Madras High Court
Seshadri Swamigal Trust vs The State Of Tamil Nadu on 17 September, 2020
Author: G.K.Ilanthiraiyan
Bench: G.K.Ilanthiraiyan
Crl.OP.Nos.8272 & 13358 of 2020
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 17.09.2020
CORAM
THE HONOURABLE MR. JUSTICE G.K.ILANTHIRAIYAN
Crl.O.P.Nos.8272 & 13358 of 2020
Crl.OP.No.8272 of 2020
Seshadri Swamigal Trust,
represented by its Sec Mr.S.Rajaram,
S/o.T.V.Subramania Chettiar,
123, Chinna Kadai Street,
Tiruvannamalai – 606 601 ... Petitioner
Vs..
1.The State of Tamil Nadu,
Represented by Inspector of Police,
CBCID – North, Police Station, CR.1 of 2019,
Thiruvannamalai
2.The Senior Manager,
Tamil Nadu Mercantile Bank,
Thiruvannamalai Branch
3.The Branch Manager,
Karur Vysya Bank,
No.33, Sannathi Street,
Thiruvannamalai
4.The Senior Manager,
Indian Overseas Bank,
Girivalam Road Branch,
Thiruvannamalai
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Crl.OP.Nos.8272 & 13358 of 2020
5.The Branch Manager,
Lakshmivilas Bank,
Thiruvannamalai Branch,
Thiruvannamalai ... Respondents
Prayer: Criminal Original Petition filed under Section 482 Cr.P.C.,
praying to direct the first respondent to de-freeze the accounts of the
petitioner trust in the name of Sri Seshadri Swamigal Ashram with
Account No.134100710400004 and 134100050310182 in the second
respondent Bank, Account No.1198155000003920 in the third
respondent Bank, Account No.177901000000001 and 177901000000003
in the fourth respondent Bank and Account No.7413017257 and
7413011278 in the fifth respondent Bank, in Cr.No.1 of 2019 on the file
of the respondent.
For Petitioner : Mr.M.Devaraj
For Respondents
For R1 : Mr.S.Karthikeyan
Additional Public Prosecutor
For R2 : Mr.P.Tamilavel
Crl.OP.No.13358 of 2020
Muthukumarasamy ... Petitioner
Vs..
1.The State of Tamil Nadu,
Represented by Inspector of Police,
CBCID – North, Police Station, CR.1 of 2019,
Thiruvannamalai
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Crl.OP.Nos.8272 & 13358 of 2020
2.Indian Overseas Bank,
Rep by Senior Manager,
Girivalam Road Branch,
Thiruvannamalai ... Respondents
Prayer: Criminal Original Petition filed under Section 482 Cr.P.C.,
praying to direct the first respondent to de-freeze the account of the
petitioner trust in second respondent bank bearing Account
No.177901000000002 and to return the original partition deed dated
27.08.2020 bearing document No.8335 of 2010 registered in the Office
of the SRO Thiruvannamalai and the settlement deed dated 20.10.2010
registered as document No.9170 of 2010 in SRO Thiruvannamalai and
the Locker Key of the Ashram where the silver and gold ornaments of the
deity are kept.
For Petitioner : Mr.M.Devaraj
For Respondents
For R1 : Mr.S.Karthikeyan
Additional Public Prosecutor
ORDER
These petitions have been filed to direct the first respondent to de-freeze the accounts of the petitioner trust in the name of Sri Seshadri Swamigal Ashram with Account No.134100710400004 and 134100050310182 in the second respondent Bank, Account No.1198155000003920 in the third respondent Bank, Account Page 3 of 20 http://www.judis.nic.in Crl.OP.Nos.8272 & 13358 of 2020 No.177901000000001 and 177901000000003 in the fourth respondent Bank and Account No.7413017257 and 7413011278 in the fifth respondent Bank, in Cr.No.1 of 2019 on the file of the respondent and also to direct the first respondent to de-freeze the account of the petitioner trust in second respondent bank bearing Account No.177901000000002 and to return the original partition deed dated 27.08.2020 bearing document No.8335 of 2010 registered in the Office of the SRO Thiruvannamalai and the settlement deed dated 20.10.2010 registered as document No.9170 of 2010 in SRO Thiruvannamalai and the Locker Key of the Ashram where the silver and gold ornaments of the deity are kept.
2. The learned counsel for the petitioner in Crl.OP.No.8272 of 2020 would submit that the petitioner in Crl.OP.No.13358 of 2020 is the accused in Crime No.1 of 2019 on the file of the first respondent on the complaint lodged by the defacto complainant alleging that on 24.09.1974 Sri Seshadri Swamigal Madalaya Committee was registered under Societies Registration Act and Page 4 of 20 http://www.judis.nic.in Crl.OP.Nos.8272 & 13358 of 2020 the said committee was dissolved by the court. Thereafter, the petitioner accused became a trustee and Secretary to the Ashram from the year 1985 onwards. The petitioner made his wife as a devotee and through that he earned huge money, he also printed pamphlets and collected funds from the general public to construct building for the ashram. He also collected gold, silver, land and donations to the tune of Rs.50 crores from the general public in the name of ashram and the same was used for his own purpose thereby cheated the entire public. He constructed buildings for his own residence. In fact on the death of his wife on 11.01.2004, she was laid to rest in the ashram and built samadhi thereby damaged the sanctity of the ashram. He created trust in the name of Sri Seshadri Swamigal Trust, Pondicherry to carry on his illegal activities by diverting the funds for his personal use. He obtained income tax exemption from the Income Tax Department and transferred the money from the ashram to the trust. The trust did not maintain any books of accounts and he also started monthly magazine in the name of Sri Seshadri Swamigal and obtained concession from the Postal Department and thereby caused huge loss to Government of India. One of the devotees executed Will in favour Page 5 of 20 http://www.judis.nic.in Crl.OP.Nos.8272 & 13358 of 2020 of ashram which was sold by the petitioner to one, Udayakumar. Therefore, FIR was registered in Crime No.620 of 2020 for the offences under Section 406, 409, 477(a) and 420 of IPC on the file of the Inspector of Police, Tiruvannamalai Town Police Station. Thereafter, as directed by this Court in Crl.OP.No.26394 of 2016, the entire investigation has been transferred to the file of the first respondent for further investigation, and FIR has been renumbered in Cr.No.1 of 2019 for the offences under Sections 406, 409, 477(a) and 420 of IPC.
2.1 The learned counsel for the petitioner further submitted that the petitioner was an advocate practising at Chennai, he was handed over all the documents related to ashram and there was a Madalaya Committee registered under the Societies Act and subsequently there was a dispute between the Committee members and instituted a suit. The suit ended in compromise decree dated 17.11.1981. As per the terms and conditions of the compromise decree, in the year 1983, the petitioner was entrusted with the administration of the ashram. The entire ashram was shouldered by the petitioner and he developed the same and Page 6 of 20 http://www.judis.nic.in Crl.OP.Nos.8272 & 13358 of 2020 there were lot of devotees. There were lot of donations to the ashram for performing poojas and various social activities, and at no point of time, the petitioner took any money of the trust or the ashram for his own use. The petitioner had contributed to the ashram and other temples. He was also a trustee of various big temples and doing day to day administration. In fact, after transfer of investigation, the petitioner was called upon to attend the enquiry under Section 41(a) of Cr.P.C. The petitioner furnished all the details of the accounts books, fixed deposit details, gold and silver articles of the ashram to the first respondent. The petitioner also handed over the original partition deed exected between the petitioner and his two daughters dated 27.08.2010, wherein the ancestral property which was inherited by him was partitioned and registered vide document No.8335 of 2007 with the Office of the Sub Registrar Office, Tiruvannamalai. Now the investigation is pending and because of the freezing of accounts, cheques issued by the trust were not honoured by the bankers. The entire statement of accounts and transactions would clearly show that none of the allegations in the complaint have been substantiated.
Page 7 of 20 http://www.judis.nic.in Crl.OP.Nos.8272 & 13358 of 2020 2.2 He further submitted that this Court already dismissed the petition to direct the first respondent to defreeze the account in Crl.OP.No.25120 of 2019. While dismissing the said petition by order dated 16.03.2020, this Court directed the first respondent to complete the investigation and filed final report within a period of twelve weeks. The first respondent did not furnish any details about freezing of accounts and not handed over the ancestral property documents before the trial court. Now, the petitioner has invested in the pension scheme through which he is deriving monthly income for his day to day expenditure and the said amount is deposited in the account maintained in the bank, which is also now freezed. Therefore, he sought for defreezing of the account of the petitioner lying with the second respondent and also to return the original partition deed dated 27.08.2010 vide document No.8335 of 2010 and the locker key of the ashram.
2.3 In respect of Crl.OP.No.8272 of 2020, it is submitted that the petitioner is Sri Seshadri Swamigal Trust, and any of the trustees or the Secretary of the trust is not an accused in Crime No.1 of 2019 on the file of the first respondent. The petitioner is a registered trust whose Page 8 of 20 http://www.judis.nic.in Crl.OP.Nos.8272 & 13358 of 2020 accounts are being properly audited and all the transactions are made through bank accounts maintained by the trust. A sum of Rs.13 crores are lying with the petitioner's accounts in the form of fixed deposit and savings bank account which cannot be misused by any accused person since the trust is being administered by the trustees. The entire activities of the trust cannot be stalled by freezing of accounts by the first respondent. The petitioner trust could not able to perform daily poojas and providing annadhanam to the devotees. It is also involved in maintaining the rooms, incurring electricity charges and other taxes in respect of administration of the ashram. He further submitted that if at all if there is any mismanagement of the trust, the same should be properly administered in the scheme suit and not by way of lodging a complaint and throttling the activities of the trust. He further submitted that the first respondent also did not comply the provisions contemplated under Section 102(2) of Cr.P.C. The freezing of accounts amounts to interfering with the constitutional rights of the petitioner trust and the benefeciary Swamigal and other deity for which daily pooja is to be performed.
Page 9 of 20 http://www.judis.nic.in Crl.OP.Nos.8272 & 13358 of 2020 2.4 He further submitted that performing various activities including the renovation of various temples and other small religious institutions, which have become shattered only because of the freezing of accounts. He further submitted that the entire trust activities is being put to great difficulty and could not able to provide breakfast, lunch to saints and other public every day, doing poojas for the deity in the temple, printing and publishing the booklets of the ashram, giving donations for the temple function and also for educational purpose for the poor. It could not able to even pay electricity charges for above activities, which comes to roughly Rs.9 lakhs per month. Therefore, the petitioner is being trust may be permitted to operate its accounts by directing the first respondent to defreeze the same.
3. The learned Additional Public Prosecutor filed status report and submitted that as far as the petitioner in Crl.OP.No.13358 of 2020 is concerned, is an accused in Crime No.1 of 2019 on the file of the first respondent registered for the offences under Sections 406, 409, 477(a) and 420 of IPC. Now the investigation is almost completed and Page 10 of 20 http://www.judis.nic.in Crl.OP.Nos.8272 & 13358 of 2020 about to file final report and awaiting opinion of Assistant Public Prosecutor. The petitioner already filed petition for same direction before this Court in Crl.OP.No.25120 of 2019 and the same was dismissed by this Court by order dated 16.02.2020. There is absolutely no change in circumstances and the petition is liable to be dismissed. He further submitted that there are very serious allegations levelled as against the petitioner. The petitioner was appointed as Secretary to administer Sri Seshadri Swamigal Ashram from the year 1981 continuously. He cheated the members of the ashram as well as the devotees. They registered separate trust, namely Sri Seshadri Swamigal Trust, Pondicherry, with the Office of the Uzhavarkarai Sub Registrar Office vide document No.219 of 2004 and diverted all the funds of the ashram to his trust. In order to maintain the properties of Seshadri Swamigal Ashram, the petitioner did not maintain any accounts. He also claimed exemption from Income Tax Department and Postal Department and cheated the Government of India.
3.1 He further submitted that insofar as Crl.OP.No.8272 of 2020 is concerned, the petitioner is the Trust represented by its Page 11 of 20 http://www.judis.nic.in Crl.OP.Nos.8272 & 13358 of 2020 Secretary, namely Rajaram, he is also sailing in the same boat of the petitioner in Crl.OP.No.13358 of 2020. When the petition for direction filed by Muthukumarasamy was dismissed by this Court, again for the very same relief, the petition for direction has been filed in the name of Secretary of the Trust. He also colluded with the President and have cheated general public. Now the first respondent examined 79 witnesses and recorded their statement. The documents were collected from Income Tax Office, Taluk Office, Postal Office, Registrar Office, Municipality Office and Karur Vysya Bank, IOB, Tamilnadu Mercantile Bank, ICICI Bank and KVB, Corporation Banks of Tiruvannamalai, South Indian Bank of Pondicherry. The first respondent freezed the accounts maintained in KVB, IOB, TMB, ICICI and LVB banks of the ashram and the accused thereby freezed the amount to the tune of Rs.13,03,75,325/- The entire details of freezing of those accounts are duly intimated to the Judicial Magistrate concerned, Tiruvannamalai. The accused collected life time subscription from the general public for the magazine, but it was not printed and circulated to the life time subscribers and the funds collected from the general public were used for Page 12 of 20 http://www.judis.nic.in Crl.OP.Nos.8272 & 13358 of 2020 his own purpose. In the year 2006, 2019, the accused with the ulterior motive to delegate the powers to administrator of the ashram to his daughters and sons in law, created supplementary deed and included them in the said trust as trustees and thereby diverted funds to the ashram and trust. In the year 2006, he also registered a Will at Pondicherry, Uzhavakari Sub Registrar Office making his daughter as the administrator of the ashram and again in the year 2010, he registered a settlement deed stating that his daughter Abirama Sundari is the ashram administrator. Some of the properties were sold by the accused and the sale amount was not properly accounted. Further he submitted that the investigation is completed and it is pending for opinion from the Assistant Public Prosecutor and it is not conducive to defreeze the accounts of the accused and the ashram. Therefore, he prayed for dismissal of the petitions.
4. Heard Mr.M.Devaraj, learned counsel for the petitioners, Mr.S.Karthikeyan, Additional Public Prosecutor for the respondent Police, and Mr.P.Tamilavel, learned counsel for the second respondent.
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5. The petitioner in Crl.OP.No.13358 of 2020 is an accused in Cr.No.1 of 2019. The petitioner in Crl.OP.No.8272 of 2020 is the trust represented by its Secretary. On the ocmplaint lodged by one, Prakash before the Inspector of Police, Tiruvannamalai Police Station, after direction issued by this Court in Crl.OP.No.1583 of 2016 dated 29.03.2016, it was registered in Cr.No.620 of 2016 for the offences under Sections 406, 409, 477(a), 420 of IPC as against the petitioner in Crl.OP.No.13358 of 2020. Thereafter by order dated 11.12.2018 in Crl.OP.No.26391 of 2016, on the direction issued by this Court, the investigation was transferred to the file of the first respondent and the investigation is pending in Cr.No.1 of 2019 for the offences under Sections 406, 409, 477(a) and 420 of IPC. The defacto complainant lodged complaint alleging that on 24.09.1974, Sri Seshadri Swamigal Committee was registered under Indian Societies Act at Tiruvannamalai Registrar Office vide document No.35 of 1974. Due to civil dispute, the said Committee was dissolved in OS.No.322 of 1981. There was a compromise decree between the Committee members. Thereafter, the petitioner has become the Secretary to the ashram. He printed pamphlet Page 14 of 20 http://www.judis.nic.in Crl.OP.Nos.8272 & 13358 of 2020 and collected funds for constructing building and also collected gold, silver, immovable properties and donations to the tune of Rs.50 crores in the name of ashram and used the same for his own purpose, thereby cheated general public. On the death of his wife, she was laid to rest in the ashram and also built samadhi, thereby damaged the sanctity of the ashram. He also fraudulently created Sri Seshadri Swamigal Trust to carry on illegal acts by diverting funds for his personal use. He obtained Income Tax exemption from the Income Tax Department and transferred money from the ashram to the trust. The trust does not maintain any books of accounts. He started monthly magazine in the name of Sri Seshadri Swamigal and obtained exemption from the Indian Postal Department thereby, caused huge loss to the Government of India. One of the devotees by name Kamatchi Ammal executed Will in favour of Sri Seshadri Swamigal ashram which was sold by him to one, Udayakumar.
6. The prosecution almost have completed investigation and awaiting opinion from the Assistant Public Prosecutor to file final report since already this court while dismissing the petition in Page 15 of 20 http://www.judis.nic.in Crl.OP.Nos.8272 & 13358 of 2020 Crl.OP.No.25120 of 2019 directed the first respondent to complete the investigation and filed final report within twelve weeks from the date of receipt of copy of the order dated 16.03.2020. The first respondent so far freezed the accouns of Sri Seshadri Swamigal ashram and Sri Seshadri Swamigal trust lying with Karur Vysya Bank, Indian Overseas Bank, Tamilnadu Mercantile Bank, ICICI Bank and Lakshmi Vilas bank and freezed a sum of Rs.13,03,74,325/- The silver ornaments weighing 58 kgs worth Rs.17,40,000/-, 2.408 kg gold ornaments worth Rs.48,16,000/- which kept in the ashram locker and received 18 keys of the above said lockers. The first respondent also seized original documents from the accused pertaining to immovable properties.
7. Considering the above facts and circumstances and also the serious offences committed by the accused, this Court already dismissed the petition filed for very same direction by order dated 16.03.2020. Therefore, now there is absolutely no change in circumstances and this Court is not inclined to defreeze the accounts as prayed for. However, considering the activities of the Sri Seshadri Page 16 of 20 http://www.judis.nic.in Crl.OP.Nos.8272 & 13358 of 2020 Swamigal ashram and Sri Seshadri Swamigal trust such as daily pooja for deities in the temple, providing breakfast, lunch to the saints and the general public, printing and publishing of booklets of the ashram, giving donations to temple functions and also for educational fees for the poor, the electricity charges, salaries to the staffs and also for receiving donations from the general public, administrator has to be appointed to administer Sri Seshadri Swamigal ashram and Sri Seshadri Swamigal trust. Further, the petitioner also filed memo stating that Sri Seshadri Swamigal Trust has no objection to appoint any person to look after the expenditure of the trust by the memo dated 24.08.2020. Accordingly, this Court appoints Mr.Justice.R.S.Ramanathan, Retired Judge of this Court as Adminstrator of Sri Seshadri Swamigal ashram and Sri Seshadri Swamigal trust for administration in all aspects until further orders on the following terms:
(i) The first respondent is directed to defreeze all the accounts stand in the name of Sri Seshadri Swamigal ashram and Sri Seshadri Swamigal trust forthwith and permit the Judge Administrator to operate all the accounts stand in the name of Sri Seshadri Swamigal ashram and Sri Page 17 of 20 http://www.judis.nic.in Crl.OP.Nos.8272 & 13358 of 2020 Seshadri Swamigal trust in the name of the Judge Administrator for Sri Seshadri Swamigal ashram and Sri Seshadri Swamigal trust.
(ii) The monthly remuneration of the Judge Administrator is fixed at Rs.2 lakhs and the remuneration may be deducted from the accounts of Sri Seshadri Swamigal ashram and Sri Seshadri Swamigal trust by the Judge Administrator himself apart from travelling, boarding and lodging expenses and also entitled for reimbursement of the expenses incurred by him towards discharge of his duties.
(iii) The Judge Administrator may avail the assistance of one or more persons from the staffs of Sri Seshadri Swamigal ashram and Sri Seshadri Swamigal trust as he may consider necessary in discharge of his duties.
(iv) The Judge Administrator may avail the service of an accountant to assist him in discharge of his functions.
(v) The Judge Administrator may be empowered to disburse funds for all routine and regular expenses and receive donations and to remit such donations into the bank accounts of Sri Seshadri Swamigal ashram.Page 18 of 20
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(vi) The Judge Administrator is also at liberty to seek appropriate orders from this Court as and when necessary by filing a memo.
(vii) The Judge Administrator is directed to submit the statement of accounts in respect of the accounts operated by him once in three months before this Court.
8. Post the petitions on 27.01.2021.
17.09.2020 Index: Yes/No Internet: Yes/No Speaking/Non-Speaking order lok Page 19 of 20 http://www.judis.nic.in Crl.OP.Nos.8272 & 13358 of 2020 G.K.ILANTHIRAIYAN, J lok To
1.The Hon'ble Mr.Justice R.S.Ramanathan(Retd.), “Parijatham”, Old No.4B2, New No.15, Rajagopalan Street, Valmiki Nagar, Thiruvanmiyur, Chennai 600 041.
2.The Inspector of Police, CBCID – North, Police Station, CR.1 of 2019, Thiruvannamalai
3.The Senior Manager, Tamil Nadu Mercantile Bank, Thiruvannamalai Branch
4.The Branch Manager, Karur Vysya Bank, No.33, Sannathi Street, Thiruvannamalai
5.The Senior Manager, Indian Overseas Bank, Girivalam Road Branch, Thiruvannamalai
6.The Branch Manager, Lakshmivilas Bank, Thiruvannamalai Branch, Thiruvannamalai Crl.O.P.Nos.8272 & 13358 of 2020 17.09.2020 Page 20 of 20 http://www.judis.nic.in