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IN THE HIGH COURT OF KARNATAKA

KALABURAGI BENCH

DATED THIS THE 14^TH DAY OF SEPTEMBER 2021

BEFORE

THE HON’BLE MR. JUSTICE MOHAMMAD NAWAZ

CRIMINAL PETITION No.201140/2021

C/W

CRIMINAL PETITION No.201261/2021

IN CRL.P. NO.201140/2021:

Between:

Raviraj S/o Jeevanrao

Aged about 35 years

Occ: Director of SSRD, Aurad

R/o Nelwad, Tq. Bhalki

… Petitioner

(By Sri Ravi B. Patil, Advocate)

AND:

The State of Karnataka

Through Aurad-B Police Station, Bidar

Represented through

Additional State Public Prosecutor

High Court of Karnataka

Kalaburagi - 585 107

… Respondent

(By Sri Mallikarjun Sahukar, HCGP)

This Criminal Petition is filed under Section 439 of

Criminal Procedure Code, praying to grant an order of bail

favoring the petitioner in respect of Crime No.86/2021 for

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the

offence

under

Section

21

of

the

Banning

of

Unregulated Deposit Schemes Act, 2019 and Sections 409,

420 R/w 34 of IPC, registered by the respondent-Aurad-B

Police, pending on the file of Principal District and Sessions

Judge at Bidar.

IN CRL.P. NO.201261/2021:

Between:

1.

Shivaji S/o Baburao Patil

Age: 35 years, Occ: Agriculture

R/o Madapalli, Now at Shivaji Nagar

Near Gumpa, Bidar - 585 401

2.

Vasudev S/o Baburao Patil

Age: 30 years, Occ: Pvt. Service

As business development Executive in

Satyam Shivam Sundaram Rural

Development Association

R/o Madapalli, Now at Shivaji Nagar

Near Gumpa, Bidar - 585 401

… Petitioners

(By Sri Shivanand V. Pattanashetti, Advocate)

AND:

The State of Karnataka

R/by Addl. SPP

High Court of Karnataka

Kalaburagi Bench - 585 107

(Through Aurad-B P.S.

Dist. Bidar - 585 401)

… Respondent

(By Sri Mallikarjun Sahukar, HCGP)

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This Criminal Petition is filed under Section 439 of

Criminal Procedure Code, praying to grant the regular bail

to the petitioners/accused Nos.2 and 3 in Aurad-B P.S.

Crime No.86/2021 for the offence punishable under

Section 21 of the BUDS Act, 2019 and Sections 409, 420

R/w Section 34 of IPC, pending on the file of Principal

District and Sessions Court, Bidar, Dist. Bidar.

These petitions coming on for Orders this day, the

Court made the following:

O R D E R

These petitions are filed under Section 439 of Cr.P.C.

by accused Nos.1 to 3 respectively to enlarge them on bail

in Crime No.86/2021 of Aurad Police Station, registered for

offence punishable under Section 21 of the Banning of

Unregulated Deposit Schemes Act, 2019 (hereinafter

referred to as 'BUDS Act' for short).

2.

Heard the learned counsel for petitioners,

learned High Court Government Pleader for respondent-

State and perused the material on record.

3.

Learned High Court Government Pleader has

filed statement of objections. He submits that charge sheet

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has been filed for offences punishable under Sections 406,

420 R/w 34 of IPC and Section 21 of the BUDS Act.

4.

Briefly stated, case of the prosecution is that,

accused No.1 being the President and accused Nos.2 and 3

being the employees of one Satyam Shivan Sundaram

Rural

Development

Society,

under

the

guise

of

constructing houses worth of `3,00,000/- at the rate of

`75,000/- per house, illegally collected about `10 to 12

crores

from

1200

to

1500

persons

and

without

constructing or competing even a single house, cheated

those persons.

5.

It is the contention of learned counsel for

petitioners that the investigation taken up by the

respondent-police is without jurisdiction and without any

authority of law. It is contended that as per Sl.No.4 of the

First Schedule to the BUDS Act, any scheme or an

arrangement made or offered by a co-operative society

registered under the Co-operative Societies Act, 1912 or a

society being a society registered or deemed to be

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registered under any law relating to co-operative societies

for the time being in force is a Regulated Deposit Scheme

and therefore, Section 3 of the BUDS Act which is

punishable under Section 21 of the Act is not app