A. Gopal Reddy

1. These criminal petitions filed under Section 482 of the Code of Civil Procedure (for short “the Cr.P.C.,”) are placed before us for hearing in view of the reference order dt. 25-8-2009 passed by the learned single Judge of this Court to have an authoritative pronouncement on the issue “whether the accused can be compelled to undergo Brain Mapping and Lie-Detector (polygraph) tests pursuant to the order passed by the XIV Additional Chief Metropolitan Magistrate, Hyderabad dt. 9-7-2009 in Crl.M.P.No.1827/2009 in RC No.4(S)/2009/ CBI/HYD (later numbered as CC No.187/2009).

2. On the basis of a complaint lodged by Mrs. Leena Mangat W/o Nahar Singh against A-1, other directors, Auditors and others, to the Additional Director General of Police, CID, Hyderabad on 9-1-2009 stating that on seeing the performance of the company represented in and reflected through the balance sheet and with the belief that the representations made by the Chairman, the Managing Director and other Directors of M/s. Satyam Computer Services Limited (Ms.SCSL) to be true, she purchased 100 shares with her retirement benefits four years back for a total sum of Rs.19000/-; the value of the share of the company was at Rs.500/- in the market; on account of fudging of company accounts and manipulation of records showing incorrect and inflated figures in the balance sheet, the value of the shares of the company suddenly dropped causing financial loss to her and other shareholders, the CID, Andhra Pradesh, Hyderabad registered it as Cr.No.2/2009 on 9-1-2009 against A-1, Chairman of M/s. SCSL, Directors, Auditors and others under Sections 120-B, 420, 467, 471 and 477-A IPC. During the Course of Investigation, CID while deleting Section 406 IPC added Sections 409, 468 IPC in addition to Sec. 467 IPC.

3. On a request made by the Government of Andhra Pradesh by issuing a notification Dt.13-2-2009 under Section 6 of Delhi Special Police Establish Act, 1946 (for short “DSPE Act”) entrusting the investigation of the case to Central Bureau of Investigation (CBI), the Government of India issued notification dt. 16-2-2009 under Section 5 of DSPE Act, extending powers and jurisdiction of CBI to whole State of Andhra Pradesh and thereby accorded consent to the CBI for investigation of Cr.No.2/2009 registered by the CID Police Station, Hyderabad. Pursuant to the same, a crime vide RC No.4 (S)/2009/CBI/HYD was registered on 20-2-2009. On registering the case, CBI got the police custody of the accused and interrogated them.

4. After completing investigation, CBI laid the charge sheet against the accused for commission of offences punishable under Sections 120-B r/w 420,419, 467, 468, 471, 477A and 201 IPC during the period 2001 to 2008. It was alleged that during the period 2001-2008, the accused lured the innocent investors under deception into buying shares of M/s. SCSL by publishing false and inflated balance sheets projecting a healthy picture about M/s. SCSL, thereby caused wrongful loss to the investors and they sold their shares at opportune times in the open market and received wrongful gain for themselves. Some of the public sector banks suffered a wrongful loss for a total amount of Rs.10.13 crores, and Life Insurance Corporation of India alone has suffered a loss of Rs.950 crores. The whole fraud was designed and orchestrated by A-1 to A-3 and got the same implemented with the active connivance of A-7, A-8 and A-9. A-4 and A-5 have actively participated in the conspiracy by auditing the fudged balance sheets and certified the same and thereby connived with the other accused. A-6 has actively participated in the conspiracy by assisting A-1 and A-2 in reaping maximum benefit from this fraud and in rotating the funds amongst the companies. During the said period, the accused have manipulated the results of the company and have shown heavy profits and growth rate on par with the market conditions and thereby kept the share price artificially hi