TaxTMI 
TaxTMI 
2023 (11) TMI 1413
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.... V and the precise allegations qua the petitioner read as under "26. Rajiv Kumar Rana (A-177), Partner in ABL Projects, subsidiary of Adarsh Buildestate Limited (A-1/CUI of AGC&L) and Mahesh Dutt Sharma (A-178), GM sales of Dehradun and Jammu Projects of Marsh Buildestate Limited (ABL) and Riddhi Siddhi Infra projects Private Limited (RSIPL) (A-87) were brought under the fold of investigation due to gravity of their roles in the functioning of, and transactions with, some of the CUIs. 27. Rajiv Kumar Rana, Partner-Authorised Signatory of ABL Projects, a firm in which major shareholding of Adarsh Buildestate Limited, siphoned off Rs.78.74 Crore from the books of accounts of ABL Projects for his personal benefits. Further, he also siphoned off Rs.5.81 Crore in the name of Meeruth Project from Adarsh Buildestate Limited." 3. It has been contended by the counsel representing the petitioner that once the complaint i.e. in form of the chargesheet already stands filed before the Court that itself evidently demonstrates that the investigation qua the petitioner stands concluded and thus the custody of the petitioner cannot be prolonged as a punitive measure. He further....
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....of bail is to secure the appearance of the accused person at his trial by reasonable amount of bail. The object of bail is neither punitive nor preventative. Deprivation of liberty must be considered a punishment, unless it can be required to ensure that an accused person will stand his trial when called upon. The courts owe more than verbal respect to the principle that punishment begins after conviction, and that every man is deemed to be innocent until duly tried and duly found guilty. 22. From the earliest times, it was appreciated that detention in custody pending completion of trial could be a cause of great hardship. From time to time, necessity demands that some unconvicted persons should be held in custody pending trial to secure their attendance at the trial but in such cases, "necessity" is the operative test. In this country, it would be quite contrary to the concept of personal liberty enshrined in the Constitution that any person should be punished in respect of any matter, upon which, he has not been convicted or that in any circumstances, he should be deprived of his liberty upon only the belief that he will tamper with the witnesses if left at liberty, sav....
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.... longer than the period of detention, had they been convicted. It is not in the interest of justice that accused should be in jail for an indefinite period. No doubt, the offence alleged against the appellants is a serious one in terms of alleged huge loss to the State exchequer, that, by itself, should not deter us from enlarging the appellants on bail when there is no serious contention of the respondent that the accused, if released on bail, would interfere with the trial or tamper with evidence. We do not see any good reason to detain the accused in custody, that too, after the completion of the investigation and filing of the charge-sheet." 6. Per contra, counsel appearing for respondent-SFIO has opposed the bail plea. Reference is being made to the part of the investigation report which is part of the complaint culling out the actual role of the petitioner which reads as under :- "CATEGORY V DIRECTORS/EMPLOYEES: RAJEEV KUMAR RANA AND MAHESH DUTT SHARMA RAJIV KUMAR RANA ABL PROJECTS 4.199 Adarsh Buildestate Limited (ABL) started a project under the name of ABL Project (Partnership Firm) in Dehradun in partnership with Rajiv Kumar....
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.... No remarks provided Mumbai Projects 2.18 Owned by Firm of Rajiv Rana Eagle Stone 1.38 Firm of Rajiv Rana Ananata Hygine 0.82 Company of Rajiv Rana SBPLTD. 0.69 Company of Rajiv Rana Accounting Entry 0.58 Adjustment entry in the books Surya Buildarch 0.51 Company of Rajiv Rana Surya Construction 0.25 Firm of Rajiv Rana Meerut Project 0.20 Unexplained Dhmspltd. 0.20 Company of Rajiv Rana ABL Gurgaon 0.15 Firm of Rajiv Rana Surya Media 0.15 Firm of Rajiv Rana Deepak Pundir 0.12 Partner in ABL Projects Rajiv Kumar 0.11 Utilized for personal purposes Raajvir Rana 0.05 Son of Rajiv Rana Vandana Rana 0.01 Wife of Rajiv Rana Divya Himgiri 0.01 Unexplained Ramapati 0.01 Unexplained Office Exp. 0.01 Unexplained Rishika L&B 0.01 Unexplained RMSJ 0.00 Unexplained P & L 0.00 Unexplained Legal EXP. 0.00 Unexplained Grand Total 45.21 c. As can be seen from the above table, Rajiv Rana has siphoned off money from ABL Projects for his personal benefits and benefit of his entities....
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....ddle class and lower income groups and thus the petitioner being guilty of serious fraud does not deserve to be released on bail. It has been further contended that even the conduct of the petitioner is such that the same does not merit his release on bail. The petitioner initially preferred pre-arrest bail which was dismissed by Special Court on 21.07.2020. After having evaded more than 10 non bailable warrants, the petitioner could be produced only after he was arrested by Rajasthan Police. 8. Having heard rival contention of the parties and after going through the records of the case, this Court finds that the present petitioner has been arraigned as accused qua offence punishable under Section 447 of the Companies Act. The same reads as under :- "Section 447: Punishment for fraud. 447. Without prejudice to any liability including repayment of any debt under this Act or any other law for the time being in force, any person who is found to be guilty of fraud 1[involving an amount of at least ten lakh rupees or one per cent. of the turnover of the company, whichever is lower], shall be punishable with imprisonment for a term which shall not be less than six mo....