Punjab and Haryana HC grants bail to two accused involved in Rs. 500 crore fraud case

Read Order : Gurjeet Singh Johar and another v. State of Punjab

Chandigarh, August 30,2021: The Punjab and Haryana High Court has granted anticipatory bail to two accused persons in a case wherein commission of offence of defrauding the complainants of an amount of approximately Rs. 500 crores was alleged.

The allegations pertained to the fact that the Punjab Industrial Development Board had invited proposals for construction of Bus Terminal-cum-Commercial Complex at Mohali and M/s C&C Constructions Limited, Gurgaon was awarded contract for developing and constructing the Mohali Bus Terminal-cum-Commercial Complex.

Later, M/s C&C Constructions Limited, constituted a Special Purpose Company by the name of M/s C&C Towers Limited for undertaking the constructions.

The complainants vehemently contended that a large number of other investors had purchased shops/office spaces in the proposed Air conditioned ISBT, developed by C&C Towers Ltd. and for which they had deposited amounts equivalent to 35% to 90% of the price and were also issued allotment letters wherein they were made to believe that the entire project will be completed by the year 2012 and possession will be handed over to them.

It was alleged that the date of completion used to be extended from time to time without any satisfactory reason. The complainants, realising that they had been defrauded, demanded their money back alongwith 18% interest and also issued notices to them in the year 2017 but to no avail.

The counsel for the petitioners stated that that even if the allegations, as levelled in the FIR, were taken to be correct, still it was at best a case of civil liability which had arisen mainly on account of certain difficulties faced by the construction company in completing the construction within the agreed time frame and that they had no intention whatsoever in defrauding the complainant or others.

It was also submitted that that the conduct of the petitioners in having cooperated with the police during the last 3 years and not having fled from country would rule out any kind of apprehension that the petitioners will flee from justice or that if granted bail, they will abscond.

The Bench of Justice Gurvinder Singh Gill opined that the question as to whether the accused had an intention of defrauding the investors from the very beginning or as to whether such intention developed later on or as to whether they are absolutely not at fault is a matter which can only be decided at the time of trial.

It was clarified by the Bench that this was certainly a case wherein the allegations against the petitioners and other accused pertain to depriving the complainants and other investors of a colossal amount of about Rs.500 crores, which had been collected by the petitioners for the purpose of allotting them shops/office spaces in the much hyped AC ISBT proposed to be constructed at Mohali.

The Court opined that it was not in dispute that the petitioners had associated with investigation and had never been sent behind bars or subjected to custodial interrogation during the last 3 years i.e. ever since the lodging of the FIR except for their formal arrest on July 14,2020 when they were released on their personal bonds.

Further, the Court mentioned that the first petitioner, Gurjeet Singh Johar,  is stated to be aged 71 years and the second petitioner Charanbir Singh Sethi is stated to be aged 63 years. Keeping in view the age of the petitioners, the fact that they had been cooperating with the investigation and the challan also stood presented, the Court held that there was hardly any room for sending them behind bars at this stage.

“..in light of the factual position in the instant case wherein charge sheet has been presented and the accused have not been sent behind bars during the last 3 years when they had been cooperating with the investigation, the petition merits acceptance and is hereby accepted”, opined the Court.

The Court also directed the petitioners to appear before the Trial Court within one week. Upon their appearance, the Trial Court would release the petitioners on bail subject to their furnishing adequate bail bonds and surety bonds to its satisfaction.

The Trial Court would be at liberty to impose any such condition, as deemed appropriate at the time of accepting bail bonds so as to ensure that the accused appear regularly before the Trial Court, remarked the Bench.