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IN THE HIGH COURT OF JUDICATURE AT CALCUTTA
MADHUMATI MITRA, J.
Rajeev Kumar - Petitioner
Versus
Central Bureau of Investigation (CBI) & Another - Respondent
C.R.R.No.1308 of 2019 with CRAN.No.2331 of 2019
Decided On : 13-09-2019
Section 482 - Inherent Power - Criminal Proceedings - Summary
Fact of the Case:
The petitioner, an Additional Director General of Police, sought to quash criminal proceedings against him under Sections 120B/420/406/409 of the Indian Penal Code and Sections 416 of the Prize Chits and Money Circulation Scheme (Banning) Act, 1978. The proceedings were related to a chit fund scam in West Bengal. The petitioner claimed that he had cooperated with the investigation and was not named in any FIR or charge-sheet.
Finding of the Court:
The court found that the petitioner had been thoroughly interrogated by the Central Bureau of Investigation (C.B.I.) and had responded to each query truthfully. The court also noted that the petitioner had taken various pleas to avoid interrogation by the C.B.I. The court dismissed the petitioner's application under Section 482 of the Code of Criminal Procedure, stating that the relief sought for was not tenable in law and that the petitioner had no locus standi to pray for quashing of the criminal proceedings.
Ratio Decidendi: The court held that the relief sought by the petitioner was not permissible in law and that the investigation of a cognizable offence is a statutory right of the police. The court also noted that the petitioner's claim of being targeted and singled out was not substantiated.
Final Decision: The application under Section 482 of the Code of Criminal Procedure was dismissed, and the interim order was vacated. The court also dismissed the petitioner's application under CRAN 2331 of 2019.
JUDGMENT :
MADHUMATI MITRA, J.
1. The petitioner is Additional Director General of Police, C.I.D., West Bengal. He has approached this Court with a prayer to invoke the inherent power as envisaged in Section 482 of the Code of Criminal Procedure to have the proceedings of Case No.RC-04(S)2014 under Section 120B/420/406/409 of the Indian Penal Code and Sections 416 of the Prize Chits and Money Circulation Scheme (Banning) Act, 1978, pending before the Court of Learned Judge Special Court, C.B.I., Barasat, North 24 Parganas, quashed so far he is concerned. (Qua Petitioner). The factual matrix therefore, would thus be relevant in the matter of assessment of the situation as to whether the relief/reliefs sought for by the petitioner is/are available under the provisions contained in Section 482 of the Code of Criminal Procedure.
2. In Writ Petition (C)No.401 of 2013 with No.402 of 2013 and T.P.(C) No.445 of 2014 on 09.05.2014, the Apex Court directed the transfer of all cases registered in different police stations of the State against Sarada Group of Companies including Crime No.102 registered in Bidhannagar Police Station, Kolkata (North) on 06.05.2013 for the offences punishable under Section 406/409/120B I.P.C. and all cases in which the investigation is yet to be completed, registered against any other company up to the date of the order of Apex Court, from the State Police Agency to the Central Bureau Of Investigation (C.B.I.).
3. In the said order the Hon'ble Apex Court made it clear that C.B.I. shall be free to conduct further investigation in terms of Section 173(8)Cr.P.C in relation to any cases where a charge-sheet has already been presented before the jurisdictional Court against the companies involved in any chit fund scam.
4. In the said judgment the Hon'ble Supreme Court has specifically mentioned that transfer of investigation to the Central Bureau of Investigation (C.B.I.) in terms of the order shall not, however, affect the proceedings pending before the commission of enquiry established by the State Government or any action that is legally permissible for recovery of the amount for payment to the depositors.
5. At the same time the Apex Court has also given direction to the State Police Agencies to provide the fullest co-operation to C.B.I. including assistance in terms of men and material to enable the latter to conduct and complete the investigation expeditiously. The reasons for transferring the investigation from State Police Agencies to Central Bureau of Investigation would appear in paragraph 35 of the said judgment as under:-
"35. The factual narrative given in the foregoing paragraphs clearly establishes the following:
35.1. That financial scam nicknamed chit fund scam that has hit the States of West Bengal, Tripura, Assam and Odisha involves collection of nearly Rs 10,000 crores (approx.) from the general public, especially the weaker sections of the society which have fallen prey to the temptations of handsome returns on such deposits extended by the companies involved in the scam. 35.2. That investigation so far conducted suggests that the collection of money from the depositors was neither legally permissible nor were such collections/deposits invested in any meaningful business activity that could generate the high returns/promised to the depositors.
35.3. That more than 25 lakh claims have so far been received by the Commissions of Enquiries set up in the States of Odisha and West Bengal which is indicative of the magnitude of scam in terms of number of citizens that have been defrauded by the Ponzi companies.
35.4. That the companies which indulge in Ponzi schemes have their tentacles in different States giving the scam inter-State ramifications. That such huge collections could have international money laundering dimensions cannot be ruled out and needs to be effectively investigated.
35.5. That investigation so far conducted reveals involvement of several political and other influential personalities wield
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