A magistrate court in Mumbai has acquitted four individuals in a nearly three-decade-old cheating and criminal breach of trust case. The case involved allegations that seven to eight office-bearers of the Laxmi Co-operative Credit Society siphoned off funds worth approximately Rs 1.64 crore between 1994 and 1996, using the money to purchase immovable properties.
Acquittal Details
The 19th Magistrate Court, presided over by SK Fokmare, acquitted Raghu Suvarna (79), Sadanand Poojari (70), John Fernandes (66), and Veena Shetty (61) in the 1996 case registered by the Economic Offences Wing (EOW). The accused were charged under Indian Penal Code sections 403, 406, 409, 468, 477(A) read with 120B, which include criminal breach of trust, cheating, forgery, and conspiracy.
The court noted that during the trial, two key accused had already been discharged earlier. Proceedings against one accused abated after he was declared deceased by a civil court. Trials against two other accused were separated earlier as they were absconding.
Prosecution Case and Evidence
The prosecution's case relied heavily on an audit report prepared by an administrator appointed to the society. However, the court observed that the prosecution failed to examine the auditor who prepared the report, as well as the original informant who had lodged the complaint. Both were stated to be untraceable.
Out of five witnesses examined, two turned hostile and did not support the prosecution's case. The remaining witnesses failed to provide sufficient incriminating evidence to establish misappropriation, conspiracy, or falsification of accounts.
Investigation Gaps
The court also highlighted gaps in the investigation, including the non-production of key documents such as the audit report. Inconsistencies in witness testimonies were noted. The investigating officer admitted during cross-examination that he was unaware of a legal opinion which reportedly concluded that no case of misappropriation was made out.
Court's Observations and Verdict
Observing that the prosecution failed to prove the charges beyond a reasonable doubt, the court held that there was no material evidence to establish criminal breach of trust, forgery, or conspiracy. The court noted: "The evidence on record is not sufficient to prove the guilt of the accused," and extended the benefit of doubt to the accused.
The court also discharged the absconding accused, citing the age of the case and the lack of prospects of securing their presence. It ordered the closure of proceedings and directed that seized documents and materials be returned to the existing office-bearers of the society.
The acquitted accused have been directed to furnish bonds under Section 437-A of the Code of Criminal Procedure to appear before higher courts if required.
