TMI Blog2021 (7) TMI 1256X X X X Extracts X X X X X X X X Extracts X X X X ..... er, the Society was running under profit, but not under loss. But the contention of the respondent is that the accused himself has borrowed huge loan without security and has reinvested in various businesses like Kanva Fashion, Kanva Developers, Kanva Health Care, Kanva Resorts and other businesses - Looking to the entire facts reveals that the petitioner was involved in reinvesting the money by borrowing it from the Society out of the deposits which is nothing but proceeds of the crime is nothing but Money Laundering which attracts the offence under the PML Act. On merits, absolutely there is no case for the petitioner. Looking to the entire medical documents, it reveal that the petitioner is in danger due to various ailments and therefore, he require proper treatment in the good multi-Specialty Hospital at Bengaluru. It is not possible to provide proper treatment by the Jail Authorities which requires more expenses, which cannot be borne by the Government. The Government cannot spend tax payers money. The Court will not grant bail to the accused where economic offences are involved and huge public money is involved. But only on the ground for the purpose of providing medica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble under Section 420 of IPC which came to be transferred to the CCB, F M, Bengaluru on 19.12.2019. It is alleged that petitioner-Nanjundaiah is the Founder/Director of Kanva Souhardha Co-operative Credit Limited (hereinafter referred to as Society ) situated at No.861, Kanva Sri, Modi Hospital Road, West of Chord Road, Bengaluru. The case came to be registered on the report received from the office of Registrar of Co-operative Societies, Ali Askar Road, Bengaluru in letter No.RCS:RSR/SOU/142/2019- 20,dated 20.02.2020 along with a copy of the FIR No.341/2019, dated 31.10.2019 registered by the Basaveshwaranagar Police Station, Vijayanagar Sub- Division, Bengaluru and along with the Observation Report, which was conducted based on the public complaint and observed the major lapses and serious irregularities. It is alleged that the petitioner being the Founder/Director of the Kanva Souhardha Co-operative Credit Limited has collected ₹ 650.00 crores deposits from the members and the public by assuring high rate of interest through commission agents, without maintaining required liquidity, Prepaid instruments, issued to deposit holders without prior permission from the RBI and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the investigation, it was revealed that so many cases were registered against this petitioner in various Police Station limits and the petitioner-Society has cheated more than 600 people about ₹ 39,08,76,232/- and 111 properties worth ₹ 426 crores have been seized etc. The petitioner was arrested and remanded to the judicial custody. Therefore, he approached the Sessions Court for granting bail, which came to be rejected in both the cases. Hence, the petitioner is before this Court. 5. Sri Kiran Javali, learned counsel appearing for the petitioner has contended that the petitioner is innocent of the alleged offence. He has not at all committed any offence except he is a Founder/Director of the Society. He admits that he collected funds and investments from the Society members, but not from the public. Out of the amount collected from the persons, the Society was lending money to others and getting interest and then used to repay the same to the members of the Society. He himself borrowed loan by pledging the documents, which is nothing but a mortgage and out of that amount, he has reinvested some amount in some other businesses like health care, fashion garments, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are as under: 1) (1978) 4 SCC 47 2) (1984) 1 SCC 284 3) (1994) 4 SCC 260 4) (2003) 7 SCC 399 5) 2012(1) SCC 40 6) (2014) 16 SCC 623 7) 2012(8) SCC 273 8) (2018) 3 SCC 22 9) 2019 SCC 1549 10) 2020 SCC 75 11) Criminal Petition No.4598/2020 of this Court dated 5.11.2020. 12) Criminal Petition No.5445/2020 of this Court dated 18.11.2020. 13) 2020 SCC 964 8. Per contra, Sri P.Prasanna Kumar, learned counsel appearing for ED, objected the bail petition and contended that the petitioner is involved in cheating more than 13,000 investors who are the members of the Society. He has not repaid the amount. He has borrowed the loan out of the invested amount and re-invested in his other businesses. He has pledged the immovable properties and raised loan for more than ₹ 250 crores. He has mis-used the funds of the public and re-invested the money in other business like Club, Garments, Resorts, Health Care etc. A public Interest Litigation petition is also pending before the Division Bench. The Administrator is appointed by the High Court. The Government has also appointed a competent Authority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counts maintained by the petitioner-company. Hence, prayed for dismissing the petition. 11. Upon hearing the arguments of learned counsel for the petitioner, learned counsel for the respondent and learned High Court Government Pleader and on perusal of the record, admittedly, the petitioner is the Founder/Director of the Society and the said Society is having 13,000 members and they received huge deposits to the tune of ₹ 650 crores and it is further alleged that some of the investors approached the petitioner for refund of their funds after maturity, but the office was found closed. Therefore, three persons filed a complaints to the Basaveshwaranagar Police which were registered in Crime Nos.340/2019, 341/2019, 342/2019 and subsequently, some other cases were also registered against the Society in Crime No.321/2019 of Varthur Police Station, Crime No.19/2020 of Banaswadi Police Station, Crime No.460/2019 of Hosakote Police Station and subsequently, the petitioner came to be arrested and released on bail in those criminal cases registered by the Banaswadi Police Station as well as Basaveshwaranagar Police Station. Subsequently, the offence under Section 420 of IPC being a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich is nothing but proceeds of the crime is nothing but Money Laundering which attracts the offence under the PML Act. On merits, absolutely there is no case for the petitioner. 12. However, other grounds urged by the petitioner counsel is that the petitioner is suffering from Diabetes, Hyper Tension, first stage of cancer and prostate enlargement and other related diseases. In this aspect, the petitioner counsel has produced various medical records obtained from the hospital which was reported by the Chief Medical Officer, Parappana Agrahara, Central Prison, Bengaluru. The report of the Chief Superintendent, Central Prison, Bengaluru dated 26.05.2021 reveals that the petitioner is a found known case of Hypothyroidism and since 10 years, he is on Tablet Thyroxin. He also has the past medical history of very high Triglyceride level for which, he is under treatment. He also has a past history of having undergone surgery (Laparoscopic Gastro-Bypass) at Vikram Hospital. He is also a known case for Depression and since few years, he is on Tablet Nexitoplus. He is reviewed by a Psychiatrist for his depressive disorder. He is also under Pre-Diabetic on diet restrictions, Depressive di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsider medical ground but not on merits of the case. Therefore, by looking to the facts and circumstances of the case, in order to provide proper medical care and protection to the petitioner, if bail is granted to the petitioner, no prejudice would be caused to the prosecution case. Apart from that, the Division Bench of the High Court is monitoring the case and the Administrators are appointed apart from the Competent Authority by the State under KPID Act. All the properties were seized by the ED as well as the State Government. The investigation is completed and the final report has been filed by way of complaint. Therefore, I am of the view that the petitioner is required to be released on bail on medical ground. Hence, I pass the following ORDER Accordingly, both the criminal petitions are allowed. The Trial Court is directed to release the petitioner-accused No.1-Nanjundaiah on bail in Special Criminal Case No.846/2020 registered by the Directorate of Enforcement for the offence punishable under Section 4 of PML Act, pending on the file of Special Court (CCH-34) at Bengaluru and in Crime No.304/2020 registered by the Hosakote Police Station for the offences punisha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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