TaxTMI 
TaxTMI 
1991 (12) TMI 32
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....and named individuals numbering 12 as respondents Nos. 3 to 14, praying for the reliefs of: (1) directing the first respondent to return the amount of Rs. 1,60,61,523 seized from the premises of the aforesaid firm in Crime No. 479 of 1991 ; and (2) directing the second respondent to allow the respondents Nos. 3 to 14 to operate their respective bank accounts. The fundamental facts giving rise to the filing of these two petitions as culled out from the materials collected during the course of investigation in the aforesaid crime number of Hasthampatty Police Station, Salem, getting revealed by the representations made by the learned Public Prosecutor and Special Public Prosecutor for income-tax cases may succinctly be stated to bett....
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....Palaniswamy, had been arrested and remanded to custody. (e) Further investigation revealed interesting details as to the money circulation scheme revelled in by the said firm. The details of some of the schemes may be referred to here as to how the gullible public had been lured into the scheme enabling the promoter to mobilise funds in astronomical figures. (1) If a subscriber deposits a sum of Rs. 225, he will be paid a sum of Rs. 1,000 after three months from the date of such deposit ; (2) If a subscriber deposits a sum of Rs. 825, he will be paid a sum of Rs. 2,000 after four months from the date of such deposit ;. (3) If a subscriber deposits a sum of Rs. 1,000, he will be paid a sum of Rs. 1,600 after one month from the da....
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....ting the dividends respectively of Rs. 500, Rs. 400, Rs. 1,600 and Rs. 7,500 without making any further payment other than the initial payment of Rs. 52. Thus, serial number 5 subscriber is to get Rs. 10,000 (Rs. 500 + Rs. 400 + Rs. 1,600 + Rs. 7,500), by a mere investment of Rs. 52 provided the number of subscribers reach the level of 1,280, irrespective of any time limit. (i) Similarly, the other serial number subscribers are also to get such fabulous dividends depending upon the contingency of induction of number of subscribers swelling up to the level required to earn such dividends. The said enterprise is said to be a registered partnership firm. There are ten partners constituting the firm. The firm, it is said, commenced its ac....
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....terials, in the shape of documents, to vouchsafe what they had stated at this stage. Further probe, it is said, is being made into that aspect of the matter by the Crime Branch CID to whom the case is subsequently transferred. The petitioner filed Criminal Original Petition No. 7988 of 1991 under section 482, Criminal Procedure Code, for quashing the proceedings initiated against the firm Vazhga Vaiagam Enterprises in Crime No. 479 of 1991, Hasthampatti Police Station, on the ground that the averments in the first information report do not at all disclose any offence either under the Code or under the 1978 Act and a learned judge of this court dismissed the same, holding that there are prima facie materials for the alleged commission of ....
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....king the payments to the depositors under the various schemes announced by the firm, to which course respondents Nos. 3 to 14 have no objection. The learned Public Prosecutor, Mr. B. Sreeramulu, and the learned Special Public Prosecutor for Income-tax cases, Mr. K. Ramasamy, would, however, repel, tooth and nail, such submissions. Even at the outset, I may point out that both the petitions are liable to be dismissed in limine. The reason is rather obvious. Both the petitions are captioned as being filed under sections 451 and 482, Criminal Procedure Code, and invoking of power, both under section 451 and as well as under section 482, Criminal Procedure Code, simultaneously by this court is not at all legally permissible. To appreciate....
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....xercised such power perversely, then it may be permissible to knock at the doors of this court for the exercise of its inherent power under section 482, Criminal Procedure Code, inasmuch as there is no express provision under this Code to undo such wrong in the course of administration of justice. Such is not the position in the instant case. As adverted to, during the course of summation of facts, no petition under section 451, Criminal Procedure Code, had been filed before the Court of the Chief Judicial Magistrate, Salem, before whom the seized amount of Rs. 1,18,21,935 was stated to have been produced. Further, the sum of Rs. 1,36,13,656 stated to be in the credit of the individual accounts of respondents Nos. 3 to 14 in various bank....