Bombay High Court grants relief to four accused in ₹50-crore investment scheme case

The Bombay High Court recently quashed a criminal case against four persons accused of promoting an alleged fraudulent ₹50-crore investment scheme [Walmik Sahebrao Dhone v. State & connected petitions]

However, the Court refused to grant similar relief to a co-accused who was found to have directly received investors’ money.

A Bench of Justices Urmila Joshi-Phalke and Nandesh S Deshpande allowed the quashing petitions filed by four accused - Walmik Dhone, Pallavi Khade, Pradeep Khade and Ashay Khade.

The Bench held that no prima facie case was made out against them. However, the plea filed by accused Akshay Pradeep Khade was dismissed.

The case alleging cheating and criminal breach of trust was registered on a complaint made by an Akola-based doctor, Kishor Shridharrao Dhone.

According to the FIR, Dhone was allegedly lured in February 2022 to invest in a scheme linked to 'Platin Ultima (PLC Ultima)' after being introduced to the accused by the owner of a local medical shop.

He alleged that the accused induced investors to deposit money in Indian currency with the promise of returns in dollars with up to seven times benefits. A seminar held by accused at a hotel in Akola was attended by 300–400 people. The program resulted in an investment of more than ₹50 crore by various people.

The Court noted that as regards the four accused (who were granted relief), the allegations were essentially confined to their presence at the seminar and to having guided investors, without any material to show that they had themselves received, misappropriated or dealt with the funds.

Compelling them to face trial in such circumstances would amount to an abuse of the process of law, the bench held.

In contrast, the Court found that the investigation papers and witness statements showed that accused Akshay Pradeep Khade had received money from several investors in cash, with bank account extracts corroborating receipt and withdrawal of those amounts.

Observing that there was a clear prima facie case against him arising from the financial trail, the Court rejected his application for quashing.

Senior advocate Anish Deep Verma with advocate Prashant Vyas appeared for the accused.

Additional public prosecutor Sneha Dhote appeared for the State.

[Read order]