A. Badharudeen
1. These bail applications have been filed under Section 483 of Bharatiya Nagarik Suraksha Sanhita, 2023, seeking regular bail and the petitioner is the 5th accused in Crime Nos.1734, 907, 596, 336, 261, 271, 234 of 2023 and 4th accused in Crime No.162 of 2023 of Thiruvalla Police Station, Pathanamthitta.
2. In Crime No.1734/2023, the prosecution allegation is that, the 1st accused being the Managing Director and other accused, who are the Directors of M/s SN Chitty Fund and Bankers, jointly collected Rs.7,95,000/- starting from 2013 (Rs.3,31,000/- from the defacto complainant and Rs.4,64,000/- from the daughter of the defacto complainant] offering 12% interest on assuring that M/S. S.N. Chitty Fund and Bankers obtained licence from Reserve Bank to run finance business after suppressing the fact that they had no licence to do financial business. Accordingly, the accused illegally collected the above said amount and they failed to give interest along with the principal amount as agreed and thereby committed breach of trust as well as cheating punishable under Sections 406, 409 and 420 read with 34 of the Indian Penal Code ('IPC' for short hereinafter) and under Sections 3 read with 21(1)(2)(3) and 5 read with 23, and 25(1) of the Banning of Unregulated Deposit Schemes Act, 2019 (hereinafter referred to as 'BUDS Act).
3. In Crime No.907/2023, the prosecution allegation is that, the 1st accused being the Managing Director and other accused, who are the Directors of M/s SN Chitty Fund and Bankers jointly collected Rs.9,00,000/- from the defacto complainant during the period from 01.01.2013 to 20.07.2023, in similar fashion. Accordingly, the accused illegally collected the above said amount and they failed to give interest along with the principal amount as agreed and thereby committed breach of trust as well as cheating punishable under Sections 406, 409 and 420 read with 34 IPC and under Sections 3 read with 21(1)(2)(3) and 5 read with 23, and 25(1) of the BUDS Act.
4. In Crime No.596/2023, the prosecution allegation is that, the 1st accused being the Managing Director and other accused, who are the Directors of M/s SN Chitty Fund and Bankers jointly collected Rs.50,000/- from the defacto complainant during 2018 and Rs.2,40,000/- on 02.11.2020 amounting to total sum of Rs.2,90,000/-, in similar fashion. Accordingly, the accused illegally collected the above said amount and they failed to give interest along with the principal amount as agreed and thereby committed breach of trust as well as cheating punishable under Sections 406, 409 and 420 read with 34 IPC and under Sections 3 read with 21(1)(2)(3) and 5 read with 23, and 25(1) of the BUDS Act.
5. In Crime No.336/2023, the prosecution allegation is that the 1st accused being the Managing Director and the other accused who are the Directors of M/S. S.N. Chitty Fund and Bankers offered 18% interest (Rs.1,500/- per month for Rs.1 lakh) and on the said offer jointly collected Rs.7 lakhs (Rs.4 lakh from the husband and Rs.3 lakh from the wife) in between 26.05.2019 to 17.06.2019 on assuring them that M/S. S.N. Chitty Fund and Bankers obtained licence from Reserve Bank to run finance business after suppressing the fact that they had no license to do financial business. Accordingly, the accused illegally collected the above said amount and they failed to give interest along with the principal amount as agreed and thereby committed breach of trust as well as cheating punishable under Sections 406, 409 and 420 read with 34 IPC and under Sections 3 r/w 21(2), (3), 5 r/w 23, 25(1) of the BUDS Act.
6. In Crime No.271/2023, the prosecution allegation is that, the 1st accused being the Managing Director and other accused, who are the Directors of M/s SN Chitty Fund and Bankers jointly collected Rs.15,00,000/- from the defacto complainant during the period from 01.10.2017 to 23.10.2019, in similar fashion. Accordingly, the accused illegally collected the above said amount and they failed to give interest along with the principal amount as agreed and thereby committed breach of trust as well as cheating punishable under Sections 406, 409 and 420 read with 34 IPC and under Sections 3 read with 21(1)(2)(3) and 5 read with 23, and 25(1) of the BUDS Act.
7. In Crime No.261/2023, the prosecution allegation is that, the 1st accused being the Managing Director and the other accused who are the Directors of M/s. S.N. Chitty Fund and Bankers jointly collected Rs.44,52,360/- from the defacto complainant offering 10% interest from 08.10.2014 to 12.06.2020 on assuring them that M/S. S.N. Chitty Fund and Bankers obtained licence from Reserve Bank to run finance business after suppressing the fact that they had no licence to do financial business. Accordingly, they illegally collected the above said amount and they failed to give interest along with the principal amount as agreed and thereby committed breach of trust as well as cheating punishable under Sections 406, 409 and 420 read with 34 IPC and under Sections 3 read with 21(1)(2)(3) and 5 read with 23, and 25(1) of the BUDS Act.
8. In Crime No.162/2023, the prosecution allegation is that, the 1st accused being the Managing Director and the other accused who are the Directors of M/s. S.N. Chitty Fund and Bankers jointly collected Rs.6,00,000/- from the defacto complainant offering 10% interest from 01.06.2019 on assuring them that M/S. S.N. Chitty Fund and Bankers obtained licence from Reserve Bank to run finance business after suppressing the fact that they had no licence to do financial business. Accordingly, they illegally collected the above said amount and they failed to give interest along with the principal amount as agreed and thereby committed breach of trust as well as cheating punishable under Sections 406, 409 and 420 read with 34 IPC and under Sections 3 read with 21(1)(2)(3) and 5 read with 23, and 25(1) of the BUDS Act.
9. In Crime No.234/2023, the prosecution allegation is that, the 1st accused, being the Managing Director and the other accused who are the Directors of M/s. S.N. Chitty Fund and Bankers jointly collected Rs.13,20,000/- from the defacto complainant offering 12% interest on assuring them that M/S. S.N. Chitty Fund and Bankers obtained licence from Reserve Bank to run finance business after suppressing the fact that they had no licence to do financial business. Accordingly, they illegally collected the above said amount and they failed to give interest along with the principal amount as agreed and thereby committed breach of trust as well as cheating punishable under Sections 406, 409 and 420 read with 34 IPC and under Sections 3 read with 21(1)(2)(3) and 5 read with 23, and 25(1) of the BUDS Act.
10. Heard the learned counsel for the petitioner as well as the learned Public Prosecutor, in detail. Perused the report submitted by the learned Public Prosecutor.
11. While canvasing regular bail to the petitioner, who altogether involved in ten crimes, the learned counsel for the petitioner argued that the petitioner is innocent and though she had held the post of Director of the company, she has no involvement in the money transactions. Highlighting the custody of the petitioner from 21.11.2024, the learned counsel for the petitioner pressed for grant of regular bail.
12. Whereas the learned Public Prosecutor opposed grant of regular bail to the petitioner highlighting the huge scam of money at the instance of the accused, including the petitioner, pointing out the crime history of the petitioner as extracted under:
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Previous criminal records of the petitioner, if any |
The petitioner is the accused in Thiruvalla PS 1. Cr.2381/21, 2. Cr. 2413/21, 3. Cr.2361/21, 4. Cr.2512/21, 5. Cr.2466/21 6. Cr.2448/21, 7. Cr.121/21, 8. Cr.2362/21 u/s 406, 409, 420, 34 IPC & Sec 3 read with 21(1)(2)(3), 5 r/w 23, 25(1) of the BUDS Act. |
13. According to the learned Public Prosecutor, the investigation in these crimes not so far completed and therefore, release of the petitioner on bail would be fatal to the prosecution.
14. In this matter, it is discernible from the prosecution records that, under the guise of running of a chitty company by name SN Chitty Fund and Bankers, without any license or authorization from the Reserve Bank, the accused persons illegally carried out money lending business, keeping deceitful intention at the very inception to cheat and defraud the persons who would deposit into the company, collected huge amount of money, as stated in each crimes and thereafter failed to repay the amount along with interest and even failed to repay the principal amount. Therefore, the prosecution allegations are well made out, prima facie.
15. While addressing the absolute innocence canvassed by the learned counsel for the petitioner, I have no hesitation to observe that the 1st accused and other accused persons including the petitioner being directors of M/s.S.N.Chitty Fund and Bankers have common intention to cheat and defraud the depositors after swallowing lakhs of rupees deposited by them by offering high rate of interest and by running the chitty business without obtaining licence or any legal authorisation, prima facie and the allegations are serious. Therefore, the role of all accused is specifically made out from the prosecution records, prima facie and they could not be held as innocent before trial. Thus, the matter would require effective investigation and trial.
16. However, taking into consideration the custody of the petitioner from 21.11.2024, I am of the view that, further custody of the petitioner, for the purpose of investigation is not necessary and she can be enlarged on bail.
Therefore, these petitions stand allowed. The petitioner is enlarged on bail on conditions:
i. The petitioner shall be released on bail on executing bond for Rs.50,000/- (Rupees Fifty Thousand Only) with two solvent sureties, each for the like amount to the satisfaction of the Jurisdictional court concerned.
ii. The petitioner shall not intimidate the witnesses or tamper with evidence. She shall co-operate with the investigation and shall be available for trial.
iii. The petitioner shall appear before the Investigating Officer as and when directed, apart from appearing before the Investigating Officer on all Mondays between 9 am and 10 am, for a period of one month.
iv. The petitioner shall not, directly or indirectly, make any inducement, threat or promise to any person acquainted with the facts of this case, so as to dissuade him from disclosing such facts to the court or to any police officer.
v. The petitioner shall not involve in any other offence during the currency of bail and any such event, if reported or came to the notice of this court, the same alone shall be a reason to cancel the bail hereby granted.
vi. The petitioner shall not leave the jurisdiction of the Jurisdictional Court without prior permission of the Jurisdictional Court.
