The Bombay High Court, Nagpur Bench has partly allowed a batch of criminal applications seeking quashing of an FIR in a ₹50 crore investment fraud case linked to the ‘PLC Ultima’ crypto-based investment scheme, holding that mere presence at a seminar is insufficient to attract criminal liability. A Division Bench of Justice Urmila Joshi-Phalke and Justice Nandesh S. Deshpande quashed proceedings against four accused persons, while refusing to grant relief to one of the applicants against whom prima facie material indicated direct receipt and misuse of investor funds.
The case arose from an FIR registered at the Civil Lines Police Station, Akola, on a complaint alleging offences under Sections 406 and 420 read with Section 34 of the Indian Penal Code. The complainant alleged that the applicants induced him and several others to invest in their new business by promising exorbitant returns. The complainant also alleged that the “inducement” included a representation that if investors deposited money in Indian currency, they would receive returns in dollars. It was alleged that promotional seminars were organised to attract investors, pursuant to which investments in the “Platin Ultima Scheme” exceeded ₹50 crore.
The accused thereafter approached the Bombay High Court by filing applications under Section 482 of the Code of Criminal Procedure, seeking quashing of the FIR and the proceedings arising therefrom.
After examining the FIR and investigation material, the Court noted that, except for allegations of inducement and presence at the seminar, no specific role was attributed to four of the applicants to show misappropriation or cheating. The Bench held that compelling them to face trial in the absence of prima facie material would amount to an abuse of the process of law.
However, in the case of one applicant, witness statements and bank records revealed that he had personally received cash from investors and withdrawn amounts for his own benefit. The Court found that sufficient material existed to proceed against him and declined to quash the FIR insofar as he was concerned.
Accordingly, the FIR was quashed against four applicants, while some proceedings against one of the accused were allowed to continue.
Appearances
Shri Ashish Deep Verma, Senior Advocate assisted by Shri Prashant Vyas, Advocate for applicants.
Mrs. Sneha Dhote, Additional Public Prosecutor for Non-applicant No.1- State.
