Apex Courts Grants Bail To Former Joint Registrar Of Companies Alleged To Have Been Involved In Chit Fund Scam Of ₹ 600 Crores

The Supreme Court, today, granted bail to Subha Kumar Banerjee, a former Joint Registrar of Companies in Kolkata, in a chit fund scam of Rupees 600 crores.

Banerjee filed a special leave petition assailing the order passed by the Orissa High Court refusing to grant him bail. 

The Bench of Justice Prashant Kumar Mishra and Justice KV Viswanathan ordered, "Considering that the petitioner has already retired in February 2013 and is aged about 70 years as also the nature of allegation against him as also for the fact that the petitioner is not one related to the promoter companies who were allegedly involved in cheating the depositors and he is in jail since last one year and eight months with effect from 02.10.2022, we are inclined to release the petitioner on bail...While releasing the petitioner on bail, the Trial Court shall impose appropriate conditions, including the one that the petitioner shall cooperate with the investigation which is pending in relation to the other accused persons. The special leave petition stands disposed of. "

AOR Bijan Kumar Ghosh, counsel for Banerjee submitted that the chargesheet had been filed and he is 72 years old.

AOR Mukesh Kumar Maroria, counsel for the Central Bureau of Investigation submitted that the Orissa High Court had not considered the bail on merits. He submitted, "He was a public official. It is not a case where he did not do his job. It is a case where he abused his position and made gullible investors to invest an amount of Rs. 600 Crores. It is an economic offence."

The Bench said, "There is no allegation that the amount was used for his benefit or the amount was recovered."

Justice Viswanathan said, "There was some allegation that Rs 23 lacs was taken by him...he is 72 years old, two years undergone."

The Counsel for the CBI requested the Court to remand the matter to the High Court as the chargesheet was not filed when the bail application was decided by the High Court.

The Orissa High Court had observed, "Keeping in view the submissions made, the record being perused, it is seen that the Trial Court was last moved by the Petitioner for his release on bail on 06.02.2023 and by now more than one year having elapsed, this application stands disposed of granting liberty to the Petitioner to approach the Trial Court afresh for his release on bail citing all such developments, which have taken place in the meantime for their consideration in proper perspective....It is needless to observe that in the event, such a move is made, the Trial Court would do well to consider the same on its own merit; further taking into account all such developments, which have taken place in the meantime in their proper perspective and dispose of the same early in accordance with law."

Banerjee was in custody in connection with a case arising out of the commission of an offence under sections 120(B), 409/420 IPC read with Sections 4,5 and 6 of Prize Chits and Money Circulation Scheme (Banning Act, 1978).

Cause Title: Subha Kumar Banerjee v. Republic of India (SLP (CRL.) NO(S). 5114/2024)

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