First leasing 482 copy

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.



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



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.



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



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.



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



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



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



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



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



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.



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



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



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;



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



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.



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






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.



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




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






IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR


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



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






IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN

AT JODHPUR


Petitioner Versus Non-petitioner State of Rajasthan

I N D E X

Place: Jodhpur Date : 06.03.2014 (Suresh Kumbhat) (B.K. Bhatnagar)



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.

Documents

First leasing 482 copy