Bombay HC Directs CBI & ED Probe into Sinhgad Technical Education Society Fraud

The Bombay High Court has unleashed a multi-agency investigation including the CBI and Enforcement Directorate into the systemic financial exploitation at a major educational group, ruling that the prolonged non-payment of salaries and 13 reported suicides constitute a gross affront to the Right to Life. The Court has frozen all assets of the management, noting that the siphoning of educational funds for personal luxury while employees perish is a 'unprecedented' breach of the rule of law.

A Special Bench comprising Justice G. S. Kulkarni and Justice Advait M. Sethna took up the matter involving approximately 220 writ petitions filed by teaching and non-teaching staff of 44 institutions under the Sinhgad Technical Education Society (STES). The Bench expressed shock at the 'brazen' breach of undertakings and the 'luxurious lifestyle' maintained by trustees while employees were left without basic livelihood.

Court Directives on Institutional Fraud and Investigation

The Bombay High Court observed that despite full-fledged student admissions and fee collections, the Society had defaulted on salaries for nearly eight years. The bench noted that the trustees appeared to have siphoned funds into other businesses and shareholdings, potentially laundering money out of the country.

The Bombay High Court observed that "To our mind, this is a clear case wherein the respondent - STES through its managing trustee, Mr. Maruti Navale, and its other trustees, are repeatedly and with impunity abusing the process of law, including in disregarding the undertakings as given to the Court and literally taking the Court, the Statutory authorities, Investigating authorities, the Education department of the State Government and the Central Government for a ride."

The Bombay High Court has issued the following directions:

"(i) The appropriate authorities of the Central Government namely the Central Bureau of Investigation (CBI), the Enforcement Directorate (ED) acting under the Prevention Of Money-Laundering Act, 2002, the Income Tax Authorities shall undertake an investigation into the affairs of these 44 institutions and its trustees. 

(iii) Pending such investigation, the interim orders passed on the present proceedings directing that the movable and immovable properties of the STES and its trustees, shall not in any manner be dealt... 

All the bank accounts as also all the investments as made by the trustees as also by STES shall remain freezed. 

(v) In regard to the breach of the orders dated 6 November 2026 passed by this Court, we direct issuance of a show cause notice to the STES and its trustees... 

to show cause as to why they shall not be punished under the Contempt Of Courts Act, 1971 read with Constitution of India, 1950 of the Constitution. 

(xiv) The passport as deposited by Mr. Maruti Nivrutti Navale shall be kept in a sealed cover... The other trustees are directed to deposit their respective passports."

Background

The dispute centered on the Sinhgad Technical Education Society (STES), which operates 44 professional and technical institutions in Maharashtra. Despite persistent litigation over several years, the Society failed to clear outstanding salary and terminal dues exceeding ₹400 crores. On November 6, 2026, the Managing Trustee, Maruti Navale, gave a solemn undertaking to release ₹60.65 crores before the Diwali festival. The Society failed to pay a single rupee and instead attempted to discharge its regular counsel to seek an adjournment.

The Bombay High Court noted that 13 employees had committed suicide due to financial distress. Relying on the principles in State of West Bengal vs. Committee for Protection of Democratic Rights ( "(2010)5 SCC 571": 2010 CaseBase(SC) 854), the bench determined that an exceptional situation had arisen requiring rare intervention. The Bombay High Court vacated previous protections against the appointment of an Administrator under the Maharashtra Educational Institutions (Transfer Of Management) Act, 1971 and Maharashtra Educational Institutions (Management) Act, 1976, directing the Education Department to take over the institutions to prevent educational disruption.

Case Details:
Case No.: Contempt Petition No.349 of 2026 in Writ Petition No.6765 of 2018 (and others)
Case Title: Rohini Aniruddha Mohekar vs. Maruti Nivruttti Navale
Appearances:
For the Petitioner(s): Mr. Vaibhav Kulkarni, Sr. Adv. Mr. Suresh Pakale, Mr. Vaibhav Ugle, Mr. Pranav Bhoite, Adv Mr. Nitin Dhumal, Mr. Chintamani K. Bhangoji
For the Respondent(s): Mr. Harjot Singh, Mrs. Neha S. Bhide (GP), Mr. A. R. Deolekar (AGP), Mr. S. V. Gavand (Addl Public Prosecutor)

Source: 2026 CaseBase(BOM) 7168