Gujarat High Court
Jan Dhan Suraksha Foundation Trust vs State Of Gujarat & 6....Opponent(S) on 21 June, 2017
Author: R.Subhash Reddy
Bench: R.Subhash Reddy, Vipul M. Pancholi
C/WPPIL/73/2016 ORDER
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
WRIT PETITION (PIL) NO. 73 of 2016
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JAN DHAN SURAKSHA FOUNDATION TRUST....Applicant(s)
Versus
STATE OF GUJARAT & 6....Opponent(s)
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Appearance:
MR SK PATEL, ADVOCATE for Applicant
MR DM DEVNANI, ASSISTANT GOVERNMENT PLEADER for Opponent No.
1
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CORAM: HONOURABLE THE CHIEF JUSTICE MR. R.SUBHASH
REDDY
and
HONOURABLE MR.JUSTICE VIPUL M. PANCHOLI
Date : 21/06/2017
ORAL ORDER
(PER : HONOURABLE THE CHIEF JUSTICE MR. R.SUBHASH REDDY) This petition by way of Public Interest Litigation is filed with the following prayers:
"A. To frame the rules sunder the act and to establish one such Government Regulatory authority to register, verify, certify and describe each and every multilevel marketing scheme and all Mitra Mandal Schemes and Group Schemes in the State of Gujarat before it comes into operations, and to ban, all such other chits based chit funds schemes/draw schemes presently running n the State of Gujarat in the name and nature of Mitra Mandal Schemes and Group schemes.
B. To direct the respondent no.1 state to immediately issue urgent orders to the superintendent of Police of all the district to stop such illegal activities in the name of Multilevel Marketing Scheme in their respective districts and also to take Page 1 of 3 HC-NIC Page 1 of 3 Created On Sat Aug 12 23:19:59 IST 2017 C/WPPIL/73/2016 ORDER all further penal and other action by freezing all bank accounts of the respondent company forthwith in the interest of justice.
C. To direct the RBI to inquire from all the transactions of the company and its directors to find out the real magnitude of the circulation of money done by the company and thereby, to appoint special auditor to ascertain evasion of various taxes by the respondent company, and also to take necessary steps in this regard forthwith in the interest of justice.
D. To prevent the directors of the respondent company from transferring any assets of the company, or their personal assets, in what so ever form, till the conclusion of this petition.
E. Pending admission and till final disposal of this petition direct the company not to do any alleged activities including enrollment of new members and to arrange the meetings, seminars, functions, trainings, etc for promotion of such activities;
F. Grant such other and further reliefs in the facts and circumstances of this case in the interest of justice."
Earlier, when the matter was placed on board, it was argued by the learned counsel for the petitioner that in absence of publication of Rules under the provisions of Prize Chits and Money Circulation Schemes (Banning) Act, 1978, the respondent authorities are not taking proper steps though several persons are indulging in money circulation schemes contrary to the provisions of the the Act.
Today when the matter is called out, learned Assistant Government Pleader placed on record the notified rules, titled as "
Prize Chits and Money Circulation Schemes (Banning)(Gujarat) Rules, 2017.
In view of such Rules placed on record which are already notified under the provisions of Prize Chits and Money Circulation Schemes (Banning) Act, 1978, learned counsel for the petitioner requested to dispose of the matter with a direction to the respondent Page 2 of 3 HC-NIC Page 2 of 3 Created On Sat Aug 12 23:19:59 IST 2017 C/WPPIL/73/2016 ORDER authorities to take steps in accordance with the above Rules, whenever money circulation schemes are floated in contravention of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978. As much as the Prize Chits and Money Circulation Schemes (Banning) (Gujarat) Rules, 2017 are already published, we are sure that whenever such schemes are floated by the persons in contravention of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978, the authorities will take steps and issue appropriate directions.
Subject to the above, this petition is disposed of.
(R. SUBHASH REDDY, CJ) (VIPUL M. PANCHOLI, J.) pirzada Page 3 of 3 HC-NIC Page 3 of 3 Created On Sat Aug 12 23:19:59 IST 2017