HC rejects plea to transfer Navodaya bank scam accused's bail deposit to bank

The Bombay High Court has rejected a plea by Manmohan Hingal, an accused in the Navodaya Urban Cooperative Bank scam case in Nagpur, seeking to transfer the 3 crore rupees he deposited in the special court as a bail condition directly to Navodaya Urban Cooperative Bank to settle his account through a One Time Settlement, or OTS.

Hingal is accused of colluding with the bank management to obtain fraudulent loans illegally. This is an allegation that has not yet been proved. When the High Court granted him bail in 2019, it had imposed certain conditions. Under these conditions, Hingal was directed to deposit a total of 3 crore rupees in the special court, with 1 crore rupees to be deposited within seven days and the remaining 2 crore rupees within 16 weeks.

At the time, the court had also made clear that if the amount was not deposited within the stipulated time, the bail would be deemed cancelled. It had further empowered the special court to issue a non-bailable warrant against the accused. Hingal's side told the court that he had complied with the order and deposited the full 3 crore rupees in the special court.

Hingal subsequently expressed a wish to settle his account with the bank through OTS. He filed an application in the High Court seeking permission to transfer the 3 crore rupees deposited in the special court directly to Navodaya Urban Cooperative Bank.

After hearing the application, Justice Nerlikar rejected it. The court said in its order that if the amount deposited in the special court for a specific purpose were now allowed to be transferred to the bank, it would defeat the entire purpose of the original judicial order.

In the case, advocate Nitin Jaiswal appeared for accused Hingal, while additional government pleader N.B. Jawade appeared for the state government.