Karnataka High Court
Big Boy Toyz Limited vs The State Of Karnataka on 19 February, 2025
Author: S.R.Krishna Kumar
Bench: S.R.Krishna Kumar
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NC: 2025:KHC:7825
WP No. 699 of 2025
C/W WP No. 35283 of 2024
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 19TH DAY OF FEBRUARY, 2025
BEFORE
THE HON'BLE MR JUSTICE S.R.KRISHNA KUMAR
WRIT PETITION NO. 699 OF 2025 (GM-RES)
C/W
WRIT PETITION NO. 35283 OF 2024 (GM-RES)
IN W.P.No. 699/2025
BETWEEN:
BIG BOY TOYZ LIMITED,
A COMPANY INCORPORATED
UNDER COMPANIES ACT,
HAVING ITS HEADQUARTER,
AT PLOT NO. 134, SECTOR 37,
PACE CITY 1, GURGAON,
HARYANA - 122 001, INDIA.
REPRESENTED BY ITS MANAGER
AND AUTHORIZED SIGNATORY
SRI. IMRAN AHMED VANEKAR,
Digitally S/O. NISAR AHMED VANEKAR,
signed by AGED ABOUT 37 YEARS,
LEELAVATHI
SR R/AT.NEW 568/B, OLD 137/7,
Location: 5TH CROSS, 1ST STAGE,
High Court of
Karnataka HBR LAYOUT, YASEEN NAGAR,
BANGALORE NORTH,BANGALORE,
KARNATAKA - 560 084.
MOBILE 91-8999999517.
...PETITIONER
(BY SRI. GURURAJ JOSHI, ADVOCATE)
AND:
THE STATE OF KARNATAKA,
REPRESENTED BY HIGH GROUNDS POLICE,
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WP No. 699 of 2025
C/W WP No. 35283 of 2024
SESHADRIPURAM SUB-DIVISION,
BENGALURU CITY.
NOW BEING INVESTIGATED BY
SPECIAL INVESTIGATION TEAM,
CID, NO.1, CARLTON HOUSE, PALACE ROAD,
BANGALORE - 560 001.
REPRESENTED BY LEARNED
SPECIAL PUBLIC PROSECUTOR,
SRI. JAGADEESHA B.N.
...RESPONDENT
(BY SRI. JAGADEESHA B N., SPL. P.P.)
THIS W.P.IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION
OF INDIA R/W SECTION 528 OF THE BNSS PRAYING TO QUASH THE
SEIZURE LETTER BEARING NO. CRIME/05/FIU/CID/2024, DATED
22.06.2024 ISSUED BY THE RESPONDENT U/S. 91 AND 102 CRPC IN
CRIME NO.118/2024 U/S, 149, 409, 420, 467, 468, 471,120(B) OF IPC WHICH
IS PENDING ON THE FILE OF THE HONBLE XXIII ADDL. CITY CIVIL AND
SESSIONS JUDGE AND SPECIAL JUDGE (P.C. ACT) (CCH- 24) AT
BENGALURU (ANNEXURE L) AND CONSEQUENTLY THIS HONBLE COURT
MAY BE PLEASED TO ISSUE AN ORDER OF DE-FREEZE OF THE
APPLICANTS UCO BANK, ACCOUNT NO. 10440510001417, BRANCH
GURGAON-CHANDIGARH, IFSC CODE UCBA0001044 IN THE ENDS OF
JUSTICE & ETC.,
IN WP NO. 35283/2024
BETWEEN:
1. BIG BOY TOYZ LIMITED,
A COMPANY INCORPORATED UNDER
COMPANIES ACT,
HAVING ITS HEADQUARTER AT
PLOT NO.134, SECTOR 37,
PACE CITY 1, GURGAON,
HARYANA - 122 001,
INDIA.
REPRESENTED BY ITS
MANAGER AND AUTHORIZED SIGNATORY,
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WP No. 699 of 2025
C/W WP No. 35283 of 2024
SRI. IMRAN AHMED VANEKAR,
S/O NISAR AHMED VANEKAR,
AGED ABOUT 37 YEARS,
R/AT NO. NEW 568/B, OLD 137/7,
5TH CROSS, 1ST STAGE, HBR LAYOUT,
YASEEN NAGAR, BANGALORE NORTH,
BANGALORE, KARNATAKA - 560 084.
MOBILE NO.8999999517.
2. SRI. SUKHWINDER SINGH,
S/O SRI. KULWANT SINGH,
AGED ABOUT 25 YEARS,
OCCUPATION: TEAM LEAD,
BIG BOY TOYZ LTD.,
R/AT FLAT NO.103, VIGG MEADOWS APARTMENTS, AURORA
COLONY, BANJARA HILLS,
HYDERABAD, TELANGANA - 500 034.
MOBILE: 9810025648.
...PETITIONERS
(BY SRI. GURURAJ JOSHI, ADVOCATE)
AND:
THE STATE OF KARNATAKA,
REPRESENTED BY HIGH GROUNDS POLICE, SESHADRIPURAM
SUB DIVISION,
BENGALRU CITY,
NOW BEING INVESTIGATED BY
SPECIAL INVESTIGATION TEAM,
CID NO.1, CARLTON HOUSE,
PALACE ROAD,
BANGALORE - 560 001.
REPRESENTED BY LEARNED
SPECIAL PUBLIC PROSECUTOR,
SRI. JAGADEESHA B.N.
...RESPONDENT
(BY SRI. JAGADEESHA B N., SPL. P.P.)
THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION
OF INDIA READ WITH SECTION 528 OF THE BNSS PRAYING TO QUASH
THE NOTICE DATED 05.12.2024 ISSUED BY THE RESPONDENT U/S 41A
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WP No. 699 of 2025
C/W WP No. 35283 of 2024
OF Cr.P.C AGAINST THE P-2 (ANNX-P-1); QUASH THE FURTHER
INVESTIGATION AGAINST THE PETITIONERS IN CRIME NO.118/2024 U/S
149, 409, 420, 467, 468, 471, 120(B) OF IPC WHICH IS PENDING ON THE
FILE OF THE HONBLE XXIII ADDL. CITY CIVIL AND SESSIONS JUDGE AND
SPECIAL JUDGE (P.C. ACT) (CCH 24) AT BENGALURU IN THE ENDS OF
JUSTICE AND ETC.,
THESE PETITIONS, COMING ON FOR ORDERS, THIS DAY, ORDER
WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR JUSTICE S.R.KRISHNA KUMAR
ORAL ORDER
In W.P.No.699/2025, petitioner seeks the following reliefs :-
"a. Issue a writ in the nature of certiorari and quash
the Seizure Letter bearing No.Crime/05/FIU/CID/2024,
dated 22.06.2024 issued by the Respondent u/s.91 & 102
CrPC in Crime No.118/2024 u/s. 149, 409, 420, 467, 468,
471, 120 (B) of IPC which is pending on the file of the
Hon'ble XXIII Addl.City Civil and Sessions Judge & Special
Judge (P.C.Act) (CCH-24) at Bengaluru (Annexure-L) and
consequently this Hon'ble Court may be pleased to issue
an order of de-freeze of the Applicant's UCO Bank,
Account No.1044051000117, Branch: Gurgaon-
Chandigarh, IFSC Code:UCBA0001044.
b. Issue a writ in the nature of certiorari and quash
the Order dated 17.12.2024 passed by the Hon'ble XXIII
Addl. City Civil and Sessions Judge & Special Judge (P.C.
Act) (CCH-24) at Bengaluru in Crl.Misc.10599/2024 in
Crime No.118/2024 u/s.149, 409, 420, 467, 468, 471,
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120(B) of IPC which is pending on the file of the Hon'ble
XXIII Addl.City Civil & Sessions Judge & Special Judge
(P.C. Act) (CCH-24) at Bengaluru (Annexure-Q) ".
In W.P.No.35283/2024, petitioners seek the following reliefs:-
"a. Issue a writ of certiorari & quash the Notice
No.CRM/07/FIU/CID/2024 dated 05.12.2024 issued by the
Respondent u/s.41A of CrPC against the Petitioner No.2
(Annexxure P-1).
b. Issue a writ of certiorari and quash the further
investigation against the Petitioners in Crime No.118/2024
u/s. 149, 409, 420, 467, 468, 471, 120(B) of IPC which is
pending on the file of the Hon'ble XXIII Addl. City Civil and
Sessions Judge & Special Judge (P.C. Act) (CCH-24) at
Bengaluru (Annexure-P1)."
2. Heard Sri. Gururaj Joshi, learned counsel for the
petitioners as well as Sri Jagadeesha B.N., learned Special Public
Prosecutor for the respondent and perused the material on record.
3. Learned counsel for the petitioner has filed a memo in
W.P.No.699/2024, which reads as under : -
The Counsel for the Petitioner on due instructions from the
Petitioner submits as follows:-
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1. The Vehicle in question came to be seized by the
Respondent on 13.06.2024 from the accused and has
been left stranded at Hyderabad ever since.
2. That, the accused persons had transferred an amount of
Rs.3,36,83,000/- (Rupees Three Crores Thirty Six Lakhs
Eighty Three Thousand Only) as original value of vehicle in
favour of the Petitioner, which comprised of the following:
a). Value of the vehicle and b). Taxes on the vehicle sale
and c). Insurance of the vehicle.
3. The value of the vehicle has depreciated drastically due
to the following reasons, i.e., a). Inaction and high
handedness on the part of the Respondent for the period of
8 months since the date of seizure of vehicle from accused
persons. b). Vehicle was manufactured in the year
2019 and is presently six years old, c). Non-maintenance
by the Respondent as the vehicle has been left standing in
an apartment in Hyderabad by the Respondent and hasn't
been started for the past 8 months and d). the vehicle has
been included in two major scams/crimes one after the
other i.e., one involving Sukesh Chandrashekar and
second being the present Valmiki scam and the present
value of the vehicle after deducting the value of taxes,
insurance and depreciation of the vehicle, has come down
to Rs.2,50,00,000/- (Rupees Two Crore Fifty Lakhs Only).
4. That, the Delhi High Court in its Judgment dt.
12.07.2024 in W.P.(CRL) 521/2023 & CRL.M.A.
4808/2023, CRL.M.A. 24507/2023 (the copy of the
judgement has been annexed alongwith this memo for the
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kind perusal of this Hon'ble Court) has spoken regarding
the instant vehicle in question when it was auctioned
previously on 29.09.2023 as extracted below:
"22. Learned Special Counsel, appearing on behalf of the
Directorate of Enforcement, submits that the present
petition has become infructuous since in view of the
impugned orders dated 20.12.2022 and 14.02.2023
passed by the learned Additional Sessions Judge, 17 cars
out of 26 cars have already been auctioned after following
the due process.
23. It is submitted that as per the directions of the learned
Additional Sessions Judge, first round of E-auction had
concluded on 11.08.2023 through MSTC, a Government of
India Undertaking, as a result of which two cars were sold
at combined sale price of approx Rs. 1.35 crores. Further,
the second round of e-auction was held on 29/30.09.2023,
in which 15 cars were sold at a combined sale price of
approx. Rs. 19.04 crores, and all the developments of e-
auction are being informed to the EOW, Delhi.
Whether Vehicles are subject to natural decay?
41. Rule 4 of Prevention of Money Laundering (Taking
Possession of Attached or Frozen Properties Confirmed by
Adjudicatory Authority), Rules 2013 provides the manner of
taking possession of movable properties is concerned,
which clearly outlines as follows:
(i) Where the property in question is a movable
property, the authorized officer shall take physical
possession of such property and deposit it in a
warehouse or a storage place [Rule 4(1)].
(ii) Where the property in question is liable to speedy
and natural decay or the expense of maintenance is
likely to exceed its value, such property shall be sold
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of with the leave of the concerned Special Court or
Adjudicating Authority, and the sale proceeds shall
be deposited in the nearest Government Treasury or
branch of the State Bank of India or its subsidiaries
or in any nationalised bank in fixed deposit and the
receipt of the same shall be retained [Rule 4(2)].
42. The applicability of Rule 4(2) has not been
disputed by the petitioner Mrs. Leena Paulose. It is the
specific case of respondent that the 26 cars in question,
which are expensive and luxury cars, are those movable
properties which are subject to natural decay or the
expense of their maintenance is likely to exceed its value.
No argument has been addressed on behalf of the
petitioner that the vehicles in question are not subject to
natural decay.
43. This Court is further of the opinion that vehicles
are inherently subject to natural decay and depreciation
over a period of time, which significantly impacts their
value and functionality. With the passage of time, vehicles
undergo wear and tear. Further, storing a vehicle in a
container warehouse, as in the present case, for a long
period of time results in decay since if a car is left
stationary for years, several issues can compromise its
condition. Environmental factors such as weather
conditions also contribute to this decay, causing issues
such as rust and corrosion. Rust, in particular, can
severely damage a vehicle's structure and all other
components. Moreover, mechanical components of a
vehicle also suffer from decay, requiring frequent and
expensive maintenance to keep the vehicle operational,
especially in the present case, where the vehicles involved
are 26 high-end luxury cars such as Rolls Royce, Ferrari,
Range Rover etc. The upkeep and maintenance of the
same is also expensive. In container warehouses, the care
and protection cars require, from environmental onslaughts
and decay due to rusting, cannot be ensured.
44. The depreciation of vehicles is also a well-
recognized phenomenon in the automobile industry. From
the moment a car is driven out of the showroom, its value
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begins to decrease. This depreciation accelerates with
each passing year, and the resale value drops
substantially. After some years, most vehicles lose a
significant part of their original value, making them less
economically viable to maintain or sell.
45. In this background, this Court also takes note of the
observations of the Coordinate Bench in case of Manjit
Singh v. State 2014 DHC 4541 wherein it was observed,
though in context of release of vehicles on superdari, that
vehicles which deteriorate with time must be disposed of
speedily. The relevant observations are extracted
hereunder:
"20. In case of perishable properties or those subject
to speedy and natural decay, disposal should be
ordered keeping in view the expected life of the
property rather than the conclusion of
investigation/trial. Certain items like vehicles, which
also deteriorate with time, speedy disposal shall
similarly be ensured to effectively implement the
mandate of the Supreme Court in Sunderbhat
Ambalal Desai v. State of Gujarat (supra (1) that
articles are not to be kept for a period of more than
one month. As regards valuable articles and
currency notes, mandate of the Supreme Court as
prescribed in above mentioned judgments should be
strictly ensured,"
xxxxx
46. Therefore, the relevant rules of PMLA which
allow the sale of seized vehicles and depositing the
proceeds of the same into a fixed deposit addresses the
above-mentioned issues. For the accused, if the trial
concludes in his favor after several years, he would receive
the monetary value rather than a decayed, non-
operational, rusted vehicle, almost reduced to junk. This
ensures the accused does not suffer any financial loss due
to the prolonged judicial process. For the investigating
agency, this approach ensures that the value of the seized
properties will be available to the investigating agency if
the trial concludes in their favour.
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47. Therefore, by converting the sale proceeds of a
movable property subject to natural decay, such as a
vehicle, into an interest bearing fixed deposit, the Rule
ensures that the value of seized properties is preserved
and potentially increased, thereby ensuring equal justice to
either of the party. regardless of the trial's duration. In this
manner, both the right of an accused as well as the right of
the investigating agency is protected, since a piece of junk
or scrap is of no use to either of them." xxxxx (Emphasis
supplied by me)
5. That, the Petitioner hereby undertakes to deposit
the sum of Rs.2,50,00,000/- (Rupees Two Crore Fifty
Lakhs Only) into the Hon'ble Court as full and final value
for the vehicle.
6. That, the Hon'ble may direct the Respondent to
recover the value beyond Rs.2,50,00,000/- (Rupees Two
Crore Fifty Lakhs Only) that has been lost in depreciation,
tax and insurance directly from the accused persons in
accordance with law.
7. That, the value lost in depreciation, tax and
insurance beyond Rs.2,50,00,000/- (Rupees Two Crore
Fifty Lakhs Only) cannot be put as a burden on the
Petitioner, as the Petitioner had sold the vehicle in good
faith and in usual course of business and if any burden or
liability in the form of lien and/or bank guarantee and/or
other conditions are put on the Petitioner, it would violate
the fundamental right to trade of the Petitioner as a
business concern.
8. That, the Petitioner hereby requests the Hon'ble
Court to kindly pass an order thereby de-freezing the
account of the Petitioner, without any further conditions or
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liability in the form of lien and/or bank guarantee and/or
other conditions on the Petitioner.
9. That, the Petitioner requests this Hon'ble Court to
direct the Respondent to return the vehicle to the
Petitioner.
10. Hence, this memo."
4. Learned Special Public Prosecutor for the respondent-
State submits that the subject Vehicle bearing No.TN 04 BF 0006
Lamborghini Urus would be released in favour of the petitioners
upon payment of Rs.2.5 Crores, without prejudice to the rights and
contentions of the respondent.
5. In view of the aforesaid memo filed by the petitioners and
submission made on behalf of the respondent, I am of the view that
W.P.No.699/2025 deserves to be disposed of by directing the
respondent to release the aforesaid vehicle immediately upon the
petitioners paying a sum of Rs.2.5 Crores to the respondent and by
issuing certain directions in this regard.
6. Insofar as W.P.No.35283/2024 is concerned, learned
Special Public Prosecutor on instructions submits that impugned
notice dated 05.12.2024 would be withdrawn and petition may be
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disposed of reserving liberty in favour of the respondent to issue a
fresh notice and proceed further in accordance with law. The said
submission is placed on record.
7. In view of the aforesaid facts and circumstances, I deem
it just and appropriate to dispose of W.P.No.699/2025 and
W.P.No.35283/2024 by issuing certain directions.
8. In the result, I pass the following:-
ORDER
(i) W.P.No.699/2025 is hereby disposed of.
(ii) The Respondent shall release the subject vehicle bearing
Reg.No.TN-04 BF-0006 Lamborghini Urus immediately upon
payment of Rs.2.5 Crores by the petitioner to the respondent to the
account of the Investigating / Investigation Officer.
(iii) Immediately upon release of the vehicle in favour of the
petitioner, the respondent shall also de-freeze the account of the
petitioner bearing No.10440510001417 of UCO Bank.
(iv) All rival contentions between the parties in relation to the
balance payment of Rs.80 Lakhs is kept open and no opinion is
expressed on the same.
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(v) W.P.No.35283/2024 stands disposed of in terms of the
submission made by the learned Special Public Prosecutor that
the impugned notice dated 05.12.2024 would be withdrawn by the
respondent and by reserving liberty in favour of the respondent to
issue a fresh notice and proceed further in accordance with law.
Sd/-
(S.R.KRISHNA KUMAR)
JUDGE
NG/Srl.
