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TMI Blog2021 (12) TMI 1465X X X X Extracts X X X X X X X X Extracts X X X X ..... y connected in a criminal case and any order passed in a criminal case affects his rights, he has a liberty to move appropriate applications for questioning the legality and validity or correctness of the order which has affected his rights. Keeping the said principle in mind, this court finds that essentially all the applicants who have been named above are those who have purchased share/shares from BSE and NSE relating to the companies which have been mentioned by the complainant in his complaint to the Investigating Officer. The shares were purchased earlier they are liable to be unfreezed. However, if the same were purchased in between and if it is found that such shares were originally purchased by way of proceeds of crime, they would be liable to be confiscated. The petitioner as well as the applicants before this court can always submit their stand before the concerned SFIO who shall look into the entire case and reach to its own independent conclusion. If it is found that the shares as purchased by the applicants are in no manner connected, the SFIO shall be free to unfreeze the shares - petition disposed off. - Hon'ble Judges Sanjeev Prakash Sharma, J. F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the letter dated 12.11.2020 and the accused are likely to sell off entire shares and equities. Let the SHO remain present on the next date and give affidavit as to why he has withdrawn the letter dated 12.11.2020. In the meanwhile, the Superintendent of Police is directed to issue a letter restraining from releasing of shares and equities as mentioned in the letter dated 12.11.2020. A copy of this order be also sent by the petitioner to the Central Depository Services of India. List this case again on 13.01.2021. It is made clear that, if the Investigating Officer is not present on the next date, the Superintendent of Police shall be free to take action against him. 5. After the said order was passed, the series of applications have been filed for impleadment and passing of orders and directions to the Investigating Agency and to the Central Depository Services Limited to unfreeze the shares which the concerned applicants have purchased. Details of the shares which the concerned applicants have purchased have been mentioned in each and every application and they have requested for being impleaded as party to the present criminal misc. petition. It is stated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Chairmanship of former Cabinet Secretary Naresh Chandra known as Naresh Chandra Committee for setting up of a Corporate Serious Fraud Office. 8. Learned counsel submits that the Central Government vide resolution dated 02.07.2003 constituted this organization and a charter of Serious Fraud Investigation Office was issued on 21.08.2003 stating responsibility and functions of SFIO including but not limited to the following:- a) The SFIO is expected to be a multi-disciplinary organisation consisting of experts in the field of accountancy, forensic auditing, law, information technology, investigation, company law, capital market and taxation for detecting and prosecuting or recommending for prosecution white collar crimes/frauds. b) The SFIO will normally take up for investigation only such cases, which are characterized by- I) complexity and having inter-departmental and multidisciplinary ramifications; II) Substantial involvement of public interest to be judged by size, either in terms of monetary III) the possibility of investigation leading to or contributing towards a clear improvement in systems, laws or procedures. c) The SFIO shall investigate s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Kumar who have written the letter for unfreezing the shares. 13. The applicants who have moved applications for impleadment were heard. However, it is a settled law that such persons cannot be made a party in misc. petition where the complainant seeks invoking of inherent powers of this court for directing firm investigation and for seeking supervision of a proper investigation in a case relating to fraud and cheating. The applicants although may not be necessary party but they have a right to be heard and recognizing their locus standi the counsels have been heard. 14. In the case of Madhu Limaye Versus The State of Maharashtra reported in 1977 (4) SCC 551 and in the case of Simranjit Singh Mann Versus Union of India (UOI) Others reported in 1992 (4) SCC 653, the principle has been recognized that even if a person may not be directly connected in a criminal case and any order passed in a criminal case affects his rights, he has a liberty to move appropriate applications for questioning the legality and validity or correctness of the order which has affected his rights. 15. Apparently, it is a matter which requires thorough investigation as the allegations in the compl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, the SFIO shall be free to unfreeze the shares. However, if he reaches to the conclusion otherwise that money is involved, he shall take all steps to prevent loss to the Government and to the petitioner-company who claims of having been subjected to fraud. The investigation in FIR No. 213/2020 registered at Police Station Shahjanpur District Bhiwadi is, therefore, transferred to the SFIO. The Investigation Officer in FIR No. 213/2020 shall handover all details as required to the SFIO. 20. It is accordingly directed that the petitioner-company would be free to submit all details which it possesses and also assist the investigation. The applicants (herein) shall also be free to submit their stand before the SFIO. The SFIO shall be empowered to take all the steps accordingly. It is made clear that the investigation shall be done as expeditiously as possible. 21. The interim order passed by the court shall continue to operate till final decision is taken by the SFIO. The SFIO shall be free to take possession of all the shares if it ultimately reaches to the conclusion that the same are purchased and subsequently sold as part of proceeds of crime. 22. The criminal misc. petit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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