The Bombay High Court has granted bail to Nandkumar Khamkar, a founding director of Harihareshwar Sahakari Bank Limited, who had been booked for allegedly embezzling INR 10 crore through fraudulent loan transactions in the names of the bank's employees. This decision comes after thorough deliberation, during which the court emphasized that a substantial 99.59% of the investors' funds are safeguarded, offering significant protection for their interests. Justice MS Karnik, who presided over the case, highlighted that Khamkar would face the trial's consequences if found guilty and cited the applicant's strong ties to the community, making it unlikely for him to flee.
The Charges
Nandkumar Khamkar had filed a bail plea through his advocate, Satyavrat Joshi, following charges under various sections of the Indian Penal Code, Maharashtra Protection of Interest of Depositors (In Financial Establishments) Act (MPID Act), and the Maharashtra Co-operative Societies Act on August 25, 2021. The prosecution alleged that between 2011 and 2018, Khamkar orchestrated a total of 62 false and fictitious loan transactions.
Deception and Embezzlement
Out of these transactions, 46 loan proposals were sanctioned using forged documents, claiming non-existent property construction under Khamkar's mother's name, while the remaining 16 transactions were approved for apartments supposedly owned by his brother Ramesh. Khamkar purportedly deceived his own employees by processing loans totaling INR 14,17,77,563 in their names and subsequently withdrawing the funds for personal gain, resulting in the embezzlement of INR 10,24,42,154, which had been deposited in the bank, according to state advocate Rutuja Ambekar.
Assurance and Consent
Khamkar's legal representatives, Satyavrat Joshi and Shubham Mhatre, informed the court that Khamkar's sister and two brothers, who jointly hold certain properties, have submitted affidavits indicating their willingness to employ these properties as collateral to secure the interests of depositors. Joshi also noted that Khamkar had undertaken not to transfer his share in these properties, except for settling any liability that may be conclusively determined in civil proceedings.
Investor Protection
The court took note of the fact that 99.59% of investors' funds are insured, with the deposit insurance and credit guarantee corporation disbursing the maximum insured amount to investors. The remaining 0.41% will be disbursed after the applicant is granted bail.
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