Madras High Court
Selvi Pushpam Appala Naidu vs Serious Fraud Investigation Office on 27 March, 2025
Author: P.Velmurugan
Bench: P.Velmurugan
Crl.R.C.No.1960 of 2023
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Orders Reserved on : 12.03.2025
Orders Pronounced on : 27.03.2025
Coram:
THE HONOURABLE MR.JUSTICE P.VELMURUGAN
Crl.R.C.No.1960 of 2023
and
Crl.M.PNos.18302 and 18303 of 2023
--
Selvi Pushpam Appala Naidu,
Managing Director,
M/s.Gold Quest International Pvt. Ltd.,
M/s.Quest Net Enterprises India Pvt. Ltd.,
111, New No.66, S-Block, 4th Main Road,
Anna Nagar, Chennai-600 040. .. Petitioner
Vs.
Serious Fraud Investigation Office,
Ministry of Corporate Affairs,
Government of India,
Represented by its Assistant Director,
Shri S.Krishnakumar,
Corporate Bhavan, Ground Floor,
No.29, Rajaji Salai,
Chennai-600 001. .. Respondent
Criminal Revision Case filed under Section 482 Cr.P.C. to set aside the
order dated 09.08.2023 passed by the Additional Chief Metropolitan Magistrate
(E.O-1), Egmore, Chennai in Crl.M.P.No.1076 of 2023 in E.O.C.C.No.49 of 2014.
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Crl.R.C.No.1960 of 2023
For petitioner : Mr.P.Ramesh Kumar
For respondent: Mr.A.Kumaraguru, Senior Panel Counsel
ORDER
This revision petition is filed challenging the order dated 09.08.2023 passed by the Additional Chief Metropolitan Magistrate (E.O-1), Egmore, Chennai in Crl.M.P.No.1076 of 2023 in E.O.C.C.No.49 of 2014.
2. The revision petitioner is an accused in E.O.C.C.No.49 of 2014 on the file of the Additional Chief Metropolitan Magistrate (E.O-1). Egmore, Chennai.
3. The respondent filed a complaint against the revision petitioner and two others for the offences under Sections 628 and 629 of the Companies Act, and also Section 409 of IPC. The learned Magistrate, after taking cognizance of the complaint in E.O.C.C.No.49 of 2014 and pending the case, the revision petitioner filed a petition in Crl.M.P.No.1076 of 2023 invoking Section 245(1) Cr.P.C. to discharge the petitioner from the above case. The said petition was dismissed by the learned Magistrate and aggrieved by the same, the petitioner has filed the present revision petition.
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4. The case of the prosecution is that on 28.07.2010, the Ministry of Corporate Affairs, Government of India ordered an investigation under Section 235 of the Companies Act, 1956 into the affairs of M/s.Gold Quest International Private Limited and M/s.Questnet Enterprises India Private Limited and appointed Dr.Baljit Singh and others as Inspectors to investigate the case and based upon the report, the respondent has alleged that for the year ending 31.03.2009, M/s.Questnet Enterprises India Private Limited had revealed that a total sum of Rs.65.51 crores was receivable on account of loans and advances in the main Balance Sheet. However, the disclosures made, vide Note No.8 forming part of the Balance Sheet of the Company indicated that the loans and advances amounting to Rs.84.74 crores that were receivable from the 'related parties' which included Rs.15.25 crores, loans receivable from M/s.Pallava Resorts Private Limited, and the respondent has alleged that this was not true for the reason that the loans and advances receivable from the 'related parties' cannot be more than the total loans and advances shown in the main Balance Sheet. The respondent has further alleged that the Balance Sheet of M/s.Pallava Resorts Private Limited did not indicate that Rs.15.25 crores was payable to M/s.Questnet Enterprises India Private Limited and it was only Rs.24,004/- and therefore, M/s.Questnet Enterprises India Private Limited in their notes, forming Page No.3/20 https://www.mhc.tn.gov.in/judis ( Uploaded on: 02/04/2025 12:35:01 pm ) Crl.R.C.No.1960 of 2023 part of the Balance Sheet showing loans and advances of Rs.15.25 crores receivable from M/s.Pallava Resorts Private Limited, was a false disclosure which is punishable under Section 628 of the Companies Act, 1956 and therefore, the respondent has filed the above complaint against the accused/petitioner being the Managing Director of M/s.Gold Quest International Private Limited, and M/s.Questnet Enterprises India Private Limited during the relevant year.
5. Learned counsel for the revision petitioner submitted that Rs.15.25 crores was received from M/s.Pallava Resorts Private Limited, which was not shown in the Balance Sheet of M/s.Questnet Enterprises India Private Limited, which is totally false. The note describing the details of the loans and advances did not match with the details of the main Balance Sheet, which is also false and baseless. The respondent, without going through the investigation report and without going into the actual facts and issues of the case, had filed the above complaint in a hasty manner. M/s.Questnet Enterprises India Private Limited has lent a sum of Rs.15.25 crores of M/s.Pallava Resorts Private Limited during the year 2005-2007, which was later offered to be converted as equity shares of M/s.Pallava Resorts Private Limited and the same was pending for acceptance by M/s.Pallava Resorts Private Limited during the relevant year, i.e. that is the reason as to why the explanation is appended in the notes extending a sum of Page No.4/20 https://www.mhc.tn.gov.in/judis ( Uploaded on: 02/04/2025 12:35:01 pm ) Crl.R.C.No.1960 of 2023 Rs.15.25 Crores. The discrepancy found in the original Balance Sheet was later explained in the reply sought during investigation by the Inspector of Police and the error apparent on the face of it was ratified without any change for the facts and figures of the amount concerned in the case. The above said sum of Rs.15.25 crores had been explained even in the Balance Sheet of M/s.Questnet Enterprises India Private Limited and M/s.Pallava Resorts Private Limited and the same was produced before the investigating team and the respondent, without going into the explanation and offered during investigation, has filed the present complaint without any basis or the truth in the allegations made in the complaint.
6. The shareholding in M/s.Pallava Resorts Private Limited was transferred to the Directors and they are relatives of M/s.Questnet Enterprises India Private Limited on or before 31.03.2008, which is absolutely false and without any basis and as no such conversation had taken place and the amounts stood disclosed in the books of both M/s.Questnet Enterprises India Private Limited and M/s.Pallava Resorts Private Limited, though in different headings.
7. P.W.1, during his cross-examination, had categorically admitted that he neither knew nor was aware as to in whose name the alleged transfer of share has taken place. Further, P.W.1, in his cross-examination has also admitted that Page No.5/20 https://www.mhc.tn.gov.in/judis ( Uploaded on: 02/04/2025 12:35:01 pm ) Crl.R.C.No.1960 of 2023 he does not know any details personally and he has filed the complaint from the report without verifying anything and is not aware of any details of the allegations.
8. From the averments made in the complaint and the evidence let in on the side of the complainant, there is absolutely no material of entrustment or criminal breach of trust for the charge under Section 409 IPC to be framed.
9. The learned Magistrate failed to consider that the charge under Section 409 IPC can be framed only against an employee to whom anything has been entrusted by the employer and in this case, there is no such allegation or averment and hence, there is no charge under Section 409 IPC is sustainable.
10. Therefore, in the above facts and circumstances, when the revision petitioner has approached the Magistrate seeking to discharge him from the case, the learned Magistrate failed to consider the materials on record and the learned counsel further pointed out that there is no prima-facie case against the revision petitioner and there is no prima-facie allegation to face the ordeal of trial. The proceedings would only be a futile exercise and would not lead to full- fledged result. Therefore, the impugned order passed by the Magistrate is liable Page No.6/20 https://www.mhc.tn.gov.in/judis ( Uploaded on: 02/04/2025 12:35:01 pm ) Crl.R.C.No.1960 of 2023 to be set aside. The petitioner may be discharged from the case.
11. The learned counsel for the respondent submitted that the Ministry of Corporate Affairs of the Government of India ordered an investigation into the affairs of M/s.Questnet Enterprises India Private Limited and M/s.Questnet Enterprises India Private Limited, which were incorporated under the Companies Act, 1956 and were involved in the business of selling numismatic products in the form of gold/silver coins. The business model of Gold Quest International Private Limited is that of a primordial scheme like Questnet Enterprises India Private Limited. The investigation was conducted under Section 235 of the Companies Act, vide order dated 28.07.2010. The complainant has been authorised by the Central Government, vide the Gazette of India Notification No.GSR 539(E), dated 06.07.2012 to file the above complaint. The revision petitioner is charged under Sections 628 and 629 of the Companies Act and also under Section 409 IPC.
12. The evidence adduced by the prosecution discloses the commission of the offence under Sections 628 and 629 of the Companies Act, and also under Section 409 of IPC.
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13. It is further submitted that the Goldquest International Pvt. Ltd., was incorporated under the Companies Act, 1956, and was involved in the business of selling numismatic products in the form of gold and silver coins. The business model of Gold Quest International Pvt. Ltd., was that of a primordial scheme similar to Questnet Enterprises India Pvt. Ltd., i.e., the person enrols by buying a product which approximately costs Rs.30,000/- and remains active by paying annual registration fee which is Rs.460/- per year.
14. The Ministry of Corporate Affairs, Government of India ordered an investigation into the affairs of M/s.Goldquest International Pvt. Ltd., and M/s.Questnet Enterprises India Pvt. Ltd., which was incorporated under the Companies Act, 1956, and was involved in the business of selling numismatic products in the form of gold/silver coins. The business model of Goldquest International Pvt. Ltd., was that of a primordial scheme similar to Questnet Enterprises India Pvt. Ltd. The investigation was completed under Section 235 of the Companies Act, 1956, vide order dated 28.07.2010 in No.3/51/2009-CL II. The complainant has been authorised by the Central Government, vide the Gazette of India Notification No.GSR 539(E), dated 06.07.2012 and further authorised by the Director, SFIO, vide its order No.SF10/1/6/2010, dated 26.07.2013 to file the above complaint. The accused is charged under Sections Page No.8/20 https://www.mhc.tn.gov.in/judis ( Uploaded on: 02/04/2025 12:35:01 pm ) Crl.R.C.No.1960 of 2023 628 and 629 of the Companies Act, 1956 and Section 409 of the IPC. The complaint and the evidence adduced by the prosecution ex-facie discloses the commission of offences under Section 628 and 629 of the Companies Act and Section 409 of IPC.
15. The facts in the criminal complaint against the accused, are as follows:
(a) Goldquest International Pvt. Ltd., incorporated under the Companies Act, 1956 is involved in the business of selling numismatic products in the form of gold/silver coins. The business model of Goldquest International Pvt. Ltd., is that of a pyramidal scheme, i.e. a person enrols by buying a product which approximately costs Rs.30,000/- and remains active by paying annual registration fee which is Rs.460/- per year. As new members enroll, those upline are paid commission. Several persons who enrolled in this scheme, filed criminal complaint against M/s.Goldquest International Pvt. Ltd., and the same were registered under Prize, Chits and Money Circulation (Schemes) Banning Act, 1978 and various provisons of the IPC. The promoters of Goldquest International Pvt.
Ltd., incorporated another Company by name and style "Quest Net Enterprises Pvt. Ltd." in March 2005, which continued the same scheme of business as that of Goldquest International Pvt. Ltd.
(b) As per the Balance Sheet of M/s.Questnet Enterprises Pvt. Ltd., as on Page No.9/20 https://www.mhc.tn.gov.in/judis ( Uploaded on: 02/04/2025 12:35:01 pm ) Crl.R.C.No.1960 of 2023 31.03.2007, Rs.15.25 crores were receivable from M/s. Pallava Resorts Pvt. Ltd., as loans and advances. Mrs.Pushpam Appala Naidu, the accused herein, was the Managing Director of Questnet International Pvt. Ltd, (Quest Net) and also the Director of M/s.Pallava Resorts Pvt. Ltd. As per the Books of Accounts of the said M/s.Pallava Resorts Pvt. Ltd., this loan was converted into equity shares by M/s.Pallava Resorts Pvt. Ltd., i.e. the loan of Rs.15.25 croers advanced by M/s.Questnet was converted to 60,914 equity shares of Re.1 each at a premium of Rs.2,500/- per share on 18.01.2008.
(c) The investigation reveals that M/s.Pallava Resorts Pvt. Ltd., had sold all their assets to M/s.Oakdale Pvt. Ltd., and earned a profit of Rs.24.52 corers. Pushpam Appalam Naidu, being the Managing Director of M/s.Questnet and also the Director of M/s.Pallava Resorts Pvt. Ltd., was well aware that the loan advanced by M/s.Questnet could have been easily recovered from the proceeds of the sale, but yet, the loan was converted to equity at a premium of Rs.2,500/-, prejudicial to the interest of M/s.Questnet. The Books of Account of M/s.Questnet as on 31.03.2008 do not reflect either the loan receivable or holding 60,419 equity shares of M/s.Pallava Resorts and M/s.Questnet has falsified their Balance Sheet as on 31.03.2009 by making false disclosure of loans and advances. M/s.Pallava Resorts Pvt. Ltd., ceased to be subsidiary of M/s.Questnet as on 31.02.2008, as per the returns and balance sheet filed in Page No.10/20 https://www.mhc.tn.gov.in/judis ( Uploaded on: 02/04/2025 12:35:01 pm ) Crl.R.C.No.1960 of 2023 Form 23AC and Form 20B before the ROC. However, M/s.Questnet in the Return relating to the Balance Sheet as on 31.03.2009 submitted in Form 23AC, has mentioned that M/s.Pallava Resorts Pvt. Ltd., is its subsidiary. The fake Returns were filed before the ROC by M/s.Questnet with an intention to conceal the fact that its entire shareholding in M/s.Pallava Resorts Pvt. Ltd., had been transferred to Directors and their relatives without any consideration. Therefore, the amount of Rs.15.63 crores advanced to M/s.Pallava Resorts Pvt Ltd., neither recovered the said amount nor holds any equity shares in M/s.Pallave Resorts Pvt. Ltd. The details of falsification of the Returns are elaborated in the investigation report, dated 05.03.2012, which was marked as Ex.P-3.
(d) There is prima-facie case against the accused.
(e) In the Notes that forms part of the Balance Sheet of M/s.Questnet International Pvt. Ltd. (Exs.P-8 and P-9) loan of Rs.16.55 crores was found to be receivable from M/s.Pallava Resorts Pvt. Ltd., as on 31.03.2007. In the Balance Sheet of M/s.Questnet as on 31.03.2008, indicated that no amount was due from M/s.Pallava Resorts Pvt. Ltd., (Ex.P-9). The amount of Rs.16.55 crores was neither recovered, nor written off in the books of M/s.Questnet.
(f) The Balance Sheet of M/s.Pallava Resorts Pvt. Ltd., as on 31.03.2007, the paid-up capital of the Company was Rs.3,00,000/- comprising of 3,00,000 equity shares of Re.1/- each. But as on 31.03.2008 (Exs.P-10 and P-11). The Page No.11/20 https://www.mhc.tn.gov.in/judis ( Uploaded on: 02/04/2025 12:35:01 pm ) Crl.R.C.No.1960 of 2023 paid-up capital increased to 3,60,914 and the notes form part of the Balance Sheet of M/s.Palla Resorts Pvt. Ltd., disclosed that the loan advanced by M/s.Questnet i.e Rs.15.23 crores, was converted into 60,914 equity shares of Re.1/- each at premium of Rs.2500/- per share. Ex.P-12, which is the ledger account of M/s.Questnet in the books of M/s.Pallava Resorts Pvt. Ltd., entry dated 18.01.2008, shows allotment of 60,914 shares to M/s.Questnet.
(g) At the time of acquiring the shares, the net worth of M/s.Pallava Resorts Pvt. Ltd., was negative, and therefore, the acquisition of shares at a premium of Rs.2,500/- is unjustifiable and prejudicial to the interest of M/s.Questnet. M/s.Pallava Resorts Pvt. Ltd., sold their assets to M/s.Oakdale Properties Pvt. Ltd., and earned a huge profit from it (Ex.P-19 ledger account of M/s.Oakdale Properties Pvt. Ltd., in the Books of M/s.Pallava Resorts Pvt. Ltd). The accused Pushpam Appala Naidu, Managing Director of M/s.Questnet and Director of M/s.Pallava Resorts Pvt. Ltd., was well aware of the above fact. Even in the statement of oath, Pushpam Apala Naidu did not answer the question as to why the loan was converted to equity shares, when the amount could have been easily recovered from M/s.Pallava Resorts Pvt. Ltd.
(h) The conversion of loans to equity shares is not reflected in the books of accounts of M/s.Questnet. The investigation revealed that M/s.Questnet was having only 2,00,000 equity shares of M/s.Pallave Resorts Pvt. Ltd., as on Page No.12/20 https://www.mhc.tn.gov.in/judis ( Uploaded on: 02/04/2025 12:35:01 pm ) Crl.R.C.No.1960 of 2023 31.03.2007, when loans were converted to 60,914 of equity shares. M/s.Questnet should have in fact held 2,60,914 shares of M/s.Pallava Resorts Pvt. Ltd., as on 31.03.2008, but did not have any such investment in the equity shares of M/s.Pallava Resorts Pvt. Ltd. as on 31.03.2008. It explains that the amount advanced by M/s.Questnet were converted to equity shares and thereafter, M/s.Questnet transferred its entire shareholding to related parties. The funds of Rs.15.25 crores of M/s.Questnet given as loan to M/s.Pallava Resorts Pvt. Ltd., and converted to equity shares as per the accounts of M/s.Pallava Resorts Pvt. Ltd., were transferred to Directors and relatives. M/s.Questnet ha not received any money in lieu of transfer of these shares. The Balance Sheet and Returns were falsified to conceal the siphoning-off of the funds.
(i) The annual Returns in Form 20B of M/s.Pallava Resorts Pvt. Ltd, in the year ending on 31.03.2007 shows that 66.67% of M/s.Pallava Resorts Pvt. Ltd., shares were held by body corporate and 33.33% by the Directors. However, the annual Return of M/s.Pallava Resorts Pvt. Ltd., for the financial year ending on 31.03.2008 filed in Form 20B indicates that 100% of shares were held by Directors. This implies that the shares held by M/s.Questnet have been transferred to Directors, relatives of Directors as on 31.03.2008. Even in the Returns filed by M/s.Pallava Resorts Pvt. Ltd., as on 31.03.2009, indicates 100% Page No.13/20 https://www.mhc.tn.gov.in/judis ( Uploaded on: 02/04/2025 12:35:01 pm ) Crl.R.C.No.1960 of 2023 shares were held by the Directors or relatives of the Directors. Thus, M/s.Pallavar Resorts Pvt. Ltd., is not a subsidiary of M/s.Questnet. This is reflected in Form 20B and Form 23AC submitted by M/s.Pallava Resorts Pvt. Ltdlk, to RoC (Exs.P- 10, 11 and 16).
(j) M/s.Pallava Resorts Pvt. Ltd., was not a subsidiary of M/s.Questnet as on 31.03.2008 and 31.03.2009 as 100% equity shares of M/s.Pallava Resorts Pvt. Ltd., was held by the Directors or relatives. In the Books of M/s.Questnet, it can be seen that M/s.Pallava Resorts Pvt. Ltd., became a subsidiary of M/s.Questnet in the year ending 31.03.2007, holding 66.67% shares of M/s.Pallava Resorts Pvt. Ltd., but the Balance Sheet of M/s.Questnet as on 31.03.2008 indicates that M/s.Pallava Resorts Pvt. Ltdl, was not its subsidiary as on 31.03.2008. This is substantiated by Form 23B filed by M/s.Questnet before ROC anad the Return submitted to ROC in Form 23Ac (Exs.P-8, P-9 and P-16). The entire shareholding of M/s.Questnet in M/s.Pallava Resorts Pvt. Ltd., was transferred to Directors and their relataives without any consideration.
(k) M/s.Questnet submitted Form 23AC relating to the Balance Sheet as on 31.03.2009, wherein it has stated that M/s.Pallava Resorts Pvt. Ltd., is its subsidiary, but the Returns filed by M/s.Pallava Resorts Pvt. Ltd., in the same year Form 23AC and 20B shows that it is not a subsidiary of M/s.Questnet. The Returns of M/s.Questnet and M/s.Pallava Resorts Pvt. Ltd., were submitted to Page No.14/20 https://www.mhc.tn.gov.in/judis ( Uploaded on: 02/04/2025 12:35:01 pm ) Crl.R.C.No.1960 of 2023 ROC under the signature of Selvi Pushpam Appala Naidu, who was the Managing Director of M/s.Questnet and Director of M/s.Pallava Resorts Pvt. Ltd. These contradictory statements were filed to mis-represent the shareholding of M/s.Pallava Resorts Pvt. Ltd., which was transferred by M/s.Questnet to the Directors and related parties without any consideration. The Return of M/s.Questnet was filed before ROC in Form 23AC under the signature of Selvi Pushpam Appala Naidu and falsified Balance Sheet as on 31.03.2009, and therefore, she is liable under Section 628 of the Companies Act, 1956.
(l) Selvi Pushpam Appala Naidu, Managing Direlctor of M/s.Questnet and Director of M/s.Pallava Resorts Pvt. Ltd., in the reply dated 05.10.2011 - Exs.P- 13 and P-14, has stated that M/s.Pallava Resorts Pvt. Ltd., is subsidiary of M/s.Questnet. Further, when questioned about the consideration received for the sale of its shareholding in M/s.Pallava Resorts Pvt. Ltd., M/s.Questnet in its reply letter dated 05.10.2011, has stated that M/s.Pallava Resorts Pvt. Ltd., is still its subsidiary. However, the Returns and Balance Sheet of M/s.Pallava Resorts Pvt. Ltd., for the year ending 31.03.2008, shows that 100% shareholding was held by the Directors and their relatives. This was done intentionally to conceal the fact that Rs.15.25 crores that were converted to 60,914 equity shares along with M/s.Questnet's original 2,00,000 shareholding in M/s.Pallava Resorts Pvt. Ltd., (Ex.P-18) was transferred to Directors and their relatives without any Page No.15/20 https://www.mhc.tn.gov.in/judis ( Uploaded on: 02/04/2025 12:35:01 pm ) Crl.R.C.No.1960 of 2023 consideration. This amounts to false evidence under Section 629 of the Companies Act, 1956.
(m) There are sufficient materials against the accused (Exs.P.4 to P-19) to prove the charges under Sections 628 and 629 of the Companies Act and Section 409 of IPC. The names of the persons to whom M/s.Questnet transferred its shareholding in M/s.Pallava Resorts Pvt. Ltd. is not relevant to prove the charges under Sections 628 and 629 of the Companies Act and Section 409 of the IPC. The Returns and the Balance Sheet of M/s.Pallava Resorts Pvt. Ltd., show that 100% shares are held by the Directors and the relatives of the Directors. (Exs.P-10, 11 and 16).
(n) The complainant is authorised to file the above complaint in pursuance of the authorisation given, vide order dated 26.07.2013 in Order No.SF10/16/2010 (Ex.P-1). The complainant was examined as P.W.1 and he is well aware of the facts of the case. P.W.1 has stated in his chief examination that the complaint is filed based on the findings made in the investigation report. The investigating officer was examined as P.W.2.
(o) The Director of the Company is not only an agent, but also the Trustee of the assets of the Company (R.K.Dalmia Vs. Delhi Administration - AIR 1962 SC 1821).
(p) The funds of Rs.15.25 crores, invested by M/s.Questnet was siphoned Page No.16/20 https://www.mhc.tn.gov.in/judis ( Uploaded on: 02/04/2025 12:35:01 pm ) Crl.R.C.No.1960 of 2023 off by converting as loans advanced to M/s.Pallava Resorts Pvt. Ltd., into equity and these shares were transferred by M/s.Questnet to the Directors and their relatives without any consideration (Exs.P-8, 9, 10 and 11, Ex.P-16, Return filed in Form 20-B filed with the ROC for the years ending 31.03.2008 and 31.03.2009). This act amounts to clear breach of trust. The accused being the Managing Director of M/s.Questnet and Director of M/s.Pallava Resorts Pvt. Ltd., acted dishonestly and disposed of M/s.Questnet's shareholding in M/s.Pallava Resorts Pvt. Ltd. Further, Rs.15.63 crores were advanced to M/s.Pallava Resorts Pvt. Ltd., which were converted to equity shares and the entire shareholding in M/s.Pallava Resorts Pvt. Ltd., was transferred to the Directors and their relatives without any consideration.
(q) The accused is therefore liable to be prosecuted under Sections 628 and 629 of the Companies Act, read with Section 409 of IPC. Prima-facie, there exists case against the accused for framing of charges. There are sufficient materials available to prove the guilt of the accused.
16. It is settled proposition of law that while deciding the petition filed for discharge of the petitioner from the case, the trial Court has to look into the materials produced by the prosecution/complainant and it has to consider as to whether prima-facie materials are available to proceed with the case further Page No.17/20 https://www.mhc.tn.gov.in/judis ( Uploaded on: 02/04/2025 12:35:01 pm ) Crl.R.C.No.1960 of 2023 against the accused and not the defence taken by the accused or the documents of the accused.
17. Further, it is also settled proposition of law that at the time of framing the charge against an accused, the trial Court cannot conduct roving enquiry regarding the validity of the materials available on record and the veracity of the statements of the witnesses recorded. The Court has to see as to whether there is prima-facie case and materials to proceed with the case further.
18. On a reading of the entire materials available on record, produced by the respondent/complainant and the allegations made out by the respondent, this Court finds that there are prima-facie allegations and materials to proceed with the case further.
19. Therefore, in the above facts and circumstances, this Court does not find any merit in this revision petition and the revision petition is accordingly dismissed. However, the revision petitioner/A2 is at liberty to take all her defences during trial and the defences taken by the revision petitioner are all matters of trial that can be decided only after the trial and not at this stage.
20. The miscellaneous petitions are closed.
27.03.2025 Page No.18/20 https://www.mhc.tn.gov.in/judis ( Uploaded on: 02/04/2025 12:35:01 pm ) Crl.R.C.No.1960 of 2023 cs To
1. Additional Chief Metropolitan Magistrate, E.O-I, Egmore, Chennai-600 008.
2. The Section Officer, Criminal Sections - Records Wing, High Court, Madras.
3. Serious Fraud Investigation Office, Ministry of Corporate Affairs, Government of India, Represented by its Assistant Director, Corporate Bhavan, Ground Floor, No.29, Rajaji Salai, Chennai-600 001. Page No.19/20 https://www.mhc.tn.gov.in/judis ( Uploaded on: 02/04/2025 12:35:01 pm ) Crl.R.C.No.1960 of 2023 P.VELMURUGAN, J cs Pre-delivery Order in Crl.R.C.No.1960 of 2023 Order pronounced on 27.03.2025 Page No.20/20 https://www.mhc.tn.gov.in/judis ( Uploaded on: 02/04/2025 12:35:01 pm )