SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Article Pause Article
judgment-img

2017 Supreme(Kar) 328

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
ANAND BYRAREDDY, J.
Naresh Balasubramaniam S/o Nadesha Pillai – Petitioner
Versus
State of Karnataka, Represented by Cyber Crime Police Station – Respondent
Criminal Petition No. 9308 of 2016
Decided On : 15-02-2017

Advocates Appeared:
For the Petitioner: Shri Shyam Sundar M.S.
For the Respondent: Shri Chetan Desai.

Headnote:CODE OF CRIMINAL PROCEDURE, 1973 – Section 482 – Quashing of charge-sheet – Allegations under Sections 66-D, 72-A of Information Technology Act (2000), Sections 406, 420, 419, 405, 417, 416 of IPC and Sections 4, 5 of Prize Chits and Money Circulation Scheme (Banning) Act, 1978 – Accused allegedly persuading victim to invest huge amount of money through agent to participate in multi-level marketing company having no permit to work in India – No evidence of nexus between accused, resident of Malaysia and agent in India – Laws of Money Circulation Scheme or Prize Chit not applicable to activities of multi-level marketing companies – Dispute is of civil nature – Charge-sheet was quashed.

ORDER :

1. This petition is filed in the following background:

Respondent no. 2 herein is said to have filed a complaint as on 22.6.2016, before the Cyber Crime Police station, CID Division, Bangalore, which is said to have been registered as Crime No. 66/2016 and the FIR is said to have been filed before the Court of the Additional Chief Metropolitan Magistrate, Bangalore.

The said second respondent is said to have alleged in her complaint that she is a resident of Bangalore. And that a year prior to the complaint, she had come into contact with one Shri Harsha Ramesh, who is said to have introduced himself as a representative of a large international, multi-level marketing company known as Q-Net Limited. She is said to have been persuaded by the said Ramesh to join a commission based network, which she could manage from her residence. She was said to have been lured with the promise of large profits by investing nominal amounts of money. She was required to purchase certain life-style items through internet transactions, apart from involving two others into the business which would trigger a chain of transactions and that she would receive commission on all sales so generated and that occurred subsequently.

The complainant was said to have been told that the Q-Net business in India was being conducted by M/s Vihaan Direct Selling (India) Pvt. Ltd. under one Karthik. She was thus persuaded to transfer a sum of Rs. 2.55 lakh by way of online transfer to a particular account number, said to have been provided by the said Ramesh, and is said to have handed over a sum of Rs. 55,000/- in cash. Prior to this she had been called to a hotel to meet two women executives of the said company, who are said to have attempted to explain the business model to her, and that she had been immediately unsure of the genuineness of the business. However, she was said to have been persuaded to pay the above amounts and also further amounts after raising a bank loan.

The complainant is then said to have been invited to a conference where the business was sought to be explained in greater detail. But, she claimed that she was even more doubtful of the soundness of the business and is said to have demanded a refund of all her money. But she is again said to have been persuaded to attend a very grand conference at Dubai, which was said to have been attended by over 10,000 people, with many celebrities gracing the occasion.

After returning from Dubai, it transpires that no one from Q-Net contacted her. She is then said to have learnt from an internet search that Q-Net was part of another group known as Q-1 and that the aforesaid Vihaan Direct Selling (India) Pvt. Ltd. was being controlled by Q-1, which was said to be located in Hongkong. And the complainant stated that she had discovered that the Q-Net group had earlier conducted its business in India in the name of Gold Quest International Pvt. Ltd. & Quest Net Enterprises Ltd., and that serious legal action is said to have been initiated by the Indian Government on account of shady business practices having come to light.

It was further stated that the Bangalore operations of the business were being controlled by one Suresh Timri and Srinivas Vanka, who were said to be actively defrauding people of large sums of money, by involving them in the said business.

It was further said to have been stated that the Mumbai police were investigating the business of the very same group. It was further stated that the website of the Q-Net group had been deliberately blocked by the Indian Government to prevent further fraud by the said entity and its personnel.

She had thus said to have sought criminal action against the aforesaid persons and entities. The police have accordingly registered the case against several individuals for offences punishable under Section 66-D and 72-A of the Information Technology Act, 2000 (Hereinafter referred to as ‘the IT Act’ for brevity) and under Sections 406, 420, 419, 405, 417 and 416 of




























Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
whatsapp-icon Back to top