AI Overview...
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Deposit Money with Promise of High Returns - Several sources highlight cases where individuals or companies solicited deposits promising unusually high returns, often ranging from 30% to 60% per annum, which are typically unrealistic and raise suspicion of fraudulent intent. These schemes often involve false representations and non-return of invested funds, constituting criminal offenses under Sections 420 (cheating) and 406 (criminal breach of trust) of the IPC Prashant s/o Jaideo Wasankar VS State of Maharashtra - Bombay, Prashant s/o Jaideo Wasankar VS State of Maharashtra - Bombay, Mohinder Bansal VS State Of Himachal Pradesh - Himachal Pradesh.
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Legal Framework and Court Analysis - Courts have scrutinized such schemes under various laws, including the Indian Penal Code, Cr.P.C., and specific Acts like the Maharashtra Protection of Investors' Deposits Act, 2002, and the Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004. They have emphasized that promises of exorbitant returns without a genuine basis are indicative of fraudulent intent, justifying criminal proceedings and denial of bail in many cases Prashant s/o Jaideo Wasankar VS State of Maharashtra - Bombay, Prashant s/o Jaideo Wasankar VS State of Maharashtra - Bombay, SHRI. SHUAIBULLAH KHAN vs STATE OF KARNATAKA - Karnataka, Mohinder Bansal VS State Of Himachal Pradesh - Himachal Pradesh.
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Nature of Promises and Investor Protection - Courts have acknowledged that such schemes often involve misrepresentation and deception, with some cases noting the lack of honest intent at the time of promising returns. The courts have also considered the role of legal aid and the necessity to protect investors from such fraudulent schemes, sometimes directing legal aid authorities to assist accused or complainants G. Malliga VS State Represented by The Inspector of Police, Erode - Madras.
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Additional Legal Aspects - Cases also involve investigation under related laws like the Negotiable Instruments Act (Section 138), Income Tax Act, and Prevention of Money Laundering Act, indicating the multifaceted approach to tackling deposit schemes promising high returns. The courts have rejected discharge applications and upheld charges when evidence suggests deliberate deception and criminal breach of trust Naresh Kumar Arora VS Ut, Chandigarh - Punjab and Haryana, ASST. COMMISSIONER OF INCOME TAX vs STATE - Delhi.
Analysis and Conclusion:
Schemes promising high returns on deposits often fall under criminal offenses such as cheating (Section 420 IPC) and breach of trust (Section 406 IPC). The courts consistently recognize these promises as indicators of fraudulent intent, especially when no genuine basis exists for such high returns. Legal provisions like the Cr.P.C., the Maharashtra Protection of Investors' Deposits Act, and relevant IPC sections are effectively used to prosecute and deny bail to offenders. The overarching principle is the protection of investors from deceptive schemes, with courts emphasizing that such promises, if false and misleading, constitute criminal misconduct warranting strict legal action.
Search Results for "Alluring Complaint to Deposit Money with the Promise to Pay Huge Return under Section 420"
2016 0 Supreme(Bom) 1216 • India - Bombay
S.B.SHUKRE
BAIL - CRIMINAL PROCEDURE CODE - Section 439 - The court discussed the allegations against the applicant, who was seeking release ... Code and the Maharashtra Protection of Investors' Deposits Act, 2002. ... of a wealth management company, was accused of making false representations to investors and not returning their investments as promised ... , which could be seen from fact that this applicant had promised return of the deposits with interest ranging from 30% to 60% per annum. ... ....
2016 0 Supreme(Bom) 1653 • India - Bombay
S.B.SHUKRE
The allegations involved false representation to investors and non-return of invested money. ... BAIL - Criminal Offenses - Indian Penal Code, 1860, Sections 420, 406, 120-B, 506; Maharashtra Protection of Investors' Deposits ... Act, 2002, Section 3; Reserve Bank of India Act, 1949, Section 45(1)(a), Section 45(s); Securities and Exchange Board of India Act ... in the various investment schemes floated by his companies and did not return#H....
2023 0 Supreme(Mad) 2655 • India - Madras
R. HEMALATHA
TNPID Act - Poultry Farm Investment Scheme - Sections 120(b), 420 IPC and Section 5 of TNPID Act - The court analyzed the purpose ... Fact of the Case: The case involved a poultry farm investment scheme where investors were promised high returns but ... The court also acknowledged the role of the legal aid counsel and directed the Legal Service Authority to pay the counsel's fee. ... In the instant case, according to him, impossible promise of high return#....
2019 0 Supreme(J&K) 480 • India - Jammu and Kashmir
SANJAY KUMAR GUPTA
161 Cr.P.C. and under Section 164-A Cr.P.C. were recorded; Ledger Books/records of company containing deposit details Day Books ... Ranbir Penal Code, 1989 - Sections 420, 438, 467, 468, 120-B - Code Of Criminal Procedure, 1973 - Sections ... Mellitus And Hypertensive Heart Disease - Immovable Property – Frozen - Respondent has made efforts to execute warrants issued under Section ... Further, they had received deposits from a large number of depositors by a....
2019 0 Supreme(HP) 466 • India - Himachal Pradesh
CHANDER BHUSAN BAROWALIA
BAIL - Criminal Procedure - Section 439 of the Code of Criminal Procedure - Sections 406, 420 and 120 IPC - The court discussed ... the promised returns, resulting in a substantial amount being recoverable from the petitioner. ... the provisions of Section 439 of the Code of Criminal Procedure and the relevant sections of the Indian Penal Code, including Sections ... The present bail application has been maintained by the petitioner under ....
2025 Supreme(Online)(Kar) 21663 • India - Karnataka High Court
(A) Code of Criminal Procedure, 1973 - Section 227 - Karnataka Protection of Interest of Depositors in Financial Establishments Act ... , 2004 - Discharge application - Rejection of discharge application of accused for offences under Sections 406, 409, 420, 477A and ... Ltd., involving illegal collection of deposits from the public under the guise of high returns, leading to financial distress among ... Further, it is noticed from the records that the M/s.IMA had collected huge #HL_STA....
2022 0 Supreme(P&H) 1560 • India - Punjab and Haryana
VINOD S. BHARDWAJ
Section 138 of the Negotiable Instruments Act, 1881 by the respondent No.2- complainant, a complaint for commission of offences under Section 406 , 420 and 506 IPC was submitted by the respondent No.2- complainant to the Senior Superintendent of Police ... (xiv ) The complainant alleges that she resigned from the Directorship of Company under the pretext of return of her money. No complaint had however been submitted before the Company Court about the suppression or ....
2018 0 Supreme(Ori) 655 • India - Orissa
S.K.SAHOO
deceive the complainant - Nothing on record to show that the intention of the Company was dishonest at the very time when it made a promise ... 482 can be exercised even when there is a bar under Section 397 or some other provisions of the Criminal Procedure Code. ... ... Thus the inherent jurisdiction of the High Court under Section ... Johny reported in (2011) 50 Orissa Criminal Reports (SC) 616, it is held that for proceeding under Section 156(3) of the Code, the complaint must disclose relevant ma....
2025 Supreme(Online)(Del) 6863 • India - IN THE HIGH COURT OF DELHI AT NEW DELHI
NEENA BANSAL KRISHNA, J
(A) Income Tax Act, 1961 - Sections 132, 226(4) - Prevention of Money Laundering Act, 2002 - Section 71 - Petition challenging the ... order denying the release of fixed deposits seized by the Income Tax Department due to outstanding tax liabilities of certain individuals ... (Paras 58-62) ... ... Ratio Decidendi: The conclusion drawn by the court emphasizes that money ... The Complaint under Section 4 5 of PMLA was filed against the Respondent No.3 and 4 and other ....
2017 4 Supreme 6 • India - Supreme Court
PINAKI CHANDRA GHOSE, AMITAVA ROY
submitted after filing of charge sheet – Attempt to cover up income under shiweld of deposit scheme – No details of scheme given ... 13(1)(e) – Income tax return filed belatedly – Not annexing relevant documents – Profit and loss account ... in income tax return – Courts below rightly concluding against source of such income – High Court even then accepting addition of ... The said complaint was registered as Crl.M.P. ... The Trial Court mentioned and rightly that this return as well as the re....
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