In matters of complex financial fraud involving forged documentation and systemic collusion, individual liberty is secondary to investigative necessity. Custodial interrogation is essential to uncover the full extent of the fraud, trace misappropriated funds, and identify all parties involved in the criminal scheme.

ORDER :

P. M. Raval, J.

1. Rule. Learned Additional Public Prosecutor waives service of Rule for the respondent – State.

2. The applicant before this Court is seeking bail in anticipation on his arrest pursuant to FIR being C.R. No.11201005250003 of 2025, dated 22.06.2025, registered before CID Crime, Vadodara Zone Police Station, for the offence punishable under Sections 406, 409, 420, 467, 468, 471, 474, 114 and 120(B) of Indian Penal Code, 1860 (for short “IPC”), and Sections 7(a), 13(1)(a), 13(1)(b) and 13(2) of the Prevention of Corruption Act, 1988.

3. Learned advocate Mr. Ashutosh S. Dave for the applicant would submit that:

3.1. Sections 406, 409 and 420 of the IPC are mutually exclusive in nature and cannot stand together. He would further submit that during the investigation, the Water and Sanitization Management Organisation (for short “WASMO”) unearthed certain discrepancies as regards the execution of the contract by various agencies and in pursuance to which various notices were issued to contractors demanding the amount which were either paid in excess or the material was not used in adequate quantity. Thus, on the perusal of the aforesaid notices, an inference can safely be drawn that on the one hand, the First Informant being the Unit Manager of WASMO had issued demand notices to the applicant alleging the discrepancies in the execution of the work, however, juxtaposite to that, in the FIR, it is stated that bills and test reports were forged by the contractors so as to give the civil dispute allegedly a criminal colour.

3.2. He would further submit that the aspect of delay is to be made brush aside for the reason that although the First Informant was live with the situation of the material discrepancy in the year 2024, no cogent reason has been stated as to why the FIR was lodged after such a long delay. Even otherwise, assuming without admitting that the report of the Investigating Officer is true which suggests that the documents which can prove the guilt of the applicant are in his possession and, therefore, no logical purpose would be served to put the applicant to the custodial interrogation.

3.3. He would further submit that the impugned FIR is lodged without cross verification, without the assignment of the contract which was not allotted to the applicant. In as much as by comparing said aspect with the version of the First Informant in the FIR, at item No.38 would clearly point out that the work of the village was executed by M/s. Chirag Rig Services Agency and not by the present applicant. That, even as per the FIR, the work carried out for Taluka: Kadana, Village: Karvai Dungar Fali, the Investigating Officer alleged the role of the present applicant is that the Bill of Rs.4,26,047/- dated 12.05.2021 which was submitted to the WASMO is wrong, however, the Officer of WASMO alleges that w.e.f. 04.01.2021, one contractor namely Shri D. H. Patel was assigned task of laying down the pipelines by the Water Committee (pani samiti) and the discrepancies have crept in from there.

3.4. That, the trial Court has also confused in not considering the fact that the bills issued by Kamdhenu Pipes and its registered trademark as ‘Bhimani’, and thus, cannot be alleged that the present applicant has non-supplied pipes manufactured by Kamdhenu Pipes, in as much as the Chief Engineer WASMO vide letter dated 08.08.2024 informed the Unit Manager, DWSU, Mahisagar, that he was in receipt of the report from Kamdhenu Pipes which came to be invoices issued by the applicant’s firm were in line with one which were submitted in order to receive the remuneration against the execution of the work, thus, also the present applicant deserves indulgence.

3.5. He would further submit that the prosecution has given a criminal colour to civil dispute which is impermissible under criminal jurisprudence, and it would have been in the fitness of the things to carry the same before the Gujarat Public Works Contract Dispute Arbitration Tribunal, more