Karnataka High Court
Mr. Pratap Raj vs State By Saraswathipuram Police on 8 September, 2023
Author: S Vishwajith Shetty
Bench: S Vishwajith Shetty
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NC: 2023:KHC:32518
CRL.P No. 7431 of 2023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 8TH DAY OF SEPTEMBER, 2023
BEFORE
THE HON'BLE MR JUSTICE S VISHWAJITH SHETTY
CRIMINAL PETITION NO. 7431 OF 2023
BETWEEN:
MR. PRATAP RAJ,
S/O C. RAJA,
AGED ABOUT 32 YEARS,
DIRECTOR, FERA TRADE AND SOFTWARE PVT. LTD.,
NO.658, VISHWAMANAVA DOUBLE ROAD,
SARASWATHIPURAM,
MYSORE - 09.
PERMANENT ADDRESS
NO.51, 11TH MAIN, 3RD CROSS,
KAMMAGONDANAHALLI,
BENGALURU - 560 062.
...PETITIONER
(BY SRI. PARAMESHWAR N. HEGDE, ADVOCATE)
AND:
Digitally STATE BY SARASWATHIPURAM POLICE,
signed by
NANDINI MS MYSORE,
Location: REP BY ITS STATE PUBLIC PROSECUTOR,
High Court of
Karnataka HIGH COURT OF KARNATAKA,
BANGALORE - 560 001.
...RESPONDENT
(BY SMT. N. ANITHA GIRISH, HCGP)
THIS CRIMINAL PETITION IS FILED UNDER SECTION 439
OF CR.P.C PRAYING TO ENLARGE THE PETITIONER ON BAIL IN
CR.NO.53/2023 OF SARASWATHIPURAM P.S., MYSURU CITY
FOR THE OFFENCE P/U/S 406, 420 R/W 34 OF IPC AND SEC.21
AND 23 OF BANNING OF UNREGULATED DEPOSIT SCHEME ACT
AND PENDING ON THE FILE OF PRL.DISTRICT AND SESSIONS
JUDGE, MYSURU.
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NC: 2023:KHC:32518
CRL.P No. 7431 of 2023
THIS PETITION, COMING ON FOR ORDERS, THIS DAY,
THE COURT MADE THE FOLLOWING:
ORDER
Accused No.1 in Crime No.53/2023 pending on the file of the Principal District and Sessions Judge at Mysuru, registered by Saraswathipuram Police Station for the offences punishable under Sections 406, 420 read with Section 34 of the Indian Penal Code, 1860 (hereinafter referred to as 'IPC' for short) and Sections 21 and 23 of the Banning of Unregulated Deposit Schemes Ordinances, 2019 is before this Court seeking regular bail.
2. Heard the learned counsel for the parties.
3. On the basis of the compliant lodged by Smt.Kousalya Srinivas dated 02.04.2023, Saraswathipuram Police Station had registered FIR in Crime No.53/2023 against the petitioner and his wife for the aforesaid offences. In the complaint, it is averred that complainant's daughter and the daughter of Reddy Kumari were classmates. Reddy Kumari and her husband Ravikumar Reddy owned a company known as Cogstat Software and they had represented to the complainant and her -3- NC: 2023:KHC:32518 CRL.P No. 7431 of 2023 husband that they were investing money in a company known as Fera Trade and Software Pvt. Ltd., which was their parent company. They had informed the complainant and her husband that Fera Trade and Software Pvt. Ltd., was giving good returns for their deposit and accordingly, had induced the complainant, her husband and daughter to invest total sum of Rs.1,03,00,000/-. It is the case of the complainant that she and her family members had deposited the amount with Cogstat Software, who in turn had invested said amount on her behalf in Fera Trade and Software Pvt. Ltd., which belonged to the petitioner and his wife. It is the further case of the complainant that petitioner and his wife had assured good returns. Subsequently, when she approached the owner of Cogstat Software as well as owners of Fera Trade and Software Pvt. Ltd., they informed that they have suffered loss in the business and failed to give assured returns to the complainant. It is also further alleged that amount deposited by the complainant and her family members was also not returned. Hence, she had approached the police and lodged the complaint.
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NC: 2023:KHC:32518 CRL.P No. 7431 of 2023
4. During the course of investigation, petitioner was arrested on 25.07.2023. The bail application filed by the petitioner under Section 439 of Cr.P.C. in Crime No.53/2023 before the Court of Principal District and Sessions Judge at Mysuru, was dismissed on 04.08.2023. Under these circumstances, the petitioner is before this Court.
5. Learned counsel for the petitioner having reiterated the grounds urged in the petition contended that complainant is a stranger to the petitioner. The bank account to which the alleged deposits were made does not pertain to either the petitioner or his company Fera Trade and Software Pvt. Ltd., and on the other hand the said account belongs to Cogstat Software, which does not belong to the petitioner or his wife. He further contends that Cogstat Software company is not related to the petitioner or Fera Trade and Software Pvt. Ltd. The complainant and her family members have deposited the said amount at their risk as the petitioner's company is dealing with the business of trading in stock market. -5-
NC: 2023:KHC:32518 CRL.P No. 7431 of 2023
6. Per contra, learned HCGP has opposed the bail application. She submits that the complainant was induced by the petitioner and his wife to deposit huge amount with Fera Trade and Software Pvt. Ltd., which had assured high returns. Investigation is in progress and accordingly, prays to dismiss the petition.
7. From the complaint averments itself it is very clear that complainant had deposited money knowing well that the investment would be made in trading in stock markets. According to the complainant, it is the owners of the company known as Cogstat Software, who had approached complainant and her family members for the purpose of investment and owners of company known as Fera Trade and Software Pvt. Ltd. had no direct connection with the complainant or her family members. The material on record goes to show that deposit made by complainant and her family members is with the company known as Cogstat Software and not directly with the company known as Fera Trade and Software Pvt. Ltd. Any investment made in trading of stock market would be always subject to risk. Petitioner is in custody since 25.07.2023. After -6- NC: 2023:KHC:32518 CRL.P No. 7431 of 2023 he was arrested, initially he was given to police custody. Thereafter, from 03.08.2023 onwards he was remanded to judicial custody as per prayer in the remand application. Petitioner's wife, who is accused No.2 has been granted regular bail before the trial Court. Under these circumstances, I am of the view that the petitioner has made out prima facie case for grant of regular bail. Accordingly, the following:
ORDER The Criminal Petition is allowed.
The petitioner is directed to be enlarged on bail in Crime No.53/2023 registered by Saraswathipuram Police Station for the offences punishable under Sections 406 and 420 read with Section 34 of IPC, subject to the following conditions:
a) Petitioner shall execute personal bond for a sum of Rs.1,00,000/- (Rupees One Lakh only) with two sureties for the likesum, to the satisfaction of the jurisdictional Court;
b) The petitioner shall appear regularly on all the dates of hearing before the Trial Court unless the Trial Court exempts his appearance for valid reasons;-7-
NC: 2023:KHC:32518 CRL.P No. 7431 of 2023
c) The petitioner shall not directly or indirectly threaten or tamper with the prosecution witnesses;
d) The petitioner shall not leave the jurisdiction of the Trial Court without permission of the said Court until the case registered against him is disposed off;
e) The petitioner shall not involve in similar offences in future.
SD/-
JUDGE MH/-
List No.: 1 Sl No.: 49CT:PH