Allowed

M/S Gimatex Industries Pvt. Ltd. v. State by Cyber Crime Police Station

Karnataka HC25 Jul 2024CRL.P/5264/2019

Case brief

AI extract

What is this about?

The High Court set aside an order directing the release of frozen bank funds to a criminal complainant. The Court relied on an investigating officer's affidavit showing the funds originated from the petitioner's account and did not belong to the complainant. The Court directed the re-transfer of funds to the petitioner subject to an indemnity bond.

What did the court decide?

Impugned order set aside; funds directed to be re-transferred to petitioner's account upon execution of an indemnity bond.

M/S Gimatex Industries Pvt. Ltd. Vs State by Cyber Crime… — Money Laundering | Karnataka HC (2024)

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NC: 2024:KHC:29370 CRL.P No. 5264 of 2019

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25^TH DAY OF JULY, 2024 BEFORE

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THE HON'BLE MR JUSTICE N S SANJAY GOWDA CRIMINAL PETITION NO. 5264 OF 2019 (482)

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BETWEEN:

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M/S GIMATEX INDUSTRIES PVT. LTD., HAVING ITS REGISTERED OFFICE AND FACTORY AT MUZUMDAR WARD, HINGAGHAT & WANI THA-, HINGAGHAT, WARADHA DIST, MAHARASTRA REPRESENTED BY ITS DIRECTOR SRI. RAMESHCHANDRA H GANDHI

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…PETITIONER

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(BY SRI. P SRINIVASAIAH., ADVOCATE)

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AND:

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Digitally signed by KIRAN KUMAR R Location: High Court of Karnataka

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STATE BY CYBER CRIME POLICE STATION, BENGALURU, REP. BY IT’S SPP, HIGH COURT BUILDING, BENGALURU – 560001.

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SRI. ARUN KUMAR M.S. NO.6/1, 5^TH CROSS, LAKSHMI ROAD, SHANTHINAGAR, BENGALURU-560027.

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…RESPONDENTS

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(BY SMT. N. ANITHA GIRISH, HCGP FOR R-1, SRI. V. VINOD REDDY, ADV. FOR R-2.)

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THIS CRL.P IS FILED U/S.482 CR.P.C PRAYING TO SET ASIDE THE ORDER DATED 12.07.2019 IN CR.NO.274/2019 AS PER ANNEXURE-Q RELEASING THE AMOUNTS IN SBI, BENGALURU IN A/c NO.64187476490 IN THE NAME OF MYS

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NC: 2024:KHC:29370 CRL.P No. 5264 of 2019

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ELECTRONICS AND BANK OF BARODA A/C NO.12630100017568 PENDING COMPLETION OF INVESTIGAION IN CRIME NO.325 OF 2019 BY CYBER CRIME, WARADHA (MH) ETC.

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THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM : HON'BLE MR JUSTICE N S SANJAY GOWDA

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ORAL ORDER

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The petition is filed challenging the order dated 12.07.2019 by which the Magistrate has allowed the application filed by Arunkumar M.S. and has directed the office to give an intimation to the concerned investigating officer to direct the ICICI Bank to defreeze the amount of Rs.1,80,000/in account No.060401523429 and to transfer the said amount to the account of Arunkumar M.S. in ICICI Bank bearing No.026905500130. Arunkumar M.S. has also been directed to execute an indemnity bond.

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It is the case of the petitioner that the amount sought to be transferred pursuant to the claim made by Arunkumar M.S. is not the money that was

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3 - NC: 2024:KHC:29370 CRL.P No. 5264 of 2019

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misappropriated from Arunkumar M.S., but was the money siphoned off from the petitioner’s account.

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He submits that a sum of Rs.30,00,000/- of the petitioner’s amount was transferred from his IDBI Bank account to the State Bank of India, Bangalore Main Branch and from the said Branch, on 08.05.2019, the amount was transferred to the Bank of Baroda belonging to one Shawaz Pasha.

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He submits that out of this sum of Rs.30,00,000/-, the petitioner has been permitted to withdraw a sum of Rs.20,00,000/- and the balance of Rs.10,00,000/- was obviously required to be re-transferred into the petitioner’s account, but by virtue of the impugned order, a portion of it is sought to be transferred in the name of Arunkumar M.S.

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The investigating officer has filed an affidavit today in which he states that on 24.01.2019, Arunkumar M.S. had lodged a complaint which was registered as Crime

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NC: 2024:KHC:29370 CRL.P No. 5264 of 2019

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No.274/2019 stating that a sum of Rs.63,30,000/- was misappropriated from his ICICI Bank Account and out of the said sum, Rs.29,17,000/- was transferred to Vanala Sangliana to his ICICI Bank Account till 31.12.2018 and subsequently, a sum of Rs.5,00,000/- was transferred to Shawaz Pasha to his Bank of Baroda Account and this amount of Rs.5,00,000/- was withdrawn in various different sums till 01.01.2019. It is stated that as on 08.05.2019, i.e., the date on which a sum of Rs.30,00,000/- belonging to the petitioner was transferred

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from the State Bank of India, Bangalore Branch, to the Bank Baroda, there was only a sum of Rs.28,183.27 in the account of M/s.MYS Electronics.

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It is therefore clear that the amount of Arunkumar M.S. which was transferred prior to 31.12.2018 was completely withdrawn as on 01.01.2019 and the amounts transferred to the said account thereafter, would obviously do not belong to Arunkumar M.S.

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5 - NC: 2024:KHC:29370 CRL.P No. 5264 of 2019

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Since it is clear from the affidavit that the entire sum

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of Rs.30,00,000/- emanated from the account of the petitioner herein, the impugned order cannot be sustained and the same is set aside .

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The investigating officer is directed to instruct the Bank of Baroda to re-transfer the sum of Rs.10,00,000/lying in its account into the account of the petitioner.

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The petitioner shall also execute an indemnity bond to the said sum, stating that it would indemnify the said amount in respect of a claim by any third party.

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The petition is accordingly disposed of .

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In view of the disposal of the petition, all pending

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interlocutory applications, if any, stand disposed of.

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Sd/(N S SANJAY GOWDA) JUDGE

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RK List No.: 1 Sl No.: 9

M/S Gimatex Industries Pvt. Ltd. v. State by Cyber Crime Police Station

Case brief

What is this about?

What did the court decide?

M/S Gimatex Industries Pvt. Ltd. v. State by Cyber Crime Police Station

Case brief

What is this about?

What did the court decide?

What the court decided

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