RADHIKA ANIL UPADHYAYA Vs. PRINCIPAL SECRETARY, HOME DEPARTMENT

JUDGEMENT

(1.) Since the legal issues in both the writ petitions are the same, although the facts are different to a limited extent, both the writ petitions are being decided by this common judgment.

(2.) The petitioner has filed both these habeas corpus writ petitions on behalf of her husband, Mr. Anil Karkala Upadhyaya ('detenu'), in order to challenge his arrest effected on 02-10-2020 by the Assistant Commissioner of Police, Control Room, Central Crime Station, Hyderabad, the respondent No. 4, in connection with Crime No. 92 of 2020, and Crime No. 93 of 2020 on the file of Central Crime Station, Hyderabad respectively, and also his judicial custody, as being arbitrary, illegal and violative of fundamental rights; consequently, the petitioner has prayed that her husband, the detenu should be set at liberty.

(3.) Briefly, the facts of the cases are that, the detenu is the Chief Executive Officer of M/s. Trillion Capital Private Limited, Mumbai; he is also an Agent/Relationship Manager of the stock broking firms, namely M/s. Manoj Javeri Stock Broking Private Limited, and M/s. Conard Securities Private Limited, Mumbai. He is arrayed as A-6 in Crime No. 92 of 2020, and as A-5 in Crime No. 93 of 2020. During the year 2017, the detenu approached Mr. Pradeep Yarlagaddam, the complainant, at Hyderabad, introduced himself as an expert in stock trading, and as one of the share holders of M/s. Conard Securities Pvt. Ltd., and M/s. Manoj Javeri Stock Broking Private Limited. He lured the complainant to invest in share trading through M/s. Manoj Javeri Stock Broking Pvt. Ltd. Thereafter, the detenu and the Directors of the said firms assured the complainant that he would receive high rate of returns over his investment. Believing the assurance of the detenu, in the month of September, 2019, the complainant, along with his family members, and others, opened Demat Accounts with different Client Codes (NSE Cash, NSE F & O). On various dates in the year 2017, the complainant and others, transferred an amount of Rs. 7.19 crores for the purpose of share trading. They also transferred Rs.1.55 crores on 03.09.2019. The monies were transferred to the accounts of M/s. Manoj Javeri Stock Broking Private Limited and M/s. Conard Securities Private Limited through their respective bank accounts at Hyderabad. Subsequently, in December, 2019, the complainant requested for redemption of the funds. As there was no response from the offenders, again on 25.01.2020, the complainant requested for withdrawal of the funds. After waiting till February, 2020, he had filed a complaint with National Stock Exchange. As a result, Mrs. Shika Hemang Shah, Director of M/s. Conard Securities Pvt. Ltd., called the complainant, and assured him that the withdrawal of payment would start from 10.07.2020. However, as there was no response, or communication from any of the accused persons, on 17.07.2020, the complainant approached the Economic Offences Wing, CCS, Hyderabad, and lodged a complaint. The complaints were registered on 05.08.2020 and investigation was taken up. During the course of investigation, it was elicited that the investments made by the victims, including the complainant, were diverted into personal accounts of the detenu, and other co-accused instead of investing in share market. In fact, M/s. Manoj Javeri Stock Broking Private Limited was declared as defaulter in 2017 itself by the Securities and Exchange Board of India, Mumbai. The detenu, claiming to be an Agent/Relationship Manager of the above mentioned companies, had induced hundreds of clients/investors to open share trading accounts with M/s. Manoj Javeri Stock Broking Private Limited, by sending fabricated trade statements through M/s. Trillion Capital and contract notes. Later on, he, along with other accused, diverted the funds and siphoned off the money of innocent investors. On credible information, on 02.10.2020, the respondent No. 4 along with his staff, arrested the detenu at Sahara Airport, Mumbai and brought him to Hyderabad. The Police produced the detenu before the XII Additional Chief Metropolitan Magistrate, Nampally, Hyderabad on 03.10.2020; he was remanded to judicial custody. Hence, both the writ petitions.