Magistrate Directs Malwani Police to Investigate Allegations of Company Data Theft and Rs. 1.65 Crore Loss
Mumbai, September 19, 2025: In a significant ruling, the Additional Chief Judicial Magistrate’s Court in Borivali has directed the Malwani Police Station to launch a formal investigation into a former Sales Manager accused of stealing sensitive company data, misappropriating funds, and criminal intimidation, causing alleged losses of over Rs. 1.65 crore to his former employer.
The court, presided over by Magistrate B.N. Chikne, found sufficient grounds in the complaint filed by Shailendra Harishchandra Bhagat to disclose cognizable offenses under the new Bharatiya Nyaya Sanhita (BNS).
Background of the Case
The case stems from a complaint filed by Shailendra Bhagat against his former employee, Harish Mohanlal Sethiya. According to the application, Sethiya was working as a Sales Manager in Bhagat’s company and had access to a wide range of sensitive company data in both virtual and physical formats.
The dispute began on February 3, 2024, when the respondent allegedly left the company without prior notice, taking the company’s confidential database and vital information with him. The complainant alleged that the former manager is now illegally sharing this proprietary data with other companies.
Furthermore, the applicant accused Sethiya of dishonestly withholding Rs. 42,000 that belonged to the company, thereby committing criminal breach of trust. The complaint also included allegations of criminal intimidation, stating that the respondent threatened the applicant with dire consequences.
Advocate Dwivendra Dubey who appeared for the Complainant pleaded before the Court that Sethiya was working as a Sales Manager in his Client’s company and had access to a wide range of sensitive company data in both virtual and physical formats which Sethiya not only misused but also shared it illegal by which the Complainant had to suffer a huge loss of 1.65 Crore.
The Court’s Order and Rationale
After perusing the application and the police report, the court heard the arguments from the applicant’s lawyer. The magistrate concluded that the complaint disclosed offenses punishable under Sections 314, 316(1), 318(1), and 351(1) of the BNS, which relate to criminal breach of trust, misappropriation of property, and criminal intimidation.
Given the disclosure of cognizable offenses—serious crimes where police can arrest without a warrant—the court held that a police investigation was necessary to ascertain the full facts of the case.
Conclusion and Directives
In its final order, the court:
- Allowed the application filed by Shailendra Bhagat.
- Directed the Officer-in-Charge of Malwani Police Station to investigate the matter thoroughly under Section 175(3) of the Bharatiya Nagarik Suraksha Sanhita (BNSS) and submit a final report to the court.
- Ordered that the complaint and all related documents be forwarded to the Malwani police for necessary action.
With this directive, the court has set the stage for a formal police probe into the alleged corporate espionage and financial fraud, marking a critical step for the complainant in seeking legal recourse. The case highlights the growing legal challenges surrounding data theft and employee misconduct in the corporate world.
Case Title: Shailendra Harishchandra Bhagat vs. Harish Mohanlal Sethiya
Case Number: C. C. No.2135/M/2024
For Complainant: Dwivendra Dubey, Advocate
For State: Public Prosecutor
Court: Addl. Chief Judicial Magistrate, 24th Court, Borivali, Mumbai.