Karnataka High Court
Mr Richard Antony Sam vs State Of Karnataka on 23 November, 2023
Author: Mohammad Nawaz
Bench: Mohammad Nawaz
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NC: 2023:KHC:42226
CRL.A No. 1826 of 2023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 23RD DAY OF NOVEMBER, 2023
BEFORE
THE HON'BLE MR JUSTICE MOHAMMAD NAWAZ
CRIMINAL APPEAL NO. 1826 OF 2023
BETWEEN:
1. MR RICHARD ANTONY SAM
S/O SAM ANTONY
AGED ABOUT 49 YEARS
RESIDING AT NO. 7/22,
1ST FLOOR, 2ND MAIN
DOMLUR LAYOUT,
BANGALORE - 560071.
...APPELLANT
(BY SRI. UDAYA PRAKASH MULIYA, ADVOCATE)
AND:
1. STATE OF KARNATAKA
HALASURU POLICE STATION
BANGALORE, REPRESENTED BY
LEARNED S.P.P
Digitally HIGH COURT OF KARNATAKA
signed by BANGALORE-01.
SUMITHRA R ...RESPONDENT
Location: (BY SMT.SOWMYA R., HCGP)
High Court of
Karnataka THIS CRL.A IS FILED U/S.16 OF THE KPIDFE ACT
PLEASED TO ALLOW THIS APPEAL BY SETTING ASIDE THE
ORDER DATED 07.08.2023 PASSED IN
CRL.MISC.NO.6885/2023, CONSEQUENTLY ENLARGE THE
APPELLANT ON ANTICIPATORY BAIL, IN CR.NO.131/2023 OF
HALASUR P.S., BENGALURU FOR THE OFFENCE P/U/S
34,403,406,420 OF IPC, NOW PENDING ON THE FILE OF THE
IV ADDL.C.M.M COURT MAYO HALL BENGALURU AND DIRECT
THE RESPONDENT TO RELEASE THE APPELLANT IN THE EVENT
OF HIS ARREST.
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NC: 2023:KHC:42226
CRL.A No. 1826 of 2023
THIS APPEAL IS COMING ON FOR ADMISSION, THIS DAY,
THE COURT DELIVERED THE FOLLOWING:
JUDGMENT
This appeal is preferred by accused No.2 under
Section 16 of the Karnataka Protection of Interest of
Depositors in Financial Establishments Act, 2004 (for short
'KPIDFE Act') against rejection of anticipatory bail
application, filed under Section 438 of Cr.P.C., by the
Court of the Principal City Civil and Sessions Judge at
Bengaluru vide order dated 07.08.2023 in Criminal Misc
No.6885/2023.
2. Heard the learned counsel for appellant and
learned High Court Government Pleader for
respondent/State and perused the material on record.
3. FIR is registered in Crime No.131/2023 of
Halasuru Police Station against the appellant and two
others, on a complaint lodged by one Manjunath Babu
Reddy son of Babu Reddy, for the offence punishable
under Section 403, 406, 420 r/w 34 of IPC.
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4. It is alleged that the accused persons are
running a chit business in the name and style 'Patricia
Funds and Investments' for about 10 years and they were
collecting monthly installments, but even after completion
of the chit period they have not paid the amount to the
complainant. According to the complainant, a sum of
Rs.15,00,000/- is due to him and even after one year of
completion of the chit period, he was not paid the said
amount by the accused persons and therefore, the
accused by inducing him to invest the amount in the chit
fund, cheated him etc.
5. In the course of investigation Section 9 of the
KPIDFE Act was invoked. The learned Sessions Judge
while dismissing the application seeking anticipatory bail
has observed that the police are investigating the case and
during such investigation they have apprehended accused
Nos.1 and 3 and subjected them for interrogation. The
report of the investigation Officer and the documents
submitted along with it go to show that the bank account
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in the name of Patricia Funds and Investments Private
Limited at Canara Bank stands in the khata of accused
No.2 and he is closely associated with other accused
persons who are none other than his wife and father-in-
law. It is further observed that about 60 victims have
given their statements regarding fraud and cheating by
the accused persons and the accused have opened their
branches At Maregondanahalli and Anandapura and even
in those places, the accused have cheated the people.
6. The learned counsel for appellant has
contended that the allegations in the complaint and the
FIR, even if taken at their face value and accepted in its
entirety does not prima facie constitute any offence
against the appellant. He contends that accused Nos.1 and
3 are already enlarged on bail and the appellant will
cooperate with the investigation and will abide by any
conditions.
NC: 2023:KHC:42226
7. The learned High Court Government Pleader
has filed statement of objections. She contends that the
investigation is under progress and accused persons have
cheated the people to the tune of crores of rupees and
therefore, custodial interrogation of the appellant is very
much required. She has therefore sought to reject the
appeal.
8. Initially FIR was registered under Section 403,
406, 420 r/w 34 of IPC. In the complaint it is alleged that
the accused persons are running a chit business for the
past 10 years and they have induced the complainant and
others to invest money and not paid the maturity amount.
According to complainant, the accused are due a sum of
Rs.15,00,000/- to him. It is only after registration of the
case, it appears that the other alleged victims have given
their statements. In the course of investigation Section 9
of KPIDFE Act has been invoked.
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9. The learned counsel for appellant has drawn the
attention of the Court to the definition of 'deposit' as
defined under Section 2(vii) of KPIDFE Act, to contend that
Section 9 of the Act is not applicable since the definition of
'deposit' in the financial establishment will not include the
amount received by way of subscription in respect of a
chit.
10. The allegations made in the complaint have to
be established in due course. The ingredients of the
offences alleged against the appellant have to be proved
during trial. The offences alleged are not punishable with
death or imprisonment for life. Accused Nos.1 and 3 were
arrested and they are on bail. The appellant has
undertaken to furnish sufficient surety and to abide by
other conditions. Hence, the relief sought by the appellant
can be granted by imposing suitable conditions.
Accordingly, the following:
ORDER
Appeal is allowed.
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The order dated 07.08.2023 passed by the Court of
the Principal City Civil and Sessions Judge, at Bengaluru in
Criminal Misc No.6885/2023 is set aside.
The appellant/accused No.2 shall appear before the
Investigation Officer within a period of 10 days and in that
event he shall be released in Crime No.131/2023 of
Halasuru Police Station, subject to following conditions:
i. The appellant shall execute a personal
bond for a sum of Rs.1,00,000/-
(Rupees One Lakh only) with one
surety for the like-sum.
ii. He shall furnish proof of his residential
address and shall inform the I.O/Court
if there is any change in the address.
iii. He shall not tamper with the
prosecution witnesses either directly or
indirectly.
iv. He shall be available for investigation
as and when called for and shall
cooperate with the investigation.
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v. He shall appear before the trial court
on all dates of hearing without fail.
Sd/-
JUDGE
HB
