Continuing offence in collective investment scheme defaults keeps limitation running and avoids the bar under criminal procedure law.

Persistent non-compliance with the obligation to wind up an existing collective investment scheme and refund investors under regulations 68, 73 and 74 of the SEBI (Collective Investment Schemes) Regulations, 1999 was treated as a continuing offence. Because the retained investors' money remained unpaid, the default was not a completed act done once and for all. Section 472 CrPC therefore applied, so limitation ran afresh during the period of continued non-compliance and the complaint was not barred by the general limitation period under section 468 CrPC.

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Issues: Whether non-compliance with regulations 73 and 74 of the Securities and Exchange Board of India (Collective Investment Schemes) Regulations, 1999, punishable under section 24 of the Securities and Exchange Board of India Act, 1992, constitutes a continuing offence and whether the complaint is barred by limitation under section 468 of the Code of Criminal Procedure, 1973.

Analysis: A person operating an existing collective investment scheme was under a statutory duty to seek registration, and failing that, to wind up the scheme and repay investors in the manner prescribed by regulations 68, 73 and 74. The retained investors' money remained unpaid, so the default was not a completed act done once and for all. The rule in section 472 of the Code of Criminal Procedure, 1973 applies to continuing offences, under which limitation runs afresh during every moment of continued non-compliance. On that basis, the breach of regulations 73 and 74 was treated as continuing in nature, and the prosecution was not defeated by the general limitation period under section 468.

Conclusion: The complaint was not barred by limitation, and the alleged default under regulations 73 and 74 was a continuing offence.

Ratio Decidendi: Persistent non-compliance with a statutory obligation to wind up a scheme and refund investors' money constitutes a continuing offence, attracting section 472 of the Code of Criminal Procedure, 1973 and excluding the bar of limitation under section 468.

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