first leasing 482 copy
TRANSCRIPT
Page 1 of 22 SB Criminal Misc. Petition No. _____/2014
Tribhuvan Raj Bhandari v/s. State of Raj.
IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN
AT JODHPUR
S.B. CRIMINAL MISC. PETITION NO. ____________/2014
Petitioner/Complainant:
Tribhuvan Raj Bhandari son of Late Shri S.R. Bhandari, resident
of “Gulab Vatika”, Paota B Road, PS Mahamandir, Jodhpur.
Versus
Non-petitioner:
State of Rajasthan.
S.B. CRIMINAL MISC. PETITION UNDER SECTION 482
OF Cr.P.C. FOR FAIR AND IMPARTIAL INVESTIGATION
IN FIR NO. 580/2013 PS MAHAMANDIR, DISTRICT
JODHPUR FOR OFFENCE U/S. 420, 406, 467, 468,
471, 477A, 120B OF IPC AND SECTION 68, 217, 292A,
628 OF COMPANIES ACT, 1956.
TO,
THE HON’BLE CHIEF JUSTICE AND OTHER PUISNE JUDGES OF
THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT
JODHPUR.
MAY IT PLEASE YOUR LORDSHIPS,
The Petitioner most humbly prefers this petition on the following
facts and grounds:
B R I E F F A C T S
1. That on 09.10.2013, the Petitioner/complainant preferred a
criminal complaint before the Court of learned Additional
Chief Judicial Magistrate No. 3, Jodhpur Metropolitan,
Jodhpur [hereinafter referred to as learned “Trial Court”].
The learned Trial Court sent the matter for investigation
u/s. 156(3) of Cr.P.C. on 11.10.2013 to PS Mahamandir,
and accordingly, on 11.11.2013, the FIR was registered for
offences u/s. 420, 406, 467, 468, 471, 477A, 120B of IPC
and Section 68, 217, 292A, 628 of Companies Act, 1956.
Page 2 of 22 SB Criminal Misc. Petition No. _____/2014
Tribhuvan Raj Bhandari v/s. State of Raj.
2. The Petitioner alleged that M/s. First Leasing Company of
India Limited [hereinafter referred to as “Company”], is a
public limited company under the provisions of Companies
Act, 1956 and is also a Non Banking Financial Institution
[NBFI] under Section 45IA of the Reserve Bank of India Act,
1934.
3. That the main objects of the company as depicted by the
Company’s promotors in its Memorandum of Association,
[which is constitution governing the Company], is to indulge
in the leasing and hire purchase business in India. The
object of the Company, as shown, is to purchase and
acquire dominion over all forms of immovable and movable
properties including machinery, equipments, motor vehicles,
buildings, cinema houses, animals, ships, aero planes and
to lease and otherwise deal with them including reselling the
same. Apart from this, it was also depicted that the
Company is authorized to carry on the business of
repossessed to engage and deal in the business of
generation, transmission, sale, supply and distribution of
electricity and other allied objects of the Company,
according to which the Company, since 1974, has
increasingly marked its presence and the Company’s shares
are listed on Bombay Stock Exchance [BSE] and National
Stock Exchance [NSE], which indicates that any investor
could purchase and sale the shares of the Company in open
market, which is also a mark of good reputation of the
Company.
4. That as per the information of the Complainant, the present
and earlier Board of Directors, which are and were having
actual control over the affairs of the Company and who are
and used to be the Trustee of the shareholders of the
Company, are as follows:
i. Dr. A.C. Muthiya son of Shri M.A. Chidambram
[Accused No. 1]:- who being the promoter of the
Company, has been Chairman of the Company since
past may years and who while representing and
Page 3 of 22 SB Criminal Misc. Petition No. _____/2014
Tribhuvan Raj Bhandari v/s. State of Raj.
heading the Company and controlling the affairs of
the Company, is the face of Muthiya Group of
Companies, which indicates his personality of high
goodwill and repute.
ii. Farookh Irani [Accused No. 2]:- who being the
Managing Director of the Company is also Member of
the Audit Committee of the Company for past several
years.
iii. Maharaja Jai Singh [Accused No. 3]:- who being
Director of the Company for the relevant time, and
also Chairman and Member of the Audit Committee of
the Company.
iv. V. Selva raj [Accused No. 4]:- who being a Director of
the Company, is also Member of the Investors
Grievance Committee of the Company.
v. N. Ramakrishnan [Accused No. 5]:- who being Director
of the Company, is also Member of the Audit
Committee of the company.
vi. Vishwanath Tummu [Accused No. 6]:- who being
Director of the Company at the relevant time.
vii. A. Satish Kumar [Accused No. 7]:- who being Director
of the Company, is also Member of the Audit
Committee of the company.
viii. Babu K. Verghese [Accused No. 8] – earlier Director at
the relevant time.
ix. M.B. Sridharan [Accused No. 9] – Director at the
relevant time and Member of the Audit Committee.
x. V.S. Dhanashekhar [Accused No. 10] – Director at the
relevant time.
xi. M.D. Narayan [Accused No. 11] – Director at the
relevant time.
Page 4 of 22 SB Criminal Misc. Petition No. _____/2014
Tribhuvan Raj Bhandari v/s. State of Raj.
It is pertinent to mention here that Section 217 of the
Companies Act, 1956 codifies the responsibilities of the
Directors of the companies, which would bear relevance qua
its reference to the reports of the Board of Directors, Balance
Sheets etc.
5. That as per the information of the Petitioner, the Company’s
Chief Financial Officer [CFO] is S. Shivram Krishnan
[Accused No. 12], who is responsible for all the financial
affairs of the Company and whose knowledge and
involvement in the financial affairs of the Company is
prerequisite for the Company’s financial operations.
Furthermore, for Year 2004-05 - Ms. Deepa Chellam
[Accused No. 16] and for Year 2005 – 2012 - Mr. N. Kumar
[Accused No. 14] have been the Company Secretary of the
Company, whose responsibility has been to ensure the
Company’s affairs being carried out within the boundaries of
law while ensuring compliance of the same.
It is pertinent to mention here that the Company’s Audit
Committee [which presupposes the presence of the members
being experienced, specialized and persons with high repute
and background], qua which the duties and responsibilities
are mandated/enshrined in Section 292A of the Companies
Act, 1956, includes the review of quarterly and Annual
Financial Results and interaction with the Statutory and
Internal auditors and heads of Finance to ensure compliance
of Internal Control Systems etc.
6. That for past several years, the Internal auditors of the
Company have been M/s. M.K. Dandeker and Company,
Chartered Accountants [Accused No. 17], which is a well
known publically reputed and professional Chartered
Accountants Firm. Section 227 of the Companies Act, 1956
enshrines their duties and responsibilities and the Internal
Auditors, Statutory and Tax Auditors, both are governed by
the Code of Conduct of Institute of Chartered Accountants
of India [ICAI]; and the accounts books etc. so audited by
them presupposes the compliance and implementation of
Page 5 of 22 SB Criminal Misc. Petition No. _____/2014
Tribhuvan Raj Bhandari v/s. State of Raj.
their Code of conduct, duties and responsibilities so
enshrined.
7. That similarly, the Company’s Statutory and Tax Auditor viz.
M/s. Sarthi and Balu, Chartered Accountants [Accused No.
18], which is a well known reputed Chartered Accountant
firm, and whose partner CA N.R. Sreedharan having CA
membership no. 015527 [Accused No. 19] and CA V.
Balasubramanyam having CA institute Membership no.
18444 [Accused No. 20]. Section 227 of the Companies Act,
1956 enshrines their duties and responsibilities and the
Internal Auditors, Statutory and Tax Auditors, both are
governed by the Code of Conduct of Institute of Chartered
Accountants of India [ICAI]; and the accounts books etc. so
audited by them presupposes the compliance and
implementation of their Code of conduct, duties and
responsibilities so enshrined.
8. That in relation to the Company’s performance, its financial
and economic status, goodwill etc., under the SEBI [Credit
Rating Agencies] Regulations, 1999, there are certain
distinguished and reputed “Credit Rating Agencies” amongst
which there are “Credit Analysis & Research Limited” [which
is known as “CARE”] [Accused No. 22], and whose Managing
Director Mr. DR Dogra, Deputy Managing Director – Rajesh
Mokashi, Vice President (Banks and Financial Services) –
Ankur Sachdeva [Accused No. 23, 24, 25 respectively] and
M/s. Brick Work Ratings India Private Limited and whose
Vice President (Business Development) – KC Holla, Business
Development Head - R. Ravichandran [Accused No. 26, 27,
28] are there, who have given the rating of AA or its
equivalent higher rating, which has its significant
contribution in attracting, instigating and magnetizing the
investors. All the credit rating agencies are responsible and
liable to give the credit rating to the companies in
consonance with SEBI [Credit Rating Agencies] Regulations,
1999 and the code of conduct because based on these
ratings, the investors confide in a particular company and
are propelled to invest in the same.
Page 6 of 22 SB Criminal Misc. Petition No. _____/2014
Tribhuvan Raj Bhandari v/s. State of Raj.
9. That the Company’s responsible officials, auditors etc. also
depicted vide various modes regarding the Company’s
position that as against the gross Total NPA which remains
at the level of 2 – 7% [Banks and NBFC(s)], the Company’s
NPA is merely at level of 0.5% and considering the
Company’s outstanding financial standing, it has been given
financial assistance by 14 Banks [which presently stands to
the tune of Rs. 1,200 Crores].
10. That furthermore, while attaining/generating the goodwill
on the basis of big numbers as depicted through the
Company’s Balance Sheets, Profit and Loss Accounts, Board
of Directors Reports, Fund Flow, Dividend declaration,
Ratings, Track record etc., the Company’s Directors, and
officials in the backdrop of the presenting a long standing,
great track record of the financial and economic affairs of
the Company, have received the funds from various
categories of investments from various investors of India to
the tune of more than Rs. 1,500 crores. For ensuring this,
the Company’s officials portrayed and depicted the
increasing intrinsic value of the shares year by year, which
in the beginning started with the face value of Rs. 10/- per
share, which went to Rs. 10.94 in the Year 1974 and till the
Year 2010 the intrinsic value of the share was depicted at
Rs. 106.01 per share. The Company’s officials have
portrayed the intrinsic value of the shares increasing year
by year in their track record; whereas the market value of
the share always remained lesser than the market price, in
which situation, the investor was tempted and propelled to
purchase such a share, by which conspiracy, it became
possible for the officials of the Company to propel and
instigate the investors to invest in the Company.
11. That on the basis of the instigations as mentioned herein
above viz. the Balance sheets, Profit and Loss Accounts,
Board of Directors Reports, Fund Flow, Dividend
declaration, Ratings, Track record etc., which was shown by
the Company’s officials for past more than 20 years, on the
basis of which while believing depiction of the development
and growth of the Company and while being instigated and
Page 7 of 22 SB Criminal Misc. Petition No. _____/2014
Tribhuvan Raj Bhandari v/s. State of Raj.
believing that his capital investment would remain safe and
there is existence of all possibilities of getting returns on his
investments, the Complainant from Year 2011 started
investing in the shares of the Company. The Complainant
did the investments from Jodhpur through the D-Mat
account no. 12013700-00292894.
12. That from Year 2011 – 13, the Complainant from Jodhpur
has invested approx. Rs. 1.75 crores in purchasing the
shares of the Company being instigated from and while
believing and propelled by the remarkable sound track
record so portrayed and widely publicized by the Company’s
officials in public domain in various news papers,
magazines, other platforms including electronic and ditigal
media, while publicising the Balance Sheet and Profit &
Loss account / financial statements and the credit rating of
the Company been given by credit rating agencies [Accused
No. 22 to 28].
13. That in the recent past, Reserve Bank of India [RBI] gave a
notice of inspection to the Company under Section 45N of
the RBI Act on 21.08.2013 in the proceedings in
TNBS/CHE-352/13.03.2001-2013-12 giving direction to the
Company to submit its accounts for inspection.
14. That the RBI, from 26.08.2013 to 10.09.2013, carried out
the inspection of the accounts inter alia the Balance sheets,
ledger accounts, books etc. of the Company. During the
course of inspection, the RBI wrote a letter dated
04.09.2013 to the Managing Director of the Company clearly
stating that “the data dumps of loan/lease assets
scrutinized as a part of the inspection indicates an
overstatement of assets as well as earnings….” Based on
the findings, the RBI thereby directed them to recast the
Balance sheet and Profit & Loss account along with the data
dumps supporting the recasted accounts.
15. That the Company as per the aforementioned directions of
the RBI, the Company’s recasted Balance sheet as well as
the Profit & Loss Account for the Year ended 31.03.2013
Page 8 of 22 SB Criminal Misc. Petition No. _____/2014
Tribhuvan Raj Bhandari v/s. State of Raj.
were submitted, which astonishingly revealed sweepingly
down figures to the tune of approx. Rs. 1,676 Crores.
Surprisingly, just for an example, “Stock on Hire” as shown
as per the Balance sheet was Rs. 1,588.35 crores whereas
when recasted, the actual figures of the same sweepingly
came down to merely 30.52 crores, meaning thereby, the
“Stock on hire” was actually shown to be on higher valuation
in the Company’s books of accounts and Balance Sheet by
more than 52 times, which actually does not exist in reality.
This clearly indicates that the asset “Stock on hire” worth
Rs. 1,557.83 crores actually does not exist. This clearly
indicates towards the criminal conspiracy that the amounts
shown to have been invested in the said head either did not
exist or while depicting the same to such high amounts, the
accused persons have actually with criminal intent have
while siphoning off the same, have actually drained to the
pockets of the accused persons.
Similarly, the asset “Net Lease Investments”, which as per
the Balance sheet are shown to be figured at Rs. 176.4284
crores; whereas the same after the Balance sheet so
recasted came down to Rs. 114.6258 crores. This further
indicates that the accused persons while conspiring have
dishonestly took away the differential amount from the
Company.
Similar is the case with the Loans and Advances, more
specifically, the Unsecured loans and advances which were
depicted at Rs. 35.5504 crores, which also surprisingly
disappeared. Also, the Fixed Assets - Intangible which was
depicted at Rs. 3.38 crores, does not exist as per the
recasted accounts so submitted before the RBI.
Furthermore, it is worth consideration that the Company’s
assets were depicted to be overvalued by approx. Rs. 1,676
Crores and the company’s Net Operating Funds [as defined
u/s. 45IA of the RBI Act] completely vanished as per the
recasted accounts. Even the Reserve Bank of India has
fortified the aforementioned facts, which proves that without
the cooperation, connivance and active participation of the
Page 9 of 22 SB Criminal Misc. Petition No. _____/2014
Tribhuvan Raj Bhandari v/s. State of Raj.
concerned related persons, this criminal conspiracy at
grand scales could not have been effectuated.
16. That in the aforementioned facts and circumstances, it is
clear that the accused persons while conniving and joining
hands with each other have managed to create a flimsy/rosy
picture of the state of affairs of the Company by creating
bogus and/or fabricated books of accounts which actually
speaks volumes about the long standing modus operandi,
have instigated and propelled general Investors, Banks and
public at large by instigating and making them believe
towards a seemingly safe investment and accordingly, while
shadowing the amount so invested by the aforementioned
investors, banks etc. in the depiction of net of big numbers
and while criminally conspiring with each other, have
siphoned off for their benefit or otherwise, and have
committed a fraud and accordingly the SCAM took place with
years’ long executed planning, of the huge amount, which
was received by them while instigating and propelling the
investors and public at large, over which they had dominion
to keep it safe and to equitably invest as a Trustee and of
which the proper management of the same was their duty
and responsibility; disregarding which the same was
siphoned off in a sheer breach of trust to the loss of the
investors.
It is worth appreciation and also pertinent to mention here
that altogether distinct and separate from the ups and
downs of the prices and nitty grities of the market, in the
manner aforementioned, posterior to RBI’s directions to
recast the financial statements, almost all the assets
witnessing without any value in most of the categories,
dishonestly siphoning off of the invested capital of public at
large in furtherance to a criminal conspiracy by the officials
of the Company and related persons, agencies for long
number of years is clearly indicative of the SCAM and the
fraud played by the accused persons.
17. That for long many number of years, since the accused
persons while hands in gloves managed to falsely depict the
grand asset base so invested by the Company in various
Page 10 of 22 SB Criminal Misc. Petition No. _____/2014
Tribhuvan Raj Bhandari v/s. State of Raj.
assets and owing to which the Company earned huge profits,
and accordingly, they paid huge dividends of 18% - 36% for
many years, which all fraudulently lured the investors, to
invest in the Company and in the manner aforementioned the
accused persons in a very planned manner and with criminal
inventions, dishonestly and fraudulently siphoned off the
funds which was invested by the public at large to the tune of
approx. Rs. 1500 crores, in reality behind the curtain to their
pockets and accordingly the SCAM took place with years’
long executed planning to the wrongful loss of the investors
and accordingly became a tool of causing illegal and undue
and wrongful benefits to themselves or their persons.
18. That furthermore, it is clear that for long number of Years,
the Director’s Responsibility Statement issued in terms of
Section 217(2AA) of the Companies Act, 1956 indicating
that the annual accounts have being prepared in
consonance with the applicable accounting standards; that
the Directors had selected such accounting policies and
applied them consistently and made judgments and
estimates that are reasonable and prudent so as to give a
true and fair view of the state of affairs of the company at
the end of the financial year and of the profit or loss of the
Company for that period; and that the Directors had taken
proper and sufficient care for maintenance of adequate
accounting records in accordance with the provisions of this
Act for safeguarding assets of the Company and for
preventing and detecting fraud and other irregularities;
whereas the aforementioned facts and circumstances clearly
portray an absolutely contrary picture indicating that the
same are per se false, misleading and falsely made for the
willful criminal acts done under the criminal conspiracy, not
only the Board of Directors but also other connected
persons, agencies etc. while they being hands in gloves. In
this manner, a false certificate in giving effect to criminal
conspiracy by the accused persons more so Board of
Directors is clearly proved.
19. That the RBI vide its Order dated 13.09.2013 bearing
number DNBS(Che)/512/13.23.513/2013-14 issued to the
Page 11 of 22 SB Criminal Misc. Petition No. _____/2014
Tribhuvan Raj Bhandari v/s. State of Raj.
Managing Director of the Company clearly stated that “THE
INSPECTION REVEALED THAT THE COMPANY HAS
BEEN OVER SEVERAL YEARS FALSIFYING ITS BOOKS
OF ACCOUNTS AND OTHER FINANCIAL STATEMENTS,
THEREBY PORTRAYING A POSITIVE NET WORTH. THE
COMPANY HAS NEGATIVE NET OWNED FUND (NOF) AND
HAS BEEN INCURRING LOSSES YEAR ON YEAR. THE
COMPANY HAS ALSO BEEN VIOLATING THE RESERVE
BANK’S REGULATIONS AND REPORTING FALSE
INFORMATION IN ITS REGULATORY RETURNS”.
Accordingly vide its Order dated 13.09.2013, RBI while
exercising its powers under Section 45J and 45 L of the RBI
Act in the public interest and to prevent the affairs of the
Company being conducted in a manner prejudicial to the
interest of the Company itself, directed the Company not to
alienate its assets. Accordingly, RBI directed that till further
orders the Company shall be prohibited from:
a. sell, transfer, create charge or mortgage or deal in any
manner with its property and assets without prior
written permission of the RBI; and
b. transacting any business; and
c. incur any further liability; and
d. incur any further liabilities.
20. That it is clear from the aforementioned facts and
circumstances that the Internal and External/Statutory and
Tax Auditors – [Accused no. 17 to 21] have dishonestly and
while acting hands in gloves in the criminal conspiracy
actively participated in the said criminal acts and
intentionally gave certificates of the false and fabricated
accounts being true and correct, which proves them
criminally responsible towards the same.
Similarly the relevant Credit Rating Agencies [Accused no.
22 to 28] have given false credit rating to the Company. The
high credit rating, though the situation does not exist,
proves their active participation in the said criminal
conspiracy.
Page 12 of 22 SB Criminal Misc. Petition No. _____/2014
Tribhuvan Raj Bhandari v/s. State of Raj.
The Company’s Audit Committee and its members,
Chairman etc. also while intentionally shutting their eyes,
and while hands in gloves with the Company’s officials and
other accused persons, have conspired with them and have
kept / made the Internal Control System completely
ineffective and merely completing the formalities, proves
their active participation in the wide level SCAM with the
invested amount of public at large and thus, makes them
criminally liable and affixes their responsibility in the
aforementioned crime.
21. That when the petitioner got some knowledge of the
aforementioned criminal acts, the petitioner along with his
Chartered Accountant Shri Devendra Mandora went to meet
the Managing Director [Accused no. 2] of the Company,
where he also met the Company Secretary Ms. Sheetal R
[Accused no. 13] and the CFO and enquired about the
aforementioned, on which, they admitted qua the
prohibitory order being issued by RBI post inspection while
endeavouring to ensure the Complainant that they have
preferred a Writ Petition No. 25961/2013 before the Hon’ble
Madras High Court for getting quashed and set aside the
aforementioned Order and resultant action so passed by
RBI, gave a copy of the said writ petition to the Petitioner,
which is in essence admission of the aforementioned
criminal acts of the accused persons of criminal conspiracy,
fraud etc. The Petitioner has also come to know that the
said writ petition was “Dismissed as withdrawn” before the
Hon’ble Madras High Court.
22. That the Petitioner has also came to know that the
Company had made huge investment in the Credit Rating
Agency “CARE” [Accused No. 22], which in the Year 2011
was sold off by the Company for Rs. 54 crores; which
further fortifies that the factum of CARE [Accused No. 22]
being interested in the Company, owing to which while
entering into criminal conspiracy and ignoring the
applicable rules and defying the Code of Conduct have given
a credit rating of AA and/or higher rating on a continuous
Page 13 of 22 SB Criminal Misc. Petition No. _____/2014
Tribhuvan Raj Bhandari v/s. State of Raj.
basis, which also clarifies their active involvement in the
said criminal conspiracy.
23. That the Company is an artificial legal person and which
authorizes its officials to carry out its functions in the
boundaries defined in the Memorandum of Association. The
lawful acts done in consonance with the Memorandum of
Association, which is the constitution of the company, are
done by the Company is the legal presumption; but when
the Company’s officials while crossing the boundaries of
such constitution, defy the code of conduct and work
against the interest of the Company and its shareholders
and does criminal conspiracy, fraud, breach of trust etc.
criminal acts, then they themselves are liable for the said
acts and which cannot be termed as the act of the
Company, as is visible that the Board of Directors are
personally liable for this aforementioned criminal conspiracy
and acts.
24. That the petitioner, on being instigated and propelled by the
criminal conspiracy of the accused persons, invested
through the stock exchange in the said company and has
entered into the shoes of the investor and all the accused
persons became responsible as per their respective code of
conduct and the Board of Directors became the trustee of
the complainant’s investment.
25. That in the manner aforementioned the petitioner’s interests
have been adversely affected owing to the false and
fabricated results and sound track records being so
published by the accused persons and for hiding the same
in the net of the numbers, Balance sheet, Profit and Loss
account, Fund flow, Dividend declaration, Board of
Directors reports, Rating and Track record etc. were
prepared dishonestly and to depict them as per law, false
certifications etc. were given, owing to which the
complainant’s interests have been adversely affected. When
the said figures became clear post RBI inspection, the
complainant has come to know that owing to the criminal
conspiracy of the accused persons, he has suffered with a
Page 14 of 22 SB Criminal Misc. Petition No. _____/2014
Tribhuvan Raj Bhandari v/s. State of Raj.
big economic loss and also the interest of the public at large
has also been adversely affected owing to the said SCAM.
26. That the accused persons, in order to give effect to the
criminal conspiracy, published and depicted the sound
growth and track records of the company through various
sources including electronic modes, internet, reports etc.,
which the Complainant got in Jodhpur, and accordingly,
was instigated in Jodhpur, and from Jodhpur, has invested
from his d-mat account in the said company. And the
accused persons have committed breach of trust with the
complainant and other investors throughout India and
committed the SCAM. The petitioner has suffered the same
in Jodhpur, which is a result of long standing series of acts
being part of criminal conspiracy and which comes within
the jurisdiction of the Courts hereat. Accordingly, the
petitioner requested to take action against the accused
persons who have committed the illegal acts and the SCAM
committed upon innumerable investors thoughout India.
27. The police started investigation in the captioned FIR, but no
apposite investigation took place in an impartial and fair
manner till date since the accused persons are adopting
unfair pressure tactics to hinder and throttle fair and
independent investigation. The accused persons are
pressurizing and misleading the police by twisting, and
thus, attempting to get away from the case registered
against him, and hence, fair and independent investigation
in proper manner is not being undertaken. Despite the
unequivocal evidences of the crime so committed in the case
by the accused persons and despite their own admission in
the writ petition so preferred before the Hon’ble Madras
High Court and the undifiable documentary evidences, no
apposite action has been taken by the investigating agency
till date, even after long passage of time.
28. Being aggrieved and dissatisfied by the same, the petitioner
prefers the present petition while invoking inherent powers
of this Hon’ble Court on the following amongst other
grounds, which may be urged at the time of hearing;
Page 15 of 22 SB Criminal Misc. Petition No. _____/2014
Tribhuvan Raj Bhandari v/s. State of Raj.
G R O U N D S
1. That the captioned FIR and the documentary evidences so
made available by the Complainant and the statements so
given to the Police unequivocally indicates the commission of
a crime of such a gravity, a SCAM of approx. Rs. 1,676
Crores, where the complainant being one of the victim
amongst the public at large, whose hard earned money was
siphoned off by the accused persons in the manner
aforementioned. Despite that, the police has not carried out
apposite investigation and/or taken any apposite action
against the culprits.
2. That since the date of recording of FIR, no apposite fair
investigation took place till date since the accused persons
are adopting one or the other unfair pressure tactics to hinder
and throttle fair and independent investigation.
The RBI carried out the inspection and during that, the
accused persons submitted the re-casted balance sheet
revealing dreadful picture of the state of affairs of the
company, which clearly indicates that while criminally
conspiring with each other, the accused persons used to
manage to show the assets at those high scales, siphoned off
the funds of the investors through out India and without the
connivance of all, the SCAM of these levels could not have
taken place.
Post that, even the Reserve Bank of India, in larger public
interest, has issued a prohibitory order against the company.
Not only this, the accused persons have admitted the factum
of recasted accounts, which reveal their whole conspiracy,
before the Hon’ble Madras High Court in a writ petition,
which they were constrained to withdraw.
The whole scenario speaks volumes of the crime so committed
by the accused persons, who while hands in gloves, have
managed to siphon off the funds of the general public and
investors through out India. Despite this, no apposite action
has been taken against the accused person till now, which
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Tribhuvan Raj Bhandari v/s. State of Raj.
clearly indicates that fair and independent investigation in
proper manner is not being undertaken.
3. That the accused persons are highly influential persons, who
have strong political and other connections and while
adopting one or the other iniquitous tactics and means are
trying to hamper and throttle the just and fair investigation to
take place, and hence, there seems no possibility of truth
coming forth.
4. That since the accused persons are sound enough and
affecting the true and fair investigation to take place even till
date and also since nothing substantial has happened in the
said investigation against the accused persons till date, the
petitioner has no ray of hope that just, fair and true
investigation shall take place in near future.
5. That it is clearly contemplated under Indian criminal
jurisprudence that an investigation should be fair, in
accordance with law and should not be tainted. Furthermore,
it has to be ensured that the influential persons are not able
to misdirect or hijack the investigation so as to throttle a fair
investigation resulting in the offenders escaping the punitive
course of law.
6. That the basic purpose of an investigation, which is to bring
out the truth by conducting fair and proper investigation in
accordance with law and ensure that the guilty are punished,
is getting aborted in the present case.
7. Therefore, it would be in the interest of justice that the fair
and further investigation be ordered to be carried out in the
captioned FIR, so that just, fair and impartial investigation
could take place in arriving at the truth to achieve the
objective of real and substantial as well as effective justice
and apposite action be taken against the culprits.
8. That the Petitioner craves leave to refer to and rely upon
further grounds which may be urged at the time of hearing.
Page 17 of 22 SB Criminal Misc. Petition No. _____/2014
Tribhuvan Raj Bhandari v/s. State of Raj.
PRAYER
It is, therefore, prayed that the petition may kindly be allowed
and:
a. Fair and impartial further investigation may kindly be
ordered in the matter; and/or
b. the investigation be transferred to CBI for fair and impartial
further investigation; and
c. any other appropriate/consequential orders or directions
which may be deemed just and proper in the facts and
circumstances of the case may be passed.
Your Lordships’ humble Petitioner
through his Counsel
(Suresh Kumbhat) (BK Bhatnagar)
(Sheetal Kumbhat) (Kunal Kanungo) (S. Sachdeva)
Counsel for the Petitioner
Notes: 1. No such Petition has been filed before this Hon’ble Court or the Hon’ble Apex Court.
2. A copy of this petition has been served on the Ld. Public Prosecutor. 3. The Petition has been typed by my private steno at my chambers.
4. That since the pie papers are not available, hence, is submitted on stout papers.
Place: Jodhpur.
Date : 06.03.2014
(Suresh Kumbhat) (BK Bhatnagar)
(Sheetal Kumbhat) (Kunal Kanungo) (S. Sachdeva)
Counsel for the Petitioner
Page 18 of 22 SB Criminal Misc. Petition No. _____/2014
Tribhuvan Raj Bhandari v/s. State of Raj.
IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
S.B. Criminal Miscellaneous Stay Petition No. ____________/2014
In
S.B. Criminal Miscellaneous Petition No. ________/2014
Petitioner/Complainant:
Tribhuvan Raj Bhandari son of Late Shri S.R. Bhandari, resident
of “Gulab Vatika”, Paota B Road, PS Mahamandir, Jodhpur.
Versus
Non-petitioner:
State of Rajasthan.
S.B. CRIMINAL MISC. STAY PETITION U/S 482 CR.P.C
TO,
THE HON’BLE CHIEF JUSTICE AND OTHER PUISNE JUDGES OF
THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT
JODHPUR.
MAY IT PLEASE YOUR LORDSHIPS,
The Petitioner most humbly and respectfully submits as under:
1. That the Petitioner has preferred the captioned Miscellaneous
Petition before this Hon’ble Court for fair, impartial further
investigation in the captioned FIR.
2. The Petitioner craves leave to refer to and rely upon the
statement of Facts and the Grounds of Petition filed by the
Applicant at the time of hearing of this Application.
3. That there are very good and strong grounds and prima facie
case in the annexed petition and it is likely to be allowed.
4. That if the further proceedings are not stayed, the very
purpose of filing of the Petition will be frustrated.
Page 19 of 22 SB Criminal Misc. Petition No. _____/2014
Tribhuvan Raj Bhandari v/s. State of Raj.
5. That the Petitioner craves leave to refer to and rely upon the
further grounds which may be urged at the time of
hearing/arguments.
It is, therefore, respectfully prayed that till the disposal of the
captioned Miscellaneous Petition,
a. the final investigation report in FIR No. 580/2013 PS
Mahamandir, District Jodhpur, shall not be filed in the
matter; and
b. any other appropriate/consequential orders or directions
which may be deemed just and proper in the facts and
circumstances of the case may be passed.
Your Lordships’ humble Petitioner
through his Counsel
(Suresh Kumbhat) (BK Bhatnagar)
(Sheetal Kumbhat) (Kunal Kanungo) (S. Sachdeva)
Counsel for the Petitioner
Notes:
1. No such Petition in the matter has been filed before this Hon’ble Court or the Hon’ble Apex Court.
2. A copy of this petition has been served on the Ld. Public Prosecutor.
3. The Petition has been typed by my private steno at my chambers.
4. That the pie papers are not available, hence, is submitted on stout papers.
Place: Jodhpur
Date : 06.03.2014
(Suresh Kumbhat) (BK Bhatnagar)
(Sheetal Kumbhat) (Kunal Kanungo) (S. Sachdeva)
Counsel for the Petitioner
Page 20 of 22 SB Criminal Misc. Petition No. _____/2014
Tribhuvan Raj Bhandari v/s. State of Raj.
IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
S.B. CRIMINAL MISC. PETITION NO. ____________/2014
Petitioner Versus Non-petitioner Tribhuvan Raj Bhandari State of Rajasthan
S Y N O P S I S
Date Particulars
09.10.2013
11.11.2013
On 09.10.2013, the Petitioner/complainant preferred
a criminal complaint before the Court of learned
ACJM No. 3, Jodhpur. The learned Trial Court sent
the matter for investigation u/s. 156(3) of Cr.P.C. on
11.10.2013 to PS Mahamandir, and accordingly, on
11.11.2013, the FIR was registered for offences u/s.
420, 406, 467, 468, 471, 477A, 120B of IPC and
Section 68, 217, 292A, 628 of Companies Act, 1956.
21.08.2013 RBI gave a notice of inspection to the Company
under Section 45N of the RBI Act on 21.08.2013 in
the proceedings in TNBS/CHE-352/13.03.2001-
2013-12 giving direction to the Company to submit
its accounts for inspection.
04.09.2013
RBI, from 26.08.2013 to 10.09.2013, carried out the
inspection of the accounts inter alia the Balance
sheets, ledger accounts, books etc. of the Company.
During the course of inspection, the RBI wrote a
letter dated 04.09.2013 to the Managing Director of
the Company clearly stating that “the data dumps
of loan/lease assets scrutinized as a part of the
inspection indicates an overstatement of assets
as well as earnings….”
Based on the findings, the RBI thereby directed them
to recast the Balance sheet and Profit & Loss
account along with the data dumps supporting the
recasted accounts.
Company as per the aforementioned directions of the
RBI, the Company’s recasted Balance sheet as well
as the Profit & Loss Account for the Year ended
31.03.2013 were submitted, which astonishingly
revealed sweepingly down figures to the tune of
approx. Rs. 1,676 Crores.
13.09.2013 RBI vide its Order issued to the Managing Director of
the Company clearly stated that “THE INSPECTION
REVEALED THAT THE COMPANY HAS BEEN
OVER SEVERAL YEARS FALSIFYING ITS BOOKS
OF ACCOUNTS AND OTHER FINANCIAL
STATEMENTS, THEREBY PORTRAYING A
POSITIVE NET WORTH. THE COMPANY HAS
NEGATIVE NET OWNED FUND (NOF) AND HAS
Page 21 of 22 SB Criminal Misc. Petition No. _____/2014
Tribhuvan Raj Bhandari v/s. State of Raj.
BEEN INCURRING LOSSES YEAR ON YEAR. THE
COMPANY HAS ALSO BEEN VIOLATING THE
RESERVE BANK’S REGULATIONS AND
REPORTING FALSE INFORMATION IN ITS
REGULATORY RETURNS”.
13.09.2013 Accordingly vide its Order dated 13.09.2013, RBI
while exercising its powers under Section 45J and 45
L of the RBI Act in the public interest and to prevent
the affairs of the Company being conducted in a
manner prejudicial to the interest of the Company
itself, directed the Company not to alienate its
assets. Accordingly, RBI directed that till further
orders the Company shall be prohibited from:
a. sell, transfer, create charge or mortgage
or deal in any manner with its property
and assets without prior written
permission of the RBI; and
b. transacting any business; and
c. incur any further liability; and
incur any further liabilities.
The police started investigation in the captioned FIR,
but no apposite investigation took place in an
impartial and fair manner till date since the accused
persons are adopting unfair pressure tactics to
hinder and throttle fair and independent
investigation. The accused persons are pressurizing
and misleading the police by twisting, and thus,
attempting to get away from the case registered
against him, and hence, fair and independent
investigation in proper manner is not being
undertaken. Despite the unequivocal evidences of the
crime so committed in the case by the accused
persons and despite their own admission in the writ
petition so preferred before the Hon’ble Madras High
Court and the undifiable documentary evidences, no
apposite action has been taken by the investigating
agency till date, even after long passage of time.
Hence this petition.
Place: Jodhpur.
Date : 06.03.2014
(Suresh Kumbhat) (BK Bhatnagar)
(Sheetal Kumbhat) (Kunal Kanungo) (S. Sachdeva)
Counsel for the Petitioner
Page 22 of 22 SB Criminal Misc. Petition No. _____/2014
Tribhuvan Raj Bhandari v/s. State of Raj.
IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN
AT JODHPUR
S.B. CRIMINAL MISC. PETITION NO. ____________/2014
Petitioner Versus Non-petitioner State of Rajasthan
I N D E X
Place: Jodhpur Date : 06.03.2014 (Suresh Kumbhat) (B.K. Bhatnagar)
(Sheetal Kumbhat) (Kunal Kanungo) (S. Sachdeva)
Counsel for the Petitioner
S.NO PARTICULARS PAGE NO(s).
Synopsis
1. Memo of Petition 1 – 17
2. Memo of Stay Petition 18 – 19
DOCUMENTS
A. Certified copy of FIR No. 580/13 PS
Mahamandir, District Jodhpur and its typed
copy.