Title: Meul Chinubhai Choksi & 1 Other(s) v. State of Gujarat & 1 Other(s)
Decided on October 11, 2023.
Case No. R/Special Criminal Application (quashing) No. 1072 of 2018.
CORUM: HON’BLE MR. JUSTICE N. BHATT.
Introduction
The present petition filed with a prayer to quash and set aside impugned FIR being C.R. No.1-31. Of 2017 registered with DCB police station, Ahmedabad on 03,04,2017 for the offences P/U/S 406, 420 and 34 of IPC. The Gujarat High Court dismissed the petition by the businessman seeking to quash the FIR. Hon’ble Justice Snadeep N. Bhatt. observed that due such a fraudulent act and closing down all the showrooms in all over the country, the money invested by the investors not returned and it can be said that huge scam has been committed Therefore, the ultimate liability can be fastened on the shoulders of the persons responsible for the affairs of Gitanjali Gems and present petitioner being the Directors and actively involved in the management of the company cannot shirk their responsibility.
Facts of the case
On dated 15.09.2013, the complainant and her husband went to the M/S Gitanjali Jewelers for the purchase however, the bill has given to them of named of M/S Divyanirmann Jevels Shop No. 6, Ahmedabad. The staff of the shop told them about the scheme of diamond/gold installment in which they have to submit 5000/-per month for twelve month. The complainant agreed to invest gold coin scheme for 12 months, Rs. 5000/- per installment, and Paid Rs.1000/- per month till May 25, 2014, for two scheme. On July 2014, they have told by Gitanjali Jewelers that that franchise has terminated when they wanted to pay remaining installments for gold coins they were told that only diamonds were available. The complainant declined for the diamond coins, and requested gold coins or refund but got no response after reaching out to Gitanjali group. The franchise owner was untraceable. The complainant alleged that criminal breach of trust and cheating on unfulfilled investment promises.
Court’s analysis
The court has observed that since all the false promise given through all the franchisee, such showrooms are closed down not in a one place but to all over the countries and the customers who had invested their money have been cheated by them and this is prima facie case of criminal breach of trust and cheating to the investor in the whole country. The Court held, “Since prima facie case is made out against present petitioners and charge sheet is also filed, no case is made out by applicants to no case is made out by applicants to exercise powers of this Court under Section 482 of the Criminal Procedure Code. The applicants can raise all the contentions as their defence at the time of trial. Looking to the facts and circumstances of the present case, it cannot be said that there is no entrustment of the property or there is no intention to deceive the people by fraudulent act. The court denied the request for an extension of interim relief for Zhaveri, emphasizing the need for the investigation to be completed promptly and t and the subsequent proceedings to move forward without further delays.
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Written by: Aamir Hussain.
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