AJAY HILORI Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) The petitioner is before this Court calling in question order dtd. 9/9/2020 which accords sanction for prosecution under Sec. 197 of the Cr.P.C. and Sec. 170 of the Karnataka Police Act, 1963 in Crime No.RC-14(A)/2019 for offences punishable under Ss. 120B r/w Ss. 420 , 406 , 409 of the IPC and Sec. 9 of the Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004 ('the KPID Act' for short) and further sought quashment of supplementary charge sheet in Special C.C.No.1055 of 2019 naming the petitioner as an accused and arraigning him as accused No.26 for the aforesaid offences. He would further seek quashment of the order taking cognizance on the aforesaid supplementary charge sheet dtd. 6/11/2020. In all, the petitioner seeks obliteration of entire proceedings initiated against him in Special C.C.No.1055 of 2019.

(2.) Heard Sri Kushal Gowda, learned counsel for Sri R. Swaroop Anand, learned counsel appearing for the petitioner, Sri Mahesh Shetty, learned High Court Government Pleader appearing for respondent No.1 and Sri P.Prasanna Kumar, learned Special Public Prosecutor appearing for respondent No.2.

(3.) Facts, in brief, germane are as follows:- On 12/8/2016, the Assistant Manager of Reserve Bank of India ('RBI' for short) communicates to the Director General and Inspector General of Police an information received by him about acceptance of deposits by "I Monetary Advisory" and RBI conducted a micro inspection by visiting the office of the Company and had obtained certain documents, which prima facie indicated that the Company is operating various schemes by collection of deposits from the public unauthorisedly. This comes to be projected as IMA. On 8/9/2016, the aforesaid communication was treated as a complaint and the same was forwarded to the concerned to be investigated into the allegations. The matter is later entrusted to the Station House Officer of Commercial Street Police Station. The Commercial Street Police conducted investigation and submitted a report on 16/11/2016, pursuant to which several crimes against several were registered and the matters were pending consideration. After all the aforesaid events, from the date of communication of the RBI, till constitution of the State Level Coordination Committee for inquiring into IMA deposits on 23/12/2016, the petitioner was nowhere in the picture. On 1/1/2017, the petitioner takes charge as Deputy Commissioner of Police, East Bangalore. On 12/1/2017, the meeting of State Level Coordination Committee took place wherein, it was resolved that the Additional Commissioner of Police be directed to revisit the case being investigated by the Commercial Street Police. Accordingly, it was directed to re-open the case at the hands of the petitioner. The petitioner then issues a police notice under Sec. 41A of the Cr.P.C. on 22/2/2017, against the Assistant Manager, RBI referring to his complaint and calling upon him for investigation. Investigation is conducted and the petitioner sends a report on 16/5/2017 to the Commissioner of Police, Bengaluru regarding the inquiry conducted on IMA group. The Commissioner of Police then forwards the report to the Additional Commissioner of Police on 17/5/2017. All these allegations/cases were entrusted to the CID and from the hands of the CID to the CBI. Insofar as the petitioner is concerned, the facts would run as follows: