Judgment :-

S.B. Sinha, J.

1. Leave granted.

2. The State of Maharashtra is before us aggrieved by and dissatisfied with a judgment and order dated 3rd March, 2008 passed by a Division Bench of the High Court of Judicature at Bombay in Criminal Writ Petition No. 2333 of 2007 quashing a First Information Report ("FIR") lodged by the respondent No.2 herein at the Cuff Parade Police Station, Mumbai.

3. The first respondent is the Chairman-cum-Managing Director of M/s City Limouzines (India) Ltd. (hereinafter called and referred for the sake of brevity as, "the said Company"). He established the said Company. A scheme known as "Go/Vehicle on rental basis and earning by sitting at home" was floated. In terms of the said Scheme, assurances were given to the people for earning money in easy way. A public advertisement was also issued in a newspaper. They also issued pamphlets and thereby attracted huge investments. In terms of the said Scheme, Rs.97,907/- was to be invested in `rent a car scheme wherein agreement was executed inter alia providing that the car would be purchased in the name of investor but would be used by the Company on rent to others wherefor the investor would receive a sum of Rs.4,000/-per month for a period of five years. After 60 months, i.e., at the end of the agreement, the investor may take back his car in proper working condition. It was equally provided that an investor was entitled to inspect the vehicle given on lease/rent once in three months upon giving 15 days prior notice.

4. Clauses 4, 8, 10 and 15 of the said agreement read as under:

"4. Inspection: The Lessor is entitled to inspect the Vehicle given on Lease/rent once in 3 months by giving 15 days prior notice to the above stated address and inspect the vehicle at any of the offices of the Lessee in India.

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8. Buy Back: The Lessee will have the option at the discretion of the Lessor/registered owner to purchase the vehicle at a fair market value upon mutual consent after the expiry of the agreement. However, this buyback clause is not to be construed to be conferring any enforceable right on the Lessee but the first option to buy the car shall be that of the Lessee herein.

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10. Completion of contract: Upon successful completion of the terms of this agreement, the Lessor shall receive the leased Vehicle in proper working condition including the tyres and battery in good condition with normal wear and tear acceptable depending on the period of use.

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15. Issue of Preference Shares: The Lessee undertakes to issue redeemable Preference shares to the Lessor towards the margin money paid (excluding Insurance & RTO Charges) which will be held by the Lessor as security for the entire period of the validity of the agreement being 60 months from the date of issue to ensure smooth installment payments to the bank and the lease/hire charges to the Lessor."

5. The complainant - respondent No.2, pursuant to the said advertisement, invested a sum of Rs.97,907/-. Indisputably, he was paid Rs.4,000/-per month for a period of five years. However, despite demand, he was not given the car. He was, however, given three post-dated cheques of ABN Amro Bank amount to Rs. 25,000/-, Rs.20,000/-and Rs.10,000/- although he had asked for the said amount in cash.

6. In the said FIR, it was inter alia alleged:

"As mentioned above, Directors of the said Company in their office without listening anything from me, as per their own wishes making changes on the document of agreement, when I noticed that then I enquired about the same in more detail. It is transpired that the said company by showing false inducement about big return in various financial schemes and transferring the motor vehicle in the name of investor, till date has accepted deposits of crores of rupees under various schemes from 25000 investors. But I came to know that said company has purchased motor car only in the name of 500 investors.

All aspect of above mentioned schemes are in e