Back
IN THE HIGH COURT OF JUDICATURE AT MADRAS
C.V. Karthikeyan, J.
Pramod Kumar & Another – Petitioners
Versus
Union of India Rep. by its Secretary Ministry of Home Affairs Grih Mantralaya New Delhi & Others – Respondents
W.P. Nos. 21801 of 2012 & 17856 of 2015, Crl.O.P. Nos. 5356 & 2691, 13904 of 2015, 1661 of 2016 & M.P. No. 1 of 2012, 1 & 2 of 2015 & W.M.P. No. 11132 of 2017, 21801 of 2012, 17856 of 2015 & Crl.M.P. No. 5879 of 2017, 5356 of 2011
Decided On : 02-11-2021
Constitution of India, 1950 - Article 226 and 21 – Criminal Procedure Code, 1973 - Sections 160 and 482 – Prize of Chits and Money Circulation Schemes (Banning) Act, 1978 - Sections 3 and 4 - Indian Penal Code, 1860 - 120-B, 420, 323, 365, 384 and 354 - Tamilnadu Prohibition of Harassment to Women Act 2002 - Section 4 - Writ of Mandamus – Quash of Docket order – Criminal Conspiracy and Cheating – Invested amount under Schemes - Seeking direction to third respondent to investigate matter and release jewels in A/c and allow operations in locker - Whether a reasonable person, in possession of relevant information, would have thought that bias was likely and whether adjudicator was likely to be disposed to decide matter only in a particular way – Informant stated that while browsing internet, he came across an advertisement from a company through its website www.pazemarketing.com that company is offering investment plans and also commission for referring new investors. The address of company and names of those who were running same was given. He stated that he had reliably learnt that they had invented scheme, planning to make quick and easy money by offering public attractive returns on their investments. Further stated that he learnt through his sources that a large number of public had invested their money which amounted to crores of rupees in schemes. He also learnt that the accused had informed public that they are using investment in foreign exchange and they were authorised by Reserve Bank of India - Held, Public policy requires that there should be no doubt about purity of adjudication process/administration of justice. Court has to proceed observing minimal requirements of natural justice i.e. Judge has to act fairly and without bias and in good faith - Status report of CBCID, Vellore itself shows that there was a prima facie case against the accused. It is also seen that matter cannot rest with an investigation of woman missing case as an independent event. It must be looked from larger perspective of a Director facing criminal extortion by police officials that they would give protection from criminal action if money is paid. Money was paid. There is a direct interlink among all actions. Court opinion that it is a fit case for handing it over for investigation to CBI - Infraction of Article 21 of Constitution was sought to be re-examined to the limited extent to find out whether non hearing of writ petitioner had caused him prejudice. When learned Single Judge was hearing the matter, CBCID Vellore had already pointed its needle of suspicion against the writ petitioner. Therefore CBI cannot be charged with prejudice. They did not pick and choose the writ petitioner from thin air and arrayed him as an accused. CBCID, Vellore already had gathered materials against him. CBI consolidated those materials and gathered further materials and filed the final report - The fact is the subsequent statement that she had been extorted to pay a sum of Rs.3/- crores. The natural inference was whether that particular Rs. 3/- crores formed part of the amounts obtained from the depositors or not. This inference was balanced with the earlier observation in the order that inspite of anticipatory bail being dismissed, the Directors had not been taken into custody. A suspicion had arisen whether they were not arrested because Rs.2.95 Crores was paid to the police officials. That is a question which I would leave it open for the trial Judge to examine – Order accordingly.
JUDGMENT :
(Prayer: Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Mandamus forbearing the respondents 3 to 5 from proceeding further with conducting inquiry or investigating offences alleged to have been committed by the petitioner in connection with the case registered in First Information Report in RC. No. 13(E)/2011- CBI/EOW/Chennai and pending on the file of the 5th respondent.
PRAYER : Criminal Original Petition filed under Section 482 Cr.P.C., to withdraw the Crime No. 03 of 2010 (Originally Crime No. 26 of 2009) pending on the file of the second respondent and transfer into the third respondent and direct the third respondent to investigate the same.
PRAYER: Criminal Original Petition filed under Section 482 Cr.P.C., to grant a direction transferring the investigation from the State Police authorities, Viz., respondents 1 & 2 to CBI, the third respondent herein and to file its report.
PRAYER: Criminal Original Petition filed under Section 482 Cr.P.C., to direct the first respondent to release the jewels in A/c. No. 1262842017071 and 1262842017730 and allow the operations in the locker No.49 mentioned in the ref.CBGUDLRCBI 2015-16 KRK dated 13.04.2014.
PRAYER: Criminal Original Petition filed under Section 482 Cr.P.C., to set aside the docket order dated 19.10.2015 in C.C.No. 2 of 2013 on the file of the Ld. II Additional District Judge cum Special Judge for CBI Cases, Coimbatore.)
1. Three individuals K.Mohan Raj, K.Kathiravan and A.Kamalavalli, commenced a business in the name of M/s. Pazee Forex Trading India Pvt. Ltd. They were the Directors. They invited deposits from the general public and promised to pay high interest on maturity. They also held out that the deposits would be invested in foreign exchange. Several depositors fell into the trap. It is stated that more than 100 corers had been so collected by the company, the Directors. Since there was no repayment of money, complaints were lodged seeking police investigation.
2. A First Information Report in Crime No. 26 of 2009 was registered suo moto by the Inspector of Police, Central Crime Branch, Tiruppur, on 24.09.2009. The said Inspector of Police P.Natarajan was the informant and he stated that while browsing the internet, he came across an advertisement from a company through its website www.pazemarketing.com that the company is offering investment plans and also commission for referring new investors. The address of the company and the names of those who were running the same was given. He stated that he had reliably learnt that they had invented the scheme, planning to make quick and easy money by offering the public attractive returns on their investments. He further stated that he learnt through his sources that a large number of public had invested their money which amounted to crores of rupees in the schemes. He also learnt that the accused had informed the public that they are using the investment in foreign exchange and they were authorised by the Reserve Bank of India. He further stated that however, the company was not authorised by the Reserve Bank of India to deal in foreign currencies. He therefore stated that accepting deposits from general public was in violation to the various provisions of the Foreign Exchange Management Act 2000 and the guidelines issued by the Reserve Bank of India. He also stated that they had prima facie made out offences under Sections 3 and 4 of the Prize of Chits and Money Circulation Schemes (Banning) Act, 1978 and under Section 420 IPC. Holding that the report revealed commission of cognizable offence he took up further investigation.
3. The names of the accused were Mohan Raj, Kathiravan and Kamalavalli Arumugam.
4. Investigation into the said First Information Report revealed that large scale deposits had been received by M/s. Pazee Forex Trading India Pvt. Ltd.
5. Subsequently, the investigation was handed over to the Economic Offences Wing at Coimbatore and a First Informat
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
