Judicial interference in police investigations should be minimal, allowing the CBI to conduct investigations without imposed modalities unless there is clear failure in the investigation process.

JUDGMENT :

Raja Vijayaraghavan, J.

This instant appeal is preferred by the Superintendent of Police, CBI, challenging the judgment dated 23.11.2020 in W.P.(C) No. 18199 of 2020 passed by a learned Single Judge of this Court. They have also mounted a challenge against the order dated 22.12.2020 in RP No. 992 of 2020 passed in the same matter.

2. Before delving into the contentions raised before us, it would be appropriate to delineate the facts that led to the filing of the Writ Petition.

3. Popular Finance Pvt. Ltd., a financial establishment having its Head Office at Popular Towers, Konni, at Pathanamthitta District in the State of Kerala, canvassed huge deposits from the general public by advertising itself as "India's Emerging Gold Loan Company". They also promised an alluring rate of interest on deposits, much higher than the bank rate. Drawn by such advertisements and beguiling claims, several gullible investors deposited their life savings with the company. It is alleged that the Company opened about 277 branches all over India and received deposits estimated at Rs.1,600 Crores from about 30,000 depositors. It is alleged that the accused failed to pay the interest as offered, nor did they return the money and thereby cheated the depositors. It is also alleged that the deposits so collected were allegedly diverted for their personal benefits.

4. The aggrieved depositors of Popular Finance Group of Companies approached this Court seeking intervention. Among other reliefs, it was also prayed that the investigation that was being conducted by the State Police on their complaints be handed over to the Central Bureau of Investigation.

5. All these Writ Petitions were considered by the learned Single Judge and a common judgment was passed and various directions were issued. Insofar as this Writ Appeal is concerned, it would be enough to mention that the CBI was ordered to take over the entire investigation pertaining to all crimes with respect to the “Unregulated Deposit Scheme” including the FIR registered in 1368 crimes. The CBI was directed to constitute a special investigation team having sufficient expertise in the field of economic offences. The Government of Kerala was directed to provide sufficient manpower and logistical support to constitute an effective special investigation team taking into account the voluminous nature of the cases involved and the number of crimes that had been registered.

6. Since the CBI entertained some confusion in the directions issued, a Review Petition was filed seeking to review the judgment. A clarification sought was whether registration of separate FIRs on every individual complaint was mandatory. The learned Single Judge disposed of the Review Petition making it clear that the requirement of registration of separate FIRs was ordered in the main Writ Petition and therefore, no further clarification is required. With regard to the procedure to be followed while investigating the matter, certain directions were issued.

7. Sri. Sreelal Warrier, the learned counsel appearing for the CBI, submitted that it was in terms of the directions issued by the learned Single Judge that the investigation was taken over from the State Police by the CBI. It is for the investigating agency to adopt the modalities to be followed particularly in a case wherein the number of FIRs taken over by the CBI is about 5000 and when there are about 10000 unregistered complaints. The CBI has questioned as many as 12968 witnesses out of which, the depositors themselves are about 9228. It is further submitted that the depositors have invested the money in as many as 17 entities run by the finance company under various names. About 2800 bank accounts have been identified and searches have been conducted in as many as 35 different locations. The total amount of fraud committed by the Finance Company is to the tune of Rs. 864 Crores. It is further submitted that the Division Bench of this Court by order dated 20.02.2021 had stayed