MUNA PATRA @ PATRO Vs. STATE OF ODISHA

JUDGEMENT

(1.) The petitioner Muna Patra @ Patro has filed this application under section 439 of Code of Criminal Procedure seeking for bail in connection with E.O.W., Bhubaneswar P.S. Case No.10 of 2015 corresponding to C.T. Case No.13 of 2015 pending on the file of Presiding Officer, Designated Court, O.P.I.D. Act, Cuttack for offences punishable under sections 467, 468, 471, 420, 406 read with section 120-B of the Indian Penal Code and sections 4, 5 and 6 of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 (hereafter '1978 Act') and section 6 of the Odisha Protection of Interests of Depositors (in Financial Establishments) Act, 2011 (hereafter 'O.P.I.D. Act').

(2.) On 09.04.2015 one Jagdish Routa of village-Patigada under Polasara police station in the district of Ganjam lodged the first information report before the Superintendent of Police, Economic Offences Wing, Odisha, Bhubaneswar stating therein that he was working as Marketing Executive at Surat since 2010. The petitioner and others formed Oscar Group of Companies (hereafter 'the companies') consisting of M/s. Oscar Real Estate Pvt. Ltd., M/s. Oscar Management Services Ltd., M/s. Oscar Infra Development Ltd., Oscar Co-operative Ltd., Oscar Movies, Oscar Education Trust and other companies. One Pravash Chandra Rout was the Chairman -cum- Managing Director of the companies. It is further stated that out of these companies, M/s. Oscar Management Services Ltd., M/s. Oscar Infradevelopment Ltd. and Oscar Co-operative Ltd. were collecting deposits from public under various schemes since 2008, such as recurring deposits and fixed deposits by alluring them of higher rates of interest than that of prevailing bank rates through colourful brochures and other methods. Hefty commission was paid to the sales team for encouraging them to collect more and more deposits. The companies were operating from its branches in the States of Gujarat, Odisha and Maharashtra. The companies were not authorized by Reserve Bank of India to collect deposits from public and even not listed in any of the Stock Exchange of India. The companies collected crores and crores of rupees from public even though it had no such income to give such high rate of interest along with commission. It is further stated that the companies were paying money to the old depositors out of the collection made from the new depositors. After collecting the money, the companies transferred the amount to its sister concerns. Fake certificates were issued to the investors after receipt of money and ultimately the company officials shut down their offices and fled away. It is the case of the informant that he had deposited Rs.60,000/- (rupees sixty thousand only) as fixed deposits and Rs.1,40,000/- (rupees one lakh forty thousand only) in recurring deposits in his name and in the name of his family members and he was cheated by the companies and like him, thousand and thousand of persons have been cheated.

(3.) On receipt of the first information report, E.O.W., Bhubaneswar P.S. Case No.10 of 2015 was registered under sections 467, 468, 471, 420, 406, 120-B of the Indian Penal Code, sections 4, 5 and 6 of the 1978 Act and section 6 of the O.P.I.D. Act. Mr. Niranjan Behera, Inspector of Police, E.O.W., Bhubaneswar was entrusted with the investigation of the case. During course of investigation, it was found that the petitioner was one of the Directors of the companies and the registered office of the companies was situated in the IRC Village, Nayapalli, Bhubaneswar. The Directors were collecting huge amount of money from the general public by launching different schemes and assured the depositors to pay the double amount of the deposit. During the period from 2007 to April 2013, the companies collected Rs.230 crores from different depositors in the States of Odisha, Gujarat and Maharashtra by opening more than 150 branches alluring the investors of higher rates of interest than the Nationalized Bank and Financial Institutions. The employees of the companies after receipt of deposits were issuing certificates/bonds/money receipts under the signatures of the Directors of the companies even though they were not authorized to issue such certificates which were found to be forged. At the initial stage, the Directors paid interest to the old depositors from out of the money collected from the new investors. The companies were not registered with Reserve Bank of India as non-banking financial companies. The investors were mainly from labour class Odia people working in the States of Gujarat and Maharashtra who were duped by showing colourful leaflets and brochures. The investigation further revealed that the Directors of the companies diverted the funds collected from innocent public to purchase land, construction of buildings and they also established a +2 Science College at Kendrapara and produced some Odia movies. Numbers of important documents were seized and requisitions were issued to the banks for freezing the bank accounts of the companies and also to furnish bank statements with certificates. Requisitions were sent to the District Sub-Registrar, Khurda-Bhubaneswar and other districts not to allow any kind of sale/purchase, deed or power of attorney in respect of the properties which were standing in the names of the companies and its sister concerns.