Madras High Court
S.Srividya vs /
Author: V.Sivagnanam
Bench: V.Sivagnanam
Crl.O.P.No.12149 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
RESERVED ON : 08.09.2023
PRONOUNCED ON: 14.09.2023
CORAM
THE HONOURABLE MR. JUSTICE V.SIVAGNANAM
Crl.O.P.No.12149 of 2021
and
Crl.M.P.Nos.6853 & 6854 of 2021
1.S.Srividya
2.Mohana Ramaswami ... Petitioners
/vs/
State Represented by
Deputy Superintendent of Police,
Economic Offences Wing-II,
Guindy, Chennai – 32. ... Respondent
Prayer : Criminal Original Petition has been filed under Section 482
Cr.P.C. to quash the proceedings in C.C.No.6 of 2020 on file of the Special
Court for TNPID Act offences, Chennai.
For Petitioner ... Ms.T.Sugirtha
For Respondent ... Mr.L.Baskaran
Govt.Advocate (Crl.side)
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Crl.O.P.No.12149 of 2021
ORDER
Challenging the criminal proceedings in C.C.No.6 of 2020 on file of the Special Court for TNPID Act offences, Chennai, the present criminal original petition has been filed.
2.The prosecution case is that based on the complaint dated 21.10.2013 given by Mr.G.Ramadoss, Velachery- 42 against M/s.Viswapriya Financial Services and Securities Ltd., @ M/s.Viswapriya (India) Ltd., and six others, the case is registered in Crime No.5 of 2013 by the respondent police. The allegations in the FIR are that the complainant Mr.G.Ramadoss had invested a total sum of Rs.6,60,000/- in M/s.Viswapriya Financial Services and Securities Ltd., @ M/s.Viswapriya (India) Ltd.,(A1 Company) in seven deposits in the names of his family members and the said company has defaulted to repay the deposits and the interest accrued thereon.
3.The investigation has revealed that the company (A1) M/s.Viswapriya Financial Services and Securities Private Ltd., was started Page 2 of 15 https://www.mhc.tn.gov.in/judis Crl.O.P.No.12149 of 2021 in the year 1991 in ROC No.18-20796 of 1991 and started its non-banking activities from the date of incorporation i.e. on 13.05.1991. The Company within four months from the date of incorporation removed the word “Private” from its name and became a Limited liability Company on 03.09.1991 in the name of M/s.Viswapriya Financial Services and Securities Ltd. (A1). The company was recognized as a Non-Banking Financial company (NBFC) by Reserve Bank of India (RBI) and issued NBFC license on 20.04.1998. Against prudential norms of NBFC, the company collected deposits from the public and invested in Real Estate Businesses. It received deposits under various schemes from the public for an assured interest rate of 10 to 12% for a fixed period of time. RBI which conducted inspection at the Company cancelled the NBFC license on 06.08.2005.
4.Thereafter, on 02.06.2011, the Company changed its name to M/s.Viswapriya (India) Ltd., in CIN No.U65991TN1991PLC020796 and continued collecting deposits under various schemes and diverted the money to other companies formed by them. Between the years 2009 and Page 3 of 15 https://www.mhc.tn.gov.in/judis Crl.O.P.No.12149 of 2021 2015, the accused A4 R.Subramanian and his above said confederates entered in criminal conspiracy for the purpose of siphoning the deposits collected from the public in deceitful manner. They promoted about 76 companies. The accused A4 R.Subramanian, along with A1 to A3 and A5 to A34 had continued collecting deposits under the four schemes promoted by A1 M/s.Viswapriya (India) Ltd., viz. (1) Prime Invest (2) Asset Backed Security Bond (3) Liquid Plus and (4) Safety Plus.
5.The Company A1 M/s.Viswapriya (India) Ltd., which was collecting deposits from the public, against the RBI norms even after the cancellation of NBFC license for about 6 years i.e. from 2005 and was issuing Fixed Deposits Receipts (FDR) in their name, had cunningly for ulterior motive started issuing FDRs in the name of A2 M/s.Akshayaboomi Investments Private Ltd., & A3 M/s. Quadrangle Trading Services Ltd., promoted and managed by accused A4 R.Subramanian, along with A1 to A3 and A5 to A34. The amount received as deposits through the abovesaid companies were deposited in the account of A1 M/s.Viswapriya (India) Ltd., Between November 2009 and October 2013 nearly about 1100 Page 4 of 15 https://www.mhc.tn.gov.in/judis Crl.O.P.No.12149 of 2021 depositors from across India & abroad have invested their money in the four schemes viz., Prime investment, (2) Assets Backed Security, (3) Liquid Plus (4) Safety Plus, which became defaulted for repayment.
6.In respect of the same, EOW-II HQrs has received 587 complaints from the depositors with 3804 deposit certificates and the total investment amount of Rs.47,68,92,011/- and the accused (A1 to A34) defaulted to pay the amount of Rs.51,47.29,861/- to the depositors. During the course of investigation, movable properties worth Rs.36,85,000/- have been attached and Ad-Interim Order has been obtained vide G.O.Ms.No.409/Home (POL U19)/17 Dated 04.05.2017. Shares and immovable properties worth Rs.51,92,61,865/- have been attached and Ad-Interim Order has been obtained vide G.O.No.741 dated 06.10.2017. The properties purchased from the amount of deposited amounts of the poor depositors who have invested in different schemes of the different companies fraudulently started by A4 (R.Subramanian).
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7.In pursuance of the criminal conspiracy and in the course of the same transaction and in continuance of the same, A1 (M/s.Viswapriya Financial Services & Securities Ltd.,), A4 to A7 (R.subramanian, R.Narayanan, Rajarathinam & T.S.raghavan respectively) collected deposits from the public against the RBI norms even after the cancellation of NBFC license for about 6 years i.e. from 2005 and was issuing fixed deposits Receipts (FDR) in their names. Further, they have started a number of bogus companies including A2 M/s.Akshayaboomi Investments Private Ltd., which was registered in ROC in the year 04.04.1996 with corporate identity No.U65993TN1996PTC035078 in which A10, A11 & A14 (Venkata Ramanan, Appadurai & R.Ganesh) are the Directors, A3 M/s.Quadrangle Trading Services Ltd., which was registered in ROC in the year 16.11.1995 with Corporate identity No.U52599TN199PTC033540 with A8 and A12 (Balasubramanian and Augustine) as the Directors and A18 Analog Financial Services Private Limited for the purpose of cheating the public and used the same as genuine in which A4 (R.Subramanian) and A9 (A.Srimathi), A13 (P.Ram Mohan), A15 to A17 (S.Srividya, G.Ramaswami & Mohanan Ramaswami) were Directors and were looking Page 6 of 15 https://www.mhc.tn.gov.in/judis Crl.O.P.No.12149 of 2021 after the financial matters and were looking after the day to day activities of the said companies and thereby, A1 to A34 committed offences punishable u/s 468 and 471 IPC.
8.The learned counsel for the petitioners submitted that the petitioners are A15 & A17 in C.C.No.6 of 2020 on the file of the Special Court for TNPID Act offences, Chennai. While the respondent police filed a final report on 17.07.2019 mentioned only 14 persons as accused and set out 775 persons as victims. Neither the petitioners herein being the persons arrayed as A15 & A17, in this case named as accused at the stage of filing the final report and the final report was found on some defects, thereafter, the police rectified the defects and added the petitioners herein as accused which is unsustainable. Further contended that in the final report, the petitioners were implicated as they were directors of the Company and were involved in day-to-day management but failed to file any material records to show them as directors of the Company. The petitioners are not directors of any company, not a single document filed by the respondent police with the final report to show them as directors of the accused Page 7 of 15 https://www.mhc.tn.gov.in/judis Crl.O.P.No.12149 of 2021 companies. The petitioners were implicated as an accused on the ground that they are close relatives of accused No.4, who is the main accused in this case. The petitioners A15 & A17 are the wife and mother of the accused No.4. The respondent police attached the assets and shares of the first petitioner / A15 for a value of Rs.9 lakhs and attached the shares of the second petitioner /A17 for a value of Rs.29 lakhs but failed to file any document to show that the shares have been purchased by them from the money collected by the defaulted accused company. The respondent police without any material made allegations that the assets were purchased from the accused company funds. Under these circumstances, in the absence of any material against the petitioners, the final report is to be quashed and further contended that though the petitioners filed applications to quash the criminal proceedings against them at the beginning stage. Since it was not listed, the trial proceeded and now reached 313 stage and posted for argument. Even though it reached the argument stage, this Court can consider the case on merits and dispose of it on merits. To support his arguments, he relied on the judgment of the Hon’ble Supreme Court in the case of Sarita Kumari and another Vs. The State of Bihar and two others Page 8 of 15 https://www.mhc.tn.gov.in/judis Crl.O.P.No.12149 of 2021 reported in 2014 SCC OnLine Page 396 and thus pleaded to quash the criminal proceedings against the petitioners/ A15 & A17.
9.The learned Government Advocate (Crl.side) appearing for the respondent submitted that totally 89 witnesses have been examined and closed on 11.08.2023 and the case was posted for defence witnesses. Since the accused persons did not examine the defence witnesses and the case was posted for argument then posted for judgment on 25.09.2023, it is not proper to quash at this stage and pleaded to dismiss the criminal original petition.
10.I have considered the matter in the light of the submissions made by the learned counsel for the petitioners as well as the learned Government Advocate (Crl.side) appearing for the respondent and materials available on record.
11. On perusal of the records, it is seen that the petitioners are A15 & A17 in C.C.No.6 of 2020 on the file of the Special Court for TNPID Act Page 9 of 15 https://www.mhc.tn.gov.in/judis Crl.O.P.No.12149 of 2021 offences, Chennai. The respondent police prosecuted the case as against M/s.Viswapriya Financial Services & Securities Ltd, (A1), M/s.Akshayaboomi Investments Private Ltd., (A2), M/s.Quadrangle Trading Services Ltd., and others totally 34 persons as accused. These accused received 3804 deposits in the defaulted company and to repay the matured amount of Rs.51,47,29,861/-. It is alleged that the petitioners are directors of the Company and secured assets from the company funds. Therefore, all the accused are prosecuted for the offences under Sections 406, 420, 120(B) IPC and Section 5 of TNPID Act 1997. Further, on verification of the materials on record, it is noticed that in this case, all the prosecution witnesses have been examined and the case is posted for argument. The adjudication order passed by the trial Court dated 31.08.2023 is reproduced herein;
“A1 to A3, A18 to A31 Financial Establishments. A5, A6, A16 charge abated. A15, A17 Dispensed with. A11 split up. A4, A10, A13, A34 present. A7, A8, A9, A12, A14, A32, A33 absent. Petition filed U/s.317 Cr.P.C. and allowed. No representation for A3, A23, A24, A26, A28, A29, A30 Financial Establishments. The counsel who appear for the Page 10 of 15 https://www.mhc.tn.gov.in/judis Crl.O.P.No.12149 of 2021 above said representative of the Financial Establishments has not filed any petition for condoning their absence. Hence, the proceedings of the day is conducted in their absence U/s.305(4) Cr.P.c. This case was posted on 04.08.2023 for defence witnesses. For affording fair trial this Court allowed some miscellaneous petitions and recalled PW88 and PW89. The cross examination of PW88 and PW89 were closed on 11.08.2023. Thereafter, this case was posted for defence evidence. But the accused have filed 25 petitions from 14.08.2023 to 31.08.2023 one after another. This Court disposed all the petitions as they were filed only to delay the disposal of the case. Already Honorable Supreme Court of India directed not to file any frivolous application or petition to implead the progress of the trial. This Court also directed not file any unnecessary petitions. Even then the accused mainly A1 and A4 filed Crl.M.P.Nos.3152 of 2023 to 3155 of 2023, 3232 of 2023 to 3245 of 2023, 3347 of 2023 to 3357 of 2023 in total 25 petitions within a 10 days. This court disposed all the frivolous petitions. Today this case is posted for examining the defence witness, and failing which further order will be Page 11 of 15 https://www.mhc.tn.gov.in/judis Crl.O.P.No.12149 of 2021 passed. Instead of examining any defence witness again the A1 and A4 have filed petition U/s.243(2) Cr.P.C. for summoning 502 depositors set out in the final report. These petitions are returned for the reason stated therein. Today none of the accused come forward to comply the orders of this Court. This court already afforded sufficient opportunity to all the accused. Inspite of affording fair trial to the accused, they are delaying the progress of the trial and misuse the process of the law. They are all along violating the orders of the Honourable Supreme Court of India. Therefore, this court has no other go except to close the evidence of defence that to for the interest of justice. Hence, the defence side is closed. The parties are directed to submit any oral argument or to file written submission if any within 08.09.2023 without fail. Considering the voluminous of records, the case is posted for judgment on 25.09.2023. Call on 25.09.2023.”
12.The above adjudication order reveals that the case is posted for oral argument or to file written submission if any within 08.09.2023 and posted for judgment on 25.09.2023.
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13.The power to interdict a proceeding either at the threshold or at an intermediate stage of the trial has been considered by the Hon’ble Supreme Court in the case of Satish Mehra V. State (NCT of Delhi), reported in (2012) 13 SCC 614 and held that a prosecution is bound to become lame or a sham ought to be interdicted in the interest of justice as continuance thereof will amount to an abuse of the process of the law.
14.In this case, all the prosecution witnesses i.e. 89 witnesses have been examined and it was posted for oral argument and for filing of written submission and thereafter, posted for judgment. Under these circumstances, it is not proper to quash the criminal proceedings at the above stage. The trial Court gave time to the petitioners to submit their oral argument or to file written submission if any within 08.09.2023 and posted for judgment on 25.09.2023. Therefore I find no ground and no merit to quash the criminal proceedings in C.C.No.6 of 2020 on the file of the Special Court for TNPID Act Offences Chennai.
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15.In the result, the criminal original petition is dismissed with liberty to the petitioners to submit their oral argument and to file written submission before the trial Court on or before 25.09.2023 and if submitted, the trial Court is directed to hear the oral argument and to receive the written submission, thereafter, dispose the matter on merits. Consequently, connected miscellaneous petitions are closed.
Index : Yes/No
Internet : Yes/No 14.09.2023
sms
Note: Issue order copy on 14.09.2023
To
1.State Represented by
Deputy Superintendent of Police,
Economic Offences Wing-II,
Guindy, Chennai – 32.
2.The Special Court for TNPID Act offences,
Chennai.
3.The Public Prosecutor,
High Court, Madras.
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Crl.O.P.No.12149 of 2021
V.SIVAGNANAM ,J.
sms
Pre-delivery order made in
Crl.O.P.No.12149 of 2021
and
Crl.M.P.Nos.6853 & 6854 of 2021
14.09.2023
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