Point of Law: It is made clear that these observations are only for purpose of disposal of present bail applications, and will not prejudice parties in trial.

JUDGMENT :

1. These six applications have been filed under Section 439 of the Code of Criminal Procedure, 1973 [“CrPC”], for grant of bail in connection with FIR No. RCBD1/2014/E/0004/CBI/BS & FC, registered on 19.02.2014, in Police Station Central Bureau of Investigation [“CBI”], under Sections 120B/409/411/420/467/468/471/474 of the Indian Penal Code, 1860 [“IPC”] and Sections 4/5 read with Section 6 of the Prize Chit and Money Circulation Schemes (Banning) Act, 1978 [“PCMCS Act”]. As the six applications arise out of the same FIR, they were heard together and are being disposed of by this common judgment.

2. The present applications relate to following six accused:

Factual background

3. The facts relating to these proceedings are as follows:-

a. The abovementioned FIR was registered against two companies, namely PGF Limited [“PGF”] and PACL Limited [“PACL”], and their officers. The FIR was registered pursuant to the directions of the Supreme Court in PGF Limited and Others vs. Union of India and Another, (2015) 13 SCC 50, which revealed that the aforesaid companies were carrying out a collective investment scheme [“CIS”] in the garb of sale and development of agricultural land.

b. The alleged modus operandi of the accused was to seek investment in land without the companies having ownership of the land. Sample checking of the land allotted by PGF to its customers revealed that the land was held, not in the name of the company, but in the name of other individuals.

c. The concerned companies promised investors a fixed return on the land and created documentation to show a reverse sale of land by the investors to the companies, repayments being routed through several associate companies of PGF and PACL.

d. None of the present applicants were named in the FIR.

e. Some of the officers of PGF and PACL, including their directors and managing directors, were arrested on 08.01.2016.

f. The original charge sheet was filed on 07.04.2016 before the Chief Metropolitan Magistrate, West, Tis Hazari Courts, Delhi. Six accused [including the two companies – PGF and PACL] were named in the original charge sheet, which [alongwith its annexures] runs into over 34,000 pages. A list of 462 documents and 182 witnesses has been filed alongwith the charge sheet.

g. The allegations made in the FIR were elaborated in the original charge sheet in detail. The details of verification of the land allotted by the companies has been provided. In the charge sheet, it is alleged that PACL had 5.46 crore active investors as on 31.01.2014 from whom it had raised a principal amount of approximately Rs.45,184 crores. As far as PGF is concerned, the allegation is of investments to the tune of approximately Rs.332 crores.

h. The present applicants were not named as accused in the original charge sheet, although some of them were referred to therein:-

• Mr. Praveen Kumar Agarwal [inter alia in paragraphs 171, 172, 173, 206, 207, 208 and 212].

• Mr. Subhash Agarwal and Mr. Rajesh Agarwal are the Chairman and Managing Director of ARSS Infrastructure Projects Limited [“ARSS”] respectively, which is mentioned inter alia in paragraph 174.

• Mr. Mohan Lal Sehjpal was a director of Pearls Infrastructure Projects Limited [“PIPL”]. PIPL and Mr. Mohan Lal Sehjpal find mention inter alia in paragraphs 181 to 190, 194 and 196 to 203.

i. As far as the present applicants are concerned, they have been named as accused only in a supplementary charge sheet filed on 31.12.2021. A list of 265 witnesses and 307 documents has been filed alongwith the supplementary charge sheet.