LAKSHMAN SRINIVASAN Vs. REPUBLIC OF INDIA

JUDGEMENT

(1.) This is an application U/S. 439 of Cr.P.C. by the Petitioner for grant of bail in connection with FIR No. RC. 30/S/2014-Kol. corresponding to T.R. Case No. 03 of 2023 pending in the Court of learned Special Judge (CBI) Court No.I-cum-Additional Sessions Judge, Bhubaneswar for commission of offence punishable U/Ss. 409/411/414/420/471/120-B/34 of IPC read with Ss. 4, 5 and 6 of the Prize Chits and Money Circulation Scheme (Banning) Act, 1978 (in short, 'the Act').

(2.) The allegations against the petitioner arise out of an FIR lodged by one Ashok Kumar Panda (ASI of Police) in Baliapal FIR No. 82 dtd. 14/5/2013 for commission of offence punishable U/Ss.420/120-B/34 of IPC read with Ss. 4, 5 and 6 of the Act stating therein that one company namely, Infinity Realcon Limited (in short, 'IRL') is not being listed with Reserve Bank of India as a Non-Banking Financial Company having its registered office at 176, A.J.C.Road, 4th Floor Kolkata was engaged in collecting public deposits throughout Orissa by accepting fixed deposits and other deposits in the shape of RD scheme (APS) by alluring depositors with promise of high rate of interest and the company was run by Board of Directors. Mr.Pranab Mukherjee as CMD, Mrs. Sarbari Mukherjee, Mr.Prabir Mukherjee and Mr.Soumen Mallick as Directors and Mr.Ganesh Kar Branch Manager of Baliapal Branch and the company was giving 5.3% to 15.80% of the deposit as a commission to its agents which was economically not feasible and it was paying to the old depositors from the money collected from the new depositors and thereby, cheating the general public and the Board of Directors of the Company were actively involved in such cheating. On the basis of this FIR, the investigation ensued, but subsequently in obedience to the direction of the Apex Court passed in Writ Petition (Civil) No. 401 of 2013 and Writ Petition (Civil) No. 413 of 2013, C.B.I. took up the case by registering it as RC No. 30/S/2014-Kol. Accordingly, on 31/12/2016, CBI filed first charge sheet against Pranab Mukherjee, CMD and Prabir Kumar Mukherjee and Soumen Mallick, both Directors and the accused company namely, M/s. IRL for offence U/Ss. 120-B read with 409/420 of IPC and Ss. 4, 5 and 6 of the Act, but kept the investigation open U/s. 173(8) of Cr.P.C. considering the larger criminal conspiracy and monetary trail of regulatory authorities and others. In the course of investigation, it was also alleged that accused company M/s. IRL raised funds from the public under FD, RD, MIS etc. in the garb of secured debentures, preference shares and towards product advance and it was found from Form-2 (Return of Allotment) filed by the accused company showing issue of preference shares of Rs.19,81,55,380.00 and number of persons/allottee to be 25,326 which is above 49, but as per Sec. 67(3) of Companies Act, 1956 since offer was to more than 49 persons, the provision of public issue would have applied and thereby, the company was alleged for illegal money collection business. Since there was public outcry with respect to illegal activities of chit fund companies, the accused company by end of year 2012 tried to change its face and got two Multi State Credit Co-operative Societies formed in the name of M/S. Golden Multi State Credit Co-operative Society (in short, M/S. Golden Society) and M/S. Pride Multi State Credit Co-operative Society (in short, M/S. Pride Society) with the help of highly qualified professionals such as petitioner and another and it was found in investigation that the petitioner was the founder Chairman of M/S. Golden Society which was registered with Central Registrar of Co-operative Societies and got the permission to operate in four states namely, Assam, Bihar, Jharkhand and West Bengal and initially 213 persons were shown to be the members of the society and the petitioner also associated his family members in the affairs of the society. The petitioner also handed over the management to the CMD and others of M/S. IRL on papers by electing them as new members and Directors of the society and subsequently, the CMD M/s. IRL increased the area of operation from four to twelve states. Since M/s. IRL could not do any business in the name of M/s. Golden Society, it again formed a new society in the name of M/s. Pride Society through the petitioner and got permission to operate in sixteen states throughout the country including the State of Orissa and accordingly, the agreed amount of Rs.4.15 crores was paid to the petitioner and his companies in later stage in between September, 2012 to July, 2013, out of which, the petitioner received Rs.3.00 crores in his personal account and M/s. Pride Society collected near about 8.74 crores approximately from 40 branches of different States. Finding the involvement of the petitioner in this way, the CBI arrested the petitioner on 26/9/2022 and later on produced before the Court. Accordingly, a supplementary charge sheet was filed against the petitioner for offence U/Ss. 411/414/471/120-B read with Sec. 420/409 of IPC and 4, 5 and 6 of the Act. The petitioner, however, has unsuccessfully moved an application for bail before the learned Special Judge, C.B.I., Bhubaneswar on 20/2/2023.

(3.) In the course of haring of bail application, Mr.Milan Kanungo, learned Senior Counsel appearing for the petitioner has submitted that the petitioner is a law abiding citizen and he has cooperated the entire investigation, but all of a sudden without explaining any grounds, the CBI arrested the petitioner on 26. 09.2022 and three others and produced them before the learned C.J.M. (CBI), Bhubaneswar by taking transit remand from A.C.J.M., Bidhannagar Kolkota. It is further submitted that in the meanwhile after completion of investigation on 21/1/2023, the CBI submitted charge sheet against the petitioner, but his application for bail was rejected by the learned Special Judge, C.B.I., Bhubaneswar without any justification, since no case U/Ss. 409/411/414 of IPC is made out against the petitioner. It is further submitted that the petitioner was neither the Director nor an employee of the company and he is no way connected with the day-today operation of business of accused company M/S. IRL and the petitioner even was also not named in the FIR. It is also submitted that Sec. 409 of IPC has been incorporated against the petitioner only to prevent him from taking benefit of notice U/S. 41(A) of the Cr.P.C. On the above grounds, learned Senior Counsel prays to grant bail to the petitioner.