J U D G M E N T

DINESH KUMAR SHARMA,J :

1. This present petition has been filed under Article 227 of the Constitution of India read with Section 482 of the Code of Criminal Procedure seeking quashing of FIR No. 290/2019, dated 26.12.2019, under section 420/406/120B of Indian Penal Code, 1860 registered at Police Station Economic Offences Wing (EOW), Mandir Marg, Delhi, and all proceedings incidental thereto.

A. BRIEF FACTS

2. The Ministry of AYUSH introduced a 'Scheme For Development Of Ayush Clusters' (herein referred to as “the said scheme”) for capacity building through a cluster-based approach for Ayurvedic, Siddhi, Unani, and Homeopathic drugs, inter alia, that- the Scheme would be implemented on the Support from Department of AYUSH and support would be by the way of a grant to the Special Purpose Vehicle (SPV), formed by a group of entrepreneurs from AYUSH sector.

3. Lipakshi Ayush Park Private Limited (herein referred to as “the said company”) floated in the year around 2010 to develop an AYUSH cluster near Anantapuram, Andhra Pradesh under the said scheme. The said company submitted the proposal for development of the AYUSH Cluster in Anantapuram and the proposal was accepted by the Scheme Monitoring Committee vide its meeting dated 03.08.2010 and an initial grant of Rs 2,00,00,000/- (Rupees Two crores) was released on

28.08.2010 for setting up a common facility center.

4. The said company couldn’t achieve the targets of the said scheme and misappropriated the grant of personal gain and which resulted in the withdrawal of the financial support by Respondent no 2. Further, the initial grant released by the Ministry of AYUSH was sought from the said company vide notice dated 19/22.02.2023. The said company returned back Rs. 1,23,00,000 (One crore twenty-three lakhs) to Respondent no 2.and the remaining amount of Rs. 77,00,000/- (Seventy-seven lakhs) was to be paid within ninety days. However, the remaining amount was not returned by the said company.

5. Respondent no 2 preferred Civil Suit No. 56/2014 in District Court, Family Court-ADJ, Anantapuram, Andhra Pradesh, wherein vide decree/judgment dated 06 June 2017, the Hon’ble Court passed an ex- parte decree in favor of Respondent No. 2. and the said company along with its directors jointly and severally were held liable to pay a sum of Rs. 1,42,59,556/- (Rupees One crore forty-two lakhs fifty-nine thousand five hundred and fifty-six) along with interest thereon at 10% per annum till the date of decree and thereafter 6% till the date of realization. Thereafter an Execution Petition of recovery suit no.

56/2014 was filed in 2018.

6. While the matter rested thus, considering the acts of the said company, Respondent no 2 filed a complaint before Economic Offences Wing regarding cheating the government and not starting any work for implementation of the scheme awarded in their favor in spite of the release of an installment of Rs. 2 Crores. An FIR bearing no. 0290/2019 was registered under sections 420/406/120B of IPC against the company and its directors.

B. SUBMISSIONS ON BEHALF OF PETITIONER

7. Learned counsel for the petitioner submitted that upon receipt of Rs.

1.23 Crores from the Petitioner, Respondent No. 2 was fully aware that the delay in project completion was not due to circumstances within the Petitioner's control, but rather due to change in site. Furthermore, the whole transaction between Respondent No. 2 and Petitioner was completely civil in nature. Respondent No. 2 filed civil suit no. 56 of 2014 titled "M/s Union of Indian v. M/s Lepakshi Ayush Park, Ltd. and Ors." along with an application under Order XXXIX Rule 1 and 2 of the Code of Civil Procedure, 1908 to retain assets created by the grant and reclaim the outstanding money.

8. Learned counsel further submitted that the Civil Suit No. 56 of 2014 was decreed ex-parte by the Family Court-cum-additional District Judge, Anantapuram vide Judgement dated 06.06.2017 against M/s Lepakshi Ayush Park Pvt. Ltd and its direct