IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE K.T.SANKARAN THURSDAY, THE 24TH NOVEMBER 2011 / 3RD AGRAHAYANA 1933 Bail Appl..No. 9485 of 2011() ----------------------------- CRIME NO.190/CR/11 OF CBCID (EOW), KOZHIKODE PETITIONERS/ACCUSED NOS.2 & 3: ---------------------------------------- 1. ABDUL ARSHAD, S/O.SYED MUHAMMED, KOUSALLYA NAGAR, DESABHIMANI ROAD, ELAMAKKARA, COCHIN, ERNAKULAM DISTRICT. 2. P.T.KUNHUMUHAMMED, S/O.KUNHALAN, POOVANTHODI HOUSE, VATTALLUR, MAKKARAPARAMBU, MALAPPURAM DISTRICT. BY ADV. SRI.BABU S. NAIR RESPONDENT(S): STATE -------------------- THE STATE OF KERALA, REPRESENTED BY THE DETECTIVE INSPECTOR, C.B.C.I.D.(EOW), KOZHIKODE - THROUGH THE PUBIC PROSECUTOR, HIGH COURT OF KERALA, ERNAKULAM, KOCHI-31. ADGP SRI.K.I.ABDUL RASHEED THIS BAIL APPLICATION HAVING BEEN FINALLY HEARD ON 24/11/2011, ALONG WITH 9459/2011 AND OTHERS, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: K.T.SANKARAN, J. ------------------------------------------------------ Bail Appl. NOS.9459, 9460, 9485, 9486, 9487, 9488, 9489, 9490, 9491, 9492, 9493, 9494, 9495, 9496, 9497, 9498, 9499, 9500, 9501, 9704, 9705, 9706, 9707, 9708, 9709, 9711, 9712, 9713, 9714, 9715, 9716, 9717, 9718, 9719, 9720, 9721, 9732, 9733, 9734, 9735, 9736, 9737, 9738, 9739, 9740, 9741, 9743, 9744, 9745, 9746, 9747, 9748, 9749,9750,9751,9758,9759 & 9760 of 2011 --------------------------------------------------------- Dated this the 24th day of November, 2011 O R D E R The aforesaid 58 Bail Applications are filed by Abdul Arshad and Kunhumuhammed or by Kunhumuhammed alone, under Section 439 of the Code of Criminal Procedure. They are the accused in several crimes registered at different police stations. The details regarding Bail Application number, Crime number and the names of the petitioners therein are shown below for easy reference. Sl.No. Bail.Appl.No. Crime No. Name of petitioners 1 9459/2011 199/2011 of Perumbadappu Police Station Abdul Arshad and P.T.Kunhumuhammed 2 9460/2011 200/2011 of Perumbadappu Police Station Abdul Arshad and P.T.Kunhumuhammed 3 9485/2011 190/CR/11 of CBCID (EOW), Kozhikode Abdul Arshad and P.T.Kunhumuhammed B.A. NO.9485 OF 2011 AND CONNECTED CASES :: 2 :: Sl.No. Bail.Appl.No. Crime No. Name of petitioners 4 9486/2011 203/2011 of Vengara Police Station Abdul Arshad and P.T.Kunhumuhammed 5 9487/2011 218/2011 of Kalpakanchery Police Station P.T.Kunhumuhammed 6 9488/2011 327/2011 of Ponnani Police Station Abdul Arshad and P.T.Kunhumuhammed 7 9489/2011 459/2011 of Tirur Police Station Abdul Arshad and P.T.Kunhumuhammed 8 9490/2011 339/2011 of Malappuram Police Station Abdul Arshad and P.T.Kunhumuhammed 9 9491/2011 263/2011 of Areacode Police Station Abdul Arshad and P.T.Kunhumuhammed 10 9492/2011 334/2011 of Malappuram Police Station Abdul Arshad and P.T.Kunhumuhammed 11 9493/2011 191/R/11 of CBCID (EOW), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 12 9494/2011 207/2011 of Vengara Police Station Abdul Arshad and P.T.Kunhumuhammed 13 9495/2011 194/CR/11 of CBCID (EOW), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 14 9496/2011 153/2011 of Changaramkulam Police Station Abdul Arshad and P.T.Kunhumuhammed 15 9497/2011 519/2011 of Tanur Police Station Abdul Arshad and P.T.Kunhumuhammed 16 9498/2011 195/CR/11 of CBCID (EOW), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 17 9499/2011 189/CR/11 of CBCID (EOW), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 18 9500/2011 244/2011 of Kuttipuram Police Station P.T.Kunhumuhammed 19 9501/2011 187/CR/11 of CBCID (EOW), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 20 9704/2011 839/CR/11 of CBCID (EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed B.A. NO.9485 OF 2011 AND CONNECTED CASES :: 3 :: Sl.No. Bail.Appl.No. Crime No. Name of petitioners 21 9705/2011 186/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 22 9706/2011 842/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 23 9707/2011 836/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 24 9708/2011 838/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 25 9709/2011 468/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 26 9711/2011 851/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 27 9712/2011 852/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 28 9713/2011 850/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 29 9714/2011 853/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 30 9715/2011 848/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 31 9716/2011 535/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 32 9717/2011 532/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 33 9718/2011 840/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 34 9719/2011 190/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 35 9720/2011 858/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 36 9721/2011 191/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 37 9732/2011 189/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed B.A. NO.9485 OF 2011 AND CONNECTED CASES :: 4 :: Sl.No. Bail.Appl.No. Crime No. Name of petitioners 38 9733/2011 188/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 39 9734/2011 442/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 40 9735/2011 841/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 41 9736/2011 437/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 42 9737/2011 531/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 43 9738/2011 835/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 44 9739/2011 849/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 45 9740/2011 854/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 46 9741/2011 846/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 47 9743/2011 184/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 48 9744/2011 182/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 49 9745/2011 183/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 50 9746/2011 185/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 51 9747/2011 206/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 52 9748/2011 537/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 53 9749/2011 837/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 54 9750/2011 847/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed B.A. NO.9485 OF 2011 AND CONNECTED CASES :: 5 :: Sl.No. Bail.Appl.No. Crime No. Name of petitioners 55 9751/2011 855/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 56 9758/2011 187/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 57 9759/2011 444/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed 58 9760/2011 443/CR/11 of CBCID(EOW- III), Kozhikode Abdul Arshad and P.T.Kunhumuhammed These details were furnished by the learned counsel for the petitioners and which were verified by the learned Additional Director General of Prosecution. 2. The offences alleged against the accused are under Section 420 of the Indian Penal Code and Sections 3 and 4 of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 (Central Act No.43 of 1978). 3. Abdul Arshad and some others filed B.A.Nos.5641 of 2011 and connected cases, which were disposed of by the order dated 12th August, 2011. (See Abdul Arshad v. State of Kerala (2011 (3) KLT 796)). Thereafter, Abdul Arshad filed B.A.No.7550 of 2011 and B.A. NO.9485 OF 2011 AND CONNECTED CASES :: 6 :: connected cases, which were disposed of by the order dated 4th October, 2011. (See 2011 (4) KLT 297.) Those Bail Applications were dismissed on both the occasions. 4. The learned Additional Director General of Prosecution submitted that out of the above 58 cases, Bail Application Nos.9495, 9705, 9719, 9721, 9732, 9733, 9743, 9744, 9745, 9746, 9747 and 9758 of 2011 have become infructuous as default bail was granted to the petitioners therein. Accordingly, the aforesaid twelve Bail Applications are dismissed as infructuous. 5. The prosecution case is the following: Accused No.9 Abdul Arshad is the Managing Director of Bizarre Global Marketing Public Limited Company (hereinafter referred to as the Company). The Company was originally a Private Limited Company under the name Bizarre Marketing Systems Private Limited, which was incorporated on 2-11-2007. With effect from 18-6-2008, the name of the Company was changed as Bizzare Global Marketing Systems Private Limited. The Company became a Public Limited Company with effect from 14-7-2008. The allegation is that the accused B.A. NO.9485 OF 2011 AND CONNECTED CASES :: 7 :: persons induced several persons to subscribe to the membership and to take shares in the Company. The promise extended was that if they take shares, they will get commodities at reduced rates from the Supermarkets to be established by the Company at different places in the State. It was also promised that if those who take shares canvass other persons to take shares, the former would be paid commission. Campaigns were held by the accused to induce persons to invest money. It was promised that those who canvass more persons would get more and more commission. About a lakh people were thus induced to invest money. In the Wynad District alone, more than five thousand persons were so induced to invest money. The promise given by the accused was that within two years, they would get about eight times the money invested by them. The accused indulged in money chain business under the pretext that they were floating shares of the Company. The investors did not get the returns or the money invested by them. The accused did not fulfill the promises and the investors were cheated. 6. It is alleged that crimes were registered against the petitioners in various districts. The learned Additional Director B.A. NO.9485 OF 2011 AND CONNECTED CASES :: 8 :: General of Prosecution submitted that the preliminary figures show that a sum of more than `120 Crores was collected from the investors by the accused persons. 7. Sri.Babu S. Nair, learned counsel for the petitioners submitted that the petitioners are in judicial custody from 11.6.2011 onwards. It is submitted that in all the crimes, almost similar allegations have been made. Matters to be investigated and proved are also the same. The counsel pointed out that he even raised a contention, while disposing of the Bail Applications as per the order dated 4th October, 2011, that formal arrest of the petitioners was not recorded in several cases only to see that the petitioners remained in judicial custody for a long period without getting even the benefit of default bail under the proviso to Section 167(2) of the Code of Criminal Procedure. 8. Learned Additional Director General of Prosecution submitted that the investigation is in progress and if the petitioners are released on bail at this stage, it would affect the proper and smooth investigation of the case. It is also submitted that thousands B.A. NO.9485 OF 2011 AND CONNECTED CASES :: 9 :: of people were cheated by the accused persons and it would take time to complete the investigation and to file the charge sheet. 9. Learned Additional Director General of Prosecution submitted that the cases registered against the petitioners and others have been distributed to three centres of the CBCID, namely, Kozhikode, Ernakulam and Kottayam. It is submitted that the cases from Kottayam have been transferred to the Crime Detachment, Thrissur. 10. The petitioners are in judicial custody since 11.6.2011. As rightly submitted by the learned counsel for the petitioners, the matters to be investigated in all the cases are almost the same. Only on the ground that several cases have been registered and formal arrest of the petitioners were recorded on different dates, the petitioners need not be put in judicial custody for a long period. In the interests of justice, it is necessary to release the petitioners on bail, however, with effect from 6.12.2011, on stringent conditions. 11. The petitioners shall be released on bail only on B.A. NO.9485 OF 2011 AND CONNECTED CASES :: 10 :: 6.12.2011 on their executing bond for Rupees Fifty thousand each in each case with two solvent sureties for the like amount to the satisfaction of the Court having jurisdiction, subject to the following conditions: a) The petitioners shall report before the Deputy Superintendent of Police, CBCID EOW-III, Kozhikode between 9 A.M. and 11 A.M. on all Mondays, before the Assistant Commissioner, Crime Detachment, Thrissur between 9 A.M. and 11 A.M. on all Wednesdays and before the Deputy Superintendent of Police, Crime Branch, EOW, Ernakulam between 9 A.M. and 11 A.M. on all Saturdays, until final reports are filed or until further orders; b) The petitioners shall appear before the investigating officer for interrogation as and when required; c) The petitioners shall surrender their Passports before the Deputy Superintendent of Police, CBCID EOW-III, Kozhikode. If the Passports have already been seized or surrendered, the petitioners shall file an affidavit indicating the same before the Court having jurisdiction, where they are bound to execute the bond for getting bail as aforesaid; d) The petitioners shall not leave the State of Kerala without the permission of this Court; e) The petitioners shall not try to influence the prosecution witnesses or tamper with the evidence; f) The petitioners shall not commit any offence or indulge in any prejudicial activity while on bail; B.A. NO.9485 OF 2011 AND CONNECTED CASES :: 11 :: g) In case of breach of any of the conditions mentioned above, the bail shall be liable to be cancelled. Bail Application Nos.9495, 9705, 9719, 9721, 9732, 9733, 9743, 9744, 9745, 9746, 9747 and 9758 of 2011 are dismissed as infructuous and the other Bail Applications are allowed in the manner indicated above. (K.T.SANKARAN) Judge ahz/ K.T.SANKARAN, J. ----------------------------------------------------------------- ------------------------------------------------------------------ Bail Appl. NOS.9459, 9460, 9485, 9486, 9487, 9488, 9489, 9490, 9491, 9492, 9493, 9494, 9495, 9496, 9497, 9498, 9499, 9500, 9501, 9704, 9705, 9706, 9707, 9708, 9709, 9711, 9712, 9713, 9714, 9715, 9716, 9717, 9718, 9719, 9720, 9721, 9732, 9733, 9734, 9735, 9736, 9737, 9738, 9739, 9740, 9741, 9743, 9744, 9745, 9746, 9747, 9748, 9749, 9750, 9751, 9758, 9759, & 9760/ 2011 O R D E R 24th November, 2011 -----------------------------------------------------------------