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The Complainant has filed complaint U/Sec.200 of Code of Criminal Procedure against the accused for the offences punishable under Sec. 120B, 409 & 468 of IPC.

2. The case of the prosecution in brief is as follows; The accused No.1 was the Managing Director, accused No.2 to 5 were the whole time Directors and accused No.6 was the statutory auditor of accused No.7 company - M/s. Megacity (Bengaluru) Developers & Builders Ltd., (herein after referred to as 'MDBL'). Which was incorporated as a private limited company on 11/08/1994 and converted into a public limited company on 12/08/1998, with the object of carrying on the business to develop, construct, furnish, let-out, sell, deal in and to carry on all or any of the functions of Proprietors of lands, flats, dwelling houses, shops, offices, commercial complexes, factory sheds, buildings and accommodation of all kinds. The accused under the said company have floated a real estate project named Vajragiri township project and collected about Rs.60 Crores towards booking amounts in respect of the same. However, the said project was not materialized and large number of investors' money was not refunded. Accordingly, there were several complaints from the investors pointing towards the financial affairs of said company being conducted prejudicial to the interest of said investors. In view of such complaints regarding financial fraud against the company received by the Ministry of corporate Affairs (in short MCA) an inspection of the company U/Sec. 209A of the companies Act, was ordered and accordingly, the inspection report was submitted to the Ministry of Corporate Affairs on 31/09/2007, which brought out violation of various provisions of the companies Act by the said company. Further, the Registrar of companies, Karnataka has also conducted a scrutiny of the balance sheet of said company as on 31/03/2006 U/Sec.234(1) of the Companies Act, 1956 and submitted a report to the Ministry of Corporate Affairs, Government of India U/Sec. 234(6) of the Act, indicating the possible diversion and miss-utilization of funds by the promoters of said company. In the light of said reports, the Ministry of Corporate Affairs, Government of India has directed an investigation into the affairs of said MDBL company U/Sec.235 of the Companies Act, by its order dated:

6. The points that arise for consideration are:

1. Whether the complainant proves beyond reasonable doubt that accused No.1 to 5 being the Directors & accused No.6 being the statutory auditor of accused No.7 company - Megacity (Bangalore) Developers & Builders Pvt Ltd., during 1996-97 to 2005-06 have entered into a criminal conspiracy to dishonestly misappropriate the funds collected from the Members / public under the housing scheme - Vajragiri project of said MDBL company & cheat the members / site aspirants of said project and thereby committed the offence punishable U/sec.120B of Indian Penal Code ?
2. Whether the complainant proves beyond reasonable doubt that accused No.1 to 5 being the Directors & accused No.6 being the statutory auditor of accused No.7 company - Megacity (Bangalore) Developers & Builders Pvt Ltd., and entrusted with the fund of Rs.60 Crores collected by the said company from the members / public under the said Vajragiri project, have dishonestly misappropriated about Rs.37.22 Crores out of the said fund by fraudulently showing to have purchased the lands worth of said amount on behalf of the company from 1996-97 to 2005-06 in ordered to make an illegal gain for themselves & wrongful loss to the company & members and thereby committed the offence punishable U/sec.409 of Indian Penal Code ?
3. Whether the complainant proves beyond reasonable doubt that accused No.1 to 5 being the Directors & accused No.6 being the statutory auditor of accused No.7 company - Megacity (Bangalore) Developers & Builders Pvt Ltd., have created false and forged sale agreements for the purpose of cheating the company & its members and thereby committed the offence punishable U/sec.468 of Indian Penal Code ?
4. What Order ?