1. Both the sides are heard.

2. Both the appeals are filed under the provisions of Section 11 of the Maharashtra Protection of Interest of Depositors (In Financial Establishments) Act, 1999 (hereinafter referred to as "the Act") to challenge the order made by the learned Sessions Judge, Aurangabad in the proceeding pending before him. The application filed at Exhibit-99 by the Competent Authority from Aurangabad appointed under the Act in Special (MPID) Case No. 4 of 2016 is decided against the Appellants of both the proceedings. The case is filed for the offences punishable under Sections 420, 406 and 34 of the Indian Penal Code and also Sections 3 and 4 of the Act. Criminal Application No. 692 of 2018 is filed in Criminal Appeal No. 159 of 2018 by one Sudhir Deshpande, first informant, original Complainant for permission to intervene in the matter as he wants to oppose the proceeding. The same person has filed Criminal Application No. 1059 of 2018 for intervention in Criminal Appeal No. 188 of 2018.

3. The application at Exhibit-99 was filed by the Competent Authority under the provisions of Section 5(3) of the Act. The application is allowed and the learned Sessions Judge, who is appointed as Designated Court under the Act, has confirmed the order of attachment made by the State Government by issuing notification under the Act and further direction is given by the Designated Court to sell the property by name Vedant Hotel/Vits Hotel situated at Aurangabad by public auction and to deposit the sale proceeds of the same in the Court. By the same order some applications, which were at Exhibits-150 to 159 and 173 to 176, which were filed as objections to application filed at Exhibit-99, are rejected by the Designated Court.

4. The rival contentions and the relevant facts for the present purpose can be quoted as under:

(a) The complaint was filed by Sudhir Deshpande against Appellants, Ramesh Havele, wife of Ramesh Havele, by name Veena and others before the Judicial Magistrate First Class, Aurangabad for the aforesaid offences and it was referred for investigation by the Judicial Magistrate First Class under Section 156(3) of the Code of Criminal Procedure. Charge-sheet is filed in the said FIR and aforesaid number given to the special case, filed against the Appellants. This case is treated as a case filed under the Act and so it is before the Designated Court.

(b) It is the contention of Sudhir Deshpande, Complainant that he, his relatives and others had registered Vedant Hotel Private Limited Company in the year 1986 and the office was established at Aurangabad. The Registrar under the Companies Act gave permission to convert it into public company and public company came into existence in the year 1990. It was created for running star hotels and for promotion of tourism in Aurangabad. Accordingly, Vedant Hotel was opened in Aurangabad and the management was given to one reputed company from America viz. “Quality Inn.” The amount of more than Rs. 4.25 crores was invested by the Complainant and others. It is the contention that for some time the things were going on smoothly, but then the company started suffering huge losses and it was not able to repay the loan taken from many institutions. The hotel was then closed for many years and it was taken in possession by the bank, which had given loan. Due to that, the value of the shares in the market came down and there was a possibility of company going into liquidation.

(c) It is the case of the Complainant that Accused No. 1, Ramesh and his wife Veena approached him and represented to the Complainant that they would help Vedant Hotel Private Limited financially and they would also see that the investors get good returns. Proposal was given to transfer the company alongwith property to Dhanada Corporation Limited. It is contended that steps were then taken for revival of Vedant Hotel Limited Company and for its transfer to Dhanada Corporation and it was actually transferred.

(d