Yashaswini M Vs the State of Karnataka — Cheating and Forgery | Karnataka HC (2025)

Yashaswini M Vs the State of Karnataka — Cheating and Forgery | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Continuation of protective orders (no coercive steps) subsisting in the cases for 10 days from 21.04.2025; liberty reserved to petitioners in all petitions to avail of available remedies before the appropriate fora; State left free to seek custodial interrogation of Dr.B.K.Nagarajappa before the concerned Court.

Issue for consideration

Whether the FIRs and criminal proceedings in Crime No.56/2023 (Siddapura P.S., now FIU-CID) and Crime No.07/2023 (Doddaballapura Town P.S.), arising out of the alleged Bhovi Development Corporation funds-siphoning scam, ought to be quashed at the present stage of investigation. +1 more

Court's answer

The cases involve seriously disputed questions of fact for which investigation cannot be interdicted; there is no warrant to interfere at this juncture; the petitions stand rejected/disposed with liberty reserved to the petitioners to avail of the remedy available in law before the appropriate fora.

Ratio / Principle

If the prosecution wants custodial interrogation of the petitioner in W.P.No.35068 of 2024, it is for the prosecution to seek the same before the concerned Court; the High Court will not accord it in these proceedings.

Key takeaways

The protective orders subsisting in these cases are continued for a period of 10 days from 21.04.2025, enuring to the petitioners to enable them to file appropriate applications before the concerned Court.ratio¶129

Detailed headnote1 paragraphs

Five consolidated petitions - Crl.P.Nos.9102, 6876 and 8225 of 2024 under S.482 Cr.P.C., and W.P.Nos.35068 of 2024 and 5550 of 2025 under Article 226 of the Constitution read with S.482 Cr.P.C. - were filed by accused persons seeking quashing of FIRs/proceedings in Crime No.56/2023 of Siddapura P.S. (now FIU, CID) and Crime No.07/2023 of Doddaballapura Town P.S., alleging offences under Ss.406, 420, 149, 504, 506 r/w 34 IPC and, in respect of Crime No.56/2023, r/w Ss.13(1)(a) and 13(2) of the Prevention of Corruption Act, 1988. The FIRs arose out of an alleged scam in which funds of the Karnataka Bhovi Development Corporation to the tune of about Rs.86 crores were siphoned off through promises of loans to women, signatures on blank papers and collection of Rs.25,000 as commission. Holding that the matters are shrouded with seriously disputed questions of fact and that investigation cannot be interdicted at this juncture, the Court found no warrant to interfere, rejected and disposed of all the petitions, and reserved liberty to the petitioners to avail of the remedy available in law before the appropriate fora. Protective orders against coercive steps subsisting in the cases were continued for 10 days from 21.04.2025 to enable the petitioners to move the concerned Courts; the State was left to seek custodial interrogation of Dr.B.K.Nagarajappa (W.P.No.35068/2024) before the concerned Court. All contentions except the one considered remain open.

NC: 2025:KHC:14403 CRL.P No. 9102 of 2024 C/W CRL.P No. 6876 of 2024 CRL.P No. 8225 of 2024 AND 2 OTHERS

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 4^TH DAY OF APRIL, 2025

BEFORE

THE HON'BLE MR JUSTICE M.NAGAPRASANNA

CRIMINAL PETITION NO. 9102 OF 2024

C/W

CRIMINAL PETITION NO. 6876 OF 2024 CRIMINAL PETITION NO. 8225 OF 2024

WRIT PETITION NO. 35068 OF 2024 (GM-RES) WRIT PETITION NO. 5550 OF 2025 (GM-RES)

IN CRL.P No. 9102/2024

BETWEEN:

YASHASWINI M., D/O MADEGOWDA,

AGED ABOUT 31 YEARS,

PROPRIETOR OF “NEW DREAMS ENTERPRISES”,

Digitally signed by NAGAVENI Location: High Court of Karnataka

R/AT HAAROOKOPPA,

RAMANGARA – 560 138. OFFICE AT SITE NO.11, SHOP NO.4, 50 FEET ROAD AVALAHALLI EXTENSION

BSK III STAGE, BENGALURU – 560 026.

…PETITIONER

(BY SRI JEEVAN KUMAR B.S., ADVOCATE)

AND:

THE STATE OF KARNATAKA BY SIDDAPURA POLICE STATION

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JAYANAGAR SUB DIVISION, BENGALURU - 560 029. REPRESENTED BY STATE PUBLIC PROSECUTOR, HIGH COURT OF KARNATAKA, HIGH COURT BUILDING, BENGALURU – 560 001.

SMT. SURYAKALAVATHI A.N., W/O KRISHNA, AGED ABOUT 45 YEARS, RESIDENT OF NO. 5, 3^RD MAIN, ANJINAYYA TEMPLE, BHYRASANDRA JAYANAGARA, BENGALURU – 560 011.

…RESPONDENTS

(BY SRI B.N.JAGADEESHA, ADDL.SPP FOR R-1)

THIS CRL.P IS FILED U/S.482 OF CR.P.C PRAYING TO QUASH THE ENTIRE PROCEEDINGS IN CRIME NO.56/2023 OF SIDDAPURA POLICE STATION, FOR THE OFFENCES P/U/S. 406, 420 R/W SEC.149 OF IPC ON THE FILE OF THE 4^th ADDITIONAL CHIEF ADDITIONAL MAGISTRATE COURT AT BENGALURU.

IN CRL.P NO. 6876/2024

BETWEEN:

SRI RAMAKRISHNA S/O. LATE NARAYANAPPA, AGED ABOUT 37 YEARS, R/AT KURUBARAHALLI VILLAGE, KASABA HOBLI, DODDABALLAPURA TALUK,

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NC: 2025:KHC:14403 CRL.P No. 9102 of 2024 C/W CRL.P No. 6876 of 2024 CRL.P No. 8225 of 2024 AND 2 OTHERS

BENGALURU – 561 203.

...PETITIONER

(BY SRI JEEVAN KUMAR B.S., ADVOCATE)

AND:

THE STATE OF KARNATAKA BY DODDABALLAPURA TOWN POLICE STATION, DODDABALLAPURA CIRCLE, BENGALURU RURAL DISTRICT, REPRESENTED BY SPP, HIGH COURT BUILDING, BENGALURU – 560 001.

PRASAD G.K., S/O GURUMURTHY, AGED ABOUT 25 YEARS, SHIRASTHEDARANAPALYA VILLAGE, BHAKHARAHALLI POST, SASALU HOBLI, DODDABALLAPURA TALUK, BENGALURU DISTRICT – 561 203.

...RESPONDENTS

(BY SRI B.N.JAGADEESHA, ADDL.SPP FOR R-1)

THIS CRL.P IS FILED U/S.482 OF CR.P.C PRAYING TO QUASH THE ENTIRE PROCEEDINGS OF THE 1^st RESPONDENT FILED IN FIR IN CR.NO.07/2023 OF DODDABALLAPURA TOWN P.S., BENGALURU, BENGALURU DISTRICT FOR THE OFFENCES P/U/S 420, 504 AND 506 R/W 34 OF IPC, ADDITIONAL CIVIL JUDGE AND JMFC AT DODDABALLAPURA.

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NC: 2025:KHC:14403 CRL.P No. 9102 of 2024 C/W CRL.P No. 6876 of 2024 CRL.P No. 8225 of 2024 AND 2 OTHERS

IN CRL.P NO. 8225/2024

BETWEEN:

KANTHU WODEYAR @ KANTAPPA VANKAPPA WADEYAR S/O VANKAPPA WADDAR, AGED ABOUT 39 YEARS, R/AT KANDANI AGASI, ALMEL, SINDAGI TALUK, BIJAPUR DISTRICT. KARNATAKA – 586 202.

...PETITIONER

(BY SRI MANOJ B.G., ADVOCATE)

AND:

THE STATE OF KARNATAKA BY SIDDAPURA PS NOW TRANSFERRED TO FIU, CID, REPRESENTED BY SPP, HIGH COURT BUILDING, BENGALURU - 560 001.

SMT.SURYAKALAVATHI K.N., W/O KRISHNA, AGED ABOUT 46 YEARS, R/O NO. 5, 3^RD CROSS, 3^RD MAIN, NEAR ANJANEYA TEMPLE, BHYRASANDRA, JAYANAGAR, BENGALURU - 560 011.

...RESPONDENTS

(BY SRI B.N.JAGADEESHA, ADDL.SPP FOR R-1; R2 IS SERVED AND UNREPRESENTED)

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THIS CRL.P IS FILED U/S.482 OF CR.P.C PRAYING TO QUASH THE FIR REGISTERED AGAINST THE PETITIONER/ACCUSED NO.4 IN CR.NO.56/2023 OF SIDDAPURA P.S. (FIU, CID), FOR THE OFFENCES P/U/S 406, 420 AND 149 OF IPC, PENDING ON THE FILE OF 4^th ACMM, BENGALURU CITY.

IN WP NO. 35068/2024

BETWEEN:

DR.B.K.NAGARAJAPPA S/O S.KRISHNAPPA, AGED ABOUT 55 YEARS, R/AT 1089, 4^TH MAIN ROAD, M.C.R LAYOUT, VIJAYANAGAR, BENGALURU – 560 040.

...PETITIONER

(BY SRI JEEVAN KUMAR B.S., ADVOCATE)

AND:

THE STATE OF KARNATAKA REPRESENTED BY ITS PRINCIPAL SECRETARY, SOCIAL WELFARE DEPARTMENT, VIKASA SOUDHA, DR.B.R.AMBEDKAR VEEDHI, BENGALURU – 560 001.

THE STATE OF KARNATAKA REPRESENTED BY THE PRINCIPAL SECRETARY, DEPARTMENT OF HOME AFFAIRS, VIDHANA SOUDHA, DR.B.R.AMBEDKAR VEEDHI,

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BENGALURU – 560 001.

THE STATE OF KARNATAKA REPRESENTED BY THE MANAGING DIRECTOR, KARNATAKA BHOVI DEVELOPMENT CORPORATION, VISHWESHWARAIAH TOWER, 20^TH FLOOR, DR.B.R.AMBEDKAR VEEDHI, BENGALURU – 560 001.

THE KARNATAKA LOKAYUKTA REPRESENTED BY THE ADGP, M.S.BUILDING, DR.B.R.AMBEDKAR VEEDHI, BENGALURU – 560 001.

THE DIRECTOR GENERAL OF POLICE CID, SPECIAL UNITS AND ECONOMIC OFFENCES, CARITON HOUSE, PALACE ROAD, BENGALURU – 560 001.

THE STATE OF KARNATAKA REPRESENTED BY THE VIDHANA SOUDHA POLICE STATION, CUBBON PARK SUB-DIVISION, REPRESENTED BY SPP, HIGH COURT OF KARNATAKA, DR.B.R.AMBEDKAR VEEDHI, BENGALURU – 560 001.

SRI RAMESH S/O LATE SRINIVASAPPA, AGED ABOUT 31 YEARS, R/AT MYNAGANAPALLI,

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BAGEPALLI TALUK, CHIKKABALLAPURA DISTRICT CHIKKABALLAPURA – 561 207.

SRI N.NARAYANA SWAMY S/O NAREPPA, R/AT GOVT. BOYS PU COLLEGE, M.G.ROAD, SRINIVASAPURAPATTANA, KOLAR – 563 135.

TIPPANNA S/O HANUMANTH JADHAV, AGED ABOUT 28 YEARS, R/AT KALAGI, KALAGI TALUK, KALBURGI.

SMT.SURYAKALAVATHI A.N., W/O KRISHNAPPA, AGED ABOUT 45 YEARS, RESIDENT OF NO. 5, 3^RD MAIN, ANJINAYYA TEMPLE, BHYRASANDRA, JAYNAGARA, BENGALURU – 560 011.

PRASAD G.K., S/O GURUMURTHY, AGED ABOUT 27 YEARS, R/AT SHIRATHEDARANAPALYA, BHAKTHRAHALLIPOST, SASALU, DODDABALLAPURA, BENGALURU RURAL.

...RESPONDENTS

(BY SRI B.N.JAGADEESHA, ADDL.SPP. FOR R1 TO R6)

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NC: 2025:KHC:14403 CRL.P No. 9102 of 2024 C/W CRL.P No. 6876 of 2024 CRL.P No. 8225 of 2024 AND 2 OTHERS

THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA READ WITH SECTION 482 OF CR.P.C., PRAYING TO QUASH THE FOLLOWING FIR IS REGISTERED AT DODDABALLAPURA TOWN POLICE STATION DATED 18/1/2023 ALLEGING OFFENCES UNDER SECTION 506, 504 AND 420 R/W 34 OF IPC, 1860 AGAINST SEVERAL PERSONS IN CRIME NO. 0007/2023 ANNEXURE - AN PENDING BEFORE THE HON’BLE IXTH ADDL. DISTRICT AND SESSION JUDGE AT BANGALORE RURAL AND THE NAME OF PETITIONER IS NOT FORTHCOMING AND ETC.,

IN WP NO. 5550/2025

BETWEEN:

SMT. R. LEELAVATHI D/O LATE R.RAMU, AGED ABOUT 62 YEARS, RETIRED SPECIAL SECRETARY TO GOVERNMENT, R/O NO.11, SOUNDARYA GARDENIA APARTMENTS, OPP. JALAHALLI POLICE STATION, HMT MAIN ROAD, JALAHALLI VILLAGE, BANGALORE - 560 013

...PETITIONER

(BY SRI VIRUPAKSHAIAH P.H., ADVOCATE)

AND:

STATE OF KARNATAKA REPRESENTED BY STATION HOUSE OFFICER, SIDDAPURA POLICE STATION, BENGALURU – 560 029. BY SPECIAL PUBLIC PROSECUTOR, HIGH COURT OF KARNATAKA, BENGALURU – 560 001.

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NC: 2025:KHC:14403 CRL.P No. 9102 of 2024 C/W CRL.P No. 6876 of 2024 CRL.P No. 8225 of 2024 AND 2 OTHERS

THE DIRECTOR GENERAL OF POLICE CID, SPECIAL UNITS AND ECONOMIC OFFENCES, CARLTON HOUSE, PALACE ROAD, BENGALURU – 560 001.

SURYAKALAVATHI K.N., W/O KRISHNA, AGED ABOUT 45 YEARS, R/A NO.05, 3^RD CROSS, 3^RD MAIN ROAD, NEAR ANJANEYA TEMPLE, BYRASANDRA, JAYANAGAR, BENGALURU – 560 029.

...RESPONDENTS

(BY SRI B.N.JAGADEESHA, ADDL.SPP FOR R1 AND R2)

THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA READ WITH SECTION 482 OF CR.P.C., PRAYING TO QUASH THE FIR IN CRIME NO. 0056/2023 DATED 18.03.2023 OF THE R-1 POLICE ON THE FILE OF XXIII ADDITIONAL CITY CIVIL AND SESSIONS JUDGE, SPECIAL JUDGE, BANGALORE (CCH-24) FOR THE OFFENCES PUNISHABLE UNDER SECTION 406, 420, 149 OF INDIAN PENAL CODE READ WITH SECTION 13(1)(a) AND 13(2) OF THE PREVENTION OF CORRUPTION ACT, 1988 AND PASS SUCH OTHER ORDER/S AS THIS HON’BLE COURT DEEMS FIT IN THE FACTS AND CIRCUMSTANCES OF THE CASE.

THESE PETITIONS, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: HON'BLE MR JUSTICE M.NAGAPRASANNA

ORAL ORDER

The petitioners in all these cases are said to be accused in different crimes in crime No.56/2023 for the offences under Sections 406, 420 r/w. 149 of the IPC, crime No.7/2023 for the offences under Sections 420, 504 and 506 r/w. 34 of the IPC, crime No.56/2023 for the offences under Sections 406, 420 and 149 of the IPC r/w. Section 13(1)(a) and 13(2) of the Prevention of Corruption Act, 1988, respectively.

Heard Sri Jeevan Kumar B.S., learned counsel for petitioners in Crl.P.Nos.9102/2024, 6876/2024 and W.P.No.35068/2024, Sri Manoj B.G., learned counsel for respondent in Crl.P.No.8225/2024, Sri Virupakshaiah P.H., learned counsel for petitioner in W.P.No.5550/2025 and Sri B.N.Jagadeesha, learned Additional State Public Prosecutor for the respondents – State.

Facts obtaining in Crl.P.No.9102/2024 are narrated for

the sake of convenience:

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Facts in brief, germane, are as follows:

The second respondent is the complainant. A complaint comes to be registered on 18.03.2023 for incidents that have happened between 11.10.2021 and 18.03.2023. The complaint then becomes a crime in Crime No.56 of 2023 for offences punishable under Sections 406, 420 and 149 of the IPC. The allegation is, accused No.1 in Crime No.56 of 2023 approaches the complainant and 46 other ladies, sensitizes them that they could avail loan from Bhovi Development Corporation and therefore, sought their Aadhar card, Voter ID, 4 passport size photographs, caste and income certificate. It is the further allegation that some persons were introduced to these ladies as bank officials and they had obtained the signature on blank papers assuring that those ladies will get Rs.25,000/- loan and collected Rs.25,000/- as commission, on further assurance that Rs.50,000/- would come back to them to their bank accounts. The amount that was deposited into the bank accounts is said to have withdrawn by certain enterprises who are also accused in the case at hand.

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NC: 2025:KHC:14403 CRL.P No. 9102 of 2024 C/W CRL.P No. 6876 of 2024 CRL.P No. 8225 of 2024 AND 2 OTHERS

The chain of events that took place led to an alleged scam of siphoning of funds of the Bhovi Corporation to the tune of Rs.86/- crores and the allegation is, not a single lady who has signed on the blank papers ever got money into their accounts, but Rs.25,000/- as commission to get Rs.50,000/amount is collected by the accused on an assurance that they would get it from Bhovi Corporation. The matter is still at the stage of investigation owing to the magnitude of the alleged scam and the amount so involved therein. The aforesaid is the gravamen of the allegations.

The learned counsel for the petitioner would reiterate the grounds urged in the petition. Insofar as W.P.No.35068 of 2024 is concerned, the learned counsel for the petitioner would contend that it is the petitioner who at the outset flagged the issue of the alleged siphoning off of the funds belonging to the Bhovi Corporation and the modus operandi thereon. He would therefore, contend that the petitioner is made a scapegoat only because he directly communicated to the Chief Minister. It is the averment in the petition that, the moment the petitioner

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directly communicated to the Chief Minister, he has been targeted and made a scapegoat in every issue.

The learned Additional State Public Sri B.N.Jagadeesha, would by taking this Court through the documents appended to the petitions, submit that certain documents produced with particular reference to a government order, pursuant to which, all the funds are released and close to `80/- crores of amount that should belong to every person of the Bhovi community is swindled by the accused. On this allegation, the investigation is on and this Court as well as the coordinate benches of this Court have granted certain protective orders not to take any coercive steps against these petitioners in the garb of investigation. On hearing these petitions or the submissions of the respective parties, particularly in cases where the investigation is conducted by a CID, it is shrouded with seriously disputed questions of facts. Therefore, investigation would undoubtedly become necessary and the conduct of investigation was permitted.

Learned Additional State Public Prosecutor would submit that the investigation is at the concluding stage and the

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petitioner one Dr.B.K.Nagarajappa, in W.P.No.35068/2024 is required for custodial interrogation and it is only then, the investigation would get complete. Learned Additional State Public Prosecutor would submit that if 3 months time is granted, the investigation would be completed and the final report would be filed before the concerned Court.

Learned counsel for petitioners submits that the petitioners were under the protective orders passed by the coordinate benches of this Court and this Court as well and that they should be continued till they secure bail from the hands of the concerned Court.

If the prosecution is wanting custodial interrogation of the petitioner in W.P.No.35068 of 2024, it is for the prosecution to seek the same before the concerned Court. The matter, as observed hereinabove, is still at the stage of investigation owing to the magnitude of the alleged scam. Therefore, there is no warrant to interfere in these cases at this juncture.

The learned Additional State Public Prosecutor would submit that Dr.B.K.Nagarajappa would be required for custodial

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interrogation which would then conclude the investigation and a report appropriately would be filed before the concerned Court. If Dr.B.K.Nagarajappa is necessary for custodial interrogation, it is for the State to file appropriate application before the concerned Court seeking such custodial interrogation. There are protective orders operating in the case at hand. In thelight of the submission of the State that Dr.B.K.Nagarajappa is necessary for custodial interrogation, I deme it appropriate to continue the protective orders, in any of these cases subsisting today, for a period of 10 days from 21.04.2025, which should enure to the petitioners to enable them to file appropriate application before the concerned Court.

With the aforesaid observations and the liberty so granted, finding that the cases involve seriously disputed questions of fact, for which investigation cannot be interdicted, I deem it appropriate to dispose the petitions, reserving liberty to the petitioners in all the petitions to avail of the remedy as is available in law, at the relevant point in time, before the appropriate fora .

NC: 2025:KHC:14403 CRL.P No. 9102 of 2024 C/W CRL.P No. 6876 of 2024 CRL.P No. 8225 of 2024 AND 2 OTHERS

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Accordingly, petitions stand rejected. All contentions

except the one considered in the case at hand remain open.

Ordered accordingly.

Sd/(M.NAGAPRASANNA) JUDGE

NVJ List No.: 2 Sl No.: 21