Karnataka High Court
Dr. Bhimashankar Bilgundi vs The State Of Karnataka on 20 November, 2025
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IN THE HIGH COURT OF KARNATAKA,
KALABURAGI BENCH
DATED THIS THE 20TH DAY OF NOVEMBER, 2025
BEFORE
THE HON'BLE MRS JUSTICE M G UMA
CRIMINAL PETITION NO. 200393 OF 2025
BETWEEN:
1. DR. BHIMASHANKAR BILGUNDI
S/O CHANDRASHEKAR,
AGED ABOUT 72 YEARS,
R/AT: SY.NO.71,
BILGUNDI LAYOUT,
KALABURGI TALUK,
KALABURGI DISTRICT-585316
2. DR. SIDDANAGOWDA
(DR. S M PATIL)
S/O CHANDRASHEKAR
AGED ABOUT 62 YEARS,
OCC: MEDICAL PRACTITIONER
Digitally signed
R/O GDA COLONY,
by PRASHANTH KALABURGI TALUK
NV
KALABURGI DISTRICT-585316
Location: High
Court of
Karnataka 3. SRI. SUBHASH
S/O MALLIKARJUN JAGANNATH
AGED ABOUT 51 YEARS,
OCC: ACCOUNTANT AT MRMC
R/O H.NO.10-22-798/A
NAGA KRUPA SANGAMESHWAR
COLONY, KALABURGI TALUK
KALABURGI DISTRICT-585316
... PETITIONERS
(BY SRI. S.M. CHANDRASHEKAR, SR. COUNSEL FOR
SRI. SHIVAPRASAD SHANTANAGOUDAR, ADVOCATE)
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AND:
1. THE STATE OF KARNATAKA,
CEN CRIME POLICE STATION,
KALABURGI, REPRESENTED BY
ADDL. STATE PUBLIC PROSECUTOR,
HIGH COURT OF KARNATAKA
KALABURGI BENCH, KALABURGI-585103
2. VINOD KUMAR
S/O SHARANAPPA JENWERI
AGED ABOUT 49 YEARS,
H NO.10-727, AJAD CHOWK,
BEHIND SHARANABASWESHWAR
TEMPLE, BRAHMPUR, KALABURGI
KALABURGI CITY - 585 103
... RESPONDENTS
(BY SRI. GOPALKRISHNA .B YADAV, HCGP FOR R1
SRI. ASHOK HARANAHALLI, SR. COUNSEL FOR
SRI. R.S. KADGANCHI, ADVOCATE FOR R2)
THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF
CR.P.C.(OLD), U/SEC.528 OF BNSS(NEW), PRAYING TO I) QUASH
THE COMPLAINT DATED 31.03.2024 AT (ANNEXURE-A) AND FIRST
INFORMATION REPORT DATED 31.03.2024 IN CRIME NO. 19/2024
(KALABURAGI CITY CEN CRIME PS) AT (ANNEXURE-B) AND ALL
FURTHER INVESTIGATION PURSUANT THERETO AGAINST THE
PETITIONER PENDING ON THE FILE OF THE I ADDL. CIVIL JUDGE
(J.D) AND JMFC GULBARGA, FOR THE OFFENCE PUNISHABLE UNDER
SECTION 34, 419 AND 420 OF INDIAN PENAL CODE, 1860. II)
FURTHER THIS HONOURABLE COURT MAY BE PLEASED TO GRANT
SUCH RELIEFS AS DEEMED FIT IN THE INTEREST OF JUSTICE AND
EQUITY.
THIS CRIMINAL PETITION HAVING BEEN HEARD AND
RESERVED FOR JUDGMENT ON 18.09.2025 COMING ON FOR
PRONOUNCEMENT OF ORDERS THIS DAY, THE COURT PASSED THE
FOLLOWING:
CORAM: HON'BLE MRS JUSTICE M G UMA
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CAV ORDER
(PER: HON'BLE MRS JUSTICE M G UMA)
The petitioners being accused Nos.1 to 3 in Crime No.19
of 2024 of CEN Crime Police Station, Kalaburagi City, pending
on the file of the learned I Additional Civil Judge (Jr.Dn.) and
JMFC, Kalaburagi, registered for the offences punishable under
Sections 419 and 420 read with Section 34 of Indian Penal
Code [for short 'IPC'] are seeking to quash the criminal
proceedings initiated against them.
2. Facts of the case in brief are that, respondent No.2
has filed the first information with CEN Crime Police Station,
Kalaburagi City, against accused Nos. 1 to 4 and others alleging
commission of the offences punishable under Sections 419 and
420 read with Section 34 of IPC. It is contended by respondent
No.2 that accused No.1 was the President of Hyderabad
Karnataka Education Society [hereinafter referred to as 'the
Society' for short], accused No.2 being the Dean and accused
No.3 being the Accountant of MRMC Medical College,
Kalaburagi, (hereinafter referred to as 'the College' for short);
and accused No.4 being the Manager of Canara Bank, MRMC
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Branch, Kalaburagi, (hereinafter referred to as 'the Bank' for
short) have siphoned off an amount of Rs.81,21,60,000/- for
the period from 01.01.2018 till 01.03.2024, from the bank
accounts of 282 Post Graduate (PG) medical students held in
their respective accounts with Canara Bank, MRMC Branch,
Kalaburagi, by getting their signatures on blank cheques and
withdrawing the amounts.
3. It is stated that, 282 PG medical students studying in
the College run by the Society were getting stipend at
Rs.45,000/- per month per student during the first year,
Rs.50,000/- per month per student during the second year and
Rs.55,000/- per month per student during the third year of the
PG Course. The stipend amount was being credited to their
respective bank accounts at an interval of once in 3 to 4
months. It is alleged that, accused Nos. 1 to 3 being the
President of Society, Dean and Accountant of the College
respectively, threatened the students at the beginning of the
academic year and collected blank cheques signed by them
under coercion to withdraw a sum of Rs.37,000/- per month
per student for the first year, Rs.40,000/- per month per
student for the second year, and Rs.43,000/- per month per
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student for the third year of PG Course from their respective
bank accounts. When the students were aggrieved and
questioned accused No.2 regarding such illegal withdrawal of
the stipend amount from their respective bank accounts,
accused Nos.1 and 2 criminally intimidated the students with
dire consequences of manipulating their internal assessment
and practical marks, if they venture to complain about the
same. It is stated that eight students referred to in the FIR are
the victims of such cheating among others, from whose
account, money was being withdrawn regularly as referred to in
the first information. Thereby, the accused have committed the
offences punishable under Sections 419 and 420 read with
Section 34 of IPC. Accordingly, the FIR came to be registered
and the investigation was undertaken. In the meantime,
petitioner Nos.1 to 3 have approached this Court seeking to
quash the criminal proceedings initiated against them.
4. Heard Sri. S.M. Chandrashekar, learned senior
advocate for Sri Shivaprasad Shantanagoudar, learned counsel
for the petitioners, Sri. Gopalkrishna B. Yadav, learned High
Court Government Pleader for respondent No.1 - State, and
Sri.Ashok Haranahalli, learned senior advocate for Sri. R. S.
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Kadganchi, learned counsel for respondent No.2. Perused the
materials on record.
5. Learned senior advocate for the petitioners
contended that, respondent No.2 is a total stranger
unconnected either to the Society or to the College. He has no
locus-standi to file the criminal complaint, as he is not the
victim of any crime. It is also contended that, accused No.1
was the former President of the Society, who served the
Institution for two terms i.e., for the period of 6 years till
March-2024. When fresh election was notified on 15.02.2024,
the present President and his henchmen projected respondent
No.2 as the informant, and managed to file the complaint with
cooked-up story, with malafide intentions and vengeance. It is
contended that, son of accused No.1 had contested the
elections that was held for the post of the Member of Governing
Council of the Society, and therefore, criminal conspiracy was
hatched by the present President, Vice-President and the
Members of Governing Council to wreck vengeance against the
petitioners and to tarnish their images in the Society.
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6. Learned senior advocate further contended that,
according to respondent No.2, a huge sum of more than
Rs.81.00 crores is said to have been siphoned off by the
accused from the accounts of 282 PG students, by forcefully
getting the blank cheques signed by each of the students at the
beginning of their course. It is stated that, offences in question
was committed from 01.01.2018 till 01.03.2024, but till date,
not even a single student has complained about the same, or
has came forward to file the complaint with the Police making
allegations against the petitioners. When none of the students
made any such allegations against the petitioners, the
President and other office bearers of the present body of the
Society managed to showcase respondent No.2 - an Advocate
by profession to file a false complaint making baseless
allegations. The first information does not carry any
reasonable explanation as to why respondent No.2 who is a
total stranger to the Society has filed the complaint, and why,
till date, none of the students who are alleged to be aggrieved
have come forward to make such allegations, or to file criminal
complaint. He further contended that, there is inordinate delay
in lodging the complaint. No reasons are assigned for the same
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in Column No.3(c) of the FIR. There is also no reason assigned
by the informant as to how he received the information as
detailed in FIR, and how he is interested or aggrieved.
7. Learned senior advocate for the petitioners also
contended that, the first information produced as per Annexure
- A contains many specific details belonging to the students,
regarding the stipend and their bank accounts. Without the
support by the President and other office bearers of the present
Governing Council of the Society, such details could not have
been furnished by respondent No.2, who is a stranger and
unconnected to the Society. Therefore, the conspiracy in
lodging the complaint by the informant at the instance of the
President and other office bearers is prima facie evident.
8. Learned senior advocate contended that, even
according to respondent No.2, stipend amount was being
credited directly to the bank accounts of PG students. Once the
amount is credited to their bank accounts, it is at their sweet
will and wish that, they can withdraw the amount at any point
of time. The same cannot be attributed against the present
petitioners to contend that they have withdrawn the alleged
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amount. Even according to respondent No.2, such withdrawal
of amount was through the cheques signed by the students
referred to in the complaint. Under such circumstances, no
offence whatsoever is made out against the petitioners. When
none of the persons aggrieved have invoked either Sections
419 or 420 of IPC, respondent No.2, who is a stranger to the
Institution, and admittedly, not the victim of any offences as
alleged, is not entitled to prosecute the petitioners.
9. Learned senior advocate contended that, the
President and other office bearers of the present Governing
Council have made their efforts to induce few PG students to
file complaint against the petitioners. When none of these
students were ready to file such a false complaint, they
managed to file the same through respondent No.2. The FIR
came to be registered on 31.03.2024. After registration of the
FIR, an Enquiry Committee was constituted by nominating their
own persons for the purpose of getting a favourable report.
The Committee had never issued any notice to the petitioners.
The petitioners were not heard by the Enquiry Committee.
They were not called upon to participate in the enquiry. But a
report dated 29.08.2024 came to be submitted to the President
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of the Society and for the first time, a copy of the report is
produced by respondent No.2 before this Court only to
prejudice the mind of the Court.
10. Learned senior advocate contended that, when the
FIR is already registered and the investigation was undertaken,
there was absolutely no reason for the Governing Council to
appoint such a Committee to hold an enquiry. Even if such a
Committee was constituted, it had no reason for not calling
upon the petitioners to have their say in the matter. The very
fact that, even though report is dated 29.08.2024, the same
had not seen the light of the day till it was produced before this
Court, speaks volumes about the intention of respondent No.2
who is the proxy complainant for the persons behind him.
11. Learned senior advocate contended that, the enquiry
report said to have been submitted by the Three Members
Committee is not worth relying on for any purpose, as it is a
self-serving report prepared in the name of the Enquiry
Committee. It is a tainted report meant to create grounds to
wreak vengeance against the petitioners. It is a desperate
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attempt made due to political rivalry to fix the petitioners and
tarnish their image in society.
12. Learned senior advocate also refers to the report of
the Enquiry Committee to contend that, there is reference to
one Usha Reddy, Rajeshwari and Arunkumar, but none of them
are the accused in the present criminal case. Then why only
accused No.3 is arrayed as accused is not explained by the
informant. He also contended that, the worst part of the
situation is that, even the Enquiry Committee Report does not
refer the names of accused Nos.1 and 2 to contend that, they
have explicitly committed the alleged offences in any manner.
The report is said to have been submitted to the Chairman of
Medical College on 29.08.2024. But, inspite of that, the
Management has not thought it fit to file any complaint on the
basis of such report, but arranged respondent No.2 as its
spokesperson, who has no interest whatsoever in the
Institution.
13. Learned senior advocate has referred to the order
dated 07.02.2025 passed in Criminal Petition No.12704 of 2024
connected with Criminal Petition No.9690 of 2024, which is
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produced by respondent No.2 along with the statement of
objections to contend that petitioner No.1 in Criminal Petition
No.12704 of 2024 is the present President of the Society and
the other petitioners therein are his henchmen. A similar
complaint was filed against the petitioners in the said petitions,
alleging commission of the offence under Section 420 read with
Section 34 of IPC, registered in Crime No.38 of 2024 of CEN
Crime Police Station, Kalaburagi City. In the said complaint, it
was alleged that, the present President and others have
misappropriated a sum of Rs.65.00 crores for the period from
2009 to 2018 by siphoning off the stipend amount credited to
the account of PG students studying in the Medical College, and
the co-ordinate Bench, considering the contention taken by the
petitioners therein, allowed both the petitions vide order dated
07.02.2025.
14. Learned senior advocate has drawn the attention of
the Court to the submissions made by the learned senior
advocate representing the petitioners therein as it was
submitted that on 31.02.2024, the petitioners in Criminal
Petition No.12704 of 2024 have registered a criminal case
against the former Governing Council Members of the Society in
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Crime No.19 of 2024 for the offences under Sections 419 and
420 of IPC. Therefore, the petitioners therein being the present
President and the Members of Governing Council have made a
candid admission that, it was they who filed the present
complaint registered in Crime No.19 of 2024 for the offences
punishable under Sections 419 and 420 of IPC and respondent
No.2, who is shown as the informant is only a name lender.
15. Learned senior advocate has also contended that, a
three Members Enquiry Committee was constituted only with an
intention to get a favourable report, when none of the students
were ready to give their statements before the Police. Without
any basis, the names of eight PG students were referred to in
the FIR as victims, even though, they were not ready to give
any statement before the Police. However taking advantage of
the position of President and the Members of present Governing
Council, they are wielding money and muscle power to induce
few students, to have their say in the matter supporting the
contentions raised by respondent No.2.
16. Learned senior advocate contended that, when
similar complaint registered against the President and the
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Members of the present Governing Council is already quashed
by the co-ordinate Bench of this Court, the petitioners are also
entitled for similar relief. He has referred to the discussions
made by the co-ordinate Bench of this Court, while allowing the
criminal petitions referred to above to contend that, the Court
has formed an opinion that it was only the persons aggrieved
who can set the law into motion. But, an Advocate by
profession, who is unconnected to the Society or the Medical
College, cannot have any grievance against non-payment of
stipend for the PG students, when till date, not even a single
student has raised such a plea nor filed any complaint alleging
that they have been cheated by any of these petitioners.
Under these circumstances, initiation of criminal proceedings
against the petitioners is nothing but an arm-twisting tactics
adopted by them, which amounts to abuse of process of law.
17. Learned senior advocate for the petitioners
contended that several documents were produced before this
Court along with the memo dated 18.09.2025, only to prejudice
the mind of the Court. Instead of filing a complaint, letters
were said to have been addressed to the Chief Minister, the
Governor and others, done only to provoke the students
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against the petitioners, making it a motivated and coloured
attempt against them.
18. Learned senior advocate further contended that, in
none of the representations/complaints referred to by
respondent No.2, there is any allegation regarding non-
payment of stipends and non-compliance of Regulation - 13 of
PGMER 2000. But there is allegation that, after payment of
stipend, the same was being withdrawn by using the cheques
signed by the students. There is no allegation that, the cheque
books containing such blank cheques with signatures of the
students were collected by the petitioners. Under such
circumstances, there are absolutely no materials to proceed
with the criminal case.
19. Learned senior advocate referred to the definition of
the word 'cheating' found in Section 415 of IPC to contend that,
there must be a person, to whom, the damage or harm is
either caused, or likely to be caused, to invoke Section 420 of
IPC. In the present case, even according to respondent No.2,
the stipend was paid to the PG students on regular intervals. If
the said amount was withdrawn by the students by using their
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own cheques, the petitioners cannot be held responsible for the
same, that too, when the students have never made any such
allegations against any of the petitioners.
20. Learned senior advocate also places reliance on the
order passed by the co-ordinate Bench of this Court in Criminal
Petition No.12704 of 2024 connected with Criminal Petition
No.9690 of 2024 disposed off vide order dated 07.02.2025 to
contend that, the Court has taken a specific stand that there
must be a person, who is lured and cheated by the accused. It
is also held that, a stranger, that too a practicing Advocate,
who complained of non-payment of stipend for several years to
the students, cannot be a justifiable cause for registration of
the FIR. The Court has also observed that without there being
any aggrieved persons, who have been cheated, the act cannot
be complained by all and sundry and therefore, Section 420 of
IPC is not attracted even remotely. The Court has agreed that
it was an act of wrecking vengeance and under such
circumstances, it has applied the principles laid down by the
Hon'ble Apex Court in State of Haryana Vs Bhajanlal1 to
1
1992 supplement-1 SCC 335
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allow the petitions and to quash the criminal proceedings. The
same yardsticks is to be applied in the present case to quash
the criminal proceedings.
21. Learned senior advocate places reliance on the
decision of the Hon'ble Apex Court in Ashok Kumar Pandey
Vs State Of W.B.1 to contend that, when the criminal case is
registered to attain personal, political gain and also publicity in
the Society, the same cannot be entertained.
22. Learned senior advocate further contended that,
respondent No.2 is only a name lender and definitely not an
aggrieved person. He is a puppet in the hands of present
Governing Council. Even though, similar complaints were filed
against them, the same got quashed, wherein it is categorically
admitted that, it was the present President and the members of
the present Governing Council, who are responsible for
registering the present FIR. Now the question arises, as to why
none of the 282 PG students, who are projected as victims, or
the present President, or the members of the Governing
Council, have not filed any complaint against the petitioners.
Under such circumstances, the criminal proceedings is to be
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quashed in limine. Accordingly, he prays for allowing the
petitions.
23. Per contra, learned senior advocate for the informant
- respondent No.2 opposing the petition contended that,
respondent No.2 is an advocate by profession. The aggrieved
students have approached him about the criminal acts
committed by the petitioners. Hence, he has filed the first
information. He further contends that, serious allegations are
made against the petitioners who are arrayed as accused Nos.1
to 3. Petitioner No.1 being the former President of the Society,
petitioner No.2 being the Dean and petitioner No.3 being the
Accountant in the college have siphoned more than Rs.81
crores for the period from 01.01.2018 to 01.03.2024.
Respondent No.2 filed the first information making specific
allegations with all details. A detailed enquiry will have to be
conducted to unearth the scam in the College during the period
from 01.01.2018 to 01.03.2024. The informant suspects that
the amount of Rs.81,21,60,000/- was siphoned by these
petitioners. The modus adopted by these petitioners had
begun when the PG students were admitted to the course in the
first year, compelling them to handover their respective cheque
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books with their signatures on the blank cheque leafs.
Whenever the stipend amount of the students was being
credited to their respective accounts, accused No.3 used to
withdraw Rs.37,000/- each from the account of first year
students, Rs.40,000/- each from the account of second year
students and Rs.43,000/- each from the account of third years
students. Thereby, they have cheated the students and
siphoned off huge sums of money. A detailed investigation will
enable the Court to consider the criminal acts committed by
these petitioners.
24. Learned senior advocate contended that even though
respondent No.2 has filed the first information, he has given a
list of eight PG students who are the aggrieved persons, along
with several others. Their statements were recorded by the
Investigating Officer, who have stated as to how these accused
committed cheating by forcing the students to handover their
blank signed cheques at the beginning of the academic year.
Several students have submitted their representation to
accused No.2 on 06.11.2023 which is produced along with the
memo dated 08.09.2025 - alleging non payment of stipend
amount, getting signed blank cheque books and withdrawing
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the amount from their account by threatening them. When no
steps were taken by petitioner No.2, a similar complaint was
submitted by PG students of the college to the Governor, Chief
Minister etc., on 08.12.2023. The Directorate of Medical
Education wrote a letter to petitioner No.2 dated 01.03.2024,
requesting him to enquire into the same and to initiate action,
but in spite of that, no action was initiated as he was hand in
glove with petitioner No.3.
25. Learned senior advocate contended that, when such
allegations came to the knowledge of present governing body,
three member Committee was constituted on 29.08.2024 to
enquire into the allegations and to submit a report. The three
Member Committee enquired into the allegations and submitted
its report dated 29.08.2024. On the basis of this report, a
departmental enquiry was initiated against petitioner No.3.
26. Learned senior advocate also contended that
respondent No.2 being the social worker and an advocate is
having concern about the welfare of the students as well as the
Institution and therefore, he came forward to file the first
information. He is the voice of students, as they are afraid of
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coming forward to give any complaint against the petitioners.
However, now that the students have came forward to give
statements against the petitioners, a cognizable offence is
made out from the allegations made in the first information.
Hence, it is a fit case for proceeding for investigation by the
police. He further contended that, since any citizen can set the
law into motion by placing prima facie materials.
27. Learned senior advocate contended that a similar
complaint was filed against the earlier office bearers of the
Society, but none of the aggrieved party have came forward to
give statement with regard to the role played by any of the
accused in that case. Under such circumstances, the co-
ordinate Bench of this Court quashed the said criminal
proceedings. But in the present case, 8 students are shown as
victims and they have given their statements against the
petitioners before the Investigating Officer. Therefore, the
petitioners are not entitled for the similar relief of quashing the
criminal proceedings.
28. Learned senior advocate submitted that, the
Investigating Officer conducted the investigation for the period
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from 31.03.2024 i.e., when the FIR came to be registered till
28.02.2025 when the order of stay was passed by this Court.
If those materials are taken into consideration, the victims
might have appeared before the Investigating Officer to give
statements about their grievances, which will make strong
prima facie materials to constitute the offences.
29. Learned senior advocate has drawn the attention of
the Court to the endorsement issued to respondent No.2 by the
Sub-Inspector of Police, wherein, he has specifically stated that
the grievances of the students will be enquired into by
summoning such students. This endorsement was in response
to the complaint dated 24.03.2024. Inspite of that, no FIR was
registered. Therefore, the present complaint came to be filed
on 31.03.2024. Thus, learned senior advocate for respondent
No.2 submits that, there are sufficient materials to go for
investigation, since serious allegations of siphoning of crores of
rupees belonging to PG students is involved in the present
case. Hence, it is not a fit case for quashing the criminal
proceedings. Accordingly, prays for dismissal of the petition.
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30. In view of the rival contentions urged by learned
counsel for both the parties, the point that would arise for my
consideration is:
"Whether the petitioners have made out any
grounds for quashing the criminal proceedings
initiated against them?"
My answer to the above point is in 'partly in the
affirmative' for the following:
REASONS
31. Respondent No.2 being an advocate has filed the first
information dated 31.03.2024 produced as per Annexure -A,
making allegations against accused Nos.1 to 4 for having
committed the offences punishable under Sections 419, 420
read with Section 34 of IPC. It is the specific contention of the
informant that, accused No.1 who has committed the offences,
was the former President of the Society, who served the
Institution for the period from 2018 till 2024. Accused No.2 was
the Dean and accused No.3 was the Accountant of the college.
These accused in collusion with accused No.4, who is the
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Manager of Canara Bank, siphoned off an amount of more than
Rs.81 crores for the period from 01.01.2018 till 01.03.2024.
32. The modus operandi alleged against the petitioners
and accused No.4 is that, the PG Medical Students who get
admitted to the college were entitled for stipend. But at the
beginning of their academic year, accused No.3 used to insist
each and every student to hand over blank bearer cheques with
their signatures. The students who were very much particular
about their career, without any afterthought, used to hand over
such cheques to accused No.3. The stipend which the students
were entitled to, were being credited to their respective bank
accounts in Canara Bank, M.R.M.C. Branch, where accused
No.4 was the Manager. Whenever such stipends were being
credited to their respective accounts, it was accused No.3 who
used to present the cheques signed by the students to
withdraw a sum of Rs.37,000/- per month per student of the
first year, Rs.40,000/- per month per student for the second
year and Rs.43,000/- per month per student during the third
year of the course. Thus, accused No.3 in collusion with
accused No.4 was withdrawing these amounts from the account
of each and every student.
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33. It is stated that, accused No.3 being the Accountant
of the college was acting at the instance of accused Nos.1 and
2 and similarly, accused Nos.2 and 3 have criminally
intimidated the students with dire consequences of
manipulating their internal assessment marks, practical marks,
etc., if they venture to complain about the misdeeds committed
by them. Therefore, it is stated that since 01.01.2018 till
01.03.2024 the accused have managed to withdraw various
amounts from the bank account of about 282 PG students and
thereby, siphoned off more than Rs.81 crores. Therefore, the
complainant requested the police to register the case and to
initiate legal action. Accordingly, the criminal case came to be
registered and the investigation was undertaken. In the
meantime, the petitioners being accused Nos.1 to 3 approached
this Court seeking to quash the criminal proceedings initiated
against them.
34. The first ground urged by the learned senior
advocate for the petitioners is that, the complainant had no
locus standi, as he was not the victim or the aggrieved person.
Therefore, the first information itself is not maintainable. He
placed reliance on the decision of the Hon'ble Apex Court in
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Ashok Kumar Pandey (supra) in support of such contention
and also placed reliance on the decision of the co-ordinate
Bench of this Court in Sri. Sushil G Namoshi and others Vs
State of Karnataka2.
35. The Hon'ble Apex Court in Ashok Kumar Pandey
(supra), considered a petition filed as a public interest
litigation. The Court considered the grievance of the petitioner
and felt it necessary to observe that public interest litigation is
gradually occupying the field in the administration of law as a
'publicity interest litigation', or a 'private interest litigation', or
'politics interest litigation' and also the latest trend being, 'paisa
income litigation'. It was also observed that, if the public
interest litigation, which was being considered by the Court
with all seriousness is not properly regulated, it will become a
tool in the hands of unscrupulous persons to use it to wreck
vengeance and to release vendetta. Therefore, the Courts are
cautioned to identify the real and genuine public interest in
litigations and to be cautious about the petitions which enter
the Court under the garb of such litigation.
2
Crl.P.No.12704/2024 C/W Crl.P.No.9690/2024 DD07.02.2025
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36. In the present case, the complainant has made
specific allegations against the petitioners for having committed
the offences under Sections 419, 420 read with Section 34 of
IPC. It is basically a criminal complaint made by the informant.
It is pertinent to note that, the informant even though not
concerned with the Society or the college, is projected as an
advocate, who filed the complaint said to be to safeguard the
interests of PG students. He has provided specific details of the
amounts that were credited to the accounts of various
students, for a specified period with precision.
37. Learned senior advocate for the petitioners
contended that, but for the support by the present governing
body, the informant could not have got hold of such information
with such precision. Looking at the details furnished by the
informant in the first information, the contention raised by the
learned senior advocate appears to be true, as otherwise, the
informant who is no way connected to the Society or the
college could not have got such information with necessary
details and with mathematical precision. Now the question
arises as to whether, simply because the informant who has
filed the complaint, is not concerned either with Society or with
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the college, the said complaint is to be ignored without
considering the seriousness of the allegation made in the first
information.
38. When a very serious allegation with available
particulars are furnished by the informant, making specific
allegations against each of the accused and such allegation
relate to 282 PG Medical Students, who are studying in the
college of which accused No.2 was the Dean and accused No.3
an Accountant, the same cannot be ignored on flimsy grounds
stating that the complainant is not concerned with either the
Society or the college.
39. It is pertinent to note that in the FIR, there is
reference to at least 8 such PG students who are said to be the
victims of crime and it is the contention of respondent No.2
that, all these 8 students have given their statements before
the Investigating Officer during investigation.
40. Even though, further investigation in the matter was
stayed vide order dated 28.02.2025, registration of FIR was on
31.03.2024. As per order dated 18.09.2025, IA.No.3/2025 is
filed by the learned counsel for respondent No.2 under Section
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91 of Cr.P.C, seeking to summon the investigation papers
regarding the investigation that was undertaken by the
Investigation Officer from 31.03.2024 till 28.02.2025. The said
application was allowed and the Investigating Officer was
directed to submit the investigation papers in a sealed cover.
In compliance of such direction, the Investigating Officer has
submitted the copies of investigation papers for perusal of the
Court in a sealed cover. The said papers disclose that after
registration of the FIR, on the basis of first information, a spot
mahazar was drawn in the presence of the mahazar witnesses
at the scene of occurrence i.e., in the office of the College
where accused No.3 is said to have collected the blank signed
cheques from various students. Several documents pertaining
to the students concerned are also collected by the
Investigating Officer.
41. The statement of Dr. Anup, referred to in the FIR at
Sl.No.4 as the victim was recorded on 07.10.2024. According to
the statement, he is the resident of Kalaburagi and he studied
MBBS from 2014 till 2019 in the M.R.M.C. Medical College. After
practicing for over four and half years and working as an intern,
he passed the PG NEET examination during 2022 and got
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admitted to the college. This witness referring to the name of
accused No.3 has specifically stated that, it was accused No.3
who insisted him to open an account with Canara Bank,
M.R.M.C. Branch, and demanded 15 blank cheques with his
signatures. Accordingly, he handed over those blank cheques to
accused No.3. The witness specifically states that, he has not
complained about this fact either to the Dean i.e. accused No.2
or to the Managing Committee represented by accused No.1.
However, he states that during 2024, when the stipend amount
credited to his account was being withdrawn regularly and he
came to know that similar withdrawals were made from the
account of more than 200 PG students, all of them had met
accused No.2 and submitted a written representation. Accused
No.2 by referring to the representation, heard and promised
the students to bring it to the notice of accused No.1 and to
set-right the things. The witness also states that, even though
such a promise was made by accused No.2, no steps
whatsoever were taken by him worth mentioning. The witness
also stated that, whenever his bank account was credited with
the stipend amount, the signed blank cheques were made use
of for encashment. Thus, he came to know about withdrawal of
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the amount from his account. He gives details as to what was
the amount that was credited to his account, what was the
amount that was withdrawn, and on what date he received the
message. Witness specifically states that, for the period from
11.10.2022 to 01.03.2024, an amount of Rs.10,90,000/- was
credited to his bank account with Canara Bank, out of the
same, a sum of Rs.7,24,000/- was withdrawn by making use of
the blank cheques issued by him to accused No.3. Only the
balance amount of Rs.3,66,000/- was left in his account, which
he utilized for his personal use.
42. If the statement of this witness is taken into
consideration, there are very specific allegations made against
accused No.3 who was working as Accountant in the college.
There is also reference to accused No.2 who was the Dean of
the college, stating that all these misdeeds of accused No.3,
and the illegal transactions were brought to his notice by
submitting a written representation with a request to set-right
the things. The statement of accounts of the witnesses issued
by Canara Bank, M.R.M.C College Branch, for the period from
07.02.2023 till 06.02.2024 is enclosed with the statement to
support his say.
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43. Similar statements of Dr. Priyanka H.Y., Dr. Priyanka
Patil, Dr. Yogesh Gowda, Dr.Anil Kumar, Dr. Shreya Mishra, and
Dr. Priyanka P, along with their respective bank statements are
part of the investigation papers submitted by the Investigating
Officer. These statements recorded by the Investigating Officer
during investigation assumes importance about the allegations
made against petitioner Nos.2 and 3.
44. It is pertinent note that, even if the statements of
these witnesses whose names appear in the FIR as victims of
crime are taken into consideration, they specifically refer to the
active role played by accused No.3 in committing the offences.
There is also reference to accused No.2 to whom the students
are said to have complained about the misdeeds i.e. collecting
of blank cheques with the signatures of the students at the
beginning of their academic year, withdrawal of the stipend
amount periodically and he promising the students to set-right
the things. Therefore, prima facie it could be said that the
allegations made by the informant, spoken to by the witnesses
were brought to the notice of accused No.2 much prior to filing
of the first information. The question arises as to what steps
accused No.2 had taken in that regard. All the witnesses in
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categorical terms state that accused No.2 has not taken any
steps to address their grievance. Under such circumstances, I
am of the opinion that there are prima facie materials against
accused Nos.2 and 3 in commission of the abovementioned
offences.
45. The present management is said to have appointed a
three Member Enquiry Committee to enquire into the
allegations that are made against the petitioners. The copy of
Enquiry Committee is produced before this Court by the learned
counsel for respondent No.2. As per this report dated
29.08.2024, the Committee has been constituted as per the
Resolution of the Governing Council of the Society directing
them to hold an enquiry with regard to the allegations made
against accused Nos.1 to 3 for the academic years 2018 to
2024.
46. Admittedly, on that day, the FIR was already
registered against the petitioners based on the first information
lodged by respondent No.2. However, the Governing Council
chose to appoint the Enquiry Committee for the reasons best
known to it. As rightly contented by the learned senior
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advocate for the petitioners, no notice of such enquiry appears
to have been issued to any of the petitioners. However, as per
the report, they enquired with various students and were
satisfied that it was accused No.3 who demanded to handover
blank cheques with their signatures, both on the front and back
side of the cheque leafs, which were used for withdrawal of the
money from their respective bank accounts, which was credited
as stipend amount, for which they are entitled to.
47. In the enquiry report, it is stated that the blank
cheques signed by the students were being taken under duress.
There is reference to 6 other staff members working in the
accounts section, who are said to have stated that they have
acted as per the directions of accused No.3. However, they
plead ignorance about receiving of the blank cheques. There is
reference to one Smt. Rajeshwari, the First Division Assistant,
who stated that she was writing the cheques and entering the
register as per the instructions by accused No.3 and used to
take the signatures of accused No.2. She was referring to the
cheques that were being credited to the account of the students
towards a stipend since 2018. There is reference to Smt. Usha
Reddy, who used to collect the bank details of the students for
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crediting the stipend, and it is stated that it was accused No.3
along with Smt. Usha Reddy who were looking after the stipend
issue. There is also reference to one Sri. Arun Kumar, who was
also the staff working in the accounts section, who is said to
have received the signed cheque books from the students. The
Enquiry Committee formed an opinion that Smt. Usha Reddy
and Smt. Rajeshwari, were suppressing the truth to save their
skin. However, they are not arrayed as accused in the FIR.
When the police investigation is already in progress, no purpose
whatsoever appears to have been achieved by appointing the
Enquiry Committee, but for receiving a report, against the
petitioners.
48. Learned senior advocate for the petitioners has
drawn the attention of the Court to the order dated 06.02.2025
passed in Criminal Petition No.12704 of 2024 connected with
Criminal Petition No.9690 of 2024, where a similar complaint
filed against the members of present Governing Council came
to be filed, and they have approached the Court seeking to
quash the criminal proceedings. The learned senior advocate
representing the petitioners in those cases appears to have
addressed his arguments contending that, on 31.03.2024 the
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petitioners therein have registered a criminal case against the
former Governing Council members of the Education Institution
in Crime No.19 of 2024 for the offence punishable under
Sections 419 and 420 of IPC. Obviously, the said reference is to
the criminal complaint that is registered against the petitioners
in this case. Therefore, the members of the present Governing
Council may be behind the first information that was lodged
against the petitioners. After going through the order dated
07.02.2025, prima facie, it is clear that there is a seesaw
situation in the management of the college, as alternatively the
petitioners will be in power, and for the next term the
petitioners in Criminal Petition No.12704 of 2024 will be in
power. Presently, the petitioners in Criminal Petition No.12704
of 2024 appear to be in power, which led to filing of the present
complaint. But, the same cannot be a sole ground to quash the
first information report made with specific allegations, that too,
when some of the PG students who are identified as victims,
have given their statements specifying the acts committed by
accused Nos.2 and 3.
49. Learned senior advocate for the petitioners
contended that when the similar case registered against the
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members of the present Governing Council in Crime No.38 of
2024 came to be quashed, the petitioners are also entitled for
similar relief on principles of parity. On going through the order
dated 07.02.2025, it is clear that the co-ordinate Bench of this
Court quashed the criminal proceedings on the ground that, an
advocate who was also the member of the Society for several
years, and who was in know-how of things about the misdeeds,
had filed the complaint belatedly after lapse of 15 years without
explaining as to why he has not chosen to file the complaint
immediately. The Court has also observed that, the complaint
that was registered in Crime No.38 of 2024 was verbatim
similar to the allegations made in the present complaint which
was registered at the first instance. The Court has observed
that the members of the Governing body were waiting to shoot
from the shoulders of the defacto complainant. But none of the
students who could be termed as victims of crime have came
forward, either to file the complaint or to give a statement.
Under such circumstances, the Court held that the informant
therein was not an aggrieved party, or in other words the
aggrieved party or the victims of crime are not before the Court
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and under such circumstances proceeded to quash the criminal
proceedings.
50. In the present case, it is to be noted that even
though respondent No.2 is not concerned to the Society or to
the college, but who is said to be an advocate, has filed the
complaint with specific particulars. More than that, the FIR
itself refers to atleast 8 such victims who are the PG students.
51. The investigation papers submitted by the
Investigation Officer disclosed that 7 such PG students have
given their statements before the Investigating Officer referring
to the name of accused No.3 and also stating that they have
explained their grievance to accused No.2 by submitting a
representation and requested him to set-right the things. They
have also stated that their grievance was never considered
either by accused No.2 or by accused No.3. This assumes
importance in considering the contentions taken by both the
parties in the present case. When atleast a few students came
forward with their grievance, and they have given the
statement before the Investigating Officer, I am of the opinion
that the allegation against petitioner Nos.2 and 3 is only a tip of
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iceberg. More serious and detailed investigation is required to
be held to unearth the illegality committed in the college in the
matter of withdrawing the stipend amount that was credited to
various students over a period of time. I do not see any reason
to restrict the investigation with regard to the withdrawal of the
stipend credited to the account of various PG students only for
the period from 01.01.2018 till 01.03.2024. But, a thorough
investigation about the functioning of the college is required to
be held.
52. It is surprising to note that, for several years the
post graduate students, who have completed their MBBS,
qualified in the NEET exam for post graduation are handing
over the blank signed cheques to the unscrupulous staff
members in the college on mere asking. In the present case, it
is stated more than 280 students are victims of such crime, but
none of them have come forward to register the complaint. This
can lead to a conclusion either that there is no truth in
allegations or the very matured and responsible professional
students are not even ready to raise their voice against the
illegality committed under their very nose when their right to
get stipend itself was taken away by asking them to hand over
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the blank signed cheques, which were later used to withdraw
the amount from their bank account. If there is truth in the
allegations made against accused Nos.2 and 3, definitely it can
be said that the students are joining hands with such
unscrupulous persons, which is nothing but encouraging the
illegality and perpetuating the same.
53. The youngsters who are considered as the protectors
of our democracy and future of this nation, should be alert and
vigilant to curb any such practice which comes to their
knowledge. But here is an incident, where they themselves are
the victims. But inspite of that no steps are taken by them,
except saying that they have complained to accused No.2, who
in-turn promised them to set-right the things. However,
nothing has been done, but the students who are supposed to
be responsible have kept quiet. This is not an encouraging
situation where the youngsters, that too, the post graduate
medical students have potentially joined their hands in
perpetuating such illegality. Therefore, I deem it appropriate
not to quash the criminal proceedings against accused Nos.2
and 3, as there are strong prima facie materials against them
for having committed the offences, and direct the Investigating
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Officer to seriously and thoroughly investigate into the matter,
if need be with the help of any expert agency, without
restricting the period of offences only from 01.01.2018 till
01.03.2024, with the objective to unearth any such illegality in
the management of the college, if such investigation shows that
there was withdrawal of stipend amount consistently from the
account of the students over a period of time and the victims
are traceable and their statements in support of such illegality
could be obtained.
54. It is unfortunate to note that, Kalaburagi is still
considered to be one of the backward Districts in the State of
Karnataka. It is part of the Hyderabad-Karnataka region, which
is now referred to as the 'Kalyana-Karnataka region' consisting
of 7 districts. It is given special recognition under 371(J) of the
Constitution of India. The Kalyana Karnataka Regional
Development Board (KKRDB) is constituted with the noble
object of providing necessary funds and other assistance for
development of this region.
55. The college of which accused No.2 is the Dean and
accused No.3 is the Accountant is one such medical college
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established in this Kalyana-Karnataka region at Kalaburgi,
managed by Hyderabad-Karnataka Education Society, of which
accused No.1 is the President. Now the question arises as to
the manner in which the Institutions that are established in this
region are functioning and imparting education to the students,
who are aspiring to become Specialized Medical Officers. If in
fact, such students are victims of crime and they join hands
with the criminals in siphoning off the amount that is paid as
stipend, one can visualize the future of our society.
56. Article 39A of the Constitution of India was inserted
by the 42nd amendment dated 18.12.1976, with the noble
object of providing equal justice and free legal aid. Pursuant to
the same, Legal Services Authorities came into existence, at
the National, State, District and Taluk levels. Its object is to
spread legal awareness, providing free legal aid and also to
encourage Lok-adalath. If the educated youngsters, who are
the students at large are not aware of their rights, and if such
students are not gathering courage to raise their voice against
injustice, or any crime that was committed to them or in their
presence, such inaction will lead to a disaster. Therefore, I
deem it appropriate to direct the Member Secretary of
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Karnataka State Legal Services Authority to launch a legal
awareness camp amongst the students of various schools and
colleges in the State about their rights and to educate them as
to the steps that they have to take by approaching the
appropriate authority or the jurisdictional police, in case such
an instance either happens to them or it was brought to their
notice.
57. These awareness programs must not be considered
as an instigation to make false or baseless allegations against
the management of any institution, much less, M.R.M.C Medical
College, Kalaburagi of which accused Nos.2 and 3 are the Dean
and Accountant respectively. The Karnataka State Legal
Services Authority, Bengaluru, through the District Legal
Services Authorities and the Taluk Legal Services Committees
shall prepare a module to create awareness amongst young
students studying in various schools and colleges, which may
help them in raising voice in case of violation of any of their
rights or even rights of a common man.
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58. As regards the allegations made against accused
No.1, it is observed that, the allegations in the first information
are leveled against him only on the ground that he is the
President of the Society. Apart from making such allegations,
there are absolutely no materials against him. It is not the
contention of even the victims who are referred to above, who
have given their statements before the Investigating Officer,
that they have approached him with their grievance and even
after knowing the same, he either ignored such representations
or was not ready to readdress the same. Therefore, I am of the
opinion that, simply because accused No.1 was the President of
the Society, he is not liable to be subjected to criminal
investigation without there being any prima facie materials
against him. Hence, the criminal proceedings against him are
liable to be quashed.
59. In view of above, I answer the above point 'partly in
the affirmative' and proceed to pass the following:
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ORDER
i) The Criminal Petition is allowed in part.
ii) The criminal proceedings registered in Crime
No.19 of 2024 (Kalaburagi City CEN Crime PS),
against accused No.1/petitioner No.1 -
Dr.Bhimashankar Bilgundi, is hereby quashed.
iii) The petition filed by petitioner Nos.2 and
3/accused Nos.2 and 3 is hereby rejected.
iv) The Investigating Officer is directed to conduct a
detailed investigation about the illegalities alleged
against the college, without restricting it only for
the period referred to in the FIR.
Office is directed to hand back the investigating papers
submitted by the Investigating Officer in a sealed cover, along
with copy of this order for information and for necessary action.
Office is also directed to forward copy of this order to the
learned Member Secretary of Karnataka State Legal Services
Authority, Bengaluru for information and for necessary action.
Sd/-
(M G UMA)
JUDGE
SBS/PNV
