The main legal point established in the judgment is the court's authority to impose reasonable conditions for the release on anticipatory bail to safeguard the interests of the society and the complainant in cases involving cheating and misappropriation of funds.

Pratibha Rani, J. (Oral);—

1. These two Criminal M.C. Nos.4137/2011 and 4139/2011 have been filed by Trinity Global Enterprises Ltd. (hereinafter referred to as ‘TGEL’) under Section 439(2) read with section 482 CrPC seeking cancellation of anticipatory bail granted to Raj Hiremath and his wife Savita Raj Hiremath in case FIR No.158/2011, PS EOW. The allegations against the respondents Raj Hiremath and Savita Raj Hiremath are that the complainant D.K.Jain, Group Chairman, Trinity Group entered into an agreement with Raj Hiremath and Savita Raj Hiremath of M/s Tandav Film Entertainment Pvt. Ltd. (hereinafter referred to as ‘TFEPL’) with a proposal for production and marketing of a Hindi Film titled ‘Sharafat Gayi Tel Lene’. Memorandum of Understanding was entered into on 21.08.2009 and pursuant to that, complainant transferred Rs.2.95 Crores in the account of TFEPL. Subsequently, on coming to know that the respondents Raj Hiremath and Savita Raj Hiremath have misappropriated the amount and had got executed agreements with various artists showing inflated amount and expenses incurred while producing the film, on their refusal to divulge the details of the financial dealings/payments/expenses incurred out of the funds provided by the complainant, FIR was got registered.

2. After registration of the FIR, both the respondents applied for grant of anticipatory bail claiming it to be a case of alleged breach of promise which could invite only civil liability.

3. Before the learned ASJ, the State filed the status report wherein it was mentioned that during the course of investigation, it has been found that amount of Rs.2,95,75,165/- was credited in favour of TFEPL by TGEL. The fund amounting to Rs.2.40 crores were also credited in the bank account of TFEPL which was opened on 24.06.2009. In another bank account of TFEPL which was already in operation, funds amounting to Rs.55 lacs were also credited. It was further revealed during investigation that respondents Raj Hiremath and Savita Raj Hiremath were also having an account in the name of company Usha Kaal Communication Ltd. in United Bank of India from where they have availed facility of secured cash credit loan against their residential property and at present, there is debit balance of Rs.1,49,44,142/-. An amount of Rs.23,10,000/- was transferred from the accounts of TFEPL in the account of Raj Hiremath and Savita Raj Hiremath which was in the name of Usha Kaal Communication Ltd. In the account of TFEPL, an amount of Rs.55 lacs was credited from the account of TGEL at Punjab National Bank.

4. It was further revealed during investigation that from the account of TFEPL (authorised signatories Raj Hiremath, Savita Raj Hiremath and Deepa Goyal), there were self withdrawals to the tune of Rs.68,78,647/-. An amount of Rs.2.40 crores was also found credited in this account and this account was closed on 08.07.2010. Self withdrawals to the tune of Rs.3,23,000/- were also found from another account of TFEPL in which amount of Rs.55 lacs were got credited by TGEL for production of the film. It was also revealed that amount of Rs.5.10 lacs was transferred from the bank accounts of TFEPL during the period 01.05.2009 to 08.01.2010.

5. During investigation, on questioning the actor Zayed Khan, it was revealed that he signed an agreement dated 19.05.2009 for Rs.1 crore but thereafter he was asked to give discount and he slashed his market price by 70% by agreeing to receive Rs.30 lacs. Out of Rs.30 lacs, he received Rs.7,66,000/- only which was transferred in his bank account vide two cheques and that he was completely shocked to see his name being misused by the respondent Raj Hiremath and Savita Raj Hiremath. Same facts regarding inflated figure being used in the documents were revealed in payment to various other crew members.

6. It was brought to the notice of learned ASJ that the expenditure incurred in the production of film was shown inflated and the money has been diverted to other