IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE K.T.SANKARAN TUESDAY, THE 9TH JUNE 2009 / 19TH JYAISHTA 1931 Bail Appl..No. 2901 of 2009() ----------------------------- CRIME NO.399/08 OF VANCHIYOOR POLICE STATION. CBCID CRIME NO.203/CR/TVM/2008 PETITIONER/7TH ACCUSED ------------------------------------------ RAJAN, S/O.VELAPPAN, SABARI NIVAS, KODANGAVILA, ATHIYANNOOR, NEYYATTINKARA TALUK, THIRUVANANTHAPURAM. BY ADV. SRI.LATHEESH SEBASTIAN RESPONDENT(S): STATE -------------------- 1. STATE OF KERALA REPRESENTED BY PUBLIC PROSECUTOR, HIGH COURT OF KERALA, ERNAKULAM. 2. DETECTIVE INSPECTOR, CBCID, THIRUVANANTHAPURAM. 3. SUB INSPECTOR OF POLICE, VANCHIYOOR POLICE STATION, THIRUVANANTHAPURAM. PUBLIC PROSECUTOR SRI.K.S.SIVAKUMAR THIS BAIL APPLICATION HAVING BEEN FINALLY HEARD ON 09/06/2009, ALONG WITH BA NO. 2907 OF 2009, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: K.T.SANKARAN, J. --------------------------------- B.A.Nos.2901 & 2907 of 2009 ---------------------------------- Dated this the 9th day of June, 2009 ORDER These applications are under Section 439 of the Code of Criminal Procedure by the 7th accused in CBCID Crime Nos.203/CR/TVM/2008 and 218/CR/TVM/2008. 2. The offences alleged against the petitioner in both these cases are under Sections 406, 409, 420 and 120B read with Section 34 of the Indian Penal Code. The petitioner was arrested on 10.9.2008 in respect of another crime and formal arrest was recorded in these cases on 16.3.2009. 3. The first accused in these cases is one Sabarinath, who is the son of the petitioner. The petitioner is the Managing Partner of two financial institutions under the name and style “I NEST” and “TOT TOTAL”. 4. The learned Director General of Prosecution submitted that one firm was registered by two partners, namely, Sabarinath and the petitioner, under the name and style 'Nest Investment Solutions' and using that registration number, the accused persons pretended that there are other firms like I NEST, TOT BA Nos.2901 & 2907/2009 2 TOTAL and SJR Group. The prosecution case is that offering very huge rate of interest, the accused persons induced more than 1000 people to deposit huge amounts in the firms and they did not return the money as and when demanded by the depositors. It is alleged that the partners of the firms were not authorised to collect the deposits and that false information was given to the public regarding insurance and fixed deposits in the name of the firms, while really, there was no insurance coverage and no fixed deposits. It is alleged that fake fixed deposit receipts were shown to the depositors to make them believe that the firms are having sound financial position. The depositors invested amounts under the hope that they will get exorbitant interest. Taking advantage of the situation, the petitioner and the other accused persons exploited the general public among whom many belong to middle class and lower middle class families. The prosecution also alleges that the petitioner is the Managing Partner of 'I NEST' and that he personally canvased 40 persons to deposit money. 5. The learned counsel for the petitioner stated that the BA Nos.2901 & 2907/2009 3 petitioner is only a class four employee in a co-operative Bank and he continues to be in service. 6. The learned Director General of Prosecution stated that the petitioner was leading a very luxurious life and that he had spent Rs.14 lakhs for renovation of his residential building. It is also stated by the Director General of Prosecution that valuation of the renovation work was done by an approved valuer to ascertain the actual amount spent for renovation of the building. The investigation is in progress. It is submitted by the learned Director General of Prosecution that if the petitioner is released on bail at this stage, there is every likelihood that he would try to influence or intimidate the witnesses and he would make himself scarce. 7. Taking into account the facts and circumstances of the case, I am not inclined to grant bail to the petitioner at this stage. The Bail Applications are accordingly dismissed. K.T.SANKARAN, JUDGE csl