Sudeep And Ors vs State Of Kerala And Ors

It is yet another case of massive financial defraud committed by the accused persons under the guise of a company constituted by themselves, by

which, deposits were received from various persons under a handsome offer. Subsequently, the company was wound up without returning the deposit.

The accused Nos.4 and 5 came up respectively in Crl.M.C.Nos.3090/2014 and 4736/2015 for quashing the FIR and the final report under Section 417,

409, 406, 420, 120 B IPC and under Section 45 1A of Reserve Bank of India Act, 1934. Final report was submitted without adhering to the provisions

contained in the Kerala Protection of Interests of Deposits in Financial Establishment Act, 2013 ( for short, KPID Act). The mere fact that the crime

was registered under Section 45 -1A would itself show the application of KPID Act. It is also brought to the notice of this Court that the competent

authority constituted under the KPID Act has not so far exercised their jurisdiction to attach the assets of Company, all its Directors and the persons

responsible for the malpractice. The request for permitting to withdraw both the applications cannot be sustained in view of the seriousness of the

offence alleged and non-action on the part of the competent authority constituted under the KPID Act and non-incorporation of penal provisions under

the said Act in the final report. By reserving the right of investigation to submit a supplementary report under Section 173(8) Cr.P.C. in view of the

application of KPID Act, the present Crl.M.Cs. are hereby dismissed.

The Registry shall send a copy of this order to the competent authority under the KPID Act so as to enable them to initiate action under the provisions

of the said Act.