2011 (7) TMI 1135 - SC - Indian Laws

Whether in the facts and circumstances of the case, where in case of cheating, a charge sheet has been filed, the matter can, and is required to be transferred for investigation/further investigation to the CBI?

Summary

Issues involved:
Transfer of investigation to CBI under Section 173 of Cr.P.C., transfer of complaints against firms to CBI, grounds for transfer, examination of case for transfer, legal precedents on CBI investigation after charge sheet, sufficiency of grounds for transfer, lack of merit in petition.

Comprehensive Analysis:

The writ petition sought the transfer of investigations into financial transactions and the mysterious death of the petitioner's husband to the Central Bureau of Investigation (CBI). The petitioner, involved in commercial activities with her late husband, faced allegations of fraudulent schemes by their firms, resulting in a loss of around Rs. 60 crores to investors. The husband's death by suicide was linked to pressure from investors demanding their money back, as revealed in the investigation by Maharashtra Police and Gujarat Police.

The grounds for transfer included potential harassment, victimization, suppression of information by associates, uncoordinated investigations, and suspicions of involvement of influential individuals in the alleged scam. Legal arguments were presented, citing precedents on CBI investigations post-charge sheet filing, emphasizing the need for independent agencies in cases involving powerful accused or biased investigations.

The Supreme Court examined the case, considering the settled legal propositions and the lack of substantial grounds for transfer. The court noted that the petitioner, also an accused, failed to demonstrate any bias or harassment by the investigating authorities. The absence of mala fide intentions or vindictive actions in the investigation weakened the petitioner's plea for transfer to the CBI. The court dismissed the petition, citing its lack of merit and emphasizing the petitioner's right to seek appropriate remedies if necessary.

In conclusion, the judgment highlighted the importance of substantial grounds and credible reasons for transferring investigations to specialized agencies like the CBI. The court's decision was based on the lack of evidence supporting the petitioner's claims of bias or unfair treatment in the ongoing investigations, ultimately leading to the dismissal of the petition while ensuring the petitioner's right to seek legal recourse in the future.