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The Complainant has filed complaint U/Sec.200 of Code of Criminal Procedure for the offences punishable U/sec.420, 120B & 177 of IPC against the Accused.

2. The case of the prosecution in brief is as follows; The accused No.1 was the Managing Director, accused No.2 to 4 were the Directors of accused No.5- 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 from the public 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 ( for short 'MCA' ) , an inspection of the company U/Sec. 209A of the companies Act,1956 was ordered and accordingly, the inspection report was submitted to the Ministry of Corporate Affairs on 31/09/2007, which brought out violations 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:

4. What Order ?

7. My answer to the above points are as follows :

Point No.1 to 3 : In the Negative Point No.4: As per final order for the following;

REASONS

8. Point No.1 to 3 :- As these three points are interlinked, they are taken together for common discussion in order to avoid repetition of facts & evidences.

9. It is the specific case of the complainant that, accused No.1 being the managing director of accused No.5 - M/s. Megacity (Bangalore) Developers & Builders Limited, Bangalore, Accused No.2 being wife of accused No.1, accused No.3 being the Chairman of accused No.5 - M/s. Megacity (Bangalore) Developers & Builders Limited, Bangalore & accused No.4 being the wife of accused No.3 were the promoters of said MDBL company and launched a housing project named Vajragiri township project during August- September -1994. At the same time they have published brochures & pamphlets relating to said Vajragiri Township project, wherein they have published false and misleading information that said project is a Government Sponsored project and the said project is residentially converted & approved by concerned authorities. But, as on the date of launching said project and publication of said pamphlets & brochures there were no such conversion of lands from agriculture to non-agricultural purpose and said project was not approved by the concerned authorities. More so, said project was not at all a Government sponsored project. In spite of it, the accused have coined a conspiracy to induce the site aspirants / the public to make investment in the said project by giving such false & misleading information about the said project and in furtherance of said conspiracy they have made such publication of brochures & pamphlets with misleading information and induced the public to make investment in the said project and thereby they have cheated the public who have invested their money in the said project. Further in the course of investigation the accused No.1 & 3 provided wrong information to the investigation Team of SFIO by stating that at the time of launch of the project they had conversion order for the lands from agriculture to non-agricultural purpose from competent authority. Accordingly, they have committed the alleged offences P/U/Sec. 420, 177 & 120B of IPC.

Ltd.

Ex.D12 - C/c of agreements to sell dated 10.12.1999 between MEGACITY (Bangalore) Developers and Buildings Pvt. Ltd.

Ex.D13 - C/c of agreements to sell dated 21.03.1991 between MEGACITY (Bangalore) Developers and Buildings Pvt. Ltd.

Ex.D14 - C/c of agreements to sell dated 02.05.1997 between MEGACITY (Bangalore) Developers and Buildings Pvt. Ltd.

Ex.D15 - C/c of agreements to sell dated 15.03.1996 between MEGACITY (Bangalore) Developers and Buildings Pvt. Ltd.

Ex.D16 - C/c of agreements to sell dated 15.03.1996 between MEGACITY (Bangalore) Developers and Buildings Pvt. Ltd.

Ex.D17 - C/c of agreements to sell dated 15.03.1996 between MEGACITY (Bangalore) Developers and Buildings Pvt. Ltd.

Ex.D18 - C/c of letter dated 12.11.2008 given by Members Association to Ministry of Corporate Affairs Material objections: