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Karnataka High Court

Mr Aalok Purohit vs State Of Karnataka By on 10 July, 2024

Author: M.Nagaprasanna

Bench: M.Nagaprasanna

                                                -1-
                                                          NC: 2024:KHC:26713
                                                      CRL.P No. 9675 of 2023



                        IN THE HIGH COURT OF KARNATAKA AT BENGALURU

                            DATED THIS THE 10TH DAY OF JULY, 2024

                                            BEFORE

                          THE HON'BLE MR JUSTICE M.NAGAPRASANNA

                             CRIMINAL PETITION NO. 9675 OF 2023

                   BETWEEN:

                   1.    MR AALOK PUROHIT
                         S/O LATE AJAY PUROHIT
                         AGED ABOUT 41 YEARS
                         404, LA DIMORA APARTMENT
                         4TH BLOCK, 3RD FLOOR,
                         7TH CROSS KORAMANGALA
                         BANGALORE-560 070

                         PERMANENT R/O F-100,
                         MAJOR SHAITAN SINGH COLONY
                         SHASTRI NAGAR
                         JAIPUR, RAJASTHAN-302 016

                   2.    MR AVAIS MOMIN
                         S/O SIRAJ MOMIN
Digitally signed         AGED ABOUT 34 YEARS
by NAGAVENI              R/A 1259, 25TH MAIN,
Location: HIGH           24TH B CROSS
COURT OF                 SECTOR-2, HSR LAYOUT
KARNATAKA                BENGALURU-560 104

                         PERMANENT R/O FLAT NO.404,
                         B WING, SAYALI APARTMENT
                         SHADI MAHAKL ROAD
                         AMRUT NAGAR
                         MUMBAI THANE
                         MAHARASTHRA-400 612
                                                              ...PETITIONERS
                   (BY SRI.S.MAHESH, ADVOCATE)
                                -2-
                                              NC: 2024:KHC:26713
                                        CRL.P No. 9675 of 2023



AND:

1.   STATE OF KARNATAKA BY
     KORAMANGALA POLICE STATION
     REPRESENTED BY STATE PUBLIC PROSECUTOR
     HIGH COURT OF KARNATAKA
     BANGALORE-560001

2.   MOHAMMAD IMRAN
     S/O MOHAMMED ZAHEERUDDIN
     AGED ABOUT 34 YEARS
     NO.238 AND 239, RAHEJA ARCADE
     2ND FLOOR, KORAMANGALA 5TH BLOCK
     BANGALORE-560 095
     ADMIN HEAD-HIYAMEE PVT LTD
                                                 ...RESPONDENTS
(BY SRI.HARISH GANAPATHI, HCGP FOR R.1;
    SRI.VIVEK SUBBA REDDY, SENIOR COUNSEL FOR
    SRI. K.N.SUBBA REDDY, ADVOCATE FOR R2)

     THIS CRL.P IS FILED U/S 482 CR.P.C., PRAYING TO
QUASH THE FIR IN CR.NO.208/2023 REGISTERED BY 1ST
RESPONDENT KORAMANGALA POLICE STATION, FOR OFFENCE
P/U/S 408, 420 R/W 34 OF IPC AND SECTION 66(D) OF I.T.
ACT, 2000 PENDING ON THE FILE OF 1ST ACMM AT
BANGALORE, AS AGAINST THE PETITIONERS.

     THIS PETITION, COMING ON FOR                   ADMISSION,
THIS DAY, THE COURT MADE THE FOLLOWING:
                             ORDER

Petitioners-accused No.1 & 3 are before this Court calling in question the registration of a crime in Crime No.208/2023 for the offences punishable under Sections 408 & 420 read with Section 34 of IPC and Section 66D of the Information Technology Act, 2000 ('the Act' for short). -3-

NC: 2024:KHC:26713 CRL.P No. 9675 of 2023

2. Heard Shri S. Mahesh, learned counsel for the petitioners, Shri Harish Ganapathi, learned HCGP for respondent No.1-State and Shri Vivek Subba Reddy, learned Senior Counsel appearing for the complainant-respondent No.2.

3. The first petitioner was appointed as a Chief Operating Officer on 17.06.2022 and the second petitioner was appointed as a Business Manager on 21.04.2022, in the complainant's company - 'HiyaMee Pvt. Ltd.' The first petitioner resigns from his post on 28.02.2023 and the second petitioner on 11.03.2023. After the exit of these petitioners, an internal audit is conducted by the complainant's company. It is here the complainant's company notices certain data being thieved by the petitioners. This leads to the complainant - Company registering a complaint on 19.07.2023 alleging data theft and cheating on the complainant's company. This becomes a crime in Crime No.208/2023. Registration of the complaint has driven these petitioners to this Court in the subject petition.

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NC: 2024:KHC:26713 CRL.P No. 9675 of 2023

4. Learned counsel appearing for the petitioners would vehemently contend that there can be no case of data theft in the case at hand as all the profiles are in public domain as they are either from Naukri.com, or any identical recruitment websites as the Company in which the petitioners were employed was manpower recruiting Company. Learned counsel would further contend that a mere fact that the petitioners opening a Company identical to the complainant-Company, that they were previously working in, after their resignation would not mean that they would be hauled up for proceedings under Sections 408 and 420 of IPC. Therefore, he would seek quashment of the entire proceedings.

5. Per contra, Sri Vivek Reddy, learned senior counsel representing the complainant-respondent No.2 would take this Court through the documents appended to the statement of objections, seeking to demonstrate that if it was a mere downloading of data available in the public domain, it would have been a circumstance altogether different. What the petitioners would do is download the entire profile that is built up by the complainant's company and interact with those people whom the complainant's company had interaction with. -5-

NC: 2024:KHC:26713 CRL.P No. 9675 of 2023 He would further contend that the database that was built up by the complainant-company was on payment of huge amounts to all those websites, the recruitment consultant websites. Therefore, petitioners having started their own Company, with ease, have downloaded all the data and are conducting business, that was carried out by the complainant's company based on the data theft. He would submit that it is a matter of investigation and therefore, seeks dismissal of the petition.

6. Learned High Court Government Pleader would also toe the lines of the learned Senior Counsel representing the complainant in seeking dismissal of the petition contending that the matter was at the stage of investigation.

7. I have given my anxious consideration to the respective submissions made by the learned counsel and have perused the material on record.

8. The afore-narrated facts are not in dispute. The issue, at this juncture lies in a narrow compass. The -6- NC: 2024:KHC:26713 CRL.P No. 9675 of 2023 employment of the petitioners-accused Nos.1 & 3 is not in dispute. The duration of the employment of petitioner No.1 is from 17.06.2022 to 28.02.2023, and petitioner No.2 is from 21.04.2022 to 11.03.2023. They worked for about 7 months, and submit their resignation on 28.02.2023 and 11.03.2023 respectively. These are undisputed facts. After these petitioners coming out of the complainant-company, start their own company - a recruitment consultant company. An internal audit of the complainant's company, in which petitioners were earlier working. This leads to the discovery of certain theft of data. Therefore, emerges the complaint on 19.07.2023. Since the entire issue has now triggered from the complaint, I deem it appropriate to notice the complaint.

"Date: 19.07.2023 To The Inspector of Police, Koramangala Police station, Bangalore - 560 095 From, Mohammed Iman S/o Mohammed Zaheeruddin Age: 34 Address: #238 & 239, Raheja Arcade, 2nd floor, Koramangala 5th block, Bangalore-560 095 Mobile: +919036363430 Occupation: Admin Head - HiyaMee Pvt Ltd Religion & Caste: Islam & Muslim -7- NC: 2024:KHC:26713 CRL.P No. 9675 of 2023 Respected sir, Subject: Complaint regarding Data Theft and Cheating.
HiyaMee is a Talent Acquisition (HR consultancy/ Staffing) company located at #238, Raheja Arcade, Koramangala 5th block, Bangalore - 560095. The business model of HiyaMee is completely into Tech hiring, Contract staffing, FTE etc. having all the major MNC clients like IBM, Wipro, Congnizant, Infosys, TCS, Amazon, ITC infotech etc. and also for global banks like Deutsche Bank, IDFC, Morgan Stanley, HSBC etc. HiyaMee had hired the following employees with respective designations and responsibilities.
1. Aalok Ajay Purohit was hired as the Chief Operating Officer on 17th June 2022 and was handed over the complete responsibility of company's operations with all the client handling and the team management. Aalok had resigned from the company on 28th Feb 2023.
2. Rajeev S was hired as the Data Analytics Specialist on 12th October 2020 and was given the responsibility of handling the complete company's database which consisted of 20 lakhs evaluated resumes of candidates which belonged to HiyaMee. Rajeev had absconded from the company on 01st March 2023.
3. Avais was hired as Business Manager on 21st April 2022 and was given the responsibility of handling candidate profiles, meeting clients and ensure 100% delivery of the requirements given by the COO and the clients.
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NC: 2024:KHC:26713 CRL.P No. 9675 of 2023 Avais had resigned from the company on 11th March 2023.
During the periodical internal security system audit which was conducted on 10th April 2023, it has been discovered there had been a breachof our data systems, where we could clearly find out that Rajeev had downloaded HiyaMee's complete database on 13th February 2023 at 01:33 PM and deleted an approximate of 15.00,000/-CV's on 13th February 2023 at 01:37 PM. This was found while we reached the Google support and received the logs from Google as a proof for this. While this was completely against the policy of the company.
Resulting in the unauthorized access and theft of confidential and business sensitive data with an absolute sabotage intention and to market the potentially employable evaluated tech candidates classified in alignment with the clients requirements in order to support similar placement/staffing services directly or indirectly or in association with ex-employees of the company in the similar promotional & pricing model of the company. The stolen data includes the client wise evaluated classified data base in alignment with the instant business prospective for immediate placement of candidates in order to fulfill the agreed response time and to achieve the company's annual financial plan.
Aalok Purohit had started a new company called TALWORKS in the month of February 2023 with a -9- NC: 2024:KHC:26713 CRL.P No. 9675 of 2023 domain shortlistprofessionals.com and we understand that Aalok Purohit has instructed Rajeev to steal the HiyaMee's database before exiting from the company. Aalok Purohit and their company.employees have started using HiyaMee's database while they send candidate profiles to the clients. This hereby is with a pure intention of financial gains. As a result of this data theft HiyaMee has incurred a financial loss of an approximate of INR 5 Crores.
We have the reason to believe that the data theft was perpetrated by an individual or group of individuals with access to our organization's confidential information.
With reference to the below, we would like to humbly submit the following regarding series of significant data theft and cheating incidents that has resulted in substantial financial loss to the company S. Particulars of Incidents Date of Time of Proof No Theft theft Description Rajeev Downloaded the company data base while he was employed in.
HiyaMee.
                                                               Email from
        The Database consisting
                                                                 Google
         of 15,00,000 Potential       13.02.
                                                  1:33 PM          and
1       skilled tech professional      2023
                                                                 Google
         evaluated from the Job
                                                                  logs
           portals like (Naukri,
                                                                attached
        LinkedIn, Monster) ever
          the period of 5 years.
         This was done with an
       intention of financial gain
                                    - 10 -
                                                   NC: 2024:KHC:26713
                                               CRL.P No. 9675 of 2023



                                                          Email from
                                                            Google
     Rajeev then immediately                                  and
                                      13.02:
2     deleted the data base                    1:37 PM      Google
                                       2023
    from the HiyaMee's Portal                                logs
                                                           attached



         Rajeev wrote a
    resignation email to the
       HR and concerned
                                      01.03.                Email
3   managers and absonded                      7:01 PM
                                       2023                attached
       after deleting the
    complete database from
        HiyaMee's portal

       Aalok Forwarded the
     evaluated data tracking
        sheet of one of our
      clients to his personal
          mail id with no             22.02.
                                                            Email
4        authorization and             2023    1:24 PM
                                                           attached
         he was employed
            in HiyaMee.
      This was done with an
    intention of financial gain

     Aalok is also the director
      of Locomo hospitalities
       whichowns Talworks
            with domain
    shortlistprofessionals.com                              Email
and we are sure that 06.03. Attached 5 9:12 AM Aalok was stealing all the 2023 in Avais's data from HiyaMee proof file through Rajeev and Avais via emails for illegal financial gains Aalok who is now running a new TA company called TalWorks with domain shortlistprofessionals.com has used our database along with their data.
Where the candidates Candidate who were sourced by 20.04. Call letter 12:16 PM 6 HiyaMee are also merged 2023 Email along with their Attached database. An email can be clearly seen where the candidates are sent call letter for interviews from the client directly but marking employees of shortlist
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NC: 2024:KHC:26713 CRL.P No. 9675 of 2023 professionals while this was supposed to be the canditate of HiyaMee Avais Shared to the pvt job portal with no 06.03.
authorization using 1:58 PM Email 7 2023 shortlist professionals ID Attached while working in HiyaMee Avais Share the database to the other company using 08.03. Email 8 10:06 PM shortlistproffessional.com 2023 Attached domain while he was still employed with HiyaMee While all the above team members Aalok Ajay Purohit, Rajeev S & Avais Siraj Momin with a intention of criminal conspiracy to cheat and break the trust of HiyaMee All the 1 members have planned and stolen the HiyaMee's database to start a new individual company which in same business for their personal financial gains. As a result of this data theft HiyaMec has incurred a financial loss of an approximate of INR 5 Crores. In light of the above, we humbly request you to take appropriate legal action against them and we assure you to provide any additional information, evidence, or documentation that may be required for further investigation into this matter. The stolen data is of utmost importance to our rganization'soperations
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NC: 2024:KHC:26713 CRL.P No. 9675 of 2023 and the confidentiality of our clients' information. We request you to treat this complaint with the utmost urgency and conduct a thorough investigation to identify the perpetrator(s) responsible for this crime and render justice to us.
As per the audit observations the potential suspects indulged in the above theft & fraudulent activities are listed below with name, present address & contact numbers.
1) Name 1: Mr. Aalok Ajay Purohit earlier associated with the company as Chief Operating Officer and currently resides in # 404, 7th cross, Royal La Demora Apartments; 3rd floor, Koramangala 4th block, Bangalore-560034
2) Name 2: Mr. Rajiv earlier associated with the company as Data Analytics Specialist and currently resides in Ground floor, BTM 1st stage, 1st B cross, near Siri Kanya Beauty Care, Bangalore - 560029
3) Name 3: Mr. Avais Siraj Momin earlier associated with the company as Business Manager and resides in #402, 17th main 3rd floor, flat No. T1, Skanda, Koramangala 5th block, Bangalore - 560034"

It is a detailed complaint, the complaint so registered leads to registration of the crime in Crime No.208/2023 for offences punishable under Sections 408 & 420 of IPC and Section 66D of the Act.

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NC: 2024:KHC:26713 CRL.P No. 9675 of 2023

9. The submission of learned counsel for the petitioners that everything is available in the public domain and it was only those databases that have been downloaded from the public domain, it is contrary to what is contended or what is alleged in the complaint. If it were to be mere downloading of database from several websites of recruitment consultants, it would have been a circumstance altogether different. The data thieving is prima facie made out in the complaint so registered. It is the contention of the learned senior counsel for the second respondent that about 15 lakh CVs' of several employment seekers from the complainant's company's database is downloaded and used for business of the petitioner's company after their exit from the complainant's company.

10. Learned counsel for the petitioners places a memo along with certain documents to demonstrate that petitioners have also paid Rs.31/- lakhs and subscribed to those databases which the complainant's company had subscribed and there can be no question of thieving. The submission and the contents of the memo are caught in contradiction. It becomes an admitted fact that the complainant's company had paid huge

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NC: 2024:KHC:26713 CRL.P No. 9675 of 2023 sums for building up the database and the same is again paid by the petitioners. All these matters, whether the data that is thieved from the complainant's company is the one that is being used by the petitioner's company is a matter of investigation.

11. Therefore, prima facie, all the aforesaid facts would merit an investigation in the least, as the menace of data thieving by the employees, who would leave 'A' company and set up their own 'B' company on the data of the 'A' company has become rampant these days. This ought to be nipped, I mean, in the bud. Therefore, investigation in the lis should ensue.

12. Finding no merit in the petition, petition stands rejected. Interim order of any kind subsisting stands dissolved.

13. It is made clear that the observations made in the course of this order is only for the purpose of consideration of the case under Section 482 of the Cr.P.C., and the same shall

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NC: 2024:KHC:26713 CRL.P No. 9675 of 2023 not bind or influence the criminal Court in the conduct of trial against any other accused.

Sd/-

JUDGE AV List No.: 1 Sl No.: 8