Baghel Granted Bail, Rs 250 Cr Assets Liquidated

Case Name: Pushpendra Singh Baghel vs State of Madhya Pradesh & Ors.
Court/Authority: Supreme Court of India, Criminal Original Jurisdiction.
Order No.: Writ Petition (CRL.) No(s). 125 of 2026.
Date of Order: 29 May 2026.
Period of Violation/Dispute: Alleged collective investment scheme operated by SPPDL from Dec 2009 to Jun 2011; FIRs filed from 2015 onward; SEBI interim order dated 26 Dec 2014 and final order dated 29 Jul 2019.

Petitioner: Pushpendra Singh Baghel.
Respondents: State of Madhya Pradesh and other State governments.
Companies/Entities: Sai Prakash Properties Development Ltd (SPPDL) and its sister concerns – Sai Prakash Assurance Services Private Ltd, Sai Prakash Financial Advisory Services, Sai Prakash Endurance Pvt. Ltd., Bind Finance Ltd., Linc Financial Services Pvt. Ltd., Sai Prakash Organic Food Ltd., Sai Prakash Power India Ltd., Sai Prakash Telecommunications Ltd., Sai Jyoti Machinery Pvt. Ltd., Sai Prakash Resosys Pvt. Ltd., Sai Prakash Developers India Ltd., Rural Industry Development Institute, Naina Telesystems Pvt. Ltd., Lakshraj Conveyors Pvt. Ltd., Chambal Malwa Multi Credit Cooperative Society.
Regulator: Securities and Exchange Board of India (SEBI) – impleaded as a party respondent.
Counsel for Petitioner: Senior Counsel Vinay K. Garg.
Special Committee Chairperson: Justice Manindra Mohan Shrivastava (Former Chief Justice of Rajasthan and Madras High Courts).
Judges of the Bench: Justice Vikram Nath and Justice Sandeep Mehta.

Alleged operation of an unregistered Collective Investment Scheme (CIS) through SPPDL, inviting public investments for land‑development projects with promises of high returns and profit sharing.
Issuance of Joint Venture Agreements, bonds, and documents purporting equity or proprietary interest in purchased lands.
Failure to obtain mandatory registration/permission under Section 11AA of the SEBI Act, 1992.
Mobilisation of Rs 111,54,96,435 (≈ Rs 111.55 crore) from investors while the company disclosed only ≈ Rs 84.76 crore.
Non‑disclosure of all bank accounts and continued collection of funds after SEBI’s interim restraint order.
Default on promised dividends/profits leading to FIRs under IPC §§ 420, 406, 409, 467, 468, 471, 120B, Chit Funds Acts, Prize Chits and Money Circulation Schemes (Banning) Act, RBI Act, and various State Nikshepakon Acts.
Petitioner claims he was director only from 3 Dec 2009 to 14 Jun 2011, resigned due to ill health, and held zero shareholding thereafter.

SEBI Findings: The scheme constituted an unregistered CIS; identified the amount mobilised (Rs 111.55 crore) and noted the discrepancy with the disclosed figure (Rs 84.76 crore). Observed continued fund collection post‑interim order.
Court Observations: Petitioner has been in continuous judicial custody since 27 Jun 2015 (over 11 years). Approximately 149 FIRs across ten states (Rajasthan, Madhya Pradesh, Uttar Pradesh, Maharashtra, Chhattisgarh, Gujarat, Haryana, Punjab, Uttarakhand, Himachal Pradesh). About 35 convictions and 5‑6 acquittals; the rest pending.
Petitioner asserts no involvement after June 2011 and is prepared to settle investor claims.

Interim Bail: Granted for three months, subject to furnishing two surety bonds of Rs 10,00,000 each and a personal bond of the same amount.
Special Committee: Constitution of a Special Committee headed by Justice Manindra Mohan Shrivastava to:
Identify all investors and verify liabilities (liabilities stated < Rs 115 crore).
Liquidate movable and immovable assets (cumulative marketable value > Rs 250 crore) belonging to the petitioner, his family, and the associated companies.
Settle genuine investor claims using proceeds from asset liquidation.
Committee Honorarium: Interim honorarium of Rs 50,00,000, half payable upfront and half on submission of the first report.
Implementation Costs: Petitioner will bear all logistical and human‑resource expenses of the Committee; amount to be decided by the Chairperson.
State Cooperation: Each concerned State shall appoint a Nodal Officer; Chief Secretaries to facilitate the Committee’s work.
Reporting Deadlines: Chairperson to submit an interim status report (sealed) by 15 September 2026; matter listed for hearing on 21 September 2026.
SEBI Impleadment: Interlocutory Application No. 166646 of 2026 allowed; SEBI to cooperate fully and provide all relevant records.

Upon release, petitioner must immediately approach the Committee Chairperson and furnish:

1. Details of all pending FIRs/criminal proceedings.

2. Investor lists and claimed liabilities.

3. Complete particulars of all movable and immovable properties (including land parcels listed in the order).

4. Information on bank accounts, fixed deposits, and other liquid assets.

5. Title documents, revenue records, company records, investor records, and any other material required.

Petitioner to cooperate fully with the Committee for asset valuation, sale, and distribution of proceeds.
States to provide nodal officers and secretarial assistance to the Committee.

Interim Bail granted with bond conditions.
Special Committee constituted, chaired by Justice Manindra Mohan Shrivastava, with explicit mandate to liquidate assets (> Rs 250 crore) and settle investor claims (< Rs 115 crore).
SEBI impleaded and directed to cooperate.
Honorarium and expense framework established for the Committee.
Compliance Monitoring: Registrar (Judicial) to ensure release orders are communicated to all prisons/courts; Chairperson to receive contact details from Registrar.
Future Monitoring: Interim report due 15 Sep 2026; next hearing scheduled 21 Sep 2026 to assess compliance.
Enforcement: Failure to comply with bail conditions or Committee directives may result in revocation of bail and further legal action.