Agarwal is facing criminal charges for forgery, for allegedly preparing a bogus rubber stamp and forging the signature of the treasurer of the D-Kumud Nagar Cooperative Housing Society. Earlier, Principal Judge A S Aguiar of the Sessions Court had also rejected his bail plea with the observation that the charge of forgery stayed as documents produced before the bank by Agarwal for the purpose of the loan are forged documents.

Agarwal had applied to the Mangal Cooperative Bank Ltd, for a loan of Rs three lakh. He told the bank that he was a member of the D-Kumud Nagar Cooperative Society and owned a shop in the society. He offered security of this shop for the loan. The bank then requested that Agarwal obtaina No Objection Certificate (NOC) from the society and handed over a letter to him addressed to the society seeking its `no objection'.

However, Agarwal prepared a rubber stamp and printed a letter head of the D-Kumud Nagar Cooperative Housing Society and forged the signature of the treasurer, Mahendra C Shah, on a false NOC. The bank officials however found the certificate suspicious and checked the authenticity of the certificate. The society officials then informed the bank that it had not issued any NOC nor was Agarwal a member of the society. The bank then filed its criminal complaint in the Metropolitan Magistrate's court in Borivli, which forwarded the same to the Goregaon police station for investigation. The police then registered a case against Agarwal and sought to arrest him.

Holding that the anticipatory bail application did not involve any point of law, Justice Vishnu Sahai of the Bombay High Court rejected the application on Thursday.