Summary: In a recent decision from the Bombay High Court, three people were partly let off from charges under a law aimed at protecting people from financial scams in a big loan scam involving farmers in Nagpur. The scam involved fake loan dealings worth over Rs. 145 crores.
The case involves Ramanrao Bolla, his wife Vijaylaxmi, and his brother Tirupatirao. They were accused of tricking farmers into taking loans in their names and then using that money for themselves. The decision was made by Judges Urmila Joshi-Phalke and Nandesh S. Deshpande on December 3, 2025.
The scam was reported by a farmer, Ramkrishna Nimbulkar, who was fooled along with others into thinking they would get government money. Instead, their papers were used to get loans without them knowing.
"Farmers were promised compensation and ended up with loans in their names," the decision noted.
The court looked into whether the transactions were "deposits" under the law. The lawyers argued that Ramanrao Bolla and his co-accused used the farmers' papers to get loans, but the court found that these actions did not match the law's definition of a "financial establishment" taking deposits.
The court dropped the charges under a specific law and certain sections of the Indian Penal Code (IPC) for Ramanrao Bolla, Vijaylaxmi, and Tirupatirao. However, they still face charges under other sections of the IPC, including fraud and forgery.
"Loans obtained in farmers' names do not amount to 'deposits' under the MPID Act," the court explained.
This scam affected many farmers, with 158 loan cases from Corporation Bank alone. The investigation showed that Ramanrao Bolla and his associates used farmers' accounts to move money into their own businesses.
The prosecution will continue under other charges, including conspiracy and cheating. The decision highlights the need to be careful against financial fraud, especially in rural areas.
This case shows how small farmers can be easily taken advantage of and the importance of protecting them from scams.
