Charges cannot be framed without sufficient evidence, and the police exceeded their jurisdiction by registering an FIR in a matter under SEBI's purview.

The petitioner has filed this petition under Section 482 of the Code of Criminal Procedure, 1973 (herein after referred to as the Code) seeking quashment of order dated 19.10.2023 (Annexure A/1) passed in Special Sessions Trial No.127 of 2020 by 29th Additional Special Sessions Judge, Indore, District Indore (MP), whereby charges under Section 420 / 406 of Indian Penal Code, 1860 and also under Section 6 (1) of M.P. Nikshepkon Ke Hiton Ka Sanrakshan Adhiniyam, 2000 have been framed against the petitioner.

02. Facts of the case are that one Sourabh Gupta S/o Satish Sarmandal resident of House No.110, Scheme No.136, Anand Vihar, Indore submitted a written compliant on 05.03.2022 to Additional Superintendent of Police, Crime Branch, Indore alleging that the present present petitioner and others persons are illegally running an advisory company without SEBI License and Gumasta License since last 5 – 6 month. He has also made a complaint against three other advisory companies. The said complaint was marked to Police Station - Khajrana, Indore and the Station House Officer registered an F.I.R. against the present petitioner and other accused persons under Sections 420 , 406 & 120-B of the IPC on 05.03.2020.

03. The police recorded the memorandum statement of the accused persons under Section 27 of the Indian Evidence Act on 07.03.2020, according to which they were working as partner in Swastic Investment Advisory Company. They opened the Demate Account. The police seized attendance register of 13 employees, registration certification under the Shop & Establishment Act, memorandum of association and lease agreement.

04. Except the aforesaid memorandum and seized articles, there is absolutely no investigation in this matter as to who has been cheated by the accused persons including the present petitioner in the name of investment or sell or purchase of shares. Even the complainant has not made allegation that he has been cheated by the present petitioner by way of advice for sell and purchase of the shares. On the basis of only this limited material and memorandum statement, the police filed a final report on 05.03.2020 in the court of magistrate. Surprisingly, the learned Sessions Judge has framed the charges under Sections 420 , 406 of the IPC & Section 6 (1) of M.P. Nikshepkon Ke Hiton Ka Sanrakshan Adhiniyam, 2000 .

05. In order to prove the charges against the petitioner / accused persons, there is absolutely no material in the charge-sheet. Not a single investor came forward to make an allegation about cheating which is a mandatory requirement for prosecution under Section 420 of the IPC . So far as charge under Section 406 is concerned, same is also very vague in nature and to establish or prove the charges, there is no material available in the charge-sheet.

0 6 . Learned counsel for the petitioner submits that co-accused persons namely Rajat Saraf S/o Rakesh Kumar Saraf, Dharmendra S/o Maahesh Malviya and Sheetal Motghare D/o Rajendra Motghare as well as Harsh Solanki S/o Ranchore Solanki have filed Criminal Revision No.5430 of 2023, Criminal Revision No.64 of 2024 and Criminal Revision No.451 of 2024 which have already been allowed by this Court vide order dated 04.12.2023, 22.01.2024 and 09.02.2024 respectively and impugned order dated 19.10.2023 of framing of charges against them has been quashed as well as they have also been discharges from the alleged offences. Therefore, learned counsel for the petitioner submits that the present petition be allowed maintaining parity with other co-accused persons.

07. The Coordinate Bench of this Court in a similar facts and circumstances in the case of Alka Shrivastava v. The State of Madhya Pradesh ( M.Cr.C. No.23883 of 2020 ) quashed the F.I.R. and subsequent proceedings vide order dated 22.09.2020. Paragraphs - 31, 32, 33 & 34 are reproduced below:- “31. Such proposition by the learned Public Prosecutor for State is like putting cart before the horse. The police in the prese