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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
J.M.KHAZI
Hari Adurty, S/o Avsn Roa – Appellant
Versus
State Of Karnataka – Respondent
| Table of Content |
|---|
| 1. promotion of startup and investment details. (Para 1 , 2 , 13) |
| 2. arguments on maintainability and investment context. (Para 3 , 4) |
| 3. allegations of fraud and misappropriation. (Para 5 , 7 , 8 , 9) |
| 4. need for investigation due to prima facie evidence. (Para 10 , 14 , 15) |
| 5. rejection of petition to quash proceedings. (Para 16) |
ORDER :
J.M.KHAZI, J.
Petitioners who are arraigned as accused Nos.1 and 2 have filed this petition under Section 482 Cr.P.C, with a prayer to quash the criminal proceedings initiated against them in FIR No.230/2022 of HSR Layout P.S, on the file of III ACMM, Bengaluru, for the offences punishable under Sections 403, 406 and 420 of IPC.
2. In support of the petition, the petitioner has contended that petitioners promoted a start-up company by name M/s Fundscorner Fintech Solutions Private Ltd ('FCFSPL' for short) during the year 2019 and they are the promoter directors. They presented the business model to various investors and sought investment. However, they never promised any guaranteed returns immediately. Complainant claims to have invested ₹6.5 Crores and in this regard has entered into a agreement dated
-
30.10.2019. In March 2020, after few
The court held that allegations of fraud and misappropriation of funds in investment cases require a full-fledged investigation, underscoring that these are not purely civil matters but implicate cri....
Criminal proceedings ought not to be scuttled at the initial stage. Quashing of a complaint should rather be an exception and a rarity than an ordinary rule. Considering the allegations made in the c....
Allegations of dishonest misappropriation and breach of trust in contractual agreements can sustain criminal liability under IPC, irrespective of the civil nature of disputes.
Inducement to invest based on false assurances establishes liability under the relevant sections for offenses related to cheating.
The court established that the inherent power to quash FIRs under Section 482 Cr.P.C. should be exercised cautiously and only in rare cases where no cognizable offence is disclosed.
The court upheld the trial proceedings against the accused, confirming that substantial prima facie evidence supported the allegations of fraud and conspiratorial acts despite claims of settlements.
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