Order on Board

Per Ramesh Sinha, Chief Justice

1. Heard Mr. Samir Singh, learned counsel for the petitioner. Also heard Mr. S. S. Baghel, learned Govt. Advocate, appearing for the Respondent/State.

2. Present is a Criminal Miscellaneous Petition filed by the petitioner under Section 528 of the BNSS, 2023 for quashing of FIR No. 496/2024 registered at Police Station Lawan, District Baloda Bazar-Bhatapara for offences under Sections 420, 421, 120-B and 34 of the IPC, Sections 4 and 5 of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 and Section 10 of the Chhattisgarh Protection of Depositors’ Interest Act, 2005, as well as for quashing of Final Report/Charge-sheet No. 378/2025 and the order taking cognizance dated 03.01.2026 passed on the aforesaid charge-sheet, along with the entire criminal proceedings arising therefrom, and prayed for the following reliefs:-

“Quash the FIR No. 496/2024 dated 27.11.2024 under Section 420, 34 I.P.C., registered at Police Station Lawan, District Baloda Bazar-Bhatapara (C.G.).

Quash the Final Report/Charge Sheet No. 378/2025 dated 10.12.2025 under Section 420, 421, 120(B) and 34 of the IPC and Section 4, 5 of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 (Chit-fund Act) and Section 10 of the Chhattisgarh Protection of Depositors' Interest Act, 2005.

Set-aside/Quash the order of Cognizance dated 03.01.2026 and further proceedings initiated from F.I.R. No 496/2024 against the petitioner (Annexure P/1).”

3. The brief facts of the case are that FIR No. 496/2024 was registered at Police Station Lawan, District Baloda Bazar-Bhatapara for offences under Sections 420, 421, 120-B and 34 of the IPC, Sections 4 and 5 of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 and Section 10 of the Chhattisgarh Protection of Depositors’ Interest Act, 2005 on the allegation that the complainant along with several other persons invested money in “Money Grow Investment Scheme” on the assurance of receiving double returns within 25 months and were allegedly cheated to the extent of about Rs.1,93,64,000/-. During investigation, certain cheque agreements relating to the scheme were seized and on the basis of memorandum statements of co-accused persons, the name of the present petitioner was implicated alleging that amounts collected from investors were deposited in the bank accounts of the principal accused persons. The petitioner, however, is himself an investor/victim who had invested approximately Rs.28,00,000/- in the said scheme in good faith and suffered substantial financial loss. There is no material to show that the petitioner induced any person to invest money or derived any wrongful gain from the alleged transactions. After completion of investigation, Final Report/Charge-sheet No. 378/2025 was filed and cognizance was taken by the learned Court below vide order dated 03.01.2026, against which the present petition under Section 528 of the BNSS, 2023 has been preferred.

4. Learned counsel for the petitioner submits that the petitioner has been falsely implicated in the present case merely on the basis of suspicion and memorandum statements of co-accused persons, despite there being no independent material connecting him with the alleged offence. It is submitted that the petitioner himself is an investor/victim of the alleged “Money Grow Investment Scheme” and had invested substantial amount in good faith, due to which he has also suffered huge financial loss. Learned counsel would further submit that during investigation no material has been collected to show that the petitioner was involved in the management, administration or operation of the alleged scheme, nor is there any evidence indicating that he induced any person to invest money or derived any wrongful gain from the alleged transactions. It is also submitted that except memorandum statements, which are inadmissible in evidence without corroboration, no document or bank transaction