IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF OCTOBER, 2019 BEFORE THE HON’BLE MR. JUSTICE K.N.PHANEENDRA CRIMINAL PETITION No.7125/2018 C/w CRIMINAL PETITION No.7127/2018 BETWEEN:
1. Srinivas Rao.P S/o Venkateshvarlu, Aged about 48 years, Agent of Maithri Plantation & Horticulture (P) Ltd., Kolar – Branch, Residing at No.26/3, 11th Cross, Kolar – District – 563 101.
Native off:
R/#1/236, Sundara Nagara, Singarayakonda Mandalam, Kandukooru Taluku, Prakasham District, Andrapradesh – 523 101.
2. V.Muniraju S/o Venkatappa, Aged about 41 years, R/#114, Ashok Nagar, 2nd Cross, Devanhalli Main Road, Vijayapura Town – 562135.
Bangalore Rural District … Petitioners (common in both the cases) (By Sri.Sudhakara Reddy G.S., Advocate) AND:
State by Mangalore North Police Station Rep by SPP, High Court Complex, Bengaluru – 560 001. ... Respondent (common in both the cases) (By Sri.Honnappa, HCGP) These Criminal Petitions are filed under Section 438 of Cr.P.C., praying to enlarge the petitioners on bail in the event of their arrest in Cr.No.31/2015 (Spl.C.C.No.67/2018) and in Cr.No.32/2015 (Spl.C.C.No.68/2018) respectively of Manglaore Police Station, Mangaluru City for the offence punishable under Sections 409, 420, 120-B of IPC and Section 9 of Karnataka Protection of Interest of Depositors in Financial Establishment Act, 2004.
These Criminal Petitions coming on for Orders, this day, the Court made the following:
O R D E R Heard the learned counsel for the petitioners and the learned HCGP for the first respondent-State. Perused the records.
2. The petitioners are arraigned as accused Nos.
7 and 8 in Cr.Nos.31/2015 and 32/2015 respectively of Mangalore Police Station, Mangaluru. It appears that a private complaints have been registered by different complainants before II Addl. Senior Civil Judge, Mangalore for the offence punishable under Section 420 of IPC along with other allied offences. The said complaints were referred to respondent police for investigation and report. The police have registered the aforesaid cases in Cr.Nos.31/2015 and 32/2015 respectively for the offence punishable under Sections 415, 417, 418, 419, 419, 420, 421, 422, 406, 409, 120-B read with Section 34 of IPC and Section 9 of Karnataka Protection of Interest of Depositors in Financial Establishment Act, 2004.
3. As could be seen from the charge sheet papers and the complaint averments, the main allegations against the accused Nos.1 to 5, are that they have formed a Company called M/s.Maitry Plantation and Horticulture Pvt. Ltd., at Ongola, Prakasham District, Andra Pradesh and they being the directors of the same, induced the public to invest money in their Company, assuring the investors that they would pay attractive interests and house sites to the investors on maturity of their amount invested. It is alleged that on such inducement, they had collected huge amount from the public depositor and they had also opened their branches in the Kerala and Karnataka State. But later, accused Nos.1 to 5 did not pay the amount to the public depositors as promised despite several demands and instead used the said money collected from the public for their own use and closed all other offices and absconded.
4. On careful perusal of the final report submitted by the respondent police, accused Nos. 7 and 8 are the persons who were nominated by the accused No.2 and who was the Managing Director of the Company and accused Nos. 7 and 8 are in charge of Karnataka State and they represented the Company in the Karnataka State for the purpose of acquiring property and for allotting sites to the customers. But as could be seen from the reports there is nothing stated as to what is the exact role of these petitioners in committing the said crime. Whether they have involved in the said crime or not has to be established during the course of full-dressed trial.
5. Though Sections 120-B of IPC and Section 9 of Karnataka Protection of Interest of Depositors in Financial Establishment Act have been invoked by the respondent police, but as to how they attract to this crime has to be proved during full-fledged trial. Further it is seen from the records that accused No.4 who is also one of the director of the said Company has approached the Prl. District and Sessions Judge, D.K. Mangaluru in Crl.Mis.No.319/2019 and vide order dated 22.03.2019 he was released on bail on certain conditions.
6. Looking to the aforesaid facts and circumstances of the case, the role of the petitioners with regard to the said crime is yet to be established before the trial Court. As such, in my opinion, the petitioners/Accused Nos. 7 and 8 are also entitled to be enlarged on bail, hence, the following:
ORDER The petitions are allowed. Consequently, the petitioners shall be released on bail in the event of their arrest in Spl.C.C.No.67/2018 and Spl.C.C.No.68/2018 respectively arising of out Cr.Nos.31/2015 and 32/2015 respectively on the file of Prl. District and Sessions Judge at Mangalore for the offence punishable under Sections 409, 420, 120-B of IPC and Section 9 of Karnataka Protection of Interest of Depositors in Financial Establishment Act, 2004 subject to the following conditions:-
i) The petitioners shall surrender themselves before the Investigating Officer within Ten days from the date of receipt of a certified copy of this order and shall execute their personal bond for a sum of Rs.2,00,000/- each (Rupees Two Lakhs only) with two sureties for the like-sum to the satisfaction of the concerned Investigating Officer.
ii) The petitioners shall not indulge in hampering the investigation or tampering the prosecution witnesses.
iii) The petitioners shall co-operate with the Investigating Officer to complete the investigation, and they shall appear before the Investigating Officer as and when called for.
iv) The petitioners shall not leave the jurisdiction without prior permission of the I.O., till the charge sheet is filed or for a period of three months, whichever is earlier.
v) The petitioners shall mark their attendance once in fifteen days i.e., on any Sunday between 10.00 am and 5.00 pm., before the Investigating Officer for a period of two months or till the charge sheet is filed, whichever is earlier.
JS/-
Sd/- JUDGE