B.A.Nos.5641 of 2011 and 5776 of 2011 are under Section 439 of the Code of Criminal Procedure. B.A.No.4642 of 2011 is for anticipatory bail, filed under Section 438 of the Code of Criminal Procedure.

2. The name of accused, rank in the case, Crime number, date of arrest and Bail Application number are shown below.

Sl.No. Name of accused

Rank

1 Abdul Arshad

A9

Crime No. and Police Station 497/11 Sulthan Bathery Date of arrest 11-6-11 5641/11 Bail Application number

2

KunhumuhammadPradeepBaurajanShajiKrishnanArun. B A8A2A3A4A5 A6 491/11 10.6.11 5776/11 Pratheesh

PreyeshJoseph

A7

3. K.T. Gopinathan

Town North Police Station, Ernakulam

4642/11

3. The offences alleged against the accused are under Section 420 of the Indian Penal Code and Sections 3 and 4 of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 (Central Act No.43 of 1978) (hereinafter referred to as ‘Prize Chits Act.’)

4. The prosecution case is the following: Accused No.9 Abdul Arshad is the Managing Director of Bizarre Global Marketing Public Limited Company (hereinafter referred to as the Company). The Company was originally a Private Limited Company under the name Bizarre Marketing Systems Private Limited, which was incorporated on 2-11-2007. With effect from 18-6-2008, the name of the Company was changed as Bizzare Global Marketing Systems Private Limited. The Company became a Public Limited Company with effect from 14-7-2008. The allegation is that the accused persons induced several persons to subscribe to the membership and to take shares in the Company. The promise extended was that if they take shares, they will get commodities at reduced rates from the Supermarkets to be established by the Company at different places in the State. It was also promised that if those who take shares canvass other persons to take shares, the former would be paid commission. Campaigns were held by the accused to induce persons to invest money. It was promised that those who canvass more persons would get more and more commission. About a lakh people were thus induced to invest money. In the Wynad District alone, more than five thousand persons were so induced to invest money. The promise given by the accused was that within two years, they would get about eight times the money invested by them. The accused indulged in money chain business under the pretext that they were floating shares of the Company. The investors did not get the returns or the money invested by them. The accused did not fulfil the promises and the investors were cheated.

5. The learned Public Prosecutor submitted that 36 cases were registered in Wynad District against the accused. Crimes were registered against them in other Districts also. It is submitted that the preliminary figures show that a sum of Rs.120 Crores was collected from the investors. A raid was conducted in the office of the Company. Only one computer could be located in the raid. In the two bank accounts located, transactions of only Rs.36 crores were found. It is necessary to find out where more than Rupees Eighty crores were siphoned off. The learned Public Prosecutor submitted that in brochure of the Company, a PAN Card number was shown. On investigation, it was revealed that the same relates to a firm in the State of Madhya Pradesh.

6. The learned Public Prosecutor submitted that the investigation of the cases registered in Wynad District is now being conducted by the Crime Branch. Investigating agency has sought the help of National Investigation Agency to find out whether the money collected from the people was utilized for anti national activities. Investigation revealed that when a person invested Rs.14,750/-, he was given 55 coupons of Rs.100/- each which could be used for purchasing commodities from the supermarkets to be established by the Company. A sum of Rs.750/- was taken as service charges and the balance Rs.8500/- would constitute the share of the investor.

7. Heard Senior Advocates Sri. M.K. Damoda