PETITIONER Vs. RESPONDENT

JUDGEMENT

(1.) The petitioner/A1, who is alleged to have committed offences under Sections 4 of Prize Chits and Money Circulation Scheme (Banning) Act 1978, under Section 420 IPC and under Sec.5 of TNPID Act, 1997, and was arrested on 11.8.2011 with reference to Cr.No.R.C.No.12 (E) of 2011 on the file of the respondent police, seeks bail.

(2.) The case of the prosecution is that during 2008 -2009 at Tiruppur, the petitioner/A.1 along with his father/A.2 entered into a criminal conspiracy to collect deposits from the general public without specific approval from Reserve Bank of India on a false promise of Forex Trading but to indulge in circulation of money. In pursuance of the criminal conspiracy, on 2.7.2008, the petitioner/A.1 along with his father/A.2 floated a company by name M/s Paazee Forex Trading India Pvt Ltd as Managing Director and his father/A.2 and other accused as the Directors of the Company. They also floated two partnership firms by name M/s Paazee Trading Inc (A5) and M/s Paazee Marketing Company (A6), both represented and managed by its partners, A.1 to A.3.

(3.) This petitioner/A.1 along with his father/A.2 and A.3 fraudulently mobilised investments and deposits from the public and also promised that huge dividend/interest will be paid in very short duration on the deposits so collected and also issued cheques of various banks in that regard. Thereby the petitioner dishonestly made 52,893 persons to believe that the company/firms are engaged in Forex Trading activities and thereby collected to the tune of Rs.496,27,63,760/ - from the depositors during the year of 2009 under the schemes viz., Promotional scheme II, Anniversary, Adi Damaka and Festival offer and promised to repay Rs.1210,26,05,501, but repaid only 340,15,19,623/ - knowing fully well that they were not doing any business to generate such huge returns and thus created loss to the depositors to the tune of Rs.870,10,85,878/ -.