M.R.BHAT Vs. INDIA AWAKE FOR TRANSPARENCY

JUDGEMENT

(1.) These petitions are directed against the common order passed by the XXIII Additional City Civil and Sessions Judge, Special Judge, Bengaluru Urban District (CCH.24) dated 27.01.2020 in PCR.No.2/2018, PCR.No.3/2018 and PCR.No.4/2018, whereby summons are issued to the petitioners to face trial for the offences punishable under sections 409, 34 and 120-B of Indian Penal Code and section 13(1)(d) read with section 13(2) of the Prevention of Corruption Act, 1988.

(2.) The outline facts leading to the petitions are as follows:

(3.) These allegations were founded on the premise that the aforesaid three Companies (hereinafter referred to as "Transferor Companies") were owned by each other in such manner that 2 of the 3 Companies held 50% of the shares in the other i.e., Regal and Napean held 50% each of the shares of Vidya and similarly, Regal and Vidya each held 50% of the shares of Napean and further Vidya and Napean each held 50% of the shares of Regal. These three Companies had total assets of Rs.51,549.47 Crores. However, by taking advantage of their position as Directors, during 2010-2012, accused Nos.1 to 3 took away Rs.13,602 Crores of assets of the above three Companies by way of gifts and transferred the same to a Private Trust controlled by accused Nos.1 and 2. In respect of the remaining assets of Rs.31,342 Crores, it is alleged that accused persons conspired among themselves and merged the three Companies into fourth accused Company namely Hasham Investment and Trading Company Private Limited - a Company wholly owned by the Private Trust run by accused Nos.1 and 2 without any payment and through this device got control over the entire assets worth Rs.31,342 Crores belonging to the Transferor Companies of which they were the Directors. According to the complainant, the decision to seek the merger of Transferor companies attracted the offence under section 409 IPC and further all the accused persons having entered into a criminal conspiracy with a view to enrich accused Nos.1 to 3 of the huge assets belonging to the Transferor Companies which otherwise would have vested with the Union of India as bona vacantia or escheat have rendered themselves liable for prosecution for the above offences.