Belagavi: The Karnataka High Court has quashed an FIR registered against the directors of Bhagyanagar-based Adityaraj Capital Pvt Ltd, providing relief to the company management in a case involving allegations of attracting investors by promising high returns.
For more details : https://timesofindia.indiatimes.com/city/hubballi/hc-quashes-fir-against-adityaraj-capital-directors/articleshow/134643754.cms
The case dates back to June, when the Belagavi district administration initiated action against the company following allegations that it was mobilising funds from investors through promises of unusually high returns.
On June 1, the Deputy Commissioner ordered an inquiry and appointed then Assistant Commissioner Shravan Nayak to investigate the allegations. Following the inquiry, a joint team comprising police, cooperation and revenue officials raided the company’s office in Bhagyanagar.
The premises were subsequently sealed and the company’s bank accounts frozen under provisions of the Karnataka Protection of Interest of Depositors in Financial Establishments (KPIDFE) Act and the Banning of Unregulated Deposit Schemes (BUDS) Act.
Tilakwadi police registered an FIR on June 6 against company chief Balraj Rohidas Mane and others. The investigation was later transferred to the Criminal Investigation Department (CID).
According to the authorities, the company had allegedly mobilised more than Rs 211 crore from around 6,500 to 7,000 investors across Karnataka, Maharashtra, Gujarat and Rajasthan.
Officials alleged that investors were offered guaranteed monthly returns of around 5%, equivalent to up to 60% annually, through stock trading and leveraged funding schemes. Authorities also alleged that the company issued promissory notes and post-dated cheques and operated without obtaining mandatory registrations or approvals from the relevant regulatory authorities.
Mane subsequently approached the Karnataka High Court challenging the FIR.
A bench headed by Justice M Nagaprasanna quashed the case registered by Tilakwadi police, bringing relief to the company management.
The district administration had initiated action against Adityaraj Capital after taking steps against Shivam Associates and other firms accused of attracting investors with promises of unusually high returns.
The implications of the High Court’s order for the ongoing CID proceedings, if any, were not immediately clear.
Welcoming the court’s decision, Mane said he had faith in the judiciary.
“We have not cheated anyone. The court has delivered justice to us, and that is why it ruled in our favour,” he said.
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