Back
2023 Supreme(Online)(DEL) 9119
DELHI HIGH COURT
MANU PRASHANT WIG – Appellant
Versus
STATE (NCT OF DELHI) – Respondent
BAIL_APPLN-3599_2023
The court must consider the nature of the allegations, the severity of the punishment, the likelihood of the accused absconding, and the larger interest of the public when considering a bail application.
Headnote:
BAIL - CHEATING - PCMC ACT - [SUMMARY]
Fact of the Case:
The applicant, a director of M/s Blue Fox Motion Pictures Pvt. Ltd., was arrested for allegedly cheating investors by inducing them to invest in the company's investment schemes with promises of high returns. The prosecution alleged that the applicant and his associates collected over Rs. 8 crores from investors and diverted the funds for personal use.
Finding of the Court:
The court noted that the applicant had failed to cooperate with the investigation, had not produced the company's financial records, and had shown a likelihood of absconding. The court also considered the serious nature of the allegations and the large number of investors who had been defrauded.
Issues: Whether the applicant should be granted bail in a case of cheating and violation of the Prize Chits and Money Circulation Schemes (Banning) Act (PCMC Act).
Ratio Decidendi: The court held that the applicant was not entitled to bail at this stage due to the following factors:- The serious nature of the allegations and the large number of investors who had been defrauded.- The applicant's failure to cooperate with the investigation and produce the company's financial records.- The applicant's likelihood of absconding, as evidenced by his previous conduct.
Final Decision: The court dismissed the applicant's bail application.
JUDGMENT
AMIT SHARMA, J.
1. The present application under Section 439 of the Code of Criminal Procedure, 1973 (‘CrPC’) seeks regular bail in case FIR No. 0028/2020, under Sections 409/420/120B of the IPC and Sections 3/4/6 of the PCMC Act, registered at Police Station Economic Offences Wing (‘EOW’).
BAIL APPLN. 3599/2023 Page 1 of 10 Signature Not Verified Digitally Signed
2. The case of the prosecution, as per status report dated 22.11.2023, authored by Mr. Ramesh Mumar Narang, Assistant Commissioner of Police, Section-VI/EOW is as under:
“1. That the above said case vide FIR No. 2812020 Dt. 17.02.2020 Uls 420/406/120B JPC PS-EOW was registered on the complaints of Lakshay Kumar & other victims. Lakshay Kumar & other victims have filed complaint against Mis Bluefox Motion Pi ctures Pvt. Ltd. & its Directors namely Manu Prashant Wig, Harjeet Singh, Pankaj Goyal and Priyesh Kumar Sinha. They have reported that Lhe accllsed company MJs Bluefox Motion Pictures Pvt. Ltd. through its officials/directors had induced the public at large including themselves to invest in its investment schemes assuring exceptionally high returns 011 invested amount. The company used to organize luxurious promotional events all over the country wherein its investment schemes were being promoted di shonestly & fraudulently inducing the public at large to invest in their schemes. Manu Prashant Wig, Director of MIs Blue Fox Motion Pictures Pvt. Ltd. & other officials had informed them that the accused company is in the business of’ making movies, TV Serials & other entertainment events. Manu Prashant Wig and other Directors have told that huge profits are being earned by the company in the business of film production and various states are offering incentives, faci lities to the film industry to make films in their states. TIle company was operating on the Multi Level Marketing model. The office of the accused company was situated at B-101, l SI Floor, Statesman House, 148, Barakhamba Road, New Delhi .
2. That on being induced, the complainant Lakshay Kumar invested Rs. 2 Lacs in cash on 22.09.2017. Against this investment of Rs. 2 Lacs, he had to get Rs. 5 Lacs as return on his investments after a period of 12 months. In the similar manner, 25 more victims who had also invested money in the fraudulent schemes of accused company in the range of Rs. 10,0001- to Rs. 2,00,0001-, have also approached EOW. So far 200 victims have filed their complaints in EOW against the above said accused Company and its Directors as well as officials/concerned. Initially, the accused company returned some money but thereafter, the accused direclOrs/o ff’i cials including present accused applicant, Director of Mis Blue Fox Motion Pictures Pvl. Ltd disappeared, abandoning the company office after collecting money from the general public.
BAIL APPLN. 3599/2023 Page 2 of 10 Signature Not Verified Digitally Signed
3. That the accused company had floated following investment schemes:
During the course of investigation, facts revealed that the accused persons namely Manu Prashant Wig, Harjcet Singh, Pankaj Goyal, Priyesh Kumar Sinha & others had collected money from the victims in their companies Mis Bluefox Motion Pictures Pvt. Ltd. and Mis BFM Pictures LLP in different schemes offering high rate of returns. After sometime, the accused persons also induced the victims to invest in crypto coin namely BFX Coin launched by them and collected money from the victims on accOlmt of investment in their Clypto coin.”
Package (Amount in Rs.)
Holding Period
Term of Investment
Return Amount in Rs.
10000
30 Days
10
15000
25000
30 Days
10
38750
50000
30 Days
10
80000
100000
60 Days
10
180000
200000
60 Days
10
500000
Cg10000 0
11 MONTH S
11
Profit + Captal
3. Learned Senior Counsel appearing on behalf of the applicant submitted that as per the FIR, the total amount due to the complainant was Rs. 13 lakhs 90 thousand, which has been repaid by the applicant. However, during inves
