TMI Blog2022 (6) TMI 207X X X X Extracts X X X X X X X X Extracts X X X X ..... .08.2021, he was arrested by the respondent. Initially he moved the Special Court and by the impugned order, the application was dismissed, though his daughter was granted bail under the proviso to Section 45(1) of the Act. During the pendency of the petition, the respondent filed a complaint, copy of which has been produced for perusal of the court; the petitioner was also served with a copy of the same. But according to the learned counsel for the petitioner, such a complaint was hurriedly filed to deny him statutory bail, so far the Special Court has not taken cognizance of the offence. But it is a fact that complaint has already been preferred. The petitioner has a case that investigation is complete, that all the material documents collected in electronic form are with them, that the conditions imposed by this Court and other courts while granting him bail in the predicate offences are rigorous, that there is no flight risk. It may be true that the respondent has already laid a complaint. All the same, the prime witnesses in the case are the staff members of the petitioner. If he is released on bail, the possibility of him influencing and winning over them cannot be ruled o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd criminal breach of trust by the local police were transferred for investigation to the CBI. In some cases, the Special Court for the trial of CBI cases also granted him bail. All such bail orders were passed imposing stringent conditions, restricting his movements and also with direction for periodical report before the Investigating Officer. During all these times, he was subjected to interrogation by the respondent on several occasions and was arrested on 09.08.2021, after releasing him from judicial custody in the other cases. According to him, the allegations raised against him by the respondent are baseless, that he is absolutely innocent. He alone is doing the business. Due to the financial crisis arose during the lockdown imposed on account of the outbreak of Covid-19, he could not promptly repay the fixed deposits. In fact, interest was being paid by him promptly. Such businesses are being run by him from 1965 onwards without any sort of complaint. After his arrest in Crime No. 1740/2020 of Konny police station, he had been in police custody for seven days. Then he was thoroughly interrogated; all his branches were searched, vehicles belong to him have been seized and ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ffairs and has not co-operated with the investigation. He was evasive and non co-operative. After collecting huge amounts from the depositors, he has laundered the money in Australia and Dubai on the pretext of imports through banking channels and through hawala. Materials have been collected to show that sale proceeds of the properties disposed of by him have been received in his Savings Bank account through the bank accounts of unknown persons and ultimately used for his personal benefits. 4. In the objection, statements of Sri.Koshy Mathew, DGM and Thomas Daniel, Cashier of Popular Finance Group have been highlighted who have stated that the petitioner had withdrawn cash of about 100 crores of rupees by assigning signed cheques to the said Thomas Daniel, cashier, which were used for purchase of properties and for his personal requirements. Moreover, gold kept as security against gold loans availed by the customers were re-pledged by the petitioner and others without the consent of the customers. The money withdrew from the bank account of the Popular Finance was converted to dollars and sent to Dubai through carriers who are his friends and relatives. Such money was delivered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lease him on bail. 5. I heard Sri. C.S. Manu, the learned counsel for the petitioner and Sri. S.V. Raju, learned Additional Solicitor General of India, in detail. The respective contentions were reiterated by the learned counsel on both sides. 6. According to the learned counsel for the petitioner, now from the version of the learned Additional Solicitor General, it has come out that the respondent has already laid a complaint before the Special Court, a copy of which has since been served on him; since the investigation is over, there is no meaning in detaining the petitioner further. The debacle was the result of the global pandemic so that simultaneous demands for interest and withdrawal of capital amounts could not be met by the petitioner. According to the learned counsel, if such a massive demand for withdrawal of money is raised against any financial institution, it may not be able to withstand the demand overnight and that shook the business of the petitioner. But the assets of the Popular Finance and allied entities are still in tact; if sufficient time is given, they will be able to give back the entire amount and resurrect the business. In fact, deliberations have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd jail is the exception, has to be considered by this Court. 8. In his elaborate reply, the learned Additional Solicitor General Sri. S.V. Raju said that the principle, bail is the rule and jail is the exception, is not applicable to a case falling under the Act especially when huge amounts were laundered by the accused persons. Relying on various decisions, Ajay Kumar v. Directorate of Enforcement, Criminal Application (B.A.) No.1149/2021 of the Bombay High Court, B.A.No.4295/2021 of Delhi High Court in Raj Singh Gehlot v. Directorate of Enforcement, Bimal Kumar Jain and another v. Directorate of Enforcement [2021 SCC Online Del 3847], Mohammad Arif v. Directorate of Enforcement, Govt. of India [2020 SCC Online Ori 544]: [(2020) 374 ELT 478] of Orissa High Court, order of the Patna High Court in Crl.M.C. No.73052/2019, order of the Madras High Court in Crl. O.P. (M.D.) Nos.6883 6037 of 2021 etc., the learned Senior Counsel pointed out that applications filed under Section 439 of the Cr.P.C. in similar circumstances have been dismissed by the High Courts taking into account the twin conditions in Section 45 of the Act. Referring to an order passed by a Single Judge of this Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onni police station were not paid back, she approached the police and registered the first crime, followed by a flood of cases registered against the petitioner, his wife and three daughters and some near relatives. It is stated that so far 1368 cases have been registered in different police stations of the State besides a crime registered by the CBI on the directions of this Court. The estimation of the prosecution is that they have defrauded nearly Rs.1,600 crores from a large number of depositors estimated to be 30,000, who were dealing with the petitioner and others through 258 branches. Some of the depositors approached this Court and at the instance of this Court, the CBI took over investigation. Meanwhile, separate proceedings have been initiated under the BUDS Act and the Kerala Protection of Interest of Depositors in Financial Establishments Act etc. It is also not in dispute that the petitioner and his wife and children were arrested for such cases. At first all the accused had gone hiding; later the petitioner and his wife surrendered before police in compelling circumstances when two of his daughters were arrested from Delhi airport while trying to leave the country. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the Special Court shall not take cognizance of any offence punishable under Section 4 except upon a complaint in writing made by- (i) the Director; or (ii) any officer of the Central Government or State Government authorised in writing in this behalf by the Central Government by a general or a special order made in this behalf by that Government. (1-A) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), or any other provision of this Act, no police officer shall investigate into an offence under this Act unless specifically authorised, by the Central Government by a general or special order, and, subject to such conditions as may be prescribed. (2) The limitation on granting of bail specified in sub-section (1) is in addition to the limitations under the Code of Criminal Procedure, 1973 (2 of 1974) or any other law for the time being in force on granting of bail. Explanation.- For the removal of doubts, it is clarified that the expression Offences to be cognizable and non-bailable shall mean and shall be deemed to have always meant that all offences under this Act shall be cognizable offences and non-bailable offenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e had also obtained permit from the Reserve Bank of India for collecting deposits. But after 1997, he has not approached the RBI and the RBI had occasion to proceed against him before the Court at Pathanamthitta. Documents clearly reveal that the petitioner had indulged in collecting large amounts as deposits offering high rate of returns; everything was done illegally. There are large number of instances in which, after collecting money in deposit in Popular Finance, receipts used to be issued in the name of other entities launched by the petitioner and his wife and children themselves. He had collected money from different sources by claiming it as India's emerging gold loan company . The estimation of the respondent is that they have collected Rs.1,600 crores from about 30,000 depositors through 258 branches. 15. Referring to the statements of Dr. Rinu Mariyam Thomas, the second accused and the daughter of the petitioner, the learned Additional Solicitor General pointed out that the businesses were being run in a most unprofessional manner; after 2013 income tax returns have not been submitted, accounts were not properly audited and amounts collected from different depos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The learned counsel is not justified in placing reliance on the decisions reported in P. Chidambaram and Krishna Mohan Tripathi, quoted supra. There are no factual comparison of these cases. The amount involved in Krishna Mohan Tripathi is only Rs.1,38,63,445/- where the Apex Court was granting bail taking into account the facts of the case. Similarly, in P. Chidambaram's case, the total amount allegedly laundered comes only Rs.3 odd crores, the said petitioner is the former Finance Minister of the country; he was 74 years old and was suffering from some ailments. Therefore, these two decisions cannot come to the aid of the petitioner. 20. The learned Additional Solicitor General pointed out that the petitioner has a tendency to dispose of properties, details of which were found out with great difficulty; the sale proceeds of the properties were routed through the accounts of his employees. He also placed before this Court a sealed cover and requested to consider the documents. But from the covering letter itself, it is clear that the cover contains copy of certain sale deeds and I have not opened it. 21. After considering the totality of the situation emerging in the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
