Mumbai court acquits four accused in 1996 society fund misappropriation case

Mumbai: A magistrate court in Mumbai has acquitted four accused in a nearly three-decade-old cheating and criminal breach of trust case in which 7 to 8 office-bearers of the society allegedly siphoned off funds worth approximately Rs 1.64 crore and used the money to purchase immovable properties. While acquitting the last three accused, the court observed that during the course of the trial, two key accused had were already been discharged earlier, while proceedings against one accused had abated after he was declared deceased by a civil court, and trials against two others had were been separated earlier as they were absconding.SK Fokmare, the 19th Magistrate court Court, acquitted Raghu Suvarna, Sadanand Poojari, John Fernandes and Veena Shetty in a 1996 case registered by the general branch of EOW about the alleged misappropriation of funds of Laxmi Co-operative Credit Society between 1994 and 1996. The prosecution had alleged that office-bearers of the society, in conspiracy with others, siphoned off funds worth approximately Rs 1.64 crore and used the money to purchase immovable properties.The accused who stood trial — Raghu Kandjara Suvarna (79), Sadanand Basappa Poojari (70), John Babi Fernandes (66), and Veena Sanatkumar Shetty (61) — were acquitted of all charges under IPC Sections 403, 406, 409, 468, 477(A) read with 120B. Assistant public prosecutor Bageshri Bhondave represented the prosecution, while the defence was led by advocates R V Kini and S S Bhandary.During the course of the trial, the court noted that two key accused had were already been discharged earlier, while proceedings against one accused had abated after he was declared deceased by a civil court. Trials against two others had were been separated earlier as they were absconding.The prosecution's case was based primarily on an audit report conducted 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 the five witnesses examined, two turned hostile and failed to support the prosecution's case. The remaining witnesses did not provide sufficient incriminating evidence to establish misappropriation, conspiracy, or falsification of accounts.The court also took note of gaps in the investigation, including the non-production of key documents such as the audit report and inconsistencies in witness testimonies. The investigating officer admitted during cross-examination that he was unaware of a legal opinion reportedly concluding that no case of misappropriation was made out.Observing that the prosecution had 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 evidence on record is not sufficient to prove the guilt of the accused," the court noted, extending 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.