ANAND RATHI Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) The petitioners/accused 1 to 11 are before this Court calling in question an order dtd. 19/12/2022 passed by the I Additional Chief Metropolitan Magistrate, Bengaluru in Crime No.32 of 2017 rejecting 'B' report and taking of cognizance of the offences punishable under Ss. 120B, 403, 406, 409, 410, 420, 468, 471 r/w Sec. 34 of the IPC.

(2.) Heard Sri Sandesh J.Chouta, learned senior counsel appearing for the petitioners, Sri B.N. Jagadeesha, learned Additional State Public Prosecutor appearing for respondent No.1 and Sri Vishwanath Pujari, respondent No.2 - party in-person.

(3.) Facts, in brief, germane are as follows:- The 2nd respondent/complainant is an investor in Anand Rathi Shares and Stock Brokers Limited ('ARSSBL' for short) which is into the business of stock broking. The said Company is under the control of the petitioners who are either in management positions or as employees. The complainant is said to be a seasoned investor and actively trading in securities at the stock exchange platform. The complainant is said to have invested certain amount in stocks through ARSSBL/petitioners. A loan against shares agreement is entered into between the 2nd respondent and the petitioners/ARSSBL or Anand Rathi Global Finance Limited. The 2nd respondent is said to have defaulted in clearing the loan after about 4 years of his securing the loan. The 2nd respondent is said to have been informed that his stocks which are held as security would be liquidated. Accordingly, an amount of Rs.1,04,05,222.10 is sought to be liquidated.