TaxTMI 
TaxTMI 
2025 (1) TMI 957
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....13/2021 titled as "Serious fraud Investigation Office v. Cosmic Structures Ltd. & Ors.", filed under Sections 129, 134, 143, 144, 147, 447, 448 of the Companies Act, 2013 and Sections 77 (2), 77(4), 211, 217, 227, 233, 628 of the Companies Act, 1956. 2. At the outset, it is pertinent to state that both the captioned bail applications arise out of the same complaint wherein both the applicants have been named as accused and have been assigned similar roles in the aforesaid complaint. Since both the applications contain similar grounds of bail and the same have been opposed by the State on similar grounds, this Court deems it appropriate to adjudicate the captioned applications by way of the instant common order. 3. For the sake of convenience, this Court has culled out the facts, grounds, reply, rejoinder, written submissions and compilations from the BAIL APPLN. 1287/2023, titled as "Sushant Mutreja v. Serious fraud Investigation Office". 4. The relevant facts that led to the filing of the instant application are as follows: a. It is stated by the applicant that he is the ex-promoter/ex-director of M/s Cosmic Structures Ltd. (hereinafter "CSL") which was primarily....
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.... of CSL. The investigation of the SFIO was complete and the investigation report dated 8th October, 2021 was submitted to the MCA on the basis of which the MCA directed the SFIO to file a complaint against the CSL and other accused persons in the complaint case bearing no. CC/1313/2021 before the learned Additional Sessions Judge-03 & Special Judge (Companies Act), Dwarka Courts, South West, New Delhi under Sections 129, 134, 143, 144, 147, 447, 447, 448 of the Companies Act, 2013 and Sections 77 (2), 77(4), 211, 217, 227, 233, 628 of the Companies Act, 1956. h. It is alleged in the said complaint that the CSL is a company incorporated on 20th October, 2011 and that the CSL deals in the business of real estate & infrastructure projects including consultancy & construction of housing & commercial spaces. In the said Complaint, it is also alleged that the applicants, i.e. Sushant Muttreja (accused no. 6) and the Nishant Muttreja (accused no. 7) are the "actual controlling mind and will" of CSL. i. In the said Complaint, it is further alleged that the money invested by the homebuyers/investors was spent recklessly and diverted for reasons which were not in consonance....
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.....12.2022 6. 909/2017 420/467/468/471/504/508 IPC PS Hari Parbat Bail granted by this Hon'ble Court vide Order dated 16.12.2022 7. 129/2017 420/120B IPC EOW Delhi Bail Granted by Ld. CMM, Tis Hazari Court, Delhi vide dated 18.01.2023 8. 1337/2017 420/406/467/468/471 IPC PS Kotwali Nagar, Muzaffarnagar Bail granted by Hon'ble Allahabad High Court 9. 509/2019 420/409/407/408/471/120B/504/50 6 IPC PS Sector 20, Noida Bail granted by Hon'ble Allahabad High Court 10. 1284/2017 420/406 IPC PS Noida Phase-III District Gautam Budh Nagar Bail granted by Hon'ble Additional District Judge-IV, Gautam Budh Nagar vide Order dated 19.12.2019 11. 384/2018 420/408 IPC Eco Tech-III, District Gautam Budh Nagar Bail granted by Hon'ble Additional District Judge-IV, Gautam Budh Nagar vide Order dated 19.12.2019 12. 695/2018 420 IPC District Gautam Budh Nagar Bail granted by Hon'ble Additional District Judge-IV, Gautam Budh Nagar vide Order dated 19.12.2019 13. Criminal Complaint CC/1313/2021, SFIO 129, 134, 143 r/w 147, 144 /w 147, 447, 448 r/w 447 Companies Act. 2013 ....
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....he account of the company during this period, thus falsifying the allegation of withdrawals of Rs. 26.39 Crores. It is evident from the chargesheet documents itself that between the period of April, 2013 to May, 2016, an amount of Rs. 18.50 Crores was deposited in the account of CSL. It is not out of place to mention that total cash deposits in the account would be a bigger amount as cash deposits between 2011 - March, 2013 have not been taken into account. 11. It is submitted that after considering the charge-sheet filed by the respondent, the Coordinate Bench of this Court had granted bail to the applicant in the six FIRs vide order dated 16th December, 2022, . 12. It is also submitted that the Coordinate Bench of this Court, in the aforesaid order, observed in paragraph no. 24 that "the chargesheet has since been filed; the trial has not yet begin; there are numerous witnesses to be examined and it would take years to examine them; there is no possibility of dropping of evidence; the petitioners are not at flight risk as their passports have since been surrendered; they were earlier released on interim bail and did not misuse their liberty...". The Court further observed i....
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....eme gets approved by the concerned Company Court. 19. It is also submitted that the applicant has filed a comparison chart of the Revival Scheme placed by the applicant with the schemes placed by other parties before the concerned Company Court. A copy of the updated Comparison Chart is annexed with the present application which is available on record. Moreover, the applicant has already placed the revival scheme along with all the relevant documents, relevant affidavits duly sworn by the co-developers pertaining to all the six projects before the concerned Company Court as well as this Court. 20. It is submitted that the last date of hearing before the learned ASJ was 5th August, 2024 and the next date of hearing is 17th December, 2024 for the purpose of appearance of the Official Liquidator, scrutiny of documents and further proceedings. Therefore, even after filing the present criminal complaint on 14th October, 2021, the trial of the matter has not yet started and the matter is still at the stage of summoning and scrutiny of documents. 21. It is also submitted that from the above facts, it is likely that the conclusion of the trial of the said complaint will be delayed....
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....ocent person and a law abiding citizen and undertakes that the he shall abide by any conditions imposed by this Court while granting bail. The address of the applicant has already been verified by the respondent and found to be true and correct. Hence, it is prayed that the applicant may be released on bail. 28. Per Contra, learned CGSC appearing on behalf of the SFIO vehemently opposed the bail application and submitted that the present applicant is involved in heinous crime of siphoning of funds of the investors/homebuyers/allottees and falsifying books of accounts with the intention to dispute its innocent investors. Therefore, he is not entitled to the concession of bail and if released on the bail he may influence the trial. 29. It is submitted that the CSL had taken advances from more than 6,000 customers totaling to Rs. 524.16 Crores and had shown the WIP of all the projects at Rs. 422.85 Crores as on 31st March, 2015 inclusive of assured return given to the home buyers/investors at Rs. 76.74 Crores. Funds were collected by the CSL under aforementioned three schemes launched by the CSL at the beginning of the construction projects. 30. It is submitted that in order ....
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....ted that it is a settled law that twin conditions, under Section 212(6) of the Companies Act, 213 are mandatory to be satisfied for such accused persons who are arrested in connection with the offence punishable under section 447 of the Companies Act, 2013 (hereinafter "Companies Act") and a fair consideration of the material against the accused as provided in the criminal complaint would establish that twin conditions have not been satisfied. 37. It is further submitted that in the present case, the investigation has thoroughly established that the accused-applicants, Muttreja Brothers, were the "mind and will" and in direct control of the affairs of the CSL at such time when the homebuyers and investors were lured to invest their money in projects launched by the CSL. 38. It is submitted that the investigation has revealed sufficient incriminating material as duly available on record, to establish both the key ingredients under Section 447 of the Companies Act. Therefore, the applicant-accused's claim that the learned ASJ failed to appreciate that the applicant-accused fulfilled the twin conditions under Section 212(6) of the Companies Act are ill-founded and only misleadin....
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....after propounded again by the CSL with one M/s Good Living Infrastructure Pvt. Ltd., which proposed an infusion of Rs. 300 Crores for completion of all the six projects of the CSL. Thereafter, one M/s Renowned Buildtech Pvt. Ltd. agreed to invest Rs. 50 Crores and collaborate with the Company on two projects in furtherance of which the ex-directors (accused herein) of the CSL filed their scheme before the concerned Company Court, thereby, proposing a deposit in the form of a Bank Guarantee of Rs. 50 Crores. An affidavit was also filed by the builder stating that it was ready to give upfront Bank Guarantee of Rs. 5 Crores in support of the scheme. Therefore, the bona fide of the applicants is prima facie discernible from the said actions which have been duly stated in the captioned bail applications on affidavit. 46. At this stage, it is pertinent to mention here that the investors/homebuyers/allottees are the real entities/individuals who have been actually affected by the failure of the completion of the projects even after they have paid their due share of amount to some extent. Ultimately, it is the investors who have actually suffered by the hands of the culprits. 47. At ....
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....d Use Co- Developer Cosmic Corporate Plot No. 10, 10 Acres IT/ITES mixed Indihomz Park (CCP-1) Tech Zone, Yamuna Expressway, Greater Noida land use Infra LLP. Cosmic Corporate Park-140 (CCP-2/CCP-140) Plot No. 5, Sector 140, Noida 5 acres IT/ITES mixed land use Lord Krishna Infracon Pvt. Ltd. Cosmic Masterpiece (CCP- 3/CCP-154) Plot No. 1, Sector 154, Noida 5 acres IT/ITES mixed land use Renown ed Buildtech Pvt. Ltd. Cosmic Cruise (CC/KP 5) Plot No. 15, Knowledge Park- V, Greater Noida 10 acres IT/ITES mixed land use Sirda Homes Pvt. Ltd. Cosmic Urban Young (UY) TS 04, Sector 22D, Yamuna Expressway, Greater Noida 2.5 acres + 2.5 acres Residential Renown ed Buildtech Pvt. Ltd. Cosmic Business Center (CBC/Gurga on) Plot No. 5/9, Sector 35, NH-8, Gurugram 1844 squares meters IT/ITES mixed land use JMS Infra Realty Pvt. Ltd. ("JMS Infra") 6. Salient Features of the Revival Scheme with respect to Cosmic Masterpiece (CCP3) Project and Cosmic Urban Young Project: 6.1. As per the Scheme, one of the Co-developer namely M/s Renowned Buildtech is taking up the captione....
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.... Scheme with respect to Cosmic Corporate Park (CCP-1) Project, Cosmic Corporate Park- 140 (CCP-2), Cosmic Cruise (KP 5) and Cosmic Business Center, Gurgaon (CBC) Projects: 7.1. At the time of filing the Scheme, the Applicant and his brother proposed to partly dispose of other assets of the Applicant's Company as well as their personal assets, from the customer's infusion of funds, from bringing in other co- developers in order to revive the remaining 4 projects i.e. CCP-1, CCP-2, Cosmic Cruise (KP5) and Cosmic Business Center (CBC) Gurgaon. However, the Applicant and his brother have been making endeavours to involve the other Co-developers for the revival of remaining 4 projects of the Company and they were successful in involving other Co- developers namely M/s Indihomz Infra LLP for CCP-1 project, M/s Lord Krishna Infracon Pvt. Ltd. for CCP-2 project, Srida Homes Pvt. Ltd. for KP5 project and JMS Infra Realty Pvt. Ltd. (JMS Infra) for CBC project. The duly sworn Affidavits of all the Codevelopers involved in revival of the projects of the Company are already on record before the Hon'ble Company Court. 7.2. M/s Indihomz Infra LLP will make an upfront deposit of ....
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....s to complete the phase wise development of the project and settle all the existing customers and creditors of the project within 4 years extendable for a period of 6 months subject to receipt of timely due payments from the existing customers. 7.7. M/s JMS Infra Realty Pvt. Ltd. (JMS Infra) proposes to invest upto Rs. 10 crores over a period of 2 years as per requirement of the Cosmic Business Center, Gurgaon (CBC) project. It undertakes to complete the said project within a period of 2 years post receipt of requisite approvals from the Concerned Authorities and HARERA. The Co-developer is willing to submit a security deposit in the form of FD of Rs. 2 crores within 7 days of approval of the said scheme and the same shall be subsequently allowed to be utilized towards Project development and construction. A duly sworn Affidavit on behalf of M/s Indihomz Infra LLP is annexed to the present Compilation at pg. 33-35. A duly sworn Affidavit on behalf of M/s Lord Krishna Infracon Pvt. Ltd is annexed to the present Compilation at pg. 28-32. A duly sworn Affidavit on behalf of M/s Srida Homes Pvt. Ltd. is annexed to the present Compilation at pg. 36-38....
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....formed in any other way as decided by this Hon'ble Company Court. 9. The Applicant has already placed the Revival Scheme along with all the relevant documents, relevant Affidavits duly sworn by the Co-developers pertaining to all the six projects before the Hon'ble Company Court. 10. It may not be out of place to state that other parties have also filed Schemes before the Hon'ble Company Court. The Applicant has filed a comparison chart of the Revival Scheme placed by the Applicant with the Schemes placed by other parties before the Hon'ble Company Court. A copy of the updated Comparison Chart is annexed to the present Compilation at pg. 94-99...." 52. Perusal of the aforesaid extracts show that the applicants and the other promoters of the CSL have submitted a scheme of settlement, compromise and arrangement between the CSL and its members, creditors and customers which is prima facie with the objective of ensuring maximization of assets of the unit allotees of the Company and reviving and rehabilitating all six projects to the maximum extent possible before the concerned Company Court. Although this Court is unaware of the current status of the revival scheme....
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....fore the next date. 5. We are inclined to stay all further proceedings in Appeals Nos. 42 of 2013 (Subrata Roy Sahara v. SEBI), 48 of 2013 (SHICL v. SEBI), 49 of 2013 (SIRECL v. SEBI) and 50 of 2013 (Ashok Roy Chaudhary v. SEBI) pending before the Securities Appellate Tribunal, Mumbai, and in Writ Petition No. 2088 of 2013 pending before the High Court of Judicature of Allahabad, Lucknow Bench, since we are examining the question, whether the respondents have complied with the various conditions stipulated in our judgment dated 31-8-2012 [Sahara India Real Estate Corpn. Ltd. v. SEBI, (2013) 1 SCC 1 : (2013) 1 SCC (Civ) 1 : (2013) 1 SCC (Cri) 257] . 6. Ordered accordingly. 8. Heard the counsel for either side. 9. Due to paucity of time, it would not be possible for us to hear the contempt petition and the same stands adjourned to 17-7-2013 at 2.00 p.m. Parties shall complete pleadings in all IAs/petitions before that date. 10. Mr Arvind Datar, learned Senior Advocate appearing for the petitioner, submits that the money so far deposited by Saharas be permitted to be refunded to the genuine investors, with interest, after verifying the genu....
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....ders dated 28-10-2013 [SEBI v. Sahara India Real Estate Corpn. Ltd., (2013) 9 SCC 331 : (2013) 4 SCC (Civ) 456 : (2013) 3 SCC (Cri) 813] , 1-11-2013 [See para 12, above.] and 21-11- 2013 [See para 13, above.] , Mr C.A. Sundaram, learned Senior Counsel, has taken us through Annexure-A, filed along with IA No. 82 of 2013, which gives details of various properties which the alleged contemnors have agreed to offer to SEBI. Reference was specifically made to properties mentioned at Items 68, 69 and 70, which, according to Mr Sundaram, would fetch a value of more than Rs 11,000 crores. 15. Mr Arvind Datar, learned Senior Counsel appearing for SEBI, prayed for some time to verify the same as well as the valuation reports filed along with the IA in support of that prayer. However, he submitted that if it is the stand of the alleged contemnors that they had refunded the amounts (Rs 17,443 crores approximately in case of SIRECL and Rs 5442 crores approximately in case of SHICL), then they should produce the relevant records, duly certified by a competent authority which is acceptable in a court of law, indicating the sources from which they got the money for repayment, as requested ....
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....he bank statements of the above firms showing when the amount was paid to the partnership firms and subsequently, when and how partnership firm made the disbursement, as sought for by SEBI. 25. Mr Ram Jethmalani, learned Senior Counsel appearing for the respondents submitted that he will examine the same and come out with a response within a week. 26. Post on 11-2-2014 at 2.00 p.m. ORDER DATED 20-2-2014 27. Heard Mr Ram Jethmalani and Mr C.A. Sundaram, learned Senior Counsel appearing for the alleged contemnors and Mr Arvind P. Datar, learned Senior Counsel appearing for SEBI. 28. In view of the conflicting stands taken by the Senior Counsel appearing for the alleged contemnors and the defiant and non-cooperative attitude adopted by the contemnors in honouring the judgment dated 31-8-2012 [Sahara India Real Estate Corpn. Ltd. v. SEBI, (2013) 1 SCC 1 : (2013) 1 SCC (Civ) 1 : (2013) 1 SCC (Cri) 257] , passed by this Court as well as orders dated 5-12-2012 [Sahara India Real Estate Corpn. Ltd. v. SEBI, (2013) 2 SCC 733 : (2013) 1 SCC (Civ) 1259 : (2013) 1 SCC (Cri) 1152 : (2013) 1 SCC (L&S) 452] and 25-2-2013 [Sahara India Real Estate Corpn....
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....t complied with our directions contained in the judgment dated 31-8-2012 [Sahara India Real Estate Corpn. Ltd. v. SEBI, (2013) 1 SCC 1 : (2013) 1 SCC (Civ) 1 : (2013) 1 SCC (Cri) 257] , as well as orders dated 5-12-2012 [Sahara India Real Estate Corpn. Ltd. v. SEBI, (2013) 2 SCC 733 : (2013) 1 SCC (Civ) 1259 : (2013) 1 SCC (Cri) 1152 : (2013) 1 SCC (L&S) 452] and 25-2-2013 [Sahara India Real Estate Corpn. Ltd. v. SEBI, (2013) 2 SCC 738 : (2013) 1 SCC (Civ) 1264 : (2013) 1 SCC (Cri) 1156 : (2013) 1 SCC (L&S) 457] passed in Civil Appeal No. 8643 of 2012 and IA No. 67 of 2013 by a three-Judge Bench of this Court. 35. Sufficient opportunities have been given to the contemnors to fully comply with those orders and purge the contempt committed by them but, rather than availing of the same, they have adopted various dilatory tactics to delay the implementation of the orders of this Court. The non-compliance with the orders passed by this Court shakes the very foundation of our judicial system and undermines the rule of law, which we are bound to honour and protect. This is essential to maintain faith and confidence of the people of this country in the judiciary. 36. We h....
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....etention, so that the Court can pass appropriate orders. 38. List on 11-3-2014 at 2.00 p.m. All the contemnors be produced in Court on that date. Mrs Vandana Bhargava, the fourth respondent, to appear on her own. However, liberty is granted for mentioning the matters for preponement of the date if a concrete and acceptable proposal can be offered in the meantime. ORDER DATED 13-3-2014 39. Shri Ram Jethmalani, learned Senior Counsel, appearing for the petitioner submitted that he has some inconvenience for tomorrow i.e. 14-3-2014 and cannot address arguments tomorrow. The learned Senior Counsel made a request that the matter be posted on 25-3-2014. 40. Consequently, the matter is posted on 25-3-2014 at 2.00 p.m., at the request of the learned Senior Counsel for the petitioner. 41. Prayer made by Mr Ram Jethmalani, learned Senior Counsel for the petitioner, for bail cannot be considered at this juncture, since no written proposal for payment in compliance with the directions issued by this Court has been made so far. ORDER DATED 26-3-2014 42. We have gone through the fresh proposal filed on 25-3- 2014. Though the same is ....
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.... relied upon by the Applicants read as under:-....... *** 6. It is the case of the Applicants as argued by the learned Senior Counsel appearing on their behalf that it is a common ground between the Company and the investors that liquidation of the Company is not in the interest of the investors as substantial amounts have been invested by them in residential/commercial projects proposed by the Company and this fact is also noted by the Company Court in the order dated 24.08.2023. Applicants have made persistent efforts to revive the Company so that the projects can be completed. It is urged that in view of the order passed on 24.08.2023, Applicants be enlarged on interim bail for a period of four weeks so that effective steps can be taken towards revival Schemes in order to save the Company from liquidation. Since the Applicants are in judicial custody, this is hampering the finalisation of revival Schemes. It is further argued that the Applicants were granted interim bail in the past but have never misused the liberty or violated any condition of grant of bail and that the Applicants undertake that every effort will be made in four weeks towards revival of the C....
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....n mind that in a matter of regular bail under Section 439 of the CrPC (now Section 483 of the BNSS), the larger interest of the State must be taken into consideration. Further, a sensitive approach is required to be acquired by the Courts while dealing with the offences constituting economic offences which are increasing plight of this nation as the same impacts the individual roots of the society which is a common man, ultimately leading to minimize the trust of the public in law. 60. However, it is imperative to state that it is upon the judicial discretion of the Courts while granting or refusing a bail application and the said discretion shall be exercised with regard to the facts and circumstances of each case. Thus, while considering the allegations leveled against an accused, the Courts shall, at the same time, adhere to the settled principle with regard to "bail is a rule and jail is an exception", which has been time and again emphasized by various Courts. Therefore, if a Court on merits deems it fit to release an accused on bail, withholding the aforesaid relief will amount to be considered as a punishment. 61. For the purpose of dealing with the merits of a bail ap....
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....f the nature and gravity of charge, the precedent of another case alone will not be the basis for either grant or refusal of bail though it may have a bearing on principle. But ultimately the consideration will have to be on case-to-case basis on the facts involved therein and securing the presence of the accused to stand trial..." 63. Furthermore, the Allahabad High Court has also emphasized the aforesaid legal principle in Peeyush Kumar Jain v. Union of India, (2022) 121 ACC 448, by stating that it is not advisable to categorize all of the economic offences into one group and deny bail on that basis. It was held therein that one of the key factors to determine the gravity of the offence is the term of the sentence that has been prescribed under the provision of offence. The factors that cumulatively affect the grant of bail in an offence, have been listed in the aforementioned judgment as follows: "..31. While considering the prayer for grant of bail in any offence, including an economic offence, the Court has to consider:- (i) the nature of accusation and the severity of the punishment to which the party may be liable in the case of conviction and the nature....
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....tion 212(6) of the Companies Act imposes twin conditions for granting bail to accused persons in cases involving serious frauds investigated by the SFIO. These conditions are, that an offence covered under Section 447 of the Companies Act shall be cognizable and no person accused thereof shall be released on bail or on his own bond unless the Public Prosecutor has been given an opportunity to oppose the application for such release and where the Public Prosecutor opposes the application, the Court is satisfied that there are reasonable grounds for believing that he is not guilty of such offence and that he not likely to commit an offence while on bail. 66. Therefore, this Court must be satisfied that there are reasonable grounds for believing that the applicants are not guilty of the offence alleged against them and that they are not likely o commit any offence while on bail. 67. In the present case, this Court, while refraining from adjudicating on the merits of the allegations, observes that the applicants have made bona fide efforts to revive the projects and safeguard the interests of the investors. The said actions not only reflect their intent to rectify the consequence....
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....settled legal position on constructive custody. 74. In the case of Manish Jain v. Haryana State Pollution Control Board, (2020) 20 SCC 123, the Hon'ble Supreme Court has categorically observed that a person released on bail is already in the constructive custody of law. Furthermore, in a recent judgment titled Bhaskar Takri v. State of Odisha, 2024 SCC OnLine Ori 2190, the Orissa High Court, while citing earlier judgments of the Hon'ble Supreme Court observed that in terms of the settled position of law "an accused who has been released on interim bail is deemed to be in constructive custody of the Court". The relevant portion of the same is as under: "..23. It is trite that in the face of express remedy, the power under Section 482 Cr. P.C. is not to be exercised. But in the factual matrix of the case at hand when the accused have been remanded even in the face of an order of anticipatory bail being granted by this Court, on a fallacious interpretation of the order and oblivious of the law governing the field, this Court is of the considered view that self-imposed embargo ought not to deter this Court from exercising its inherent jurisdiction to sub- serve justice. ....
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....rpreting the expression "in custody" within the meaning of Section 439 CrPC, Krishna Iyer, J. speaking for the Bench in Niranjan Singh v. Prabhakar Rajaram Kharote observed that : (SCC p.563, para 9) '9. He can be in custody not merely when the police arrests him, produces him before a Magistrate and gets a remand to judicial or other custody. He can be stated to be in judicial custody when he surrenders before the court and submits to its directions.'" (emphasis supplied) If the third sentence of para 48 is discordant to Niranjan Singh, the view of the coordinate Bench of earlier vintage must prevail, and this discipline demands and constrains us also to adhere to Niranjan Singh, ergo, we reiterate that a person is in custody no sooner he surrenders before the police or before the appropriate court. XXX XXX XXX" (Emphasis added by this Court) 28. Hence, on the touchstone of the authoritative pronouncement of the Apex Court in the case of Sundeep Kumar Bafna (Supra), it is held that by virtue of the interim bail granted, Petitioners are deemed to be in the constructive custody of the Court in seisin and since for reasons already stated, the....
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....s substantial investments have already been made in the pending projects. The applicants‟ revival schemes, including collaborations with third parties and proposals for bank guarantees, signify a sincere attempt to address the grievances of the affected investors and homebuyers. Additionally, the applicants' judicial custody has impeded their ability to effectively negotiate and implement these revival schemes. 81. Given that the primary objective of this Court should be to ensure relief for the aggrieved investors, granting bail to the applicants would facilitate their active participation in finalizing and executing the revival plans. 82. It is apposite to state here that this Court is conscious of the fact that given the gravity of the offence alleged and seriousness of the investigation that is required to unearth the truth, the applicants must be subjected to the investigating process without letting the said process be impeded in any manner. Thus, it is noted that this decision does not prejudice the merits of the ongoing criminal proceedings but merely seeks to prioritize the larger public interest of enabling the completion of the pending projects and providing ....
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....ndidly shares the concern regarding the interest of the investors who have infused substantial amounts out of their savings in the proposed projects and submits that he cannot have any objection against the Applicants taking sincere steps towards revival of the Company. He, however, submits that in case the Court is inclined to grant interim bail for this limited purpose to the Applicants, it should be without prejudice to the rights and contentions of the Respondent on the merits of the matter and with a caveat that the Applicants be bound by their undertaking that they shall not seek extension of the bail, if granted and the order passed by this Court should not affect the hearing on the regular bail applications, as the allegations against the Applicants are very serious..." 89. Therefore, in light of the principles laid down by the Hon'ble Supreme Court for grant of regular bail and the decision rendered in SEBI v. Sahara India Real Estate Corporation Ltd., (Supra), this Court is inclined to grant bail to the applicants. 90. The address given by the petitioner has been verified by the respondent and found to be correct. Therefore, keeping in view the contentions advanced ....