The main legal point established in the judgment is that in cases of financial fraud and deep-rooted conspiracy, granting anticipatory bail may impede the investigation and there is a possibility of the accused misusing their liberty to wipe out evidence.

ORDER :

(B. Vijaysen Reddy, J.)

I.A. No. 2 of 2021 in CRLP. No. 3963 of 2021

&

1. The implead petitions are not opposed. Hence ordered.

CRLP Nos. 3963 and 4007 of 2021:

These two petitions are filed, under Section 438 of the Criminal Procedure Code, seeking grant of anticipatory bail to the petitioners, who are A1 and A2 respectively in Cr. No. 310 of 2021 on the file of the Station House Officer, Ramachandrapuram Police Station, BHEL, Cyberabad, registered for the offences under Sections 406, 420 of the Indian Penal Code and Section 5 of the Telangana State Protection of Depositors of Financial Establishments Act, 1999 (for short 'the Depositors Act').

2. A report was lodged by the defacto complainant- respondent No. 2 stating that he had been working in BHEL for seven years. Mr. D. Srinivas Rao (A1), the President of the Vivekananda BHEL Employees Mutually Aided Co-operative Housing Building Society Limited (Society) and the executive body started the said society vide registration No. CSRDDCO/2017/2550. They released brochure on 11.09.2018 stating that they propose to develop house plots (admeasuring 200 sq. yards) wherein they promised to construct houses in plots of 200 sq. yards at Muthangi Village for all the members, for which every member has to pay Rs.38,75,000/- for each plot. The President and the Executive Body members invited Tribha Venture Builder, Goverdhan Reddy (A2) to build houses in the said plots. A2 had discussions with the complainant and other members. A1 and A2 purchased and got registered Ac. 12.26 guntas of land in Muthangi. The complainant believed them and paid an amount of Rs.5,11,000/- in two spells through challan No. 5845297. Along with complainant about 313 persons paid money for purchasing and developing plots. In total, 18 crores was collected from the complainant and others. After some days, the complainant and other members asked the accused about the plots and they dodged the matter on one pretext or the other. The President, Secretary and Chief Adviser of the Society confessed in the Society meeting that they utilized the money invested by the complainant and other for their personal necessities. The President and the members started the society with the money invested by the complainant and other members and cheated them. Hence, action may be taken against A1 and A2.

3. Mr. Brahmandandi Ramesh, learned counsel for the petitioner/A1 in CRLP. No. 3963 of 2021, submitted that the Society has entered into an MOU with Tribha Ventures represented by the Managing Director (A2) on 09.11.2018 for procurement of land and for developing the house sites of 200 sq. yards each with a built up area of 1150 sq. feet as per HMD Layout and permission. It was mutually agreed by both the parties that for 1 acre of land the builder has to spend Rs.1,00,00,000/- and the society has to bear Rs.30,00,000/- per acre and it was decided to purchase the land at Rs.1,30,00,000/- per acre with the said contribution. It was agreed that in case there is an enhancement of land value, the society shall bear the extra price. Due to steep increase in land prices, the landlords did not come forward to register the land as per the agreement, by demanding additional sale consideration. The society had incurred heavy burden and could not comply the conditions laid out in the MOU on account of unforeseen situation due to COVID-19 pandemic. There was step increase in land prices. The society and the builder were compelled to spend more money. The society collected Rs.18,87,47,869/- but the society has spent to the tune of Rs.18,94,82,370/-. The society purchased an extent of Ac. 12.26 guntas of land with the money collected from its members. Altogether along with builder the society spend Rs.27,00,00,000/-. Due to landlords' resiling from the contract on account of increased of land value and also due to COVID-19, the execution of the work and the construction of houses could not take place. The society conducted meetings regularly inf