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Ref: Account No. 3631002100011615 of PACL India Limited of Secunderabad Branch.
*** I, invite your attention with reference to the above cited subject, there are complaints against PACL INDIA LIMITED and in this regard a case was registered and investigation and enquires are being done. There is lot of public money is involved in these transactions. Hence, it is requested to freeze the Bank Accounts of PACL India Limited and also to furnish the up to date Bank statements. It is also requested that these accounts should not be opened by any of them till further intimation is given.

21. The learned Sessions Judge had heard all the parties in the aforesaid matter and had passed a detailed order on merits vide its order dated 19.9.2007 in Crl. M.P. No. 384 of 2007 in Crime No. 195 of 2007 and the relevant portion is as hereunder:

It is premature to decide whether the scheme floated by the PACL India Limited Company can be treated, as Collective Investment Scheme, especially, when the investigation is in progress. However, a perusal of the provisions of Section 3 and 4 of the Act and Rules 3 and 6 of the Rules there under, made it clear that the role of the Special Court comes into picture, under Sub-Section (3) of Section 4 of the Act, 1999, only after the competent authority, under the Act, applies to make the ad-interim orders of attachment of the properties of the accused absolute, within 15 days, after the receipt of the orders of the Government attaching the properties of the accused. In fact, in the memo, itself the public prosecutor mentioned that the Deputy Superintendent of Police, Vikarabad has sent a letter/notice under Section 91 and 102 of the Code of Criminal Procedure to hold all the Banks accounts standing in the name of the PACL India Limited Company and accordingly, the Branch Managers of the eight branches mentioned in the memo have stopped payments. It is also mentioned in the memo that the Government of Andhra Pradesh is being addressed for passing ad-interim attachment orders of the banks accounts and properties of PACL India Limited Company and the matter is pending with the Government. Under these circumstances, this Court can not pass orders freezing the accounts of the PACL India Limited Company with the banks mentioned in the memo.

35. It is further stated that the petitioner's company had got eight branches in Andhra Pradesh and they had been collecting the huge sums from the customers. Keeping in view of the above facts and circumstances and to safeguard the public interest and for the purpose of investigation, he addressed letters to the Branch Managers of the respective Banks requesting to freeze the Bank Accounts of the petitioner's Company. It is submitted that a petition was also filed before the Court of Principal Sessions Judge, Ranga Reddy District at L.B. Nagar, Hyderabad praying the Court to issue directions to the Banks mentioned in the petition to freeze the accounts standing in the name of the PACL ltd. The said Hon'ble Court dismissed the petition filed by this respondent vide its order in Crl. M.P. No. 384/2007 in Cr.P.No. 195 of 2007 dated 19.9.2007.

(3) Heard the Public Prosecutor and the counsel for the accused.
(4) Now the points for consideration are:
(i) Whether this Court can freeze the accounts of PACL India Limited company in the branches of various Banks mentioned in the memo, as prayed for?
(ii) Whether the scheme floated by PACL India Limited Company can be treated as 'Collective Investment Scheme' or not?
(iii) To what relief?
(5) POINT Nos. 1 and 2:
It is premature to decide whether the scheme floated by the PACL India Limited Company can be treated as "Collective Investment Scheme", especially, when the investigation is in progress. However, a perusal of the provisions of Section 3 and 4 of the A. P. Protection of Depositors of Financial Establishments Act, 1999 and Rules 3 and 6 of the Rules, there under, made it clear that the role of the Special Court comes into picture, under Sub-Section (3) of Section 4 of the Act, 1999, only after the competent authority, under the Act, applies for making the ad-interim orders of attachment of the properties of the accused absolute, within 15 days, after the receipt of the orders of the Government, attaching the properties of the accused. In fact, in the memo itself, the public prosecutor mentioned that the Deputy Superintendent of Police, Vikarabad has sent a letter/notice under Section 91 and 102 of the Code of Criminal Procedure to hold all the Banks accounts standing in the name of the PACL India Limited Company and accordingly, the Branch Managers of the eight branches mentioned in the memo have stopped payments. It is also mentioned in the memo that the government of Andhra Pradesh is being addressed for passing ad-interim attachment orders of the banks accounts and properties of PACL India Limited Company and the matter is pending with the Government. Under these circumstances, this Court cannot pass orders freezing the accounts of the PACL India Limited Company with the Banks mentioned in the memo. Points are accordingly answered.