High Court Grants Bail to Man Accused of Rs 45.88 Lakh KYC, Forgery and Loan Fraud:

The Chhattisgarh High Court has granted regular bail to Rakesh Bhabhutmal Jain, who was arrested in a case involving alleged fraud of Rs 45.88 lakh, forgery and misuse of documents.

The case relates to Crime No. 346/2023 registered at City Kotwali Police Station in Raipur under Sections 420, 467, 468 and 471 of the IPC.

According to the prosecution, Jain was working as a tax consultant for the complainant, Sachindra Deshmukh. He allegedly created companies like Somvati Trading Agency Private Company and Artech Solution without the knowledge of complainant using complainant’s KYC documents including Aadhaar card, PAN card and digital signature.

The prosecution also alleged that these companies were used to procure loans from financial institutions such as Tata Capital, ICICI Bank, ECL Finance and Dhani Loans. It was also alleged that the complainant’s wife’s signature was forged and another person’s photograph was used in guarantor documents.

The defense opposed the allegations saying the complainant already knew Artech Solution and had financial dealings with the company. The defence pointed out that Rs 9.08 lakh had been transferred from the complainant's company, P.M. Construction, to Artech Solution in November 2017.

The defence also claimed that the complainant was a partner in Artech Solution and a director in Somvati company and had received profits and other benefits from them. It was contended that the company and GST registrations undergo several verification procedures which makes it unlikely that the registrations could have been completed without the knowledge of the complainant.

The State opposed the application for bail. But the court noted that the charge sheet has already been filed and the accused is in custody from February 16, 2026. The court also said that the trial would necessarily take a long time.

After going through the case diary and the submissions from both the sides, the High Court held that the accused was entitled to bail.

The court ordered Jain's release on bail on furnishing a personal bond along with two local sureties in the same amount, subject to conditions.

Under the bail conditions, Jain cannot seek unnecessary adjournments when witnesses are present in court. He must also remain present before the trial court on the dates fixed for the proceedings. He has been specifically directed to appear personally during the opening of the case, framing of charges and recording of his statement under the relevant provision.

The High Court further warned that if Jain misuses the liberty of bail or deliberately fails to appear before the trial court, appropriate action can be taken against him in accordance with law.