MUMBAI — A special court under the Maharashtra Protection of Interest of Depositors (MPID) Act has ordered the transfer of businessman Jayant Sanjeeva Shetty, accused in a ₹204-crore investor fraud, from Byculla Prison to Arthur Road Central Jail.
The decision followed findings that Shetty had allegedly threatened a key witness and sought “financial favours” using the prison’s phone facilities.
The order, passed on Friday and made available on Saturday, came from Judge R.K. Deshpande, who took cognizance of a plea alleging that Shetty was using “political clout” to violate jail protocols and access prohibited communication channels.
The Economic Offences Wing (EOW), which is investigating the case, supported the application.
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Prima Facie Evidence of Misconduct
In a six-page order, Judge Deshpande observed that the allegations were “to some extent consistent and supported” by both Shetty’s statements and a report from the Byculla Prison Superintendent.
The report revealed that Shetty — previously transferred from Mumbai Central Jail to Byculla on September 7 for “security and administrative reasons” — had used an authorised phone line between June 9 and 13 to contact his wife and allegedly add witness Nitesh Lalbhai Shah to a conference call.
During the call, Shetty reportedly asked Shah for financial help and issued threats, leading to a non-cognisable complaint being lodged at Amboli Police Station.
The court noted that such conduct could “seriously compromise the fairness of the ongoing investigation.”
₹204-Crore Investor Fraud Case Background
Shetty, Director of Shree Ramanjaneya Leasing and Finance Pvt Ltd, stands accused of defrauding more than 1,800 investors by promising high returns on deposits and defaulting on repayments since 2017.
The EOW registered an FIR in 2020, alleging that Shetty’s company had collected over ₹204 crore from investors across Mumbai and other regions of Maharashtra.
Many victims claimed that the firm had operated under the guise of a legitimate finance company, promising lucrative monthly returns before halting payments and closing communication channels.
Court Flags Jail System Lapses, Orders Strict Monitoring
While partly allowing the transfer plea, the court directed that Shetty be immediately shifted to Arthur Road Central Jail under tight security. It also instructed the Superintendent of Arthur Road Jail to ensure strict compliance with the Jail Manual, particularly regarding telephonic privileges.
Judge Deshpande further remarked that the incident reflected “serious lapses in prison security and governance”, urging immediate and stringent administrative action to prevent misuse of privileges by high-profile inmates.
“The court cannot close its eyes and keep mum once such facts come to light,” the order stated, emphasizing that Shetty’s behaviour could intimidate witnesses and distort the course of justice.
Investigation to Continue Under EOW Scrutiny
The Economic Offences Wing continues to trace Shetty’s financial transactions, investment records, and potential links to other fraudulent schemes. Authorities have indicated that additional charges may be framed if further evidence of witness tampering or obstruction of justice emerges.
The case has once again highlighted the need for stricter oversight in Maharashtra’s prison system, especially concerning high-value financial offenders.
