“Incarcerated For More Than 7 Yrs, Longer Than Maximum Sentence”: Bombay HC Grants Bail To Conman Sukesh Chandrashekhar In 2015 Ponzi Scheme Case

Single-judge Justice Manish Pitale noted that Chandreshkhar had already spent more than seven years in jail, which is nearly more than the maximum sentence he would have to undergo, if convicted.

The judge noted that initially he had been in custody from May 29, 2015 to September 10, 2016, when he was granted bail. However, his bail was subsequently cancelled as he failed to deposit certain amounts as mandated by the Supreme Court while granting him bail. He was later shown to be arrested in another case from April 16, 2017 and was then produced in a special court for his custody in the instant case on October 9, 2017 and since then he continues to be in custody.

"Hence, the second period of incarceration can be taken as the period between October 9, 2017 till date. A rough and ready calculation of the total period of incarceration suffered by the applicant, in the context of the present case, leads to the period of about seven years and ten months. The calculation of the period cannot be disputed," Justice Pitale noted.

The judge added that the stand taken by the State that the second period of incarceration cannot be relatable to the present case is a "hypertechnical approach" which has to be rejected at the outset.

"Considering the second period of incarceration as starting from October 9, 2017 and adding the same to the earlier period of incarceration between May 29, 2015 and September 10, 2016, the total period of incarceration suffered by the applicant is about seven years and ten months. It is certainly more than the maximum period of sentence that can be imposed upon the applicant, even if he is convicted for the offences registered under the subject FIR," the judge underscored. Notably, the judge considered section 436A of the Criminal Procedure Code (CrPC) which provides for bail of a person, who has undergone more than half of the maximum punishment that can be imposed on him after conviction.

The bench, therefore, ordered his immediate release.

It may not be out of place to be mentioned that Chandrashekhar will not be stepping out of jail as he is facing other cases too, for which he is in Tihar Jail in Delhi.

Chandrashekhar was arrested in the case in May 2015 under various provisions of the Indian Penal Code (IPC) and Maharashtra Protection of Interest of Depositors (MPID) Act for floating a bogus firm and inviting investment schemes that promised 20 per cent monthly returns. He had allegedly collected ₹ 19 crore through his ponzi scheme from several investors and later failed to pay the returns as promised. Accordingly he was arrested.

Case Details: Shekhar Chandrashekhar vs State of Maharashtra (BA/479/2021)