Police lack authority to prevent registration of documents; they must seek court orders for property attachment.

ORDER :

(V. LAKSHMINARAYANAN, J.)

The petitioners seek a Writ of Mandamus to direct the third respondent to withdraw the letter in C.No.26/PA/EOW/VNR/2024 dated 22.07.2024 sent to the second respondent and consequently, direct the second respondent to entertain documents covered by the release deed vide Document No.6114/2021 dated 12.11.2021 and for consequential orders.

2. The case of the petitioners is that their father, Late.Ayyapan, married one A.Jeyalakshmi. From the wedlock, they had two sons and two daughters. The sons are A.Venkatraman and A.Jeya Jothi Raja, who are the petitioners herein. The daughters are P.Pawnthai and S.Muthumari. According to the petitioners, their father, Ayyapan, had acquired several extents of property. He passed away on 10.09.2021. Thereafter, Tmt.Jeyalakshmi, wife of Ayyapan, executed two settlement deeds in favour of the daughters, Pawnthai and Muthumari. Tmt.Jeyalakshmi, the petitioners and the other sister, Pawnthai, also executed a settlement deed in favour of Muthumari.

3. With respect to the petitioners, Jeyalakshmi and the two sisters released their shares, which came to their hands by virtue of the death of Ayyapan by way of a release deed dated 12.11.2021. The petitioners have mutated the revenue records and they claim that they are in possession of the property. They proposed to alienate the property and applied for an encumbrance certificate for the said purpose. It is at that time, they came to know that the third respondent had written to the second respondent in C.No.26/PA/EOW/VNR/2024 dated 22.07.2024, calling upon the second respondent not to register any documents pertaining to the property, whose parent documents are Document Nos. 6614/2021, 3879/2021, 3880/2021 and 1204/2011. The petitioners were shocked to learn about this development and conducted an enquiry. It is at that stage, they came to know of the fact that an FIR had been registered by the third respondent in FIR No.5 of 2023 against their sister, Tmt.Muthumari, their brother-in-law, Subramanian and four others, for the alleged offences under Section 120B, 406 and 420 of Indian Penal Code. The offences arise out of collection of funds from the public for a jewellery shop, by name, Aarusha Gold Shop at Virudhunagar.

4. The petitioners state that they are not in any way connected with the said business and that there is no order of attachment passed either by a Judicial Magistrate or by the Special Court constituted under the Tamil Nadu Protection of Interests of Depositors (In Financial Establishments) Act of 1997 (hereinafter referred to as 'TNPID Act') or by the competent authority under the TNPID Act. Hence, the second respondent cannot act on a mere letter issued by the third respondent Police.

5. When the matter came up for admission, I directed the second and third respondents to go on record by way of an affidavit.

6. Mr.M.Karunanithi has filed a counter affidavit of the Inspector of Police, Economic Offence Wing, Virudhunagar District, sworn on 25^th February, 2025.

7. The counter affidavit discloses that one Karuppasamy had lodged a complaint against Aarusha Gold and Diamond Jewellery on 11.09.2023. The counter proceeds that Karuppasamy had invested a sum of Rs.10,000/- every month towards a gold chit scheme being run by the concern of Aarusha Gold and Diamond Jewellery. The police acted immediately on the complaint and an FIR came to be registered. The counter affidavit further states that there are totally 31 accused in this case, out of which, 12 are financial establishments. The sixth accused in that case is one Future Generation Capital Private Limited, which was incorporated by Subramanian, the brother-in-law of the petitioners and Muthumari, the sister of the petitioners. The counter affidavit alleges that the petitioners too played a day-to-day role in the affairs of the financial establishment. It is further pleaded that the properties, which are the subject matter of this Writ Petition, were acquired by t