DHARMVIR SINGH Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioners have filed this Public Interest Litigation for order of enquiry against various financial companies working within the jurisdiction of this Bench.

(2.) THE petitioners pleaded in the petition that they are residents of Gwalior city and thousands of persons of various districts in the State of Madhya Pradesh, including Gwalior city, have been cheated by various finance companies because these companies under the garb of various schemes, used to receive deposits from the persons with a promise to pay the money back with higher return of interest from 15-20%. These companies used to receive monthly installments and they used to issue fixed deposit receipts to the persons with a promise to pay higher interest. For the aforesaid activities no prior permission has been taken by the companies from the Reserve Bank of India, Security Exchange Board of India or Registrar of the Companies or under the provisions of Madhya Pradesh Nikshepakon Ke Hiton Ka Sanrankshan Adhiniyam, 2000 (hereinafter referred to as the 'Act of 2000'). The companies adopted various fictitious methods on papers to show that actually they are in the business of purchasing and selling of cattles, purchasing and selling of plots, development of plots and other activities. In the name of the aforesaid schemes, the companies used to receive money from the citizens with a promise to pay the money back with higher interest. Actually, the companies are in the business of receiving deposits from the citizens.

(3.) AGAINST the order passed by the District Magistrate under Section 144 of the Criminal Procedure Code and further orders, some Companies filed writ petitions. Those writ petitions were dismissed by this Court after passing detailed order.