Mundhwa Land Scam: Bombay HC Upholds Sheetal Tejwani’s Arrest, Declares Bank Fraud Arrests Illegal

Mumbai, April 18, 2026: The Bombay High Court has upheld one arrest while declaring two others illegal of businesswoman Sheetal Tejwani in connection with alleged large-scale land and banking frauds in Pune.

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Court upholds arrest in Mundhwa land scam

While upholding her arrest as legal in the alleged Rs 300 crore Mundhwa land scam, the court stressed that strict adherence to constitutional safeguards in arrest procedures cannot be diluted even in serious economic offences.

Justice N J Jamadar was hearing three petitions challenging Tejwani’s arrests, remand orders and continued detention in separate cases involving alleged land and banking frauds.

The first petition was challenging her arrest in the case registered at Khadak Police Station over the alleged fraudulent sale of government land at Mundhwa worth Rs 300 crore by relying on forged documents and false claims of re-grant of Mahar Vatan land.

Rejecting Tejwani’s argument that her arrest was unwarranted despite cooperation, the court observed that “there is a significant distinction between the power to arrest and necessity of arrest”, but found the action justified in the facts of the case.

It noted that the grounds of arrest were properly communicated and recorded, and that the investigating officer had “furnished the grounds of arrest which were specific, clearly spelling out the role of the petitioner”.

The court also rejected claims of delay in production and language barriers, observing that material on record indicated she understood Marathi. The petition was dismissed.

Arrest in bank fraud case declared illegal

In contrast, the court allowed Tejwani’s second petition challenging her arrest in the alleged irregularities and losses of over Rs 238 crore at Seva Vikas Co-operative Bank. It found a clear breach of constitutional safeguards, noting that the grounds of arrest were not furnished in time.

The court held that this failure “rendered the constitutional safeguard illusory” and ruled that the Special Judge erred in downplaying the lapse on the ground of absence of prejudice. The arrest and all subsequent remand orders were declared illegal, and Tejwani was directed to be released on a Rs 50,000 bond, subject to conditions.

Third arrest also ruled illegal

A similar view was taken in the third petition, where Tejwani was arrested after being transferred from custody in another case. The court held that mere intimation of arrest to a nominated person was insufficient in such circumstances.

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It observed that the violations began with a “perfunctory” notice under Section 35(3) and continued with failure to properly communicate grounds of arrest during the transfer of custody. Holding the arrest and detention “wholly illegal”, the court again ordered her release on a Rs 50,000 bond with conditions.

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