Karnataka High Court
Srijith V And Anr vs The State And Anr on 24 January, 2025
Author: S.Vishwajith Shetty
Bench: S.Vishwajith Shetty
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NC: 2025:KHC-K:496
CRL.P No. 201497 of 2024
C/W CRL.P No. 201498 of 2024
IN THE HIGH COURT OF KARNATAKA,
KALABURAGI BENCH
DATED THIS THE 24TH DAY OF JANUARY, 2025
BEFORE
THE HON'BLE MR. JUSTICE S.VISHWAJITH SHETTY
CRIMINAL PETITION NO. 201497 OF 2024
(482(Cr.PC)/528(BNSS))
C/W
CRIMINAL PETITION NO. 201498 OF 2024
(482(Cr.PC)/528(BNSS))
IN CRL.P.NO.201497/2024:
BETWEEN:
1. MR. SRIJITH V. S/O SRIDHARAN V. S.,
AGED ABOUT 38 YEARS,
R/AT NO.212, KUNBURU VILLAGE,
MADAPUR POST, SOMWARPET TALUK,
Digitally signed by DISTRICT KODAGU - 571251
SHILPA R
TENIHALLI
Location: HIGH 2. MR MUSADDIK A. T S/O TAHIR AHAMADH A. E.,
COURT OF AGED ABOUT 27 YEARS,
KARNATAKA
R/AT NO.21, JANARAL BOYS HOSTEL
JAINFET, MADIKERI TALUK
KODAGU DISTRICT - 571201.
...PETITIONERS
(BY SRI HANEEF M. H., ADVOCATE)
AND:
1. THE STATE BY,
CEN POLICE STATION,
RAICHUR - 584101,
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CRL.P No. 201497 of 2024
C/W CRL.P No. 201498 of 2024
REPRESENTED BY THE,
STATE PUBLIC PROSECUTOR,
HIGH COURT OF KARNATAKA,
KALABURAGI-585103.
2. SUBHANI PASHA S/O HAJI PASHA
AGED ABOUT 28 YEARS,
NEAR JAMEENA MASZID
RESIDING AT HOSAPETE VILLAGE
RAICHUR - 584134
...RESPONDENTS
(BY SRI SIDDALING P. PATIL, ADDL. SPP FOR R1
R2 SERVED)
THIS CRL.P IS FILED U/S.482 OF CR.P.C (OLD) / U/SEC.
528 OF BNSS ACT (NEW) PRAYING TO A) TO CALL FOR
RECORDS, ON THE FILE OF THE LEARNED THE PRINCIPAL
DISTRICT AND SESSIONS JUDGE AT RAICHUR IN
SPL.C.NO.479/2024. B) TO QUASH THE IMPUGNED FINAL
REPORT NO. 01/2024 DATED 16.04.2024 SUBMITTED BY THE
RESPONDENT NO.1 (C.E.N POLICE RAICHUR) AGAINST THESE
PETITIONERS IN CRIME NO. 04/2021 FOR THE OFFENCE
PUNISHABLE SECTION 420, 120(B) READ WITH 34 OF THE
INDIAN PENAL CODE, 1860 AND UNDER SECTION 21 AND 23
OF THE BANNING OF UNREGULATED DEPOSIT SCHEME ACT,
2019 (BUDS ACT 2019) (ANNEXURE-C). C) TO QUASH THE
IMPUGNED ORDER DATED 19.09.2024 PASSED BY THE
LEARNED THE PRINCIPAL DISTRICT AND SESSIONS JUDGE, AT
RAICHUR IN SPL.C.NO.479/2024 (ANNEXURE-D). D) TO GRANT
SUCH OTHER ORDER, DIRECTIONS, RELIEF/S AS THIS
HON'BLE COURT DEEMS FIT UNDER THE CIRCUMSTANCES OF
THE CASE.
IN CRL.P.NO. 201498/2024:
BETWEEN:
1. MR. AKHIL ANTHONI S/O MR. ANTHONI T.S
AGED ABOUT 28 YEARS,
RESIDING AT NO.79B
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CRL.P No. 201497 of 2024
C/W CRL.P No. 201498 of 2024
KUDUMANGALUR VILLAGE,
KUDIGE POST TALUK, SOMWARPET
KODAGU - 571232
2. MR. BIJITH PATAYATH RAMU W/O MR. P. RAMU
AGED ABOUT 35 YEARS,
RESIDING AT NO.11, PAPAHOUSE ROAD,
ULUGULI VILLAGE, SUNTIKOPPA POST
SOMWARPET TALUK,
KODAGU-571237.
3. JAMES K.L. S/O MR.LUIES K.J
AGED ABOUT 35 YEARS,
RESIDING AT NO.212, KUNBURU VILLAGE,
MADAPUR POST, SOMWARPET TALUK,
DISTRICT KODAGU 571251.
...PETITIONERS
(BY SRI HANEEF M. H.,ADVOCATE)
AND:
1. THE STATE BY
CEN POLICE STATION
RAICHUR - 584101
REPRESENTED BY THE
STATE PUBLIC PROSECUTOR
HIGH COURT OF KARNATAKA
KALABURAGI - 585103
2. SUBHANI PASHA S/O MR. HAJI PASHA
AGED ABOUT 28 YEARS
NEAR JAMEENA MASZID
RESIDING AT HOSAPETE VILLAGE
RAICHUR - 584134
...RESPONDENTS
(BY SRI SIDDALING P. PATIL, ADDL. SPP FOR R1
R2 SERVED)
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CRL.P No. 201497 of 2024
C/W CRL.P No. 201498 of 2024
THIS CRL.P IS FILED U/S.482 OF CR.P.C.(OLD) U/SEC
528 OF BNSS, PRAYING TO, a) CALL FOR THE RECORDS, ON
THE FILE OF THE LEARNED THE PRINCIPAL DISTRICT AND
SESSION JUDGE, AT RAICHUR IN SPL C NO. 479/2024 b) TO
QUASH THE IMPUGNED FINAL REPORT NO. 01/2024 DATED
16.04.2024 SUBMITTED BY THE RESPONDENT NO. 1 (CEN
POLICE RAICHUR) AGAINST THESE PETITIONERS IN CRIME
NO. 04/2021 FOR THE OFFENCE PUNISHABLE SECTION 420,
120(b) READ WITH 34 OF INDIAN PENAL CODE 1860 AND
UNDER SECTION 21 AND 23 OF THE BANNING OF
UNREGULATED DEPOSIT SCHEME ACT 2019 (BUDS ACT, 2019)
(ANNEXURE-C) c) TO QUASH THE IMPUGNED ORDER DATED
19.09.2024 PASSED BY THE LEARNED THE PRINCIPAL
DISTRICT AND SESSION JUDGE AT RAICHUR IN SPL.C NO.
479/2024 (ANNEXURE-D) d) TO GRANT SUCH OTHER ORDER,
DIRECTIONS, RELIEF/S AS THIS HON'BLE COURT DEEMS FIT
UNDER THE CIRCUMSTANCES OF THE CASE.
THESE PETITIONS, COMING ON FOR ADMISSION, THIS
DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE S.VISHWAJITH SHETTY
COMMON ORAL ORDER
(PER: HON'BLE MR. JUSTICE S.VISHWAJITH SHETTY) Accused Nos.2 to 6 in Special Case No.479/2024 pending before the Principal District and Sessions Judge and Special Judge, Raichur, arising out of Crime No.4/2021, registered by Raichur CEN Crime Police Station, Raichur district, for the offences punishable under Sections 21 and 23 of the Banning of Unregulated Deposit Schemes Act, 2019 (for short 'BUDS Act') and Sections 120B and 420 read with -5- NC: 2025:KHC-K:496 CRL.P No. 201497 of 2024 C/W CRL.P No. 201498 of 2024 Section 34 of Indian Penal Code (for short 'IPC'), are before this Court in these two petitions filed under Section 482 of Cr.P.C., with a prayer to quash the entire proceeding in the said cases as against them.
2. Learned counsel for the petitioners having referred to Sections 7 and 27 of the BUDS Act, submits that, the police could not have registered an FIR for the offences punishable under the provisions of BUDS Act, and only on a complaint made by the Regulator who is the competent authority to file a complaint, the Designated Court can take cognizance of the offence under the BUDS Act. In support of his arguments, he has placed reliance on the orders passed by the co-ordinate Benches of this Court in W.P.No.102888/2022, disposed of on 19.10.2022 and in the Criminal Petition No.102020/2023 disposed of 31.08.2023. He submits that, in the said two cases, the entire proceedings registered against the petitioners therein including for the offences punishable under the provisions of IPC, has been quashed and accordingly, prays to allow the petitions in its entirety.
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3. Per contra, learned Addl. SPP submits that, the impugned criminal proceedings shall be proceeded before the appropriate Court only insofar as it relates to the offences punishable under the provisions of Indian Penal Code. Insofar as the offences punishable under the provisions of BUDS Act, having regard to Sections 7 and 27 of the said act, and in view of the orders passed by this Court, the impugned proceedings cannot be sustained.
4. A perusal of the material on record would go to show that, the FIR in the present case was registered for the offences punishable under Section 420 of the IPC and Section 21 of BUDS Act. After the investigation, the charge- sheet has been filed for the offences punishable under Sections 420 and 120B read with Section 34 of IPC and Sections 21 and 23 of the BUDS Act.
5. The co-ordinate Bench of this Court in W.P.No.102888/2022 having examined Sections 7 and 27 of the BUDS Act, at paragraph Nos.5, 6 and 7, has observed as follows:
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NC: 2025:KHC-K:496 CRL.P No. 201497 of 2024 C/W CRL.P No. 201498 of 2024 "5. Section 7 of the Act, specifies that appropriate government shall, by notification, appoint one or more officers not below the rank of Secretary to that government, as the competent authority for the purpose of this Act. Section 8 specifies that the appropriate government shall, with the concurrence of the Chief Justice of the concerned High Court, by notification, constitute one or more Courts known as the Designated Courts for such area or areas to deal with the matters to which the provisions of the Banning of Unregulated Deposit Schemes Act applies. Section 27 of the Act specifies that no Designated Court shall take cognizance of an offence punishable under that section except upon a complaint made by the Regulator.
6. A conjoint reading of this provision indicates that the government shall first appoint a Regulator and thereafter designate a Court to deal with the matters to which the provisions of this Act apply and the Designated Court can take cognizance only on a complaint in writing made by the Regulator.
7. In the instance case, the Regulator has not filed a complaint before the Designated Court so as to take cognizance of the offences punishable under Sections 21(1) and 21(2) of the Act. However, the Police have registered the FIR for the aforesaid offences. Hence, the registration of the FIR for the aforesaid offences is one without authority of law. Accordingly, I pass the following:-8-
NC: 2025:KHC-K:496 CRL.P No. 201497 of 2024 C/W CRL.P No. 201498 of 2024 ORDER Writ Petition is allowed.
The impugned FIR in Crime NO.257/2021 filed by the Chikkodi Police Station insofar it relates to accused Nos.2 and 3 is hereby quashed."
6. Following the said order passed in W.P.No.102888/2022, another co-ordinate Bench of this Court in Criminal Petition No.102020/2023 had quashed the impugned proceedings which was registered on the basis of a police report for the offence punishable under the provisions of IPC and also for the offence punishable under the BUDS Act.
7. In the present case, a submission is fairly made by the learned Addl. SPP that the police had no jurisdiction to register the FIR for the offences punishable under the provisions of BUDS Act and he does not dispute that the proceedings can be initiated for the offences punishable under the provisions of BUDS Act only under the complaint of a Regulator appointed under the provisions of the BUDS Act. -9-
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8. Though the co-ordinate benches of this Court have quashed the entire proceedings which was challenged in those petitions, I am of the opinion that since the FIR has been registered both for the offences punishable under the provisions of IPC and as well as under the provisions of BUDS Act, the bar for registration of FIR by the Police Officer being only for the offences punishable under the provisions of BUDS Act, it is not necessary to quash the impugned criminal proceedings in its entirety, and the ends of justice would be served by quashing the impugned criminal proceedings insofar as it relates to registration of FIR and taking cognizance of the alleged offences under the BUDS Act, based on the police final report. Accordingly, the following order:
ORDER
(i) Criminal petitions are partly allowed;
(ii) The proceedings before the Court of Principal District and Sessions Judge and Special Judge, at Raichur, in Special Case No.479/2024 insofar as it relates to taking cognizance of the offences
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NC: 2025:KHC-K:496 CRL.P No. 201497 of 2024 C/W CRL.P No. 201498 of 2024 punishable under Sections 21 and 23 of the BUDS Act, is quashed and the charge-sheet filed in the said case for the offences punishable under the provisions of IPC, is directed to be produced before the appropriate jurisdictional Court to proceed against the petitioners, in accordance with law.
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(S.VISHWAJITH SHETTY) JUDGE SVH List No.: 1 Sl No.: 37