High Court of Kerala dismissed an application for pre-arrest bail filed by four accused accused of cheating and money circulation. The court held granting bail would adversely affect the investigation and noted allegations were not frivolous.
Pre-arrest bail prayer rejected; accused directed to surrender and cooperate with investigation.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE RAJA VIJAYARAGHAVAN V
MONDAY, THE 16TH DAY OF DECEMBER 2019 / 25TH AGRAHAYANA, 1941
Bail Appl..No.6523 OF 2019
CRIME NO.1198/2019 OF MANNANTHALA POLICE STATION, Thiruvananthapuram
PETITIONERS/ACCUSED NOS.1 TO 4:
1 ABDULLA.A.R., AGED 25 YEARS. S/O. ABDUL RAZACK, RESIDING AT AKSHAYA, TC 19/2194 (3), AKG ROAD, MUDUVANMUGAL, POOJAPURA, THIRUVANANTHAPURAM, PINCODE-695 012.
2 ASWIN A., AGED 24 YEARS, S/O. ANIL T.K., RESIDING AT ANASWARA ARAPPURA, VINAYAKA NAGAR, VATTYOORKAVU P.O., THIRUVANANTHAPURAM, PINCODE-695 013.
3 GOVIND B., AGED 30 YEARS, S/O. BALAN PILLAI, RESIDING AT KRISHNA GOVINDHAM ARAPPURA, VINAYAKA NAGAR, VATTYOORKAVU P.O., THIRUVANANTHAPURAM, PIN CODE695 013.
4 AKSHAY U., AGED 21 YEARS, S/O. UNNIKRISHNAN K., RESIDING AT VYSHAKOM T.C.6/641, ARAPPURA, VINAYAKA NAGAR, VATTYOORKAVU P.O., THIRUVANANTHAPURAM, PIN CODE695 013.
BY ADVS. SRI.B.RAMAN PILLAI (SR.) SRI.K.V.KRISHNAKUMAR
RESPONDENT/COMPLAINANT & STATE:
STATE OF KERALA, REPRESENTED BY THE PUBLIC PROSECUTOR, HIGH COURT OF KERALA, ERNAKULAM-682 031.
SRI C.K SURESH, SENIOR PUBLIC PROSECUTOR
THIS BAIL APPLICATION HAVING COME UP FOR ADMISSION ON 16.12.2019, THE COURT ON THE SAME DAY PASSED THE FOLLOWING:
Bail Appl..No.6523 OF 2019
2
ORDER
This application is filed under Section 438 of the Code of Criminal Procedure, 1973.
Bail Appl..No.6523 OF 2019
3
complainant, Sri.Akhil, was also lured by the applicants and he was induced to invest a sum of Rs.88,000/- for an identical program.
Bail Appl..No.6523 OF 2019
4
carefully looked into the Programme Rules of the business conducted by the applicants and it was realized that the applicants had not been complying with the guidelines issued by the State for regulating the activities of multlevel marketing/direct selling companies/entities in the State of Kerala. He would urge that the investigation conducted till date has revealed that gullible investors are taken for a ride by promising quick money and several persons have lost huge sums of money. The Programme Rules gives an indication that the applicants are running a money circulation scheme for making quick money by the principle of enrollment of members into a scheme. It is further urged that the scheme run by the applicants is undoubtedly a multi level marketing activity following a pyramid structure so that members are assured quick money on purchase and sale of products. Finally, the learned Additional Director General of Prosecution indicated that the Directors of Vihan Direct Selling are involved in numerous crimes all over India and a detailed probe is on to ascertain the length and breadth of the scheme and the manner in which investors are defrauded.
Bail Appl..No.6523 OF 2019
5
companies all over the world. They have numerous products and it appears that their compensation plan rewards affiliates for making retail sales, purchasing products and recruiting others. Commissions and residual commissions are paid to the affiliates. The materials made available by the Additional Director General of Prosecution shows that the Company has met with regulation issues in various countries. Having considered the entire aspects of the matter, I am of the view that the allegations against the applicants cannot be said to be frivolous or vexatious. A deeper probe into the allegations are not warranted at this stage. As to whether the applicants have been violating the provisions of the Prize Chits and Money Circulation Scheme (Banning) Act, 1978 will have to be probed in much more detail. Granting an order of pre-arrest bail to the applicants will certainly affect the investigation in an adverse manner. I find no reason to allow this application.
At this stage, Sri.K.V.Krishnakumar, the learned counsel appearing for the applicants, submits that the applicants are prepared to cooperate with the investigation and prays for issuance of appropriate orders. I direct the applicants to surrender before the investigating officer forthwith and to cooperate with the investigation. They shall thoroughly be interrogated and later produced before the court having jurisdiction. If an application for regular bail is preferred with advanced to the prosecutor concerned, same
Bail Appl..No.6523 OF 2019
6
shall be considered and orders shall be passed expeditiously and on its merits.
This application will stand dismissed.
Sd/-
RAJA VIJAYARAGHAVAN V
JUDGE
DSV/16.12.19
2 issues framed by the court
Whether pre-arrest bail should be granted to the accused when pre-arrest bail grant may affect the investigation of alleged cheating and money circulation scheme.
Whether the ingredients of offences under Section 420 IPC and Prize Chits Act are attracted in the present case.
3 provisions across 3 enactments
Abdulla.A.R.
Aswin A.
Govind B.
Akshay U.
State of Kerala
Raja Vijayaraghavan V
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
