TRIBHUVAN RAJ BHANDARI Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) Complainant-petitioner has laid this misc. petition under Sec. 482 Crimial P.C. seeking necessary directions against investigating agency to conduct fair and impartial investigation into FIR No.580/2013, registered at Police Station Mahamandir, Jodhpur. Alternatively, it is prayed that investigation may be transferred to CBI.

(2.) In a nutshell, the facts of the case are that, on 09.10.2013, petitioner-complainant filed a criminal complaint before Additional Chief Judicial Magistrate No.3, Jodhpur (for short, 'learned trial Court') against twenty-nine persons without disclosing identity of anyone of them. In the complaint, Dr. A.C. Muthiya, Chairman of M/s. First Leasing Company of India Ltd. (for short, 'Company'), was arrayed as accused No.1 besides other accused persons. The apposite facts averred in the complaint are as follows:

(3.) It is averred in the complaint that the Company is a public limited company, incorporated under the Companies Act, enjoying status of Non-Banking Financial Institution (NBFI) under Sec. 45-IA of the Reserve Bank of India Act, 1934. A Memorandum of Association (MOA) of the Company, dilating the basic aims and objects of the Company by its promoters, essentially highlighting its leasing and hire purchase business, which includes machinery, equipments, motor-vehicles, houses, cinema theatres, livestock, ships, aeroplanes etc. so also their resale and other ancillary business thereto. That apart, the MOA also projected the aims and objects of the Company for production of electric energy, transmission, sale, supply, distribution and other ancillary projects. A fact is also incorporated in the MOA that shares of the Company are enlisted with Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) and any investor can purchase and sale shares of Company in open market. Being enlisted company with BSE and NSE, it has sufficiently demonstrated general reputation of the Company in public at large. The complainant has also furnished details about eleven Directors including the Chairman in the complaint and also made an attempt to refer Sec. 217 of the Companies Act for showing their obligations as Directors of the Company. That apart, the individuals named in the complaint with their respective status in the Company and their legal obligations are also incorporated in the complaint. While adverting to culpability of the accused-persons, it is specifically averred in the complaint that those in helm of affairs of the Company and its auditors projected its lucrative financial status vis-a-vis other companies by citing its gross total NPA level as 2% at above 7% (Banks and NBFCs) and vis-a-vis Company's gross NPA at 0.5%. With this booming financial status, it is also averred in the complaint that Company has availed credit facility from 14 banks to the tune of Rs. 1200 crores. The complaint further unfolds that those in helm of affairs of the Company, by projecting embellished version of its financial status, accumulated a huge amount to the tune of Rs. 1500 crores from different sources; viz., public and right issue of shares, loan instruments (debentures) etc. In order to attract and induce the investors, the persons in helm of affairs of the Company, also indicated the value of the shares over and above its intrinsic value periodically. The requisite figures from year 1974 to 2010 are also mentioned in the complaint in ascending orders. The complainant has specifically pleaded that all the figures showing share value of the Company in ascending order were manipulated and maneuvered by the Directors of the Company and, those who are in helm of affairs of the Company while camouflaging the actual value of share which was far below. As per version of the complainant, entire record including Balance-sheets, Profit and Loss Accounts, reports of Board of Directors, flow of funds, declaration of dividends, ratings and track record were tampered with and manipulated for showing pseudo progress and enhancement in its capital. This sort of situation allured the investors to make maximum investment in the Company for deriving future profits.