IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH Date of decision : 22^nd December, 2025 Mukesh Modi ...Petitioner Versus Serious Fraud Investigation Officer ...Respondent CORAM: HON'BLE MRS. JUSTICE MANISHA BATRA Present: Mr. Vikram Chaudhary, Senior Advocate with Mr. Keshavam Chaudhary, Advocate for the petitioner.

Mr. Neeraj Poswal, AAG, Haryana.

Ms. Puneeta Sethi, Senior Panel Counsel for SFIO.

Mr. J. S. Lalli, Deputy Solicitor General of India with Mr. Manish Verma, Advocate for the respondent – UOI.

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MANISHA BATRA, J :-

The instant petition has been filed by the petitioner under Section

439 of Cr.P.C. for grant of regular bail in Criminal Complaint No. 3 of 18.05.2019, bearing CIS No. COMA/05/2019, titled as SFIO vs. Adarsh Build Estate Ltd. And others, filed under Sections 120-B, 417, 418, 420 and 477A of IPC, Sections 211(7), 227 and 628 of the Companies Act, 1956 and Sections 147 and 447 of the Companies Act, 2013(for short, ‘Companies Act’), pending in the Court of the Sessions Judge, Gurugram.

2. The aforementioned complaint has arisen out of order dated 20.06.2018 passed by the Central Government through Ministry of Corporate Affairs (hereinafter referred to as ‘MCA’) whereby MCA in exercise of the powers conferred under Section 212(1)(c) of the Companies Act and Section 43(2)and (3)(c)(i) of the Limited Liability Partnership Act, 2008 (For short, ‘LLP Act’), ordered investigation into the affairs of Adarsh Group of Companies and its 125 Limited Liability Partnership Companies (hereinafter referred to as ‘companies under investigation’ ‘CUIs’) by Serious Fraud Investigation Office (for short ‘SFIO’) on the allegations of siphoning off funds of Adarsh Credit Cooperative Society Limited (For short, ‘ACCSL’). As per the investigation conducted, funds of the ACCSL, which actually belonged to 22 lakhs depositors and were of amount of several crores of rupees, were received by the CUIs on unsubstantiated and questionable projected balance sheets and financial statements. Both ACCSL and CUIs were found to be controlled by the present petitioner who along with his family members, was found to be involved in the economic fraud. After conducting inquiry and investigation, the petitioner along with the co-accused Rahul Modi was arrested on 10.12.2018, after recording reasons to believe that they had committed an offence punishable under Section 447 of the Companies Act by utilizing the CUIs incorporated by the petitioner in conspiracy with the others for siphoning off the funds belonging to 22 lakh depositors with ACCSL. In the complaint, the petitioner was arrayed as accused No. 113. This complaint has to be considered as a report presented under Section 173 of Code of Criminal Procedure (For short, ‘Cr.P.C.’) in terms of provisions of Section 212(15) of the Companies Act.

3. Vide order dated 03.06.2019, passed by the learned Sessions Judge-cum-Special Judge, under Companies Act, the petitioner was summoned under Section 447 of the Companies Act read with Sections 406, 417, 418, 420, 467, 468, 471 and 474 read with Section 447 of Indian Penal Code. Process was also issued against the other individuals and companies arraigned as accused for commission of offences punishable under Section 447 of the Companies Act and under different provisions of Indian Penal Code. Allegations against the petitioner are that he was founder of ACCSL. He along with his family members and associates had incorporated 70 CUIs who in connivance with each other fraudulently secured loans from ACCSL. Loans of more than 1700 crore were availed by the above said CUIs (during the financial years 2010-2011 till financial year 2017-18). The investigation also revealed the manner in which funds belonging to the society had been siphoned off in active connivance with the petitioner.

4. It is argued by learned counsel for the petitioner that he is an aged and ailing person who has been falsely implicated in this case. He was neither founder nor director nor emplo