M.C. No.2877/2014 & Connected Matters Page 1 of 42 of the Indian Penal Code (IPC for short).M.C. No.2877/2014 & Connected Matters Page 1 of 42Since all these thirteen petitions have arisen out of different charge sheets in respect of different first information reports registered pursuant to the complaints of investors, who have invested in the Housing Projects launched by M/s. A.J.S. Builders Pvt. Ltd. (herein after referred to as accused company) and involves identical question of law, they are being disposed of by this common order.3. Crl.M.C. 2877/2014 pertains to FIR No. 88/2010 registered at P.S. E.O.W, Crl.M.C. 2932/2014 pertains to FIR No. 25/2010 registered at P.S. E.O.W, Crl.M.C. 2938/2014 pertains to FIR No. 110/2009 registered at P.S. Mandir Marg, Crl.M.C. 2977/2014 pertains to FIR No. 87/2010 registered at P.S. E.O.W, Crl.M.C. 2979/2014 pertains to FIR No. 86/2010 registered at P.S. E.O.W, Crl.M.C. 2995/2014 pertains to FIR No. 24/2010 registered at P.S. E.O.W, Crl.M.C. 3002/2014 pertains to FIR No. 89/2010 registered at P.S. E.O.W, Crl.M.C. 3006/2014 pertains to FIR No. 75/2010 registered at P.S. E.O.W, Crl.M.C. 3015/2014 pertains to FIR No. 03/2010 registered at P.S. Mandir Marg, Crl.M.C. 3023/2014 pertains to FIR No. 50/2010 registered at P.S. E.O.W, Crl.M.C. 3025/2014 pertains to FIR No. 109/2009 registered at P.S. Mandir Marg, Crl.M.C. 3031/2014 pertains to FIR No. 169/2009 registered at P.S. Mandir Marg and Crl.M.C. 3037/2014 pertains to FIR No. 74/2010 registered at P.S. E.O.W.The concise facts of the case as borne out from the charge-sheet are that a number of investors filed their complaints against accused Crl.M.C. No.2877/2014 & Connected Matters Page 2 of 42 company which were clubbed under different First Information Reports.All the complainants came up with identical allegations of inducements, misrepresentations etc. by the Directors of the accused company.The accused company gave an advertisement on 18.03.2006 in the newspaper The Hindustan Times to induce the general public for investment in their project at Gannaur, Sonepat.However, the accused company and its Directors were found to be engaged in cheating innocent customers by way of misrepresentation of facts through their various advertisements in print as well as electronic media.M.C. No.2877/2014 & Connected Matters Page 2 of 42As per the charge sheets Ms. Madhu Singh (Managing Director of accused company) along with others induced innocent investors for investment in aforementioned residential project of the accused company, in defiance of rules and regulations embedded in their agreement.Further, the company and its Directors neither obtained necessary permissions / land use change/ approved building plans, nor acquired the project land for the proposed project, but collected investments from a large number of investors, running into hundreds of crores.Investigating agency claimed that accused company and its Directors amassed funds running in several crores of rupees by cheating innocent customers with misrepresentation of facts while advertising the project of Gannuar, District Sonepat, Haryana as a township of 300 acres with 60% of the land dedicated to greenery, whereas, till the charge sheet was filed, the accused company had executed sale deeds in respect of 83 acres of land only and that too without making full payments to the land Crl.M.C. No.2877/2014 & Connected Matters Page 3 of 42 owners.Further, the accused company started collecting funds from the innocent investors for its aforesaid township, even when the accused company had only 2 acres of land in their possession.M.C. No.2877/2014 & Connected Matters Page 3 of 42During investigation, it was observed that the accused company and its Directors misused the funds between the years 2005-2008, ranging to hundreds of crores of rupees which have been collected from a large number of investors for various residential projects of the company and utilization of which could not be proved, thus investigating agency concluded that the same have been used for the lavish living of the Directors of the accused company.Investigation revealed that the accused company has a Board of Directors, comprising of three Directors namely Ms. Madhu Singh (CMD), Ms. Kailash Rani (mother of accused Madhu Singh) & Ms. Geeta Singh (Sister-in-Law of Madhu Singh).Initially Economic Offences Wing registered a case F.I.R. No. 56/09, under sections 406,420 read with section 120-B IPC, against the accused company and its Directors.Further, during the pendency of investigation various investors filed complaints against the accused company and its Directors.It was further revealed during investigation that the Corporate office of the accused company situated at 8, Shaheed Bhagat Singh Marg, First Floor, Gole Market, New Delhi was purchased by the accused company through its Director Smt. Madhu Singh from one Smt. Suman Lata Singla W/o Sh.S.K. Singla vide Sale Deed dated 21.07.2006, for a total consideration of Rs.45,00,000/- (Rupees Forty Crl.M.C. No.2877/2014 & Connected Matters Page 4 of 42 five lakhs only).Since the booking of projects started w.e.f. 2005 onwards, investigating agency suspected that the payments which were made to the vendor were done out of the cheated funds which were collected from investors.Investigation further revealed that the original title documents of the said property were mortgaged with Allahabad Bank, Parliament Street, New Delhi for seeking loan by the accused company, wherein overdraft limit of Rs.200 lakhs (Rupees Two hundred lakhs) and bank guarantee limit of Rs.3.91 crores (Rupees Three crores and ninety one lakhs) was sanctioned.As per the investigation, following properties were mortgaged against the loan A/c of the accused company:M.C. No.2877/2014 & Connected Matters Page 4 of 42I. Office of the accused company i.e. Property no. 8, Shaheed Bhagat Singh Marg, New Delhi.Two Fixed Deposit Nos.124225 for Rs.18,60,375/- (Rupees Eighteen lakh sixty thousand three hundred and seventy five) dated 29.02.2008 and 124226 for Rs.79,07,250/- (Rupees Seventy nine lakh seven thousand two hundred and fifty) dated 29.02.2008 were also kept as security against Bank Guarantee.M.C. No.2877/2014 & Connected Matters Page 5 of 42By way of these thirteen petitions filed under Section 482 of the Code of Criminal Procedure 1973 (hereinafter referred to as Cr.P.C.), the petitioner seeks to set aside the order dated 03.06.2013, passed by learned Additional Chief Metropolitan Magistrate-II, Patiala House Court, New Delhi, as well as quashing of charge sheets for the offences punishable under sections 406/ 409/ 420/ 201 read with section 120-B Crl.During investigation, it was also revealed that the said Corporate office of the accused company at 8, Shaheed Bhagat Singh Marg, Gole Market, New Delhi was sold to the petitioner by accused company through its Director/Authorised Representative, Ms. Madhu Singh vide registered Sale Deed dated 15.12.2009 against a total sale consideration of Rs.2.25 crore (Rupees Two crore and twenty five lakhs).Investigation further revealed that on 12.09.2010, petitioner, individually as well as through his Company M/s. Habitat Buildtech Pvt. Ltd. purchased 50 % equity of the accused company by paying a sum of Rs.4,35,35,200/- (Rupees Four crores thirty five lakhs thirty five thousand and two hundred).Based upon its investigation, investigating agency concluded as under:-"From the investigation conducted so far, evidence collected (oral as well as documentary), it is crystal clear and proved that accused Madhu Singh, Director of M/s AJS Builders Pvt. Ltd. in collusion and connivance with other associates i.e. Smt. Geeta Singh (sister in law) and Smt. Kailash Rani (mother), hatched a criminal conspiracy, with the common intention and sole object to cheat the innocent public right from the very beginning.Accused Harvinder Singh had also joined the accused Ms. Madhu Singh & others during the alleged period for the commission of the offences."Investigating agency arrived at a conclusion that the Sale Deed dated 15.12.2009, in respect of the property of the accused company at 8, Shaheed Bhagat Singh Marg, New Delhi, is a sham transaction, purportedly executed by accused Ms. Madhu Singh to avoid its attachment.In order to sustain its conclusion, investigating agency has primarily relied upon following circumstances:-M.C. No.2877/2014 & Connected Matters Page 6 of 42(a) The property has been purchased by the petitioner without due diligence and no bona fide purchaser would buy a property without originals of the previous chain, whereas stipulations 5 and 6 of the Sale Deed dated 15.12.2009, make it clear that original chain of the title documents was not furnished by the Vendor, which makes the Sale a sham transaction.(b) The property has been sold at a much cheaper price than its actual market price.To arrive at this conclusion, investigating agency is making reference of valuation of the said property at the time of seeking loan, when it was assessed as approximately Rs.7.57 Crore (Rupees Seven crore and fifty seven lakhs) in the year 2007 whereas, petitioner purchased the same in the year 2009 at a much less value of Rs.2.25 Crore (Rupees Two crore twenty five lakhs) only.(c) The payments which have been made to the Vendor by the Vendee have been reflected and corresponding debit / credit entries have been checked.After examination, Chartered Accountant (CA) stated that these transactions are sham transactions.(d) Statement of co-accused Ms. Madhu Singh, who subsequently claimed that the property in question was sold by her to the petitioner.The investigating agency is Crl.M.C. No.2877/2014 & Connected Matters Page 7 of 42 of the opinion that the property in question has been transferred with the apprehension that the said property could be attached by the investigating agency in order to recover the cheated funds collected from the investors.M.C. No.2877/2014 & Connected Matters Page 7 of 42Further Investigating agency imputed the petitioner for witnessing the Agreement dated 05.02.2011, executed between M/s. Best Realtech (India) Pvt. Ltd. and accused company, in respect of development of the project of accused company at Gurgaon, Haryana, which as per the investigating agency was detrimental to the interest of the investors.In order to sustain its claim that the petitioner was incharge for day to day functioning of the accused company, investigating agency has relied upon statement of one Mr. Harjit Singh, Director of M/s. Best Realtech (India) Pvt. Ltd. in addition to the statements of witnesses recorded under section 161 of Cr.P.C.During the course of proceedings before this Court, the complainants Mr. Keshav Sethi (in Crl.M.C.2977/2014), Ms. Kusum Jain (in Crl. M.C.2995/2014), Mr. Dev Raj (in Crl.M.C.3037/2014) and Mr. Vipul Kochar (in Crl.M.C.3023/2014) were impleaded as respondent No.2 on their respective applications.On 17.09.2014 learned counsel for the complainants Mr. Mohit Mathur, on instructions from Mr. Akhil Mittal, Advocate submitted before this Crl.M.C. No.2877/2014 & Connected Matters Page 8 of 42 Court that he will move an appropriate application on behalf of the complainants for impleadement in all the respective petitions.However, on 23.09.2014 Mr. Akhil Mittal, Advocate submitted that all the remaining complainants were not interested in moving impleadement applications.Thereafter, respondent No.2/ complainant filed reply.M.C. No.2877/2014 & Connected Matters Page 8 of 42While impugning the conclusion of the investigating agency regarding culpability of the petitioner, Mr. Kohli, learned counsel for the petitioner submitted that under the influence of Ms. Madhu Singh and a few well connected investors, the petitioner has been falsely implicated in the present case by the investigating agency.It was argued by the counsel for the petitioner that in order to sustain conjectural hypothesis about culpability of the petitioner, investigating officer has deliberately concealed vital facts and infact, has arbitrarily given deaf ears to the representations/ complaints of the petitioner, wherein the petitioner has unfolded various illegal acts of Ms. Madhu Singh, Mr. Tejwant Singh, Mr. Harjit Singh, etc. and his victimization by accused Ms. Madhu Singh and others.It was argued that induced with the various projections of the accused company and its functionaries, petitioner and his family members also invested in Gurgaon Project of the accused company during the period 2007 to 2009, but despite specific complaints by the petitioner, none of his complaints have been considered by the investigating agency, whereas similarly circumstanced other investors have been arrayed as complainants / witnesses in the cases registered against the accused company.M.C. No.2877/2014 & Connected Matters Page 9 of 42It is case of the petitioner that like other investors, petitioner had visited the corporate office of the accused company for refund of his and his family members investments in the beginning of the year 2009, where he was trapped by accused Ms. Madhu Singh, Tejwant Singh and others to purchase property bearing no. 8, Shaheed Bhagat Singh Marg, New Delhi, under the pretext that the accused company had invested its substantial liquidity towards purchase of major landholdings and thus is finding shortage of liquidity and the rumours about the bankruptcy of the accused company has caused damage to the extent that despite sound position, owing to the slump in realty sector, the Company was unable to fetch finances to meet out unprecedented demand of refund by investors.Per contra to the finding of the investigating agency that the petitioner did not conduct any due diligence before purchase of the property, it was contended by the counsel for the petitioner that before execution of the Sale Deed, petitioner had duly conducted due diligence of the property (both physical and title search) and had also obtained duly certified copies of the complete chain of title documents of the property which clearly reflected a clean title in favour of the accused company and since there was no encumbrance on the property, petitioner purchased the said property.To fortify his contentions, Mr. Daman Kohli has shown certified copies of the previous chain of title documents, copies of which have already placed on record.It was further contended on behalf of the petitioner that in terms of the Sale Deed, petitioner took possession of the First Floor of the property whereas built up structure on the 2nd floor of the property was retained by the sister concern of the Crl.M.C. No.2877/2014 & Connected Matters Page 10 of 42 accused company, from where even the accused company started operation of its business activities.It was also submitted that the delay in furnishing original title documents by the seller is clearly stipulated in the Sale Deed and it is with full caution that the petitioner got the complete chain of previous title documents duly stamped and signed by the seller on each and every page.Mr. Kohli also submitted that the nephew of Ms. Madhu Singh who is also a shareholder of the seller/ accused company is also a witness to the duly registered sale deed.M.C. No.2877/2014 & Connected Matters Page 10 of 42It was also submitted by Mr. Kohli that victimization of petitioner subsisted when petitioner was further lured to part with substantial sum of Rs.4,35,35,200/- (Rupees Four crore thirty five lakhs thirty five thousand and two hundred), towards 50% equity of the accused company in favour of the petitioner and his company M/s. Habitat Buildtech Pvt. Ltd.It was further submitted that on 05.02.2011, being the 50% equity holder of the accused company, petitioner also became witness to the execution of the Agreement executed inter se accused company and M/s. Best Realtech (India) Pvt. Ltd.. Mr. Kohli has drawn my attention towards relevant clauses of the said Agreement, whereby M/s. Best Realtech (India) Pvt. Ltd. undertook to bear all costs and expenses for developing Housing Project of the accused company in Gurgaon, on the same terms on which the accused company has invited investments from different investors, besides undertaking to refund, if any of the investor in the said project of the accused company so desired.However, when the perpetuating dishonest and fraudulent intent of accused Ms. Madhu Singh and her associates became apparent to the petitioner, he made various representations disclosing their illegal acts and also his victimization.Attention has been drawn to various complaints/representations, addressed at all levels ranging from S.H.O. Mandir Marg, New Delhi to Commissioner of Delhi Police, but despite complaints/ representations disclosing commission of cognizable offence, no action has been taken by the investigating agency.M.C. No.2877/2014 & Connected Matters Page 11 of 42It was further submitted by the counsel for the petitioner that endeavour of the investigating agency to array the petitioner as a conspirator with accused Ms. Madhu Singh, against whom the petitioner is fighting in different courts and forums, is liable to be deprecated.On mention by the counsel for the petitioner this fact is also not disputed that there are multiple complaints filed by the petitioner Crl.M.C. No.2877/2014 & Connected Matters Page 12 of 42 against the threat to life extended to the petitioner by accused Ms. Madhu Singh and her men.M.C. No.2877/2014 & Connected Matters Page 12 of 42M.C. 3031/2014 Crl.M.A. No.10529/2014 in Crl.M.C. 3037/2014 The above applications are dismissed as infructuous.(VED PRAKASH VAISH) JUDGE FEBRUARY 3rd, 2015 hs Crl.

Relevant sections: Section 420 in The Indian Penal Code; Section 201 in The Indian Penal Code; Section 120B in The Indian Penal Code; Section 34 in The Indian Penal Code