Tjinder Jit Pal Singh Chahal vs State of Madhya Pradesh

Shri Gangele, J.—The petitioner has filed this petition u/s 482 of Criminal Procedure Code, 1973 for quashment of the First Information Report No. 254/2011, dated 29-5-2011, registered at Police Station Inderganj, District Gwalior for the offence punishable under Sections 420 & 468 of IPC and u/s 3/6 of the Madhya Pradesh Nikshepakon Ke Hiton Ka Sanrankshan Adhiniyam, 2000 and also under Sections 45-IA, 45-S/58B(5-A) of the Reserve Bank of India Act, 1934. The petitioner is associated in the activities of Kim Infrastructure and Developers Limited, having registered under the Companies Act, 1956. As per the petitioner, the company was incorporated on 14-9-2005 and it is in the business of real estate development and maintenance of land. The company is not in the business of money lending, neither it has received any deposits from the depositoRs. Learned counsel appearing on behalf of the petitioner submitted that the FIR registered against the petitioner is illegal and arbitrary and deserves to be quashed. In support of his contentions, learned counsel for the petitioner relied on the following judgments :

i) 2011 CRI.L.J.692 M.A.A. Annamalai v. State of Karnataka & Anr.;

ii) V.P. Shrivastava Vs. Indian Explosives Ltd. and Others, and

iii) Hira Lal Hari Lal Bhagwati Vs. C.B.I., New Delhi,

The Collector Gwalior issued a show cause notice on 13-7-2010 in regard to violation of Madhya Pradesh Nikshepakon Ke Hiton Ka Sanrankshan Adhiniyam, 2000 (hereinafter referred to as the ''Adhiniyam, 2000'') and under Sections 45-IA, 45-S/58B(5-A) of Reserve Bank of India Act, 1934 (hereinafter after referred to as the ''RBI Act, 1934''). The company failed to provide the information, thereafter a direction was issued to register an FIR against the company, consequently, an FIR was registered and the Additional District Magistrate, Gwalior also submitted a report against the company to the effect that it is not registered under the RBI Act, 1934 or NBFC and the company had received deposits from the public. The companies, namely, Kim Infrastructure and Developers Limited and Kim Future Vision Group had one office at Gwalior and they were operating from the aforesaid office. They had collected deposits from the public. One hundred Twentytwo persons complained to the Collector that the company received deposits from them with a promise to return the money with interest or double the same within a certain period. The company received total Rs. 35,93,523 from the aforesaid depositoRs.

A Public Interest Litigation Petition was filed by Dharmvir Singh and another in regard to unauthorised collection of money from persons by various companies. The aforesaid petition was registered as W.P. No. 3332/2010(PIL) Dharmvir Singh and another v. Union of India and others) and it is pending before this Court. This Court directed the CBI to submit a report. The CBI submitted its report and after considering various aspects has reported that the company namely, Kim Infrastructure and Developers Limited has committed offences u/s 3(1), 3(2) and 3(4) of Madhya Pradesh Nikshepakon Ke Hiton Ka Sanrakshan Adhiniyam, 2000, Section 58B (5 & 5A) & 58 C of RBI Act, 934 and Section 4, 5 & 6 of the Prize Chits and Money Circulation Scheme (Banning) Act, 1978 and Section 420 of Indian Penal Code.

From the aforesaid facts of the case, it is clear that the District Administration conducted the enquiry and found that the offence has been made out against the petitioner. The CBI also conducted an enquiry and found that the company in which the petitioner is associated has committed offence. In this view of the matter in our opinion, no ground is made out in this petition filed on behalf of the petitioner u/s 482 of Cr.P.C. for quashment of F.I.R. registered against the petitioner. Because it is well settled principle of law that an FIR can be quashed if after accepting the contents, no offence in the FIR be made out. In the present case, the investigation is in progress. The persons associated with the company are absconding. Anticipatory bail application of some of the persons have been rejected. However, looking to the facts of the case, in our opinion, the First Information Report No. 254/2011, dated 29-5-2011, registered against the petitioner at Police Station Inderganj, District Gwalior for the offence punishable under Sections 420 & 468 of IPC and u/s 3/6 of the Madhya Pradesh Nikshepakon Ke Hiton Ka Sanrankshan Adhiniyam, 2000 and also under Sections 45-IA, 45-S/58B(5-A) of the Reserve Bank of India Act, 1934, could not be quashed. Hence, we do not find any merit in this petition. It is hereby dismissed. No order as to costs.