggering ₹79,54,26,963. The investigation revealed that statements from 798 depositors indicated that their deposits, totaling ₹29,06,18,748, were not returned, and the funds were instead misused.
The appellants in this case were among the depositors who were allegedly defrauded by the Society. According to the prosecution, the financial irregularities were categorized under twenty-three different heads, implicating several individuals, including Vitthal Damuji Meher, who was alleged to be a close friend and co-conspirator of Khemchand Meharkure.
Key Allegations Against Vitthal Damuji Meher
The chargesheet outlined that Vitthal Meher deposited ₹2,38,39,071 with the Society in his and his family members’ names. Despite this, Meher allegedly received financial assistance of ₹9,69,28,500 from the Society, facilitated by Khemchand Meharkure. Additionally, it was claimed that Meher used these funds to purchase five properties valued at approximately ₹10 crores in Meharkure’s name.
High Court’s Decision on Bail
Initially, the Bombay High Court granted bail to Vitthal Meher, citing insufficient evidence of his involvement in the conspiracy. However, the appellants, dissatisfied with this decision, approached the Supreme Court seeking a cancellation of the bail.
Supreme Court’s Analysis and Decision
The Supreme Court, in its analysis, stressed that the High Court did not adequately consider the seriousness of the accusations against Meher, his role in the alleged scam, and the potential for him to influence witnesses if granted bail. The Court highlighted several key factors that must be weighed when deciding on bail, including the nature of the charges, the evidence against the accused, and the risk of the accused tampering with evidence or fleeing.
Justice Ahsanuddin Amanullah emphasized that while bail once granted should not be revoked without cause, the order must be based on solid reasoning and consider the gravity of the offense. In this case, the Supreme Court found that the High Court’s decision lacked sufficient grounds and did not fully account for the allegations and evidence presented against Meher.
