1 CRA-363-08.sxw IN THE HIGH COURT OF JUDICATURE AT BOMBAY CRIMINAL APPELLATE JURISDICTION Mhi CRIMINAL REVISION APPLICATION NO. 363 OF 2008 The State of Maharashtra ... Applicant (Orig.complainant) vs. M/s. J.M. Freight Services Pvt.Ltd. & Ors. Respondents (Orig.accused Nos.1 to 3) Mr. P.S.Hingorani, APP, for the applicant - State None for the respondents. CORAM: J.H.BHATIA,J. DATE : 5th April, 2011. P.C. 1. Heard the learned APP for the State. None for the respondents. 2. On 25.8.2007, C.R.No.370/2007 was registered at Naupada Police Station on the FIR lodged by the Assistant Police Inspector - Kailash Mahasu Nagare for the offences under Section 420 read with Sec. 34 of IPC and under Sections 45(5), 58(b) and 5(a) of the Reserve Bank of India Act, 1934. According to the prosecution, the respondent No.1 is a private limited company and other respondents are its directors. They used to issue advertisements in different newspapers and invite people to invest in different schemes run by the respondent No.1 company assuring them handsome returns. Initially, it was revealed that the 2 CRA-363-08.sxw respondent No.1 had received amount of Rs.10,81,00,000/- from the public at large under various schemes. It was revealed that the respondents had not obtained any permission or licence from the Reserve Bank of India for operating any such schemes inviting deposits or investments. They had spent an amount of Rs.46 lakh for purchasing office premises at Mayurpankh Building, Thane and Rs. 13 lakh for office furniture. They had also invested amount of Rs.2,50,00,000/- for purchase of buses and cars for tourist business. They were having an account No. 003505008388 with ICICI Bank, Ram Maruti Road Branch, Thane (W) in which there was a balance of Rs.4,83,00,000/-. In their another Account No. 006820110000125, there was a balance of Rs.7 lakh and they had cash of Rs.25 lakh. It appears that they used to generate huge profit of Rs.80 lakh every month from the business of cars, while they had to pay Rs.1,80,00,000/- to the investors as the returns. To cover the difference between the profit and the liability, they used to invite and induce fresh investors. As soon as the the difference would become wider and the investment would stop, the company was likely to close and the directors were likely to abscond. The investigation of the case was transferred to the Economic Offences Wing on 29.8.2007 by the Commissioner of Police. The Investigating Officer recovered an amount of Rs.29,40,000/- and seized certain important documents. He applied for sealing and freezing three Bank accounts and also certain vehicles and office premises. The learned Magistrate 3 CRA-363-08.sxw granted the application. However, in Misc. Application No.21/2008, the Sessions Court, Thane, directed to de-seal the above referred two accounts with condition that the amount would be used for repayment to the investors. This Revision Application was filed for setting aside that order. 3. By order dated 9.7.2009, detailed directions were given by this Court to the Investigating Officer to call the claims of the investors of the respondent No.1 company. Thereafter also certain orders were passed from time to time and in response to the directions of this Court, on 3.2.2010 , the Assistant Commissioner of Police Arun Babanrao waghmare has filed his affidavit giving details of the investigation. Out of three accounts sought to be sealed, in one account,there was just an amount of Rs.17,850/-. In the above referred two accounts, there was substantial amount. It was revealed that in all 4220 investors had invested the amount of Rs.35,81,99,639/-. Out of that, the respondents had repaid amount of Rs.7,77,40,471/- to the investors as per the scheme. Balance amount of the investors is still to the tune of more than Rs.28 crores. The affidavit also shows that from ICICI Bank Account, total amount of Rs.5,17,20,480/- was withdrawn by the respondents and from Bank of India Account they had withdrawn amount of Rs.67,70,000/-. The learned APP, on instructions from the Investigating Officer, makes a statement that broadly this amount has been used 4 CRA-363-08.sxw for repayment. Now hardly there is any amount in these two accounts which were allowed to be de-freezed. The learned APP concedes that due to this development, hardly any purposed will be served by interfering with the order passed by the Sessions Court de-sealing these two accounts. The learned APP also states that the office premises are still under seal. Certain vehicles are seized and an application has been moved before the Metropolitan Magistrate seeking permission to dispose of those vehicles in the interest of investors. He also informs that the respondents appear to have three more galas or shops, but so far they could not find any other immovable property. He also states that both the directors i.e. respondent Nos. 2 and 3 are absconding and a proclamation against them has been issued by the learned Magistrate. It is also pointed out that some of the investors want to continue with their schemes, while some want to withdraw their amounts. 4. In view of the above facts and circumstances, no purpose will be served by setting aside the order passed by the Sessions Court de-sealing the above referred two accounts of respondent No.1.Therefore, this Revision Application stands dispsed of with following directions :- The learned Magistrate shall hear the application of the prosecution and pass appropriate order at the earliest in respect of disposal of the property of 5 CRA-363-08.sxw the respondents sealed by the police so that the amount which may be recovered may be repaid to the investors who want to withdraw. The investigating agency shall continue to find out other movable or immovable properties which the respondents may have so that the said property may also be available to satisfy the claims of the investors. Revision Application stands disposed of accordingly. (J.H.BHATIA,J.)