MUMBAI, Oct. 6 -- The Bombay High Court recently imposed a Rs.1 lakh fine on the state government as compensation to a businessman who was allegedly illegally arrested by the police last year. The court on September 29 ruled that the authorities invoked non-bailable offences against the man without the approval of their superior officers. Vasantha Perampally Nayak moved the high court after his arrest on October 23, 2024, in connection with a financial dispute and was kept in custody for 20 days. Nayak and the complainant in the case are maternal cousins who, since 1999, have been engaged in the perfume oils business. They established a partnership firm in 2000, named M/s. Shri Raksha Fragrances. While Vasantha formally retired in August 2013, the first complainant, along with one Shyam Sundar Nayak, continued with the partnership business. However, the complainant approached the Economic Offences Wing in 2024, alleging misappropriation and cheating by Vasantha. Later, the enquiry was transferred to the Bandra Police Station, after which a case was registered against him for offences punishable under Sections 406 (criminal breach of trust), 420 (cheating), 465 (forgery), and 477A (falsification of accounts) with section 34 (acts done by several persons in furtherance of common intention) of the Indian Penal Code (IPC), which were punishable up to seven years or less. Nayak stated that the investigating officers later added Section 409 IPC (criminal breach of trust by public servant, banker, or agent) unilaterally, without permission from their superiors. He clarified that this case was done to avoid issuing a notice under Section 41A of the CrPC, which is mandatory for offences punishable up to seven years. The division bench of Justices Revati Mohite Dere and Sandesh Patil observed that the authorities have deliberately invoked Section 409 in the case, which "smacks of police high-handedness." Accordingly, the court directed the state to pay a compensation of Rs.1 lakh to Nayak within six weeks, to be recovered from the salaries of those responsible for his illegal arrest, and ordered a departmental enquiry with respect to his arrest within eight weeks....