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Karnataka High Court

Razorpay Software Private Limited vs The State Of Karnataka on 28 November, 2023

Author: Hemant Chandangoudar

Bench: Hemant Chandangoudar

                                                        -1-
                                                                         NC: 2023:KHC:43100
                                                                  WP No. 17412 of 2023




                             IN THE HIGH COURT OF KARNATAKA AT BENGALURU
                               DATED THIS THE 28TH DAY OF NOVEMBER, 2023
                                                     BEFORE
                         THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR
                               WRIT PETITION NO. 17412 OF 2023 (GM-RES)
                        BETWEEN:

                        1.    RAZORPAY SOFTWARE PRIVATE LIMITED
                              THROUGH ITS AUTHORIZED REPRESENTATIVE
                              MR. NARESH JETHWANI
                              AGED ABOUT 57 YEARS
                              REGD. OFFICE AT
                              1st FLOOR, SJR CYBER
                              22, LASKAR HOSUR ROAD
                              ADUGODI, BANGALORE 560 030
                              [email protected]
                              REG.UNDER COMPANIES ACT 2013.

                        2.    RZPX PRIVATE LIMITED
                              THROUGH ITS AUTHORIZED REPRESENTATIVE
                              MR. NARESH JETHWANI
                              AGED ABOUT 57 YEARS
                              REGD. OFFICE AT GROUND FLOOR
                              SJR CYBER, 22, LASKAR HOSUR ROAD
                              ADUGODI, BANGALORE-560 030.
                              [email protected]
Digitally signed by B         REG.UNDER COMPANIES ACT 2013.
K
MAHENDRAKUMAR                                                                 ...PETITIONERS
Location: High          (BY SRI. ABHISHEK K, ADVOCATE)
Court of Karnataka

                        AND:

                        1.    THE STATE OF KARNATAKA
                              REPRESENTED BY BENGALURU
                              OFFICE OF THE INSPECTOR OF POLICE
                              CID NO.1, CARLTON HOUSE
                              PALACE ROAD, BENGALURU 560 001
                              [email protected] [email protected]

                        2.    ICICI BANK
                              BRANCH MANAGER
                              MYTREE CENTRE NO. 4/10
                              HOSUR ROAD, BOMMANAHALLI
                               -2-
                                            NC: 2023:KHC:43100
                                          WP No. 17412 of 2023




     BANGALORE-560 068
     EMAIL [email protected]
     MOBILE NO. 8138948398.

3.   YES BANK
     BRANCH MANAGER
     GROUND FLOOR, PRESTIGE OBELISK
     KATRUBA ROAD, BANGALORE-560 001
     EMAIL. [email protected]
     MOBILE NO. 9972093666.
                                            ...RESPONDENTS
(BY SRI. B A BELLIAPPA, SPP-I A/W
    SRI. VENKATSATYANARAYAN A, HCGP FOR R1;
    SRI. VIKRAM UNNIRAJAGOPAL, ADVOCATE FOR R3;
    R-2 SERVED)

     THIS WP IS FILED UNDER ARTICLE 226 OF THE
CONSTITUTION OF INDIA R/W SECTION 482 OF THE CODE OF
CRIMINAL PROCEDURE, 1973 PRAYING TO QUASH THE ILLEGAL
MARKING OF LIEN/DEBIT FREEZE OF MONIES BY R1, VIDE AT
ANNEXURE-K, L AND M IN RESPECT OF E-MAIL COMMUNICATION
DATED 07.11.2022 RESPECTIVELY ON INR 94, 05, 91, 440 IN THE
BANK ACCOUNTS OF THE PETITIONERS HELD WITH R2 AND 3 AS
MENTIONED IN DETAILS IN TABLE A ABOVE AND ETC.

      THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN
'B' GROUP, THIS DAY, THE COURT MADE THE FOLLOWING:

                             ORDER

The freezing of the current bank account No.002281300009716 of the petitioner No.2 in the respondent No.3 Bank is impugned in this petition.

2. The Cyber Crime Police Station, CID in Crime No.8/2021 registered the case with regard to the fraudulent transactions that had taken place and had issued a notice under Section 109 and 102 of Cr.P.C. to the respondent No.3 Bank to freeze the account of the petitioner No.2. As per the instructions of respondent No.1, the total amount to be put on -3- NC: 2023:KHC:43100 WP No. 17412 of 2023 debit freeze in respect of five CIDS was INR 5,48,96,977/-. Accordingly, an amount of INR 5,48,96,977/- was put on debit freeze by respondent No.3 on the current account bearing No.002281300009716 of the petitioner No.2.

3. On 4.10.2023, the learned SPP on instructions submitted that an amount of Rs.65 lakh was fraudulently transferred to the bank account of the petitioner No.2. This Court on 4.10.2023 permitted the Bank to mark the lien for an amount of Rs.65 lakh, and the petitioners were permitted to withdraw the amount in excess of Rs.65 lakh from the account of the petitioner No.2.

4. The petitioners submitted an application dated 9.10.2023 to the Investigating Officer stating that no amount is standing in the five CIDs accounts, which were ordered to be frozen by the Investigating Officer. The petitioners have further explained that the amount of INR 1,61,80,778/-, which was in deposit in five CIDs, was transferred to the Enforcement Directorate, Bangalore in ECIR bearing No.ECIR/BGZO/11/2021 on 17.4.2023. The learned SPP does not dispute that the amount of Rs.65 lakh, which forms part of Rs.1,61,80,778/-, has been transferred to the Enforcement Directorate, Bengaluru.

5. Therefore, the petitioners having submitted the explanation to the satisfaction of the Investigating Officer, the petition stands disposed of directing the respondent No.3 to -4- NC: 2023:KHC:43100 WP No. 17412 of 2023 defreeze current bank account No.002281300009716 standing in the name of Petitioner No.2 forthwith.

6. The petitioners are permitted to operate the subject bank account in accordance with law.

Sd/-

JUDGE BKM