IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27TH DAY OF OCTOBER 2017 BEFORE THE HON'BLE MR. JUSTICE BUDIHAL R.B.
CRIMINAL PETITION NO.7307/2017 c/w.
CRIMINAL PETITION Nos.7308/2017, 7309/2017 AND 7310/2017 IN CRIMINAL PETITION NOS.7307-7309/2017 BETWEEN:
1. Mahesh S S/o Srinivasmurthy Aged about 39 years Occ: Managing Director M/s Prasiddhi Chits Funds (Pvt) Ltd. No.19, “Asheerwad”
4th Cross, Sampige Road Malleshwaram Bengaluru-560 003.
2. Nirupa Mahesh W/o Mahesh Aged about 34 years Occ: Director M/s Prasiddhi Chits Funds (Pvt) Ltd. No.19, “Asheerwad”
4th Cross, Sampige Road Malleshwaram Bengaluru-560 003.
3. Hemalatha W/o Anjaneyalu Aged about 43 years Occ: Finance Manager M/s Prasiddhi Chits Funds (Pvt) Ltd. No.19, “Asheerwad”
4th Cross, Sampige Road Malleshwaram Bengaluru-560 003. .. COMMON PETITIONERS (By Sri Chandramouli H S, Adv.) AND:
The State of Karnataka By the police of Malleshwaram Police Station Bengaluru-560 003.
Represented by the State Public Prosecutor High Court of Karnataka Bengaluru-560 001. .. COMMON RESPONDENT (By Sri Chetan Desai, HCGP) Criminal petition No.7307/2017 is filed under Section under Section 438 of Cr.P.C. praying to enlarge the petitioner on bail in the event of their arrest in Cr. No.96/2017 of Malleshwaram P.S., Bangalore for the offence punishable under Section 420 read with Section 34 of IPC.
Criminal petition No.7308/2017 is filed under Section under Section 438 of Cr.P.C. praying to enlarge the petitioner on bail in the event of their arrest in Cr. No.97/2017 of Malleshwaram P.S., Bangalore for the offence punishable under Section 420 read with Section 34 of IPC.
Criminal petition No.7309/2017 is filed under Section under Section 438 of Cr.P.C. praying to enlarge the petitioner on bail in the event of their arrest in Cr. No.100/2017 of Malleshwaram P.S., Bangalore for the offence punishable under Section 420 read with Section 34 of IPC.
IN CRIMINAL PETITION No.7310/2017 BETWEEN:
1. Mahesh S S/o Srinivasmurthy Aged about 39 years Occ: Managing Director M/s Prasiddhi Chits Funds (Pvt) Ltd. No.19, “Asheerwad”
4th Cross, Sampige Road Malleshwaram Bengaluru-560 003.
2. Nirupa Mahesh W/o Mahesh Aged about 34 years Occ: Director M/s Prasiddhi Chits Funds (Pvt) Ltd. No.19, “Asheerwad”
4th Cross, Sampige Road Malleshwaram Bengaluru-560 003. ..PETITIONERS (By Sri Chandramouli H S, Adv.) AND:
The State of Karnataka By the police of Malleshwaram Police Station Bengaluru-560 003.
Represented by the State Public Prosecutor High Court of Karnataka Bengaluru-560 001. ..RESPONDENT (By Sri Chetan Desai, HCGP) This criminal petition is filed under Section under Section 438 of Cr.P.C. praying to enlarge the petitioner on bail in the event of their arrest in Cr. No.120/2017 of Malleshwaram P.S., Bangalore for the offence punishable under Section 420 read with Section 34 of IPC.
These petitions coming on for Orders this day, the Court made the following :
ORDER Learned Counsel for the petitioners in Crl.P. No.7307/2017 has filed a memo seeking permission of this Court to withdraw the petition as against petitioner No.3, since petitioner No.3 has already been arrested and hence the petition against petitioner No.3 becomes infructuous. The memo is placed on record.
2. Since all the above four petitions are filed by the common petitioners and the alleged offences in all the four petitions are under Section 420 read with Section 34 of IPC and the common facts are involved in all the petitions, they are taken up together to dispose of the same by this common order in order to avoid repetition of discussion regarding the factual as well as the legal aspects.
3. All the above petitions are filed by the respective petitioners under section 438 of Cr.P.C. praying to enlarge them on bail in the event of their arrest in Cr. Nos.96/2017, 97/2017, 100/2017 and 120/2017 respectively of Malleshwaram P.S., Bangalore for the offence punishable under Section 420 read with Section 34 of IPC.
4. Brief facts of the case of prosecution are that the complainant was introduced to M/s. Prasiddhi Chits Funds (Pvt.) Ltd. through one of his known friends as the company had widely advertised that it is serving the community in cultivating saving habits through chit groups and helping them to meet their financial needs from the year 2005. It is stated that, the complainant met one Mr. Mohan in the Company and he persuaded the complainant in such a way that the complainant’s amount would be secured by investing in M/s Prasiddhi Chits Funds (Pvt) Ltd., and would be benefited with it. It is stated that, Mr. Mohan persuaded the complainant to visit their office and meet the Directors of their Company. Thereafter, the complainant met the Directors i.e. Mr. Mahesh Prasiddhi, Mrs. Nirupa Mahesh and Mrs. Hemalatha, their Finance manager and Mrs. Rashmi Gowda, Assistant Finance Manager and they convinced the complainant that he will grow rich by securing his amount and also that it is the safest chit in entire Karnataka which has been approved by the Government. Believing their words, the complainant was left with no other options but to enroll himself in the above chit group, enrolled himself in two chits, one of Rs.5.00 lakhs for which enrolment number of one chit as per the Company records is MFL-18. Initially, the complainant was paying Rs.20,000/- per month towards the chit and till today as per the company records the complainant has paid Rs.4,52,000/- and the other chit was of Rs.1.00 lakh for which the enrolment number as per the Company records is POL-2. The complainant was initially paying Rs.4,000/- per month towards this chit and till today as per the Company records, the complainant had bid both the chit amount in the month of November 2016 and the Finance Manager Mrs. Hemalatha requested him to collect the entire amount on 30.12.2016. However, as per the records, the company is due to pay the complainant as sum of Rs.4,12,000/-. In spite of requesting the petitioners to make payments, they were evading payments by giving one or the other reason. Mr. Mohan and few other staff of the Company manhandled the complainant and other members stating that the company Directors have all invested all the chit amount in Real Estate and have no money to pay. On the basis of the said complaint, the case was registered by the respondent police.
5. I have heard the arguments of learned Counsel appearing for the petitioners-accused in all the cases and the learned High Court Government Pleader appearing for the respondent-State.
6. Learned Counsel for the petitioners made submission that the only allegation in the complaint in all the cases is that the money deposited by the complainants is not repaid to them. The learned Counsel submitted that there is no allegation of fabrication of documents, etc. The reason for nonpayment of money is demonetisation which affected financial capacity of the company. Some of the subscribers have not paid the amount to the company regularly as per the time schedule. Now steps have been taken by the company to recover the money from the subscribers. The company has already deposited Rs.85.00 lakh and it is making its sincere efforts to repay amount to all the depositors.
So far as the petitioners in Cr. No.98/2017 are concerned, the learned Counsel submitted that the learned Sessions Judge has already granted anticipatory bail. But when the other matters of the same petitioners were moved before another Judge, the said matters came to be rejected. Though anticipatory bail is granted by learned Sessions Judge in respect of Cr. No.98/2017, these petitioners are still under apprehension that they may be arrested. Hence by imposing reasonable conditions, the petitioners may be granted bail. The learned Counsel further submitted that the petitioners will cooperate with the investigating officer and they are ready to produce any document sought by the investigating officer.
7. Per contra, learned HCGP made submission that public money is collected by the petitioners herein. The amount which not repaid is the huge amount. Therefore, they have cheated the public. Hence, the petitioners are not entitled to be released on anticipatory bail.
8. I have perused the averments made in the bail petition, FIR, complaint and the other materials on record. I have also perused the order passed by the Sessions Judge rejecting bail applications. I have further perused the document produced today by the learned Counsel for the petitioners informing that the amount of Rs.85.00 lakh has been deposited with the Registrar of Chits and the amount is safe.
9. The averments in the complaint would show that when the complainants requested the directors of the company for repayment of the amount, it was not repaid to them. The allegation in the complaint is regarding non payment of chit fund to the depositors. Looking to the grounds urged in the petitions, it is said that the subscribers have not paid the amount as per time schedule and another reason is demonitisation which had affected the financial position of the company. Therefore, the company was not in a position to repay money in time. During the course of hearing of the parties, learned Counsel for the petitioners made submission to the Court that since efforts are being made to collect the amount from the subscribers of the chit of the company and the company will see that the amount will be disbursed to the depositors without fail. Learned Counsel for the petitioners has also produced the document to show the sincerity of the petitioners in the matter of making arrangement of repayment of the said amount to the depositors.
10. Petitioners have been already granted bail by the learned Sessions Judge in crime No.98/2017. The Sessions Judge has already considered the merits of the case. In so far as the other petitions, which were moved before another Judge, the same came to be rejected. By imposing reasonable conditions, the present petitions can be allowed.
11. Therefore, In view of the aforesaid memo filed by learned Counsel for the petitioners in Crl.P. No.7307/2017, the Crl.P. against petitioner No.3 is disposed of as withdrawn. Crl.P. No.7307/2017 in respect of other petitioners is allowed and Crl.P. Nos.7308/2017, 7309/2017 and 7310/2017 are also allowed.
The respondent-police are directed to enlarge the petitioners on bail in the event of their arrest for the alleged offences punishable under Section 420 read with Section 34 of IPC registered in respondent Police Station Crime Nos.96/2017, 97/2017, 100/2017 and 120/2017, subject to the following conditions:
i. Each petitioner shall execute a personal bond for a sum of Rs.2,00,000/- and shall furnish one solvent surety for the likesum to the satisfaction of the arresting authority.
ii. Petitioners shall not tamper with any of the prosecution witnesses, directly or indirectly.
iii. Petitioners shall appear before the concerned investigating agency within one month and till completion of investigation, they shall cooperate with the investigating agency by producing necessary documents sought by the investigating agency.
iv. Petitioners shall appear before the concerned Court within 30 days from the date of this order and to execute the personal bond and the surety bond.
Cs/-
Sd/- JUDGE