1. These Bail Applications are filed by Dr. Harish Babu Maddineni, accused No.2 in Crime Nos.1391 of 2011, 1392 of 2011 and 1390 of 2011 of Thrissur Town West Police Station, Thrissur, under Section 439 of the Code of Criminal Procedure.

2. The offences alleged against the accused are under Sections 406, 418, 420 read with Section 34 of the Indian Penal Code and Section 6 of the Prize Chits and Money Circulation Scheme (Banning) Act, 1978 (hereinafter referred to as the ‘Prize Chits Act’)

3. One Shirly Jose, Varantharappilly filed a complaint before the Court of the Chief Judicial Magistrate, Thrissur, alleging that a sum of Rs.1,79,500/- was collected by the accused giving false promises and that the accused committed the aforesaid offence. The complaint was forwarded to the police under Section 156 (3) of the Code of Criminal Procedure and accordingly Crime No.1391 of 2011 was registered. Crime No.1392 of 2011 was registered on the basis of a complaint filed by Lijo Varkey alleging that he was cheated by the accused after collecting a sum of Rs.1,80,000/-. Chandrika of Thiruvilwamala alleged that the accused cheated her by collecting a sum of Rs.10,80,000/-. On the basis of a complaint filed by her before Court, Crime No.1390 of 2011 was registered, on forwarding the complaint to the police for investigation.

4. Accused No.1 in the aforesaid three Crimes is Nano Excel Corporation Limited represented by its Managing Director and Chief Executive Dr.Harish Babu Maddineni. The second accused is Dr.Harish Babu Maddineni, the petitioner herein. The other accused persons are the Director and Vice president as well as the Directors of the company.

5. The Petitioner was arrested at Hyderabad in connection with Crime No.252 of 2011 of Wadakkanchery Police Station. Formal arrest of the petitioner was recorded in the aforesaid three crimes on 14.10.2011.

6. The prosecution case is the following: The petitioner started a Company, namely, Nano Excel Enterprises Private Limited and it was registered at Hyderabad on 12-7-2007. In January 2010, the petitioner started another company under the name and style Nano Excel Power Corporation Limited. On 26-2-2010, the name of the company was changed as Nano Excel Corporation Limited. The accused collected crores of rupees from the general public under the guise of marketing products and also under the guise of providing shares in an alleged 100 MV Power plant at Arunachal Pradesh. Wide publicity was given through media and otherwise by the petitioner that the Nano Excel Power Corporation had entered into an agreement with the Government of Arunachal Pradesh for establishing a 100 MV Power Plant at Arunachal Pradesh. Believing the promises given by the accused, hundreds of persons took shares in the Power Project. It is also alleged that under the guise of marketing nano products, the accused collected crores of rupees from the general public after supplying poor quality and low cost products at high rates. Even according to the statement given by the petitioner to the Crime Branch, he had collected Rupees 347 crores from the general public. The customers deposited crores of rupees at the Thrissur office of the company. Products alleged to be nano products are not available in open market. At the inception, the Company started a package of Rs.4,000/-for their products. Later, the face value of the package was increased to Rupees five thousand, then to six thousand and lastly to Rupees twelve thousand. The modus operandi was that if a person deposited money, the company would give him an ID number and he would be a distributor. Only a distributor who holds ID number could purchase products from the company. The distributor would get commission if he enrolls new members. Huge amounts were being paid to the so called distributors. The accused offered a return of Rs.1,30,000/-in a week to a person who deposited Rs.12,000/-, apart from the royalty income of Rs.1,80,000/-. The activities in w