JAINAM KUMARPAL SHAH Vs. STATE OF GUJARAT

JUDGEMENT

(1.) This application is filed seeking bail under Section 439 of the Code of Criminal Procedure, 1973 in respect of the offences punishable under Sections 406 , 420 , 467 , 468 , 471 , 477 and 120-B of the Indian Penal Code for which FIR came to be registered at C.R. No.I-248 of 2016 with Vadaj Police Station.

(2.) The case against the applicant is substantially rested on the fact that they derived unlawful benefits from main accused Mr.Neeraj Kumarpal Shah in their respective accounts. It appears that the complainant C2R Consultancy Service which is a limited liability partnership firm had entered into the agreement with Neeraj Kumarpal Shah for executing Benami Transaction in the name of family members of said Neeraj Kumarpal Shah, as also other trusted farmers as the complainant knew that; not being an agriculturist, it would not be able to purchase the agricultural lands situated at Dholera. 2.1 The minutes of the meeting dated July 18, 2015 of the said LLP makes an interesting reading. The part of the minute relevant for the disposal of this petition is required to be referred to. "RESOLVED THAT as LLP cannot buy the agriculture land directly. Henceforth need to complete all the formalities from converting agricultural land into non agricultural land & taking NOC as well as clearance from an industrial zone. So, it is must to have our trusted farmer. Therefore the land should be brought under the name of Mr. Neeraj Kumarpal Shah and his other trusted farmers and his family members so that in future whatever compensation is given from the government to the farmers will ultimately be secured. A separate memorandum of understanding has to be executed between the LLP and Mr.Neeraj Kumarpal Shah (farmer) and his trusted farmers for which he is the sole authority by the LLP to sign and execute all required documents and deeds and also authorize to release the advance payments as and when required to the farmers by LLP as per MOU. It is also further discussed and noted that the tentative price of complete clear NA/NOC land including all the expenditures, government statutory payments and other relevant payments after which the net realized value would be minimum around Rs.3,500 per square meter. Agriculture land (survey number) official cost would be around Rs.600 per square meter." 2.2 The petitioner is not a party to the said transactions indicated in the minutes. What is emerging from the minutes is that main accused-brother of the petitioner was to carry out Benami Transactions as indicated above and what is required to be emphasized in the following text from the minutes : "FURTHER RESOLVED THAT all payments so far issued and withdrawn from LLP through its bank account and only authorized signatory designated partner for operating bank account at Kotak Mahindra is Mr.Neeraj Kumarpalbhai Shah shown and discussed entries till 30th June, 2015 first quarter of current financial year and the same have been ratified by all other partners including advance land payments to the Farmers, Urasattva and other project and stake related relevant payments." (emphasis supplied)

(3.) That entire entry till 30/06/2015, first quarter of the current financial year i.e. 2014-2015 has been ratified by all other partners. The payment of advances for the lands is also ratified. This would mean that there were certain land transactions in respect of which advance payment has been made before 30/06/2015.