KABC010016392023
IN THE COURT OF THE PRINCIPAL CITY CIVIL AND
SESSIONS JUDGE, AT BENGALURU
Dated this the 6th day of February, 2023
Present:
Shri Muralidhara Pai B.
B.Com., L.L.B.

Principal City Civil and Sessions Judge,
Bengaluru.
Crl.Misc.No.523/2023
Petitioner
:
Smt. S. Shanta,
W/o A Purushotham Rao,
Aged about 75 years,
Proprietor,
Deepak Trading Company,
Office and residence at
Pushyaraaga Filter Bed Road,
Chintamani, Chikkaballapur District,
Pin: 563125.
(By Sri B.Siddeswara, Adv.,)
Vs.

Respondent
:
The State of Karnataka,
Hanumanthanagar Police Station,
Bengaluru.
[Rep. by Special Public Prosecutor]
ORDER
This is a petition filed under Section 438 of Criminal
Procedure Code praying to grant anticipatory bail to the
Crl.Misc.523/2023
2
Petitioner and to release her on bail in the event of her arrest
in Crime No.61/2022 of Hanumanthanagar Police Station, for
the offences punishable under Section 406, 415, 417, 419,
420, 465, 467, 468, 470, 471, 477-A r/w. S.149 of Indian
Penal Code, Section 9 of Karnataka Protection of Interest of
Depositors in Financial Establishments Act, 2004 and Section
21 of Banning of Unregulated Deposit Schemes Act, 2019.

2.

The prosecution has filed objection to this petition
along with the report of the Investigating Officer.

3.

Heard learned Counsel for Petitioner and learned
Special Public Prosecutor.

4.

The
following
points
would
arise
for
the
consideration of this Court:
1.

Whether the Petitioner is entitled for
anticipatory bail?

2.

What Order?

5.

The findings of this Court on the above points are
under:
Point No.1:-
In the Negative;
Crl.Misc.523/2023
3
Point No.2:-
As per final order;
for the following:
REASONS
6.

Point No.1:
On 14.3.2022 one Sri Narayana
Hedde, Chief of Task Force, Bengaluru and Mysore Division
of Karnataka, Karnataka Souharda Federal Co-Operative
Limited, Bengaluru lodged a complaint with Hanumantha
Nagar police against one Sandya Manjunath and 55 others,
alleging that based on complaints received against Vashishta
Credit Co-operative Society Limited and based on the
information gathered during inspection of the said Society,
they found suspicion about their business as well as
correctness of the amounts shown in their accounts by the
Society and thereby found that the President, Vice-President
and Directors of the Society have misappropriated and
mismanaged the funds of the Society.
7.

Based on the said complaint, Hanumanthanagar
Police registered a case in Crime No.61/2022 for the offences
punishable under Section 406, 415, 417, 419, 420, 465, 467,
Crl.Misc.523/2023
4
468, 470, 471, 477-A r/w. S.149 of Indian Penal Code,
Section 9 of Karnataka Protection of Interest of Depositors in
Financial Establishments Act, 2004 and Section 21 of
Banning of Unregulated Deposit Schemes Act, 2019 and took
up investigation. During the investigation of the case they
have apprehended one K.N.Venkatanarayana and produced
him before the jurisdictional Court. Subsequently, they
completed the investigation of the case in so far as accused
persons namely K.N.Venkatanarayana, K.V.Krishnaprasad
and submitted charge sheet only against them for the offences
punishable under Section 120-B, 409, 465, 468, 477-A r/w.
S.34 & 37 of Indian Penal Code, Section 9 of Karnataka
Protection
of
Interest
of
Depositors
in
Financial
Establishments Act, 2004 and Section 21 of Banning of
Unregulated Deposit Schemes Act, 2019 by reserving the
right of taking up further investigation in the case under
Section 173(8) of Cr.P.C.
8.

Meanwhile, the said case came to be transferred to
CID, Bengaluru for further investigation. Pursuant to the
Crl.Misc.523/2023
5
same, the Police Inspector of CID took up the investigation in
the case. During such further investigation, the Investigating
Officer has issued a notice dated 16.12.2022 to the Proprietor
of Deepak Trading Company under Section 41-A of Cr.P.C. to
appear before him within seven days from the date of receipt
of the notice and to provide certain information in connection
with the loan borrowed by them from Vashishta Credit Cooperative Society Limited.
9.

Pursuant to such notice, the Petitioner has come
up with this petition praying for anticipatory bail in the case.
She has stated that she is the Proprietor of Deepak Trading
Company and that she has obtained loan of Rs.16 lakhs from
Vashishta
Credit
Co-operative
Society
Limited
for
her
business purpose. She has stated that as requested by
Accused No.1, she has transferred a sum of Rs.50 lakhs to
Accused No.1 through RTGS on 1.10.2020 towards closing of
the loan availed from Accused No.1. In view of the same, she
has claimed that she is innocent of the alleged offenses and
she has been falsely implicated in the case. She has also
Crl.Misc.523/2023
6
submitted that some of the accused in the case have already
been released on bail and she is entitled for the relief on the
ground of principle of parity.
10.

In the complaint lodged by Shri Narayana Hegde, it
is specifically alleged about collection of deposits and
investments in the name of Vashishta Credit Co-operative
Society Limited and M/s.Vashista Investments and nonavailability of the documents regarding its registration and
misuse and misappropriation of funds by lending loans to
several people by creating false documents and without
taking proper security. As per the version of the prosecution,
the Petitioner herein is one of such borrower who joined
hands with the persons managing the affairs of the Society
and helped them in misappropriating and misusing the
deposits and the investments received by the Society.
11.

The Petitioner has produced a document at
Annexure-D, which reads as under:From:
S.S MURTHY & BHAGYA MURTHY,
SINGAPORE – 310062.

Crl.Misc.523/2023
7
TO:
SRI VASISHTA CREDIT SOUHARDHA
SAMAKARI OMITED
HANUMANTHA NAGAR,
BANGALORE – 560019.

Attn : Mr. K.N.Venkatanarayana,
SUB: RTGS FOR 50 LAKHS – CLOSURE OF LOAN A/C DEEPAK TRADING COMPANY. CHINTAMANI
Dear Sir,
We refer to your recent couple of telephonic personal
requests to bail you out of your prevailing unforeseen
financial distress, we have discreetly opted to the risk of
transferring Rs. 50,000,00/= (Rs. Fifty Lakhs Only) by
RTGS into your bank account no. 002014100000250 with
Sir M.V. Bank Ltd, Shankarapuram Branch Vide UTR
reference no. ID0H20275292848 dated 01.30.2020 by
borrowing loan from our bank account with Indian Bank,
Basavanagudi Branch, Bangalore – 4.
You have agreed to offset Rs.38,66.430/- (Rs.Thirty Eight
Lakhs Sixty Six thousand Four hundred & Thirty Only)
towards the loan amount Rs.16.31,461/- borrowed
during April 2015 from your bank & the interest accrued
there upon by DEEPAK TRADING COMPANY, Chintamani.
This is in view of the humanitarian.

Crl.Misc.523/2023
8
The Petitioner has claimed that claimed that AnnexureD is the copy of email containing mention about payment of
Rs.50 lakhs to Accused No.1 through RTGS for closing loan
availed by her. First of all, the document at Annexure-D does
not prima-facie indicate as a copy of email because it is not in
usual format of an email. Even otherwise, as per Annexure-D
it was a communication sent by one S.S.Murthy and Bhagya
Murthy of Singapore and
not a communication of the
Petitioner. As per the said document Deepak Trading
Company
had
availed
a
loan
of
Rs.16,31,461/-
Vashishta Credit Co-operative Society Limited
from
during April
2015 and it seems thereafter the borrower did not repay the
principal
or interest till 1.10.2020,
which
resulted
in
accumulation of dues amounting to Rs.38,66,430/-. As per
the
communication,
an
amount
of
Rs.50
lakhs
was
transferred through RTGS on 1.10.2020. The contents of
Annexure-D clearly gives an impression that the said payment
has not been made by the Petitioner or the persons on her
behalf in the regular course of business but seems an attempt
to avoid their liability or responsibility.

Crl.Misc.523/2023
9
12.

As already pointed out, in the complaint itself the
de-facto complainant has named 55 persons apart from
Accused
No.1
as
the
persons
responsible
for
the
misappropriation and misdeeds. As per said complaint,
Deepak Trading Company is one of such concern who joined
hands with the persons managing Vashishta Credit Cooperative Society Limited and Sri Vashisha Investments. As
per the version of the prosecution, misappropriation of the
amount is about Rs.220 Crores. As already pointed out, the
investigation is in progress and Investigating Agency is
making efforts to gather relevant materials to ascertain the
veracity of the complaint. At present the Investigating Officer
has only issued a notice to the Petitioner asking her to appear
before him and cooperate with the investigation of the case. If
at all the Petitioner has repaid the loan amount as contended
by her and if she has not joined hands with the accused
persons, there was no reason for her to apprehend her arrest
in the case. Considering the magnitude of the amount
involved in the case and need of detailed investigation, this
Court opines that granting of anticipatory bail to the
Crl.Misc.523/2023
10
Petitioner is likely to prejudice the investigation in the case.
For the foregoing reasons, this Court holds that the Petitioner
has not made out any valid grounds to extend her benefit of
anticipatory bail including on the ground of parity.

Hence,
Point No.1 is answered in the negative.
13.

Point No.2: In the result, this Court proceeds to
pass the following:
ORDER
The petition filed under Section 438 of
Criminal Procedure Code is dismissed.
(Dictated to the Judgment Writer, transcribed by her, Order
corrected, signed and then pronounced by me in Open Court,
on this the 6th day of February, 2023)
(Muralidhara Pai B.)
Principal City Civil & Sessions Judge,
Bengaluru.
Digitally signed
by BORKATTE
BORKATTE
MURALIDHARA
MURALIDHARA PAI
PAI
Date: 2023.02.13
15:52:51 +0530