A prima facie case of criminal offense exists against the petitioners, and the court's inherent powers cannot be used to quash proceedings based on uncontroverted allegations.

1. To quash or not quash a particular FIR is once again confronting this Court in this criminal petition filed by the petitioners U/s 482 CrPC.

2. To appreciate the controversy, I may straightaway proceed to bring out the salient features of the case as pleaded by the petitioners. The petitioner No.1 is a society registered under the Travancore Cochin, Literary, Scientific and Charitable Societies Registration Act, 1955 whereas the petitioner Nos.2-4 are its office bearers. The Amtali Police Station registered FIR No.221/2013 against the petitioner for the offences punishable U/s 467/468/471/420/406/409 / 120 - B IPC. The case of the prosecution is that in the year 2004, the petitioners had approached the State government offering to establish a Medical College and Hospital in Tripura by showing their experience in the field of medical education. On granting permission an agreement dated 7-10-2004 was signed between the State Government and the petitioners for establishing a medical college and hospital on public private partnership model. The State Government accordingly granted a lease of 49.86 acres of land at Agartala for a period of 99 years for setting up the medical college and hospital. The Government also promised to grant necessary certificate for establishing the medical college and tax exemption in addition to granting a soft loan to the petitioners amounting to Rs. 25 crores repayable after 15 years in equal installments with simple interest with matching contribution by the petitioner - society. The petitioners, in turn, agreed to upgrade the existing hospital building on the leased site and convert it into a full - fledged hospital in accordance with the norms prescribed by the Medical Council of India.

3. According to the respondents, the petitioners did not show any real interest in running the said medical college and hospital, but rather committed breach of faith on many occasions and indulged in gross financial irregularities, fudging and falsification of accounts and preparation of forged and fabricated documents causing embezzlement of Government funds provided to the petitioners as loan. It is also the case of the State - respondents that a review of the affairs of the medical college and hospital revealed that the petitioners had not maintained proper books of accounts and records of expenditures and not maintained invoices and supporting documents. In view of these misdeeds of the petitioner - society, the State - respondents through the Director (Audit), Government of Tripura had conducted preliminary inquiry and examined their Bank statements and Utilization Certificate submitted by them to the State - respondents led to unearthing of financial embezzlement amounting to Rs. 5,19,79,759/-. The specific allegations of the respondents against the petitioners are:

(a) In 31 cases, cheques involving Rs. 1,87,84463/- were shown to have been issued to different parties on account of expenditures incurred by the Society out of the fund provided by the State Government as loan. But these cheques have not been found to be debited in the Bank Statement during the period from April 2005 to June 2009.

(b) Four cheques were found to have to have been shown in the utilization certificates more than once with the same cheque number but different dates and different payees amounting to Rs.10,36,816/-.

(c) Expenditures of Rs. 3,59,798/- has been overstated in the utilization certificates submitted to the state Government.

(d) Identical capital expenditures amounting to Rs. 1,08,83,959/- have been shown in the utilization certificates submitted to both State Government as well as HUDCO.

(e) Paymen