Karnataka High Court
Shreesha Sasithota Prabhakaran @ vs The State Of Karnataka on 6 January, 2023
Bench: Shivashankar Amarannavar
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CRL.A No. 2095 of 2022
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 6TH DAY OF JANUARY, 2023
BEFORE
THE HON'BLE MR JUSTICE SHIVASHANKAR AMARANNAVAR
CRIMINAL APPEAL NO. 2095 OF 2022
BETWEEN:
SHREESHA SASITHOTA PRABHAKARAN @
SHREESHA SASITOTA PRABHKARA
S/O PRABHAKAR BHAT
AGED ABOUT 47 YEARS
OCC: BUSINESS
PRESENT ADDRESS:
No.31, 7TH MAIN ROAD
VINAYA LAY OUT VIJAYANAGARA
VIJAYANAGARA 2ND STAGE
BENGALURU -560 040.
PERMANENT ADDRESS:
SASITOTA BRAMAN KEPPIGE POST
SAGARA TALUK
SHIVAMOGGA -577 401.
Digitally signed ...APPELLANT
by SANDHYA S
Location: High
Court of (BY SRI CHANDRASHEKARA K A, ADVOCATE)
Karnataka
AND:
THE STATE OF KARNATAKA
BY THE POLICE OF
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CRL.A No. 2095 of 2022
SHANKARAPURA POLICE STATION
BENGALURU CITY -560 004.
REPRESENTED BY SPP
HIGH COURT OF KARNATAKA
BENGALURU -560 001.
...RESPONDENT
(BY SRI S VISHWAMURTHY, HCGP)
THIS CRL.A. FILED U/S.16 OF KARNATAKA PROTECTION
OF INTEREST OF DEPOSITORS IN FINANCIAL ESTABLISHMENT
ACT, 2004 PRAYING TO SET ASIDE THE ORDER DATED
20.09.2022 PASSED BY THE LEARNED PRINCIPAL CITY CIVIL
AND SESSIONS JUDGE AT BENGALURU IN
SPL.C.C.NO.1792/2022 AND GRANT HIM BAIL IN
CR.NO.11/2022 OF SHANKARAPURA POLICE STATION,
BENGALURU CITY NOW PENDING ON THE FILE OF THE
LEARNED PRINCIPAL CITY CIVIL AND SESSIONS JUDGE AT
BENGALURU IN SPL.C.C.NO.1792/2022 AT BENGALURU FOR
THE OFFENCE P/U/S.420, 419, 406, 403, 120-B, 506 OF IPC
AND SECTION 9 OF THE KARNATAKA PROTECTION OF INTERST
OF DEPOSITORS IN FINANCIAL ESTABLISHMENT ACT 2004
AND 5, 21(3) OF BANNING OF UNREGULATED DEPOIST
SCHEMES ACT 2019.
THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY,
THE COURT DELIVERED THE FOLLOWING:
JUDGMENT
Though the matter is listed for admission, with the
consent of both the learned counsel, it is taken up for final
disposal.
CRL.A No. 2095 of 2022
2. The appellant/accused No.1 has filed this appeal
seeking setting aside the order dated 20.09.2022 passed
in Spl.C.C.No.1792/2022 by the learned Principal City Civil
and Sessions Judge, Bengaluru where under the bail
application of this appellant/accused No.1 sought in crime
No.11/2022 of Shankarapura Police Station, Bengaluru
City for the offence punishable under Sections,
420,419,406,403,120B and 506 IPC, Section 4 read with
Section 9 of the Karnataka Protection of Interest of
Depositors in Financial Establishments Act, 2004 (KPIDFE)
and Section 5 read with Section 21(3) of Banning of
Unregulated Deposit Schemes Act, 2019(BUDS) came to
be rejected.
3. Heard the learned counsel for the appellant and
learned HCGP for respondent-State.
4. The case of the prosecution is that the
complainant and her family members have invested
money towards purchase of shares to a company called
CRL.A No. 2095 of 2022
M/s. Sunness Capital India Private Limited having its
regional office at No.213, II Floor, V Main, Opp. Bank of
India, RPC layout, Vijayanagar, Bengaluru. The accused
are the Directors of the said Company. The complainant
and her family members have invested money towards
purchase of huge value of shares through the said
company. As time passed by and deadlines for issuance of
shares and repayments on the sum invested came up.
The accused alleged to have given vague and untenable
excuses to shirk responsibilities and avoid payments with
the sole intention of defrauding the complainant and
several others. The appellant/accused No.1 in connivance
with their staff members alleged to have diverted the
entire funds to utilize for their personal use and not for the
purpose for which the funds were collected by the
complainant and other investors and committed the
aforesaid offence. The said complaint came to be
registered in Shankarapura Police station in Crime
No.11/2022 for the aforesaid offence.
CRL.A No. 2095 of 2022
5. Investigating Officer after completing
investigation filed charge sheet against the appellant and
other accused for the aforesaid offence and the case came
to be registered in Spl.C.C.No.1792/2022 pending on the
file of Principal City Civil and Sessions Judge, Bengaluru.
The appellant came to be arrested on 21.05.2022 and he
is in judicial custody.
6. The appellant/accused No.1 has filed bail
application in Spl.C.C.No.1792/2022 and the same came
to be rejected by order dated 20.09.2022. The
appellant/accused No.1 has challenged the said order in
this appeal.
7. Learned counsel for the appellants would
contend that the appellant had no intention of cheating
any investors and as there was a loss due to Covid-19, he
could not refund the entire amount to the investors.
8. It is his further submission that more than half
of the amount has been refunded to the investors and he
CRL.A No. 2095 of 2022
is having assets worth more than the amount due i.e.
Rs.8,27,82,686/-.
9. It is his further submission that the bank
amount has been seized where under there is a credit
balance of Rs.1,79,29,969/-. It is his further submission
that the appellant/accused No.1 has no objection to
release bank account balance to the investors. It is his
further submission that the appellant/accused No.1 is
having the immovable property measuring 60x90ft totaling
5400Sq.ft. with a building measuring 3000 Sq.ft situated
in No.994, "Prabhudham", Service Road, RPC Layout,
Hampinagar, Vijayanagar II Stage, Bangalore. The
appellant/accused No.1 and his wife appellant/accused
No.2 have jointly purchased the said property vide sale
deed dated 15.02.2020 for sale consideration of
Rs.9,72,00,000/-.
10. It is his further submission that the present
market value of property is double the amount of the sale
CRL.A No. 2095 of 2022
consideration mentioned in the sale deed and the
appellant/accused No.1 is ready to dispose off the said
property and consent for disbursing the amount of sale
consideration to the investors.
11. Learned counsel for the appellant/accused No.1
submits that the appellant/accused No.1 has produced
invoice issued by National Stock Exchange of India Ltd. for
the month of May,2021 regarding the transactions which
took place during May,2021 wherein there is a billable
values for capital market normal shown as
Rs.15,68,38,305.65, for capital market special
Rs.25,15,45,835.51,for futures Rs.59,74,13,268.30 and
for Options Rs.15,17,68,701.75 respectively.
12. It is his further submission that the very invoice
itself shows that the appellant/accused No.1 and his
Company has invested the amount of the investors in the
share market.
CRL.A No. 2095 of 2022
13. It is his further submission that the offences
alleged against the appellant/accused No.1 are not
punishable with death or imprisonment for life and the
period of imprisonment may extend to 10 years.
14. It is his further submission that as the charge
sheet is filed, the appellant/accused No.1 is not required
for custodial interrogation. Accused No.2 has been
granted bail, accused Nos.3 and 5 have been granted
anticipatory bail by the Special Court. Without considering
all these aspects, the learned Special Judge has passed
the impugned order which requires interference by this
Court. With this, he prayed to allow the appeal by granting
bail to the appellant/accused No.1.
15. Per contra, learned HCGP for respondent-State
would contend that the offence alleged is in nature of
economic offence and huge public money is involved. The
appellant/accused No.1 and other accused have to repay
the huge sum more than Rs.80,000,000/- to the investors.
CRL.A No. 2095 of 2022
The appellant/accused No.1 and other accused have
cheated the public. The offence alleged against the
appellant/accused No.1 and other accused are punishable
with death or imprisonment for life which may extend to
10 years. If the appellant/accused No.1 is granted bail,
there are every chances he absconding and flee from
justice. Considering all these aspects, learned Special
Judge has rightly passed the impugned order which does
not require interference by this Court.
16. Having heard the learned counsel for the
appellants and learned HCGP for respondent/State, this
Court has gone through the impugned order, charge sheet
material and other documents. The charge sheet material
shows that accused Nos.1 and 2 are the husband and wife
who are running the stock market agency in the name and
style of M/s. Sunness Capital India Limited. The
complainant and CW.2 to 17 are investors who intend to
invest their money through the said Sunness Capital India
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CRL.A No. 2095 of 2022
Limited. It is alleged that the money invested by the
complainant and others was diverted and thereafter it was
misused for personal use and requirements. The accused
No.2 Padmajyothi Shreesha who was also a partner in the
said Sunness Capital India Limited. Accused Nos.3 and 4
are the relatives of both appellant/accused No.1 and
accused No.2.
17. As per charge sheet, total investment made is
Rs.18,00,23,927/- and the appellant/accused No.1 and
other accused have refunded Rs.9,72,41,241 and they
have to pay balance amount of Rs.8,27,82,686/-. CWs.1
to 17 are the investors who have invested huge money
with the accused. The bank account of this
appellant/accused No.1 has been seized and there is a
credit balance of Rs.1,79,29,969/-.
18. The appellant/accused No.1 and accused No.2
are jointly own property which is referred to above is
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CRL.A No. 2095 of 2022
having market value more than the sale consideration
mentioned in the sale deed.
19. The appellant/accused No.1 and his wife who is
accused No.2 have no objection for disposal off that
property and to disburse the consideration amount
received to the investors. The offence alleged against the
appellant/accused No.1 is not punishable with death or
imprisonment for life.
20. Considering the charge sheet material which
contains more than 5,000 pages and 42 witnesses are
cited in charge sheet, the disposal of the appeal against
the appellant/accused No.1 would take considerable time.
21. The appellant/accused No.1 is a resident of
Vijayanagar, Bengaluru and the learned counsel for the
appellant/accused No.1 has produced photocopy of his
Aadhar Card and also placed original Aadhar Card for
perusal. The appellant/accused No.1 is ready to surrender
his passport.
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CRL.A No. 2095 of 2022
22. Considering all these aspects, the impugned
order requires to be set aside and the appellant/accused
No.1 is entitled for grant of bail with stringent conditions.
23. In the result, I proceed to pass the following:
ORDER
The appeal is allowed.
The impugned order dated 20.09.2022 passed in
Spl.C.C.No.1792/2022 on the file of Principal City Civil and
Sessions Judge, Bengaluru is set aside.
The appellant/accused No.1 is ordered to be release
on bail in crime No.11/2022 of Shankarapura Police
Station, Bengaluru pending in Spl.C.C.No.1792/2022 on
the file of Principal City Civil and Sessions Judge,
Bengaluru subject to the following conditions:
a) The appellant/accused No.1 shall execute a
bond for a sum of Rs.10,00,000/- (Rupees Ten
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CRL.A No. 2095 of 2022
lakhs only) with two sureties for the likesum to
the satisfaction of the Special Court.
b) The appellant/accused No.1 shall not tamper
the prosecution witnesses.
c) The appellant/accused No.1 shall co-operate
with the Investigating Officer in further
investigation, if any.
d) The appellant/accused No.1 shall surrender his
passport if not seized by the Investigating
Officer.
e) The appellant/accused No.1 shall produce copy
of his Aadhar Card.
f) The appellant/accused No.1 shall not leave
India without prior permission of the Special
Court.
g) The appellant/accused No.1 shall mark his
presence before the jurisdictional police station
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CRL.A No. 2095 of 2022
on first and third Sunday of every month till
disposal of the case.
h) Registry is directed to send back the records, if
received.
Sd/-
JUDGE
SSD
