✦ High Court of India · 20 Mar 2025

High Court · 2025

Case Details High Court of India · 20 Mar 2025

Court

High Court of India

Decided

20 Mar 2025

Bench

Special Committee and a retired District District The Special G.K.ILANTHIRAIYAN

Length

1,510 words

Acts & Sections

Government Order appointing the second respondent as Competent Authority under Tamilnadu Protection of Interests to Depositors Act 1997 Indian Penal Code §120B Indian Penal Code §5 TNPID Act 1997

Crl.O.P.No.4646 of 2025 IN THE HIGH COURT OF JUDICATURE AT MADRASDATED: 20.03.2025CORAM:THE HONOURABLE MR. JUSTICE G.K.ILANTHIRAIYANCrl.O.P.No.4646 of 2025R.Sivakumar ... PetitionerVs.The State Rep by its,The Deputy Superintendent of Police,Economic Offence Wing-II, Salem District. ... RespondentPRAYER: The Criminal Original Petition is filed under Section 482 of Criminal Procedure Code, to direct the competent authority or appoint a committee/administrator to attach and sell the properties of the petitioner and the companies, namely Winstarindia City Developers (A1) and Sowbakkia City Developers(A2), for the purpose of settling and disbursing the claims of the depositors concerned in C.C.No.6 of 2019 pending on the file of the Special Judge, Special Court under the TNPID Act, Coimbatore. For Petitioner: Mr.G.PrabhakaranFor Respondents : Mr.A.Gopinath Government Advocate (Crl.Side) Page 1 of 10 https://www.mhc.tn.gov.in/judis Crl.O.P.No.4646 of 2025 ORDERThis petition has been filed seeking a direction to the competent authority or appoint a committee/administrator to attach and sell the properties of the petitioner and the companies, namely Winstarindia City Developers (A1) and Sowbakkia City Developers(A2), for the purpose of settling and disbursing the claims of the depositors concerned in C.C.No.6 of 2019 pending on the file of the Special Judge, Special Court under the TNPID Act, Coimbatore. 2. On the complaint lodged by the respondents, F.I.R has been registered in Cr.No.15 of 2017 for the offence under Sections 120B, 420, 406 IPC and Section 5 of TNPID Act, 1997. The petitioner is arrayed as third accused in C.C.No.6 of 2019.3. The allegations stated in the F.I.R is that the petitioner had established Finance Company in the name and style of Winstar India City Developers (A1) and Sowbakkia City Developers(A2) collected deposits from 1,686 persons amounting to the tune of Rs.82,01,76,661/- and failed to return the said amount to the depositors, thereby, cheating the depositors. Page 2 of 10 https://www.mhc.tn.gov.in/judis Crl.O.P.No.4646 of 2025 4. After completion of investigation, the respondent has filed a final report and the same has been taken cognizance by the trial Court in C.C.No.6 of 2019 and it is pending for trial. Thereafter, one of the victims namely Sekar has filed a writ petition before this Court in W.P.No.9404 of 2023 seeking a direction to direct the first respondent to issue Government Order appointing the second respondent as Competent Authority under Tamilnadu Protection of Interests to Depositors Act, 1997 to identify the properties of the petitioner/A3 and take inventory and fix the value of the properties in connection with C.C.No.6 of 2019 pending on the file of the Special Court for TNPID Cases, Coimbatore and complete the same within the time prescribed by this Court. 5. This Court vide order dated 26.07.2023 directed the first respondent to pass appropriate orders appointed the second respondent therein as the competent authority under the TANPID Act and the second respondent therein should identify the properties and proceed further in accordance with law. However, so far, no properties have been identified and no steps have been taken to realize the amount which were collected from the victims. Page 3 of 10 https://www.mhc.tn.gov.in/judis Crl.O.P.No.4646 of 2025 6. Now, the petitioner being an accused has come forward with this petition on the ground that he had identified ten items of properties and also produced the certified copy of the parent deeds of those properties. Therefore, the petitioner sought for appointment of a committee to deal with the properties in order to settle the claim amount to the victims. 7. A perusal of the counter filed by the respondent reveals that so far five items of properties were identified and the same were attached and it is pending for realization. In so far as the properties, now identified and produced before this Court are under the proposal for attachment. So far, no order has been passed to attach the properties mentioned by the petitioner. 8. It is reported that it is only to drag on the proceedings and the petitioner has absolutely no interest to settle the amount. Infact, the said victim has already filed a writ petition before this Court, in which, this Court was not inclined to appoint any committee to attach the property and appoint the competent authority under the TANPID Act and identified the properties and proceed further in accordance with the Page 4 of 10 https://www.mhc.tn.gov.in/judis Crl.O.P.No.4646 of 2025 Act/Rules. 9. The respondent also verified and reported before this Court that the properties are very much of higher value available, but the original documents of those properties are not available. 10. The learned counsel for the petitioner has produced certified copies of those properties which are available without any encumbrance. So far, on the side of prosecution, out of 2016 witnesses, 290 witnesses have been examined. That apart, the properties which are already attached and also pending with competent authority without bringing them for auction for sale. 11. Taking note of the facts and circumstances of the case and the submissions made by both counsel and also perusing the materials available on record , this Court is inclined to appoint Committee and a retired District Judge as a Administrator to bring the properties for sale and to deposit the same before the Special Court for disposal to the victims. The said committee consists of Administrator and other two members of the committee. 12. Accordingly, this Court is inclined to appoint a Committee to deal with the case in C.C.No.6 of 2019 pending on the file of the Special Judge, Special Court under the TNPID Act, Coimbatore .Page 5 of 10 https://www.mhc.tn.gov.in/judis Crl.O.P.No.4646 of 2025 i) Mr.C.Kumar Saravanan, District Judge (Retd), (No.197, Flat No.D1, 4th Floor, Sai Agna, Pramitha Homes, No.9, East Street, Mayor Nagar, Rajiv Gandhi Road, Salem-636 007, Mobile No.9443599224) is appointed as a Administrator. ii) The Investigating Officers namely i) the Deputy Superintendent of Police, Salem and ii) the Deputy Superintendent of Police, Erode are the members of the said Committee. iii) The District Revenue Officer, Salem is directed to provide one office room for the Administrator in the Office Building of the District Revenue Office, Salem to proceed the aforesaid case further;iii) The monthly remuneration of the Administrator is fixed as Rs.1,00,000/- and the same shall be payable by the petitioner; iv) The Committee is directed to issue notice to the petitioner for production of certified copies of properties which are identified by the petitioner in total 10 items of properties. Immediately after receipt of notice from the competent authority, the petitioner shall hand over the certified copy of the title deeds. The details of the properties as mentioned below;Page 6 of 10 https://www.mhc.tn.gov.in/judis Crl.O.P.No.4646 of 2025 Unattached Property DetailsSl.NoDoc.No.Site NameNo Plots identifiedby the respondent No Plots identified by the petitionerMarket Value1Doc.Nos.1107 & 3637 & 576 of 2014Singappur CityPhase I, Phase II,Phase III Village-Pethanayakkanpalyam,Kalpaganoor5001161Rs.48,76,20,000/-(Approximately)2Doc.No.887 to 889 of 2014 and OthersNew Pothigai Nagar,Village-NaravalurThottipalayam239313Rs.6,26,00,000/-(Approximately)3Doc.No.1729 of 2012 and othersPothigai Nagar Village-Elur57256Rs.12,28,80,000/-(Approximately)4Doc.No.2851 of 2014Ela Nagar, Manathi244233Rs.10,10,10,000/-(Approximately)5Doc No.1909 of 2014 & 69 of 2014Cunoor City Village,Yethappur143133Rs.10,54,85,000/-(Approximately)6Doc.No.1815 of 2013Pokkisam Nagar Village-Thathadripuram8176Rs.3,18,26,000/-(Approximately)7Doc No.3950 of 2013Soubhakya Nagar,Village, Pethanayakkanpalyam-75Rs.3,50,00,000/-(Approximately)8Doc No.1127 to 1130 & 1498 of 2013Tourisam Nagar-Village-Poolampatti &Vellarivelli4458Rs.8,50,00,000/-(Approximately)9Doc.No.5198 of 2012Soubhakya Nagar,Village-Koranampatti2335Rs.3,04,00,000/-(Approximately)10Doc No.367 of 2014 London City Village-Elur-19Rs.72,50,000/-(Approximately)Total Plots13312359(Approximately Rs.106.5 Crores)Total Un-attached Properties Market Value = Rs.106,90,71,000/- (Approximately Rs.106.5 Crores). v) The Committee is directed to bring those properties directly for Page 7 of 10 https://www.mhc.tn.gov.in/judis Crl.O.P.No.4646 of 2025 auction sale in accordance with law. vi) After completion of auction sale, the Committee is directed to deposit the sale proceeds to the credit of C.C.No.6 of 2019 and on such deposit, the Administrator is directed to open a new account in name of the Administrator in C.C.No.6 of 2019 and disburse the sale proceeds to the victims;vii) The committee is directed to issue notice to the victims and those who are willing to purchase the plots which are available as per their fixed deposit;viii) On perusal of the identity of the victims and on receipts issued by the accused in respect of their deposits, the committee is also directed to register the same in their favour;ix) In respect of those victims who are not willing to register plots in their names, the Committee is directed to bring the remaining property for auction sale to realize sale proceeds and to disburse the same proportionately to the victims. x) After identifying the 10 items of unattached properties, the petitioner is also permitted to negotiate with the respective victims while registering plots in their favour and also while disbursing the amount to those who are not willing to register plots in their favour.Page 8 of 10 https://www.mhc.tn.gov.in/judis Crl.O.P.No.4646 of 2025 13. With the above directions, this Criminal Original Petition is disposed of. 20.03.2025VvTo1. Mr.C.Kumar Saravanan, District Judge (Retd), No.197, Flat No.D1, 4th Floor, Sai Agna, Pramitha Homes, No.9, East Street, Mayor Nagar, Rajiv Gandhi Road, Salem-636 007. Mobile No.94435992242. The Special Judge, Special Court under the TNPID Act, Coimbatore. 3. The District Revenue Officer, Salem4. The Deputy Superintendent of Police, Salem 5. The Deputy Superintendent of Police, Erode6. The Deputy Superintendent of Police, Economic Offence Wing-II, Salem District.7. The Public Prosecutor, High Court of Madras, Chennai.Page 9 of 10 https://www.mhc.tn.gov.in/judis Crl.O.P.No.4646 of 2025 G.K.ILANTHIRAIYAN, J.VvCrl.O.P.No.4646 of 202520.03.2025Page 10 of 10

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