Supreme Court Orders 7-Day Judicial Training After Serious Lapses in Rs 1.9 Crore Fraud Case

New Delhi: The Supreme Court has issued an extraordinary directive requiring two judicial officers to undergo seven days of mandatory training at the Delhi Judicial Academy following what it described as "serious lapses" in their handling of bail orders in a Rs 1.9 crore fraud case.

The Supreme Court's verdict overturned bail previously granted to Shiksha Rathore and her husband, the accused couple in a case filed by M/S Netsity Systems Pvt Ltd. The top court has instructed the couple to surrender before the trial court within two weeks.

Justice Amanullah, who authored the September 25 judgment, stated, "We would be failing in our duty if we turned a blind eye to the manner in which the ACMM granted bail to the accused and the Sessions Judge refused to interfere with such grant of bail."

The court determined that both the Additional Chief Metropolitan Magistrate (ACMM) and the Sessions Judge who passed orders on November 10, 2023, and August 16, 2024, respectively, must undergo special judicial training. The Supreme Court has requested the Delhi High Court Chief Justice to arrange this training, with particular emphasis on proper conduct of judicial proceedings and appropriate consideration of superior courts' decisions.

Additionally, the Judicial Education & Training Programme Committee chairperson of the Delhi High Court has been directed to be informed of this ruling.

The judgment also criticized investigating officers in the case, noting their submissions that custodial interrogation was unnecessary since a chargesheet had already been filed. The court ordered Delhi's Commissioner of Police to personally investigate the conduct of these officers and take appropriate action.

The ACMM has been instructed to expedite the trial proceedings to bring the case to a swift conclusion.

The case originated from a 2017 complaint alleging that the accused couple obtained Rs 1.9 crore from Netsity Systems Pvt Ltd by promising to transfer land that was already mortgaged and subsequently sold to another party. Following the ACMM's order, an FIR was registered at Preet Vihar Police Station in 2018.

Though initially denied anticipatory bail by a Sessions Court in December 2018, the couple secured interim protection from the Delhi High Court, which continued for nearly four years. Despite participating in mediation and agreeing to repay Rs 6.25 crore to the complainant, they failed to fulfill this commitment.

When the Delhi High Court ultimately rejected their anticipatory bail pleas on February 1, 2023, the ACMM nonetheless granted them bail in November 2023, reasoning that custodial interrogation was unnecessary as the chargesheet had been filed. This decision was subsequently upheld by both the sessions court and the Delhi High Court.

The Supreme Court strongly criticized the lower courts for "oversimplifying" the matter and disregarding critical facts, including the accused's conduct during earlier proceedings. It described the ACMM's reasoning as "untenable" and "bordering on perversity."

The top court also highlighted procedural irregularities, including how the accused were allowed to remain free without any formal interim release order for a month before bail was officially granted.

Regarding the High Court's role, the Supreme Court observed that it erred by treating the matter as a routine bail cancellation plea while overlooking the exceptional circumstances surrounding repeated fraud allegations against the couple.