The court emphasized that investigations into corporate fraud must be fair and impartial, directing the transfer of the case to CBI due to inadequate local police handling.

JUDGMENT :

Vinod Diwakar, J.

1. Heard Shri Gyanendra Kumar Mishra, holding brief of Shri Vivek Srivastava, learned counsel for the petitioner through Video Conferencing, Shri R.P.S. Chauhan, learned counsel for the Union of India, Shri Kuldeep Srivastava, learned counsel for the Enforcement Directorate, Shri Satish Chaturvedi, learned counsel for the State Bank of India, Shri M.C. Chaturvedi, learned Additional Advocate General assisted by Shri G.P. Singh, learned A.G.A. for the State-respondents, Shri Gyan Prakash, learned Senior Counsel assisted by Shri Sanjay Kumar Yadav, learned counsel for the CBI, Shri G.S. Chaturvedi, learned Senior Counsel assisted by Shri Aditya Gupta, learned counsel for SKS Ispat and Power Ltd., and perused the record.

2. Initially, the petitioner approached this Court seeking a fair investigation in the impugned FIR[First Information Report No.0115 of 2021 dated 26.9.2021, u/s 120B, 420, 467, 468, 471, 474, 476, 506, 507, 511 IPC,]. However, through an amended application, the prayer was modified to request the transfer of the investigation to the CBI. For clarity, the amended prayer is reproduced herein after:

“Issue a suitable writ, order or direction in the nature of mandamus transferring the investigation to the Central Bureau of Investigation relating to First Information Report No.0115 of 2021 dated 26.9.2021, u/s 120B, 420, 467, 468, 471, 474, 476, 506, 507, 511 IPC, P.S. Zafrabad, District Jaunpur.”

3. The petitioner, a teacher and social worker, became aware of corporate fraud allegedly committed by SKS Power Generation Limited (hereinafter referred to as "SKSPGL") and its holding companies through a newspaper publication. The incident unfolded on March 17, 2021, when she visited the State Bank of India in Jaunpur to inquire about certain transactions involving the accused, Anil Gupta. There, she was asked to submit specific papers related to the reports upon which she was basing her claims of serious corporate fraud. Shortly afterward, unidentified individuals forcibly entered her residence and warned her against pursuing the case, threatening dire consequences. Subsequently, individuals in police uniform, purportedly from Chhattisgarh, Madhya Pradesh, Maharashtra, and Uttar Pradesh, visited her home, pressurizing her to withdraw the complaint dated August 13, 2021, pending before the court of the learned Chief Judicial Magistrate in District Jaunpur, Uttar Pradesh.

4. On the direction of Chief Judicial Magistrate, Jaunpur, the FIR[First Information Report No.0115 of 2021 dated 26.9.2021, u/s 120B, 420, 467, 468, 471, 474, 476, 506, 507, 511 IPC,] was registered, and the investigation was entrusted to Economic Offences Wing, Varanasi Division, after approval from the Home Department. Following the investigation the police filed the closure report, primarily citing two reasons; firstly, the petitioner was not found available at the provided address, and secondly, the alleged incident of assault mentioned in the complaint was not substantiated.

5. While the investigation was ongoing, the petitioner filed the present petition seeking a fair investigation. Subsequently, through an amended writ petition, the petitioner requested the transfer of the investigation to the Central Bureau of Investigation (hereinafter P.S. Zafrabad, District Jaunpur referred to as CBI) for a thorough and impartial investigation. This prayer was made on various grounds, inter-alia:

5.1 M/s SKSPGL operates in the electricity generation and distribution sector within the State of Chhattisgarh. The company has established a coal-based thermal power plant situated in Villages Binjkote & Durramuda, Raigarh District, Chhattisgarh. Additionally, in 2008, the company was allotted two coal blocks for the construction of a proposed third plant.

5.2 Between the financial years 2010-11 and September 2017-18, SKSPGL obtained a loan amounting to Rs.6170 crore from a consortium of banks, including the State Bank of India, L&T Infrastructu