Radhey Shyam vs State Of Haryana

JUDGMENTTAG-JUDGMENT

Mahabir Singh Sindhu, J

1) Present petition has been filed under Section 439 of the Code of Criminal Procedure for grant of bail pending trial to the petitioner in FIR No.0358 dated 08.09.2018, under Sections 420, 406, 467, 468, 471, 120-B of the Indian Penal Code, 1860 (for short 'IPC'); Sections 4, 5, 6 of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 (for short '1978 Act') and Section 3(2) of the Haryana Protection of Interest of Depositors (in Financial Establishment) Act, 2013 (for short '2013 Act'), registered at Police Station Sadar Fatehabad, District Fatehabad.

2) Allegations against the present petitioner are that he being the CMD of Future Maker Life Care Pvt. Ltd. (hereinafter referred as 'Company'), having its Head Office at D.S.S. 45, Red Square Market, Hisar (Haryana), duped large number of persons to the tune of more than Rs. 2956 Crores.

Above FIR was registered on the basis of written complaint made by one Anil Sihag to the effect that Company has appointed various agents throughout country for selling its products and collected crores of rupees in cash by inducing innocent persons, thereby causing loss of tax to the Government running into crores of rupees. Innocent persons are persuaded to invest with this Chit Fund Company and instead of investing the collected amount, the Company indulges in illegal business activities worth crores of rupees on daily basis. The Company is neither having any product; nor any manufacturing unit; rather it has tie-up with other Companies and it does not purchase any goods. The transactions are limited only to papers, which are totally bogus and frivolous. Company receives approximately Rs. 10 crores in cash daily from its agents at Hisar Office without issuing any receipt and throughout the Country, approximately Rs. 40 crores are collected daily by the Company. Upon receipt of cash amount from its agents, Company issues bills for the products after taking IDs, but no product is supplied to them and only the profit is passed on to the agents on the basis of fictitious bills. The Company, after receiving the amount in cash from agents, issues the bill of its products @ Rs. 7500/- per ID and remits the money into their bank accounts as commission.

For an example, if someone deposits Rs. 2,52,000/- in cash, after 15 days, the Company upon taking ID of other person, issues different bills of the products and induces such person that an amount of Rs. 5 Lakh would be deposited in his bank account after a period of 24 months. The Company is not paying any income tax and it issues half the actual number of bills only.

Although, the Company is having one Office at Village Dhangar, but there is no product and only by taking the IDs from the agents, general public is misled.

3) Contends that petitioner is in custody since 10.10.2018 and after investigation in the matter, challan qua him has already been presented on 13.12.2018, but charges are yet to be framed. Further contends that although petitioner is CMD of the Company, but he has not committed any offence, thus, falsely implicated by the police. Further submits that there is no material at all with the prosecution regarding the complicity of the petitioner. Also contends that on account of the pandemic, trial is likely to take sufficient long time and as such, further incarceration of the petitioner would not serve any purpose.

On the other hand, learned State Counsel opposed the prayer and submitted that petitioner being CMD of the Company in conspiracy with other co-accused induced the innocent public at large for making the deposit of more than Rs. 2956 Crores without obtaining any requisite license from the Reserve Bank of India. Also submitted that there are total 28 FIRs registered against the Company in different States and petitioner actively participated in the scam as CMD; received huge amount in his bank accounts as well as his wife/relatives and purchased immovable properties from the ill-gotten money. Further submitted that as a matter of fact, Company is having no product, but running Chit Fund activities throughout the country leading to the evasion of income tax running into crores of rupees and an amount of Rs. 398 Crores is due on account of non-payment of the Goods and Services Tax (for short 'GST'). Again submitted that investigation in the matter is still going on and out of total 31 accused, 10 are evading the arrest despite non-bailable warrants issued against them. Lastly submitted that prosecution is making best efforts for bringing all the accused to justice and in case petitioner released on bail, he is most likely to hamper the pending investigation.

Learned Counsel for the complainant supported the pleas raised on behalf of the State while submitting that petitioner being main kingpin has played an active role in the commission of present fraud against the large number of victims throughout the country. Also submitted that co-accused, who are yet to be arrested, openly claiming through social media, including Whatsapp that all the accused are likely to come out very soon after getting clean chit and they will resume their business as usual.

4) Heard learned Counsel for the parties and perused the paper-book.

5) At the outset, it is necessary to mention here that apart from the crime mentioned above, there are 27 other FIRs registered against the Company as well as beneficiaries, who conspired for commission of the alleged scam spread in various States i.e. Haryana, Telangana, Rajasthan, Madhya Pradesh, Andhra Pradesh, Jharkhand, Uttar Pradesh and Maharashtra.

6) Record reveals that Company was incorporated on 26.02.2015 with total share capital of Rs. 10 Lakh by petitioner as well as his co-accused, namely, Bansi Lal in equal share. As per Article of Association, the main objects of the Company are as under:-

"1. "To do the business as trading, buyers, sellers, stockiest, retailers, wholesalers, suppliers, distributors, marketing, advertisement or otherwise deal in electronic items, general use items, Fast moving consumer goods, fabrics, health, life care products, Spices, Tea and all other kinds of goods and services and general use items on direct selling basis or selling through Network Marketing, online shopping and Network Business.

To carry on all type of selling and purchasing activities directly or indirectly (both in internal and external markets on its own or as sales, purchase or commission, agents and brokers), to act as Service Agents for providing services, after sales and other technical services, to carry on business as marketing, technical consultants both in internal and external markets.

To act as selling agents, sales organizers as well as consultants, agents and advisors in all the respective branches, to appoint advisors and to open branches and in such capacity to give advice and information and render services to persons, firm, company or body incorporate or authority or government which may be given or rendered while carrying in such business as aforesaid.

To carry out market research, launch advertisement campaign, and to do all such things as may be necessary for the promotion of sales of any products or article."

7) Prosecution have collected the information that there are total 14 chief ID promoters and 100 main promoters, whereas present petitioner is the CMD of the Company.

Police have also recovered one Notice published in the Times of India newspaper on 27.08.2019 which is as under:-

LIFE turning opportunity to earn income 20k to 10 lakhs/mnth.

For further details please call 9052402767 / 8919140099 During investigation, statement of Pranjil Batra, Software Engineer of the Company was recorded under Section 161 Cr.P.C. to the effect that within a period of three years, the Company collected an amount of Rs. 29,56,91,96,250/-from the depositors and out of that, Rs. 1904 Crores have been verified as per record, but remaining amount of Rs. 1053 Crores are yet to be accounted for. It is necessary to observe that Company did not obtain any license from the Reserve Bank of India for getting the deposits of such a huge amount and thus, could be a big threat to the financial market in the country. Even factum of online selling of products at the instance of the Company was verified by the prosecution from the list of Direct Selling Entities, maintained by the Ministry of Consumer Affairs and Direct Selling Association (FDSA) for Multilevel Marketing (Direct Selling), but name of the present Company nowhere exists. The ploy of direct selling is only on papers just to swindle the huge amount collected from the depositors by illegal means to wriggle out from the requirement of registration with the RBI under Section 45-1A of the Reserve Bank of India Act, 1934.

Inspector Sanjay Kumar, O/o CGST, Hisar was joined during investigation and he disclosed that an amount of Rs. 3,98,38,81,593/- was due against the Company on account of non-payment of GST as on 03.04.2019.

Bank officials produced the record pertaining to the different bank accounts of the petitioner, wherein ill-gotten money received from the Company was deposited and which are as under:-

HDFC Bank, Red Square Market, Hisar

Sr. No.

Account Number

Debit in `

Credit in `

Balance in `

1

50100112079220

9,66,817

26,23,651

16,86,834

2

9312978885

10,85,401

4,75,00,000

4,64,14,598

Account details of Firm Mukul Corporation, Hissar, Proprietor Radhey Shyam (petitioner)

HDFC Bank, Red Square Market, Hisar

3

50200030011420

69,96,99,881

70,86,00,000

89,00,119

Account details of Firm Fair Deal,

Proprietor Radhey Shyam (petitioner) and Bansi Lal (co-accused)

HDFC Bank, Red Square Market, Hisar

4

50200031276146

17,04,98,472

17,05,00,000

1,528

Axis Bank, Red Square Market, Hisar

5

917020057562540

4,14,08,402

7,46,73,936

39,25,209

A.U. Bank, Red Square Market, Hisar

6

1821211119521710

10,00,000

10,00,000

10,00,000

Account details of Firm Fair Deal Import and Export Division, Proprietor Radhey Shyam (petitioner) and Bansi Lal (co-accused)

IndusInd Bank, Green Square Market, Hisar

7

255566677777

10,03,71,738

14,55,00,000

4,51,28,262

Account details of Firm Muskan Enterpries, Proprietor Bhateri w/o Radhey Shyam (petitioner)

HDFC Bank, Red Square Market, Hisar

8

50200031090662

-

-

1,00,000

9

50100227572064

2,07,98,067

2,65,95,041

57,96,973

Account details of Firm RSBL TEEM E GAMING PVT., Hissar Proprietor Ram Singh, brother of Radhey Shyam (petitioner) and Prem Kumar, brother of Bansi Lal (co-accused)

A.U. Bank, Red Square Market, Hisar

10

1821211120053800

2,48,096

3,76,118

1,28,021

Account details of Firm Mantra Enterprises, Adampur, Proprietor Ram Singh, brother of Radhey Shyam (petitioner)

Andhra Bank, Aadampur

11

242010100026908

-

51,000

466

12

242011100001200

77,90,850

77,92,000

1,160

Account details of Ram Singh, brother of Radhey Shyam (petitioner) HDFC Bank, Red Square Market, Hisar

1

50100240789632

5,68,177

5,84,784

16,606

2

50100230457291

37,68,798

37,77,227

8,429

Apart from above, petitioner was authorized to operate various bank accounts of the Company and details of which are as under:-

Axis Bank, Red Square Market, Hisar

Sr. No.

Account Number

Debit in `

Credit in `

Balance in `

1

918020066613068

20,61,27,487

69,68,13,840

49,06,86,353

2

918020071549457

-

1,20,00,000

1,20,00,000

3

918020070598407

-

7,13,59,189

7,13,59,189

4

917020071066298

59,49,08,878

66,77,66,869

7,22,31,603

HDFC Bank, Red Square Market, Hisar

5

50200027077508

5,17,04,94,448

6,17,84,44,663

1,00,79,50,214

A. U. Bank, Red Square Market, Hisar

6

1721211116076960

27,10,94,494

27,10,94,494

-

7

1821211119896520

10,00,000

1,10,00,000

1,00,00,000

Canara Bank, Red Square Market, Hisar

8

2043214000020

6,22,29,542

8,27,73,782

2,05,44,240

IndusInd Bank, Hisar

9

258059682698

-

15,19,56,354

15,19,56,354

Oriental Bank, Hissar

10

1005113200500

38,44,67,647

43,85,93,250

54,12,56,603

Bandhan Bank, Delhi

11

20180002449293

74,89,38,106

95,44,23,678

20,54,85,572

It is noteworthy that after incorporating the Company, petitioner purchased various properties in his name as well as his wife and relatives by way of separate registered sale deeds without disclosing any other source of income except the amount received from the Company and details of which are as under:-

Properties purchased by petitioner-Radhey Shyam

Sr. No.

Description of Property

Year

1

Plot ID No.90C 287 U 663,

Municipal Committee, Hissar

2017-2018

2

Registry Number 1552 dated 19.07.2018

Land 9 Kanal 5 Marla

2017-2018

3

Registry Number 1446 dated 09.07.2018

Land 50 Kanal 12 Marla, Area Sishwal.

2017-2018

4

Registry Number 1507 dated 18.07.2018

Land 53 Kanal, Area Sishwal.

2017-2018

Properties purchased by Bhateri Devi w/o Radhey Shyam (petitioner)

Sr.

No.

Description of Property

Year

1

Registry Number 387 dated 25.04.2018,

Plot 638.77 Square Feet, Area Model Town, Hissar

2017-2018

2

Registry Number 4532 dated 27.02.2018,

120 Square Meter Plot, Area Adampur.

2017-2018

3

According to the Hisar Shanti Operative House Building Society Limited, Hisar No.543

Membership Register No.4622 dated 16.01.2018,

2017-2018

Shop 39 Sq. Rakba, Shyam Market, Rajgarh Road,

Hisar

Properties purchased in the names of other family members of the petitioner

Sr.

No.

Name & Address of the owner

Description of Property

Year

1

Ram Singh s/o Nathu Ram, r/o Sishwal, District Hisar

Registry Number 1271

dated 29.06.2018

Land 2 Kanal 3 Marlas, Area Adampur

2017-2018

2

Naresh Kumar s/o Gulab Singh, r/o Daroli, District

Hisar

Registry Number 894

dated 08.06.2018, Hayatpur (Gurugram)

2018-2019

8) As on today, investigation is pending with the SIT, headed by an IPS Officer and out of total 31 accused, 21 have been arrested so far. During the course of hearing, this Court was apprised that despite repeated non-bailable warrants, remaining 10 co-accused are still evading the arrest and again their warrants of arrest have been issued for 25.09.2020.

Since investigation in the matter is being delayed by the co-accused and prosecution is not blameworthy for the delay, if any, thus, the petitioner cannot take any benefit of the same.

Police-papers reveal that petitioner received an amount of more than Rs. 1000 Crores from the Company through different bank accounts and purchased immovable properties, thus, played an active role as CMD and as such, the contention that he has no role in the commission of offence is also liable to be rejected.

9) It is astonishing that within a period of three years of incorporation of the Company with mere share capital of Rs. 10 Lakh, accused have accumulated the amount of more than Rs. 2956 Crores through illegal means under the garb of selling non-existent products and as such, proper investigation would be required to find out the truth.

10) No doubt, present case is triable by the Magistrate, but at the same time, it is relevant to take note of the fact that apart from the present case, there are other 27 FIRs pending in different parts of the country against the Company as well as other accused. Petitioner is named in 24 FIRs and deeply involved with the syndicate for running the affairs of the Company leading to alleged fraud of more than Rs. 2956 crores.

It is also apposite to mention here that on earlier occasion, the petitioner was granted regular bail by learned trial Court on 06.02.2019, which was later on cancelled by this Court, vide order dated 20.05.2019 (P-13). Aggrieved against the above order, petitioner approached Hon'ble Supreme Court by way of SLP (Crl.) No.7365 of 2019, but could not succeed and ultimately, the same was dismissed as withdrawn on 22.10.2019 (P-15).

In view of the discussions, made hereinabove, this Court is satisfied that release of the petitioner on bail at this stage would be detrimental to the pending investigation and likely to cause serious prejudice to the case of prosecution.

Thus, taking into consideration the huge financial bungling as well as pendency of investigation against remaining 10 co-accused and to safeguard the interest of large number of victims, this Court is not inclined to grant the concession of bail to the petitioner.

As a result thereof, there is no option except to dismiss the present petition.

Ordered accordingly.

The above observations may not be construed as an expression of opinion on merits of the case.