Arif A. Rashid Bagwan Vs State of Maharashtra And Another (Bombay High Court)
Summary: The Bombay High Court, Circuit Bench at Kolhapur, granted bail to Arif A. Rashid Bagwan, Vice-Chairman of Ul Halimi Foundation, Barshi, in connection with an investigation by the Anti-Terrorism Squad (ATS) concerning alleged unauthorised registration of a trust, collection of substantial donations and misuse of income-tax exemption benefits. The applicant was arrested on 10 May 2026 in Crime No. 03/2026 registered with ATS Kala Chowki Police Station, Mumbai, for offences under Sections 316(5), 318(4), 318(2), 3(5), 61(2), 238 and 241 of the Bharatiya Nyaya Sanhita, 2023, and a provision described in the order as Section 66 of the Income Tax Act, 2000. The prosecution alleged that the trust had been registered without authorisation, had extracted substantial funds from various persons and had obtained undue income-tax exemption benefits. It further alleged that the office-bearers, including the applicant, had induced persons to make donations. The chargesheet was filed on 8 July 2026 against four persons.
The applicant sought bail principally on the ground of parity, submitting that Aslam Latif Shaikh, Secretary of the Foundation, and Ansar Rafik Pathan, its Chairman, had already been granted pre-arrest protection by a reasoned order of a Coordinate Bench dated 28 July 2026. His counsel contended that the applicant’s position was comparable to that of the protected co-accused. The prosecution opposed the application, emphasising the seriousness of the alleged offences and asserting that the applicant had actively participated in inducing victims to make donations. The Additional Public Prosecutor also submitted that incriminating material had been collected against him. The Court considered these rival submissions alongside the applicant’s custody since 10 May 2026 and the fact that the investigation had already resulted in the filing of a chargesheet.
Justice Shailesh P. Brahme observed that no criminal antecedents had been reported against the applicant. After examining the earlier reasoned order granting pre-arrest protection to the Chairman and Secretary, the Court noted that Ul Halimi Foundation had filed income-tax returns for the years 2023-2024, 2024-2025 and 2025-2026 and had secured certain income-tax exemptions. At the present stage of the proceedings, the Court considered it difficult to conclude that the applicant and the co-accused had committed an overt act in seeking those exemptions. It further found that the role attributed to the applicant was identical to that of the co-accused who had already received protection. Accordingly, the Court accepted the plea of parity and concluded that further detention was unnecessary. These observations were made for deciding bail and did not constitute a final determination of the legality of the trust’s registration, its entitlement to tax exemption or the criminal allegations.
The High Court consequently allowed the bail application and directed the applicant’s release on furnishing a personal recognisance bond of Rs. 50,000 with one or more solvent sureties of the same amount. The conditions prohibit tampering with prosecution evidence or contacting prosecution witnesses, require the applicant to furnish contact and address details to the Investigating Officer, surrender his Aadhaar Card and PAN Card, if any, intimate the Investigating Officer before leaving the jurisdiction, cooperate with expeditious disposal of the trial and attend hearing dates punctually. The order demonstrates the significance of parity with similarly placed co-accused, absence of criminal antecedents and the necessity of continued custody in deciding a bail application involving alleged financial misconduct and income-tax exemptions claimed by charitable or religious trusts.
FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
. Heard both sides.
2. The applicant is seeking bail in respect of offence bearing Crime No. 03/2026, registered with A.T.S. Kala Chowki Police Station, Mumbai, for the offences punishable under Sections 316(5), 318(4), 318(2), 3(5), 61(2), 238 and 241 of the Bharitya Nyaya Sanhita, 2023 and U/Sec. 66 of the Income Tax Act, 2000. He is behind bars since 10.05.2026. The charge sheet is filed on 08.07.2026 against total four persons.
3. Secrete information was received by the Officers from A.T.S. that Ul Halimi Foundation Barshi has been registered unauthorizedly as a trust and its extracting huge funds from various persons. It is further alleged that the trust in question has taken undue benefit of exemption from Income Tax Department. The office bearers including the applicant are alleged to have been luring the victims to pay the donations.
4. Learned counsel for the applicant submits that his client is Vice Chairman. The co-accused Aslam Latif Shaikh, who is the Secretary and Ansar Rafik Pathan, who is Chairman were granted pre-arrest protection by reasoned order passed by this Court on 28.07.2026, which is placed on record. On the ground of parity applicant is seeking enlargement on bail.
5. Application is contested by the learned A.P.P. It is submitted that the offence is serious in nature. The applicant is instrumental along with co-accused in inducing the victims to pay the donations. The incriminating material has been collected against him.
6. No antecedents are reported against the applicant. The co-accused Aslam Latif Shaikh and Ansar Rafik Pathan were granted pre-arrest protection by common order dated 28.07.2026 passed by Coordinate Bench. I have carefully gone through the reasoned order. The entity Ul Halimi Foundation has filed income tax returns for the years 2023-2024, 2024-2025 and 2025-2026 and secured some income tax exemption. It would be very difficulty at this stage of the proceedings to conclude that there is overt act on the part of the applicant and the co-accused in seeking exemption. Role attributed to the applicant and the co-accused who are granted protection is identical. The ground of parity is rightly pressed into service by the learned counsel for the applicant. I find that further detention of the applicant is not required. Hence, I pass the following order :
ORDER
(i) Bail Application is allowed.
(ii) Applicant – Arif A. Rashid Bagwan shall be released on bail in Crime No. 03/2026, registered with A.T.S. Kala Chowki Police Station, Mumbai, for the offences punishable under Sections 316(5), 318(4), 318(2), 3(5), 61(2), 238 and 241 of the Bharitya Nyaya Sanhita, 2023 and U/Sec. 66 of the Income Tax Act, 2000 on furnishing P. R. bond in sum of Rs. 50,000/- (Rs. Fifty thousands only) with one or more solvent sureties of like amount on the following conditions :
(a) The applicant shall not tamper with the prosecution evidence and contact the prosecution witnesses.
(b) The applicant shall furnish contact number of himself or his close relative / friend to the Investigating Officer.
(c) The applicant shall inform his whereabouts, address and contact numbers to the Investigating Officer.
(e) The applicant shall surrender his Aadhar Card and PAN Card to the Investigating Officer, if any.
(d) The applicant shall not move out of jurisdiction without intimation to the Investigating Officer.
(e) The applicant shall co-operate for expeditious disposal of the trial and attend the dates punctually.
(iii) Bail application is disposed of accordingly.
