AI Drafter 
TaxTMI 
TaxTMI 
2021 (12) TMI 1465
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.... well as application (Nos. 11/21) moved by the petitioner and the misc. petition itself. 3. A misc. petition was preferred by the complainant stating therein that criminal complaint was filed by the petitioner company against the named accused persons before the Civil Judge and Judicial Magistrate Behror Alwar under Section 156(3) Cr.P.C. The Court concerned forwarded the complaint for investigation to Police Station Shahjanpur District Bhiwadi and an FIR was registered bearing No. 213/2020 for offence under Section 420 IPC. It is stated that petitioner moved an application before the Investigating Officer pointing out that the accused persons had generated funds through forgery and criminal offences and the said amount was invested in p....
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.... of Police is directed to issue a letter restraining from releasing of shares and equities as mentioned in the letter dated 12.11.2020. A copy of this order be also sent by the petitioner to the Central Depository Services of India. List this case again on 13.01.2021. It is made clear that, if the Investigating Officer is not present on the next date, the Superintendent of Police shall be free to take action against him." 5. After the said order was passed, the series of applications have been filed for impleadment and passing of orders and directions to the Investigating Agency and to the Central Depository Services Limited to unfreeze the shares which the concerned applicants have purchased. Details of the sh....
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....hich have been identified by the Investigating Officer and the accused named in the FIR involved in parking black money and in other illegal activities relating to share market and therefore, as per the Companies Act, 2013 investigation be transferred to the Serious Fraud Investigation Agency known as Serious Fraud Investigation Office as established under Section 211 of the Companies Act, 2013. It is stated that there are several companies which are run by Anil Shah and Atul Shah who are named in the FIR and investigation of these companies and all other companies which are sister concerns of each other or all the other companies wherein the accused named in the FIR are Directors can be found and the truth can be unfolded. 7. The Seriou....
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....ment in systems, laws or procedures. c) The SFIO shall investigate serious cases of fraud received from Department of Company Affairs. SFIO may also take up cases on its own, subject to para (d) below. The SFIO would make investigations under the provisions of the Companies Act and would also forward the investigated reports on violations of the provisions of other acts to the concerned agencies for prosecution/appropriate action. d) Whether or not an investigation should be taken up by the SFIO would be decided by the Director, SFIO who will be expected to record the reasons in writing. These decisions will be further subject to review by a co-ordination committee." 9. It was further stated that as per Companies? Act, ....
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....done. It is also noticed that the SHO who had directed to freeze the shares was not present during the period from 11.11.2020 to 19.11.2020 and charge was with another ASI Hanuman Prasad and on 20.11.2020 the charge was with some another ASI Sunil Kumar who have written the letter for unfreezing the shares. 13. The applicants who have moved applications for impleadment were heard. However, it is a settled law that such persons cannot be made a party in misc. petition where the complainant seeks invoking of inherent powers of this court for directing firm investigation and for seeking supervision of a proper investigation in a case relating to fraud and cheating. The applicants although may not be necessary party but they have a right to ....
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....ion in care. 17. Keeping the said principle in mind, this court finds that essentially all the applicants who have been named above are those who have purchased share/shares from BSE and NSE relating to the companies which have been mentioned by the complainant in his complaint to the Investigating Officer. The shares were purchased earlier they are liable to be unfreezed. However, if the same were purchased in between and if it is found that such shares were originally purchased by way of proceeds of crime, they would be liable to be confiscated. In the event, therefore, it would be all the more necessary that the present shareholders namely the applicants are not allowed to further sell off the shares till the decision is taken after t....