C S AGARWAL Vs. STATE

JUDGEMENT

(1.) This petition has been filed for quashing of FIR No. 264/2009 dated 23rd December, 2009, registered with Economic Offences Wing under Section 420/406/120-B IPC.

(2.) The petitioner in association with one Mr. D.K. Jain had formed a Company in the name of M/s Rockman Projects Limited (hereinafter referred to as "RPL ") and the petitioner represented to respondent No. 3 that the petitioner controlled 250 acres of land in Gurgaon on Delhi-Jaipur Highway in Village Sidhrawali and for this land petitioner was having principal approval to develop a Special Economic Zone (SEZ). The petitioner showed a map of 250 acres of land/site and the principal approval letter received by the petitioner from Government of India for SEZ.

(3.) On the basis of this representation, the petitioner asked respondent No. 3 to invest in the project and it represented to the respondent that it had full authority to act on behalf of RPL and he had Board resolution in his favour to enter into a deal. The petitioner induced respondent to buy 74 per cent share in his Special Purpose Vehicle (SPV) for ' 185 crore and received an advance payment of ' 40.00 crore on behalf of RPL. It was represented to respondent No. 3 that RPL would transfer 250 acres of land owned and controlled by the petitioner to SPV when final SEZ notification from Government of India is received. A Memorandum of Understanding (MoU) was signed on 18th June, 2007 and advance payment of ' 40.00 crore was received by the petitioner in cheques. It was a condition that this advance payment of ' 40.00 crore would be refunded back to respondent No. 3 in case no SEZ notification was received by 31st December, 2008. A resolution signed by the petitioner and other Director Mr. D.K. Jain and land map of 250 acres signed by the petitioner was made part of the MoU. The petitioner received another amount of ' 3.00 crore from the respondent No. 3 towards this MoU. On 19th February, 2008 RPL also signed Shareholders ' Agreement with respondent No. 3 and an FDI investor Xander with the condition that Shareholders Agreement will come into effect only if the final SEZ notification was issued by 31st December, 2008. It was agreed that in case no SEZ notification comes into force by 31st December, 2008, either the amount of ' 43.00 crore invested by the respondent No. 3 would be refunded or the land of 250 acres would be transferred in the name of respondent No. 3 on receiving the balance amount of consideration as per MoU. However, not only that notification was not received by 31st December, 2008, but, a public notice was issued by Mr. D.K. Jain in the Times of India on 31st December, 2008 itself, i.e. the date for refunding back the amount to respondent No. 3, revoking all authority given to petitioner to act on behalf of RPL. In September, 2009, the petitioner had published his own public notice that RPL had 99 years lease agreement with D.K. Jain 's land owing company for 250 acres of land and also had an Agreement to Sell in his favour for the entire land which he claimed were signed much before entering into the deal with the respondents. When respondent No. 3 demanded back his amount of ' 43.00 crore, this was not given back. Thereafter respondent No. 3 learnt that the petitioner had made a false statement to respondent No. 3 in respect of land itself in order to cheat the petitioner and the petitioner had also mis-represented that amount of ' 43.00 crore given by the respondent No. 3 shall be utilized for acquiring land. This amount was siphoned off by the petitioner and Mr. D.K. Jain together.