Punjab and Haryana HC orders CBI probe into fraud case, says improper investigation erodes public confidence in rule of law

Read Order: Arjun Bhanot Vs. State of Punjab and another

LE Staff

Chandigarh, August 30, 2021: The Punjab and Haryana High Court has directed a CBI probe into an alleged fraud case, wherein, some bank officers and others in connivance with the accused persons Rakesh Kumar Bhanot and Arjun Bhanot, who were Directors of M/s Arjun Mal Retail Holding Pvt. Ltd, had cheated the complainant to the tune of Rs.2 Crores.

It was alleged that this cheating was done by misusing the cheque of the complainant, Gurdas Agro, and by transferring the amount via RTGC in the account of M/s Arjun Mal Retail Holding Pvt. Ltd, Phagwara.

The accused appellants had filed the petition, under Section 438 read with Section 482 of Code of Criminal Procedure, 1973, for grant of anticipatory bail, who apprehended their arrest by the Police.

This petition was filed pursuant to an FIR, which was registered at Police Station Kotwali, District Bathinda, pertaining to Sections 420, 465, 467, 468, 471, 120-B and 201 Indian Penal Code, 1860.

As per the allegations, the security cheque of the complainant was forged to transfer a sum of Rs.2 crores from the complainant’s account to the account of M/s Arjan Mall Retail Holding Private Ltd. and the alleged crime was committed by bank officials in connivance with the petitioners (directors of the beneficiary company).

The petitioners pointed out that this transaction dated December 13, 2013 was well within the knowledge of the complainant, who voluntarily signed the instrument and the FSL report in this regard was also in favour of the petitioners.

The Bench of Justice Manoj Bajaj highlighted the agony faced by the complainant, who had been repeatedly contesting frivolous petitions for the last seven years and also stated that the petitioners had successfully delayed the investigation with the aid of the police officials.

Throwing light on the  procedural aspect of the case, the Court noted that  after registration of FIR, it is obligatory for the investigating officer to proceed with the investigation in a fair and impartial manner, in order to collect the evidence in relation to the alleged offences and the said evidence leads the investigating officer to identify the accused.

Once sufficient material is collected indicating the involvement of the person in the crime, the said accused is sent to face trial by way of a final report under Section 173(2) Cr.P.C, otherwise in the absence of evidence, the investigating officer would declare the suspect as innocent.

“…the petitioners are deliberately toying with law as well as process of Court either by distorting or concealing facts with an object to defeat the process of prosecution by filing baseless, deceptive and unfair litigation, who are being shielded also by police officials. Consequently, these petitions being devoid of merit deserve to be dismissed with exemplary costs,” the Bench said.

It was made clear by the Court that the conduct of the police officials clearly indicated that they failed to carry out the investigation in a lawful manner. It was also added by the Bench that this kind of improper investigation erodes the public confidence in the rule of law.

Therefore, in order to do complete justice, the Court opined that exceptional grounds existed in this matter for transferring the investigation to Central Bureau of Investigation, by exercising inherent powers under Section 482 Cr.P.C.

Dismissing both these petitions with costs of Rs.5 lakhs each to be deposited with Director, PGIMER, Chandigarh (for poor patients) within a period of two months, the Bench ordered that that pending investigation of this case be handed over to Central Bureau of Investigation immediately.