IMPORTANT POINT
Bail – There is need to view economic offences having a deep-rooted conspiracy and involving a huge loss of investors’ money seriously.

JUDGMENT :

MOHAN M. SHANTANAGOUDAR, J.

CRIMINAL APPEAL NO. OF 2019

(@ SPECIAL LEAVE PETITION (CRIMINAL) NO. 120 OF 2019)

Leave granted.

2. This appeal by special leave has been filed by the Central Bureau of Investigation (“the CBI”) questioning the order dated 15.02.2018 granting bail to the Respondent passed by the High Court of Orissa at Cuttack in BLAPL No. 5748 of 2016.

3. In compliance with the order dated 09.05.2014 passed by this Court in Writ Petition (Civil) No. 401 of 2013 in Subrata Chattoraj v. Union of India, the CBI registered an FIR vide Case No. RC10(S)/2014CBI/SCB/Kol, dated 04.06.2014, against one Tower Infotech Ltd. (“the accused company”), and several persons in connection with the affairs of the company, including the Respondent Ramendu Chattopadhyay, the Chief Managing Director of the accused company, treating Baliapal PS (Dist. Balasore, Orissa) Case No. 85/2013 dated 15.05.2013 as the base FIR. The case of the CBI revolves around the allegation that all the accused conspired amongst themselves to run collective investment schemes in the name of the accused company; and by inducing the public to invest under these schemes with the allure of high returns, collected funds amounting to Rs. 255,91,00,541/, but did not repay the amount to the tune of Rs. 15,69,35,003/, thereby cheating the investors of such amount. During the course of investigation, it was prima facie established that the Respondent, the accused company, and one Ashis Chatterjee, a director in several companies under the Tower Group, were liable to be chargesheeted. Though material was also found against another director of the accused company, Ranjit Mullick, no further action was taken since he had expired by then. In pursuance of the above findings, a chargesheet was filed against the Respondent, and against Ashis Chatterjee and the accused company, under Section 120B read with Sections 420 and 409 of the Indian Penal Code (“the IPC”), and Sections 4 and 6 of the Prizes and Chit Money Circulation Scheme (Banning) Act, 1978. Further investigation under Section 173(8) of the Code of Criminal Procedure was kept open. The Respondent was arrested on 10.03.2016, before being released on bail by the impugned order. During the interregnum also, he was released on bail several times.

4. It is submitted by the CBI that the High Court granted bail to the Respondent without assigning any reason, and such grant of bail by the High Court is in question in this petition. Per contra, Shri Basanth, learned Senior Counsel for the Respondent argues in support of the impugned order by contending that the Respondent has not misused his liberty and has not come in the way of selling of company assets by the OneMan Committee constituted for the purpose. On the contrary, it is submitted that the Respondent is cooperating with the investigation agencies and the OneMan Committee.

5. The records prima facie reveal that the Respondent was the founding director of the accused company. He was a key decision-making authority of the company, and used to sign certificates issued to the investors and other important documents. He was also an authorised signatory of all bank accounts of the company and used to conduct agents’ meetings. As per the allegations, he used to mislead the agents by stating that the company had necessary permissions from the regulatory authorities to collect funds, and also used to project in the meetings that the returns paid by the accused company to its investors were higher than any other agency. As per the chargesheet, the accused company used to receive cash from the investors so that the Respondent, who used to receive cash directly from the company account frequently, without proper accounting, could easily siphon off the money.

6. The Respondent was granted interim bail by the High Court on 09.05.2017 in Misc. Case No. 738 of 2017 for three months, inter alia for the purpose of his cooperation with the authorities in liquidating the assets of th