1. The above petition has been filed seeking to quash the final report in C.C.No.21765 of 2005 pending on the file of the Chief Metropolitan Magistrate, Chennai.

2. The learned counsel appearing for the petitioners stated that they were directors of a company by name “Dugar Finance”. The company was incorporated on 13.05.1981 and amongst other businesses also did buying and selling/ Construction of Property. Te learned counsel relied on the memorandum and articles of association in the typed set of papers to show that transactions with property was permitted as per the prospectus/ memorandum and Articles of association of the Company. So there is nothing wrong in real estate dealings of the company. While so, the company had also borrowed deposits from public which was permitted during that time. In other words the deposits received until 03.11.1999 was spent for genuine business purpose. The receipt of the deposits were with the permission of Reserve Bank of India. The Reserve Bank of India for the first time by order dated 03.11.1999 prohibited the company from accepting any further deposit from the public. Therefore, the deposit collection was not illegal at the incepti