Investigation Can't Linger For Years Keeping Investors In Lurch: Bombay HC Pulls Up Mumbai Police's EOW Over Delay In Finishing Fraud Probe

Pulling up Mumbai Police's Economic Offences Wing (EOW) for the delay caused in properly investigating a "fraud" case under the Maharashtra Protection of Interest of Depositors (In Financial Establishments) Act, the Bombay High Court recently observed that investigations in a criminal case cannot be permitted to linger on for years, keeping investors in the lurch.A division bench of Justice Revati Mohite-Dere and Justice Prithviraj K Chavan sought to know if the EOW was 'serious' in investigating the said case since it did not file the chargesheet in the case despite it being lodged way back in October 2020. Observing that it was a "classic case where investors have been let down" by the Economic Offences Wing of the Mumbai Police, the bench in its December 17 order said:"We are extremely unhappy with the manner in which the EOW, Mumbai has taken four years to file even a basic charge-sheet against the accused. Whether it is the investors, which in this case are more than 600 or the accused, all of them have a legitimate expectation to see that the investigation concludes at the earliest. Investigation cannot be permitted to linger on for years, keeping the investors in the lurch, not knowing what is the outcome of the case".The FIR was registered was registered on October 7, 2020 for offences under IPC Sections 120B(criminal conspiracy), 34(common intention), 420(cheating), 406(criminal breach of trust), 409(Criminal breach of trust by public servant, or by banker, merchant or agent) and Sections 3(Fraudulent default by Financial Establishment) and 4(Attachment of properties on default of return of deposits) of the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act (MPID Act). The case was transferred to EOW, Unit-8, Mumbai, on the same day for the same offences and was re-numbered. There are more than 600 investors in the said case, the court noted.There are investors, the bench noted, who are senior citizens and who have invested lakhs of rupees. "It is the duty of the police to see that the investigation is completed, at the earliest and is taken to its logical end. For reasons best known, not even one charge-sheet has been filed," the bench remarked.In a sense, the bench expressed, it felt that the police have "betrayed" the investors of their legitimate right of seeing that the investigation is completed expeditiously, in a timely and able manner. "Instead, the investors are constrained to run from pillar to post, before all the authorities, engage advocates, when infact, it is the duty of the authorities in law to take appropriate steps. It is the duty of the State to ensure that offenders are brought to book. Infact, it is only now with the orders of this Court, that Competent Authorities have taken steps," the judges observed.The court pointed out to Chief Public Prosecutor Hiten Venegavkar, the provisions of section 218 of the Indian Penal Code (IPC), which provides action against the officers for deliberately and for reasons best known, for not filing the charge-sheet in a reasonable time. "We are afraid that this was one such case, where we could have even invoked the said section and initiated prosecution against the concerned officers or could have even directed departmental inquiry against the concerned persons," the bench said. However, the bench refrained from doing the same only because Venegavkar made a statement that charge-sheet will be filed in the said case for all the offences mentioned in the First Information Report (FIR) lodged in the instant case. "Considering the manner in which the case is being investigated for four years, we even questioned Mr Venegavkar that if the police (EOW) was not interested in investigating the case and in filing the charge-sheet, we could transfer the said investigation to Special Investigating Team (SIT), having regard to the number of investors, and the delay of almost four years by the EOW, Mumbai, in concluding the investigation, for reasons best known to them," the bench said."Having expressed our anguish to Mr. Venegavkar, learned P.P, Mr. Venegavkar, on instructions of the higher-ups of the EOW, Unit-8, Mumbai, states that charge-sheet will be filed within four weeks from today, both under the provisions of the IPC as well as the provisions of the MPID i.e. the Sections invoked in the C.R when the C.R was registered on 7th October 2020. Statement accepted," the order notes. Remarking that it hopes that the investigation will be done in its right earnest and charge-sheet will be filed as assured within four weeks, the court adjourned the hearing in the case till January 28, 2025.Case Title: Arvind Solanki vs State of Maharashtra (Criminal Writ Petition (Stamp) 13125 of 2024)Counsel for petitioner: Advocates Mutahar Khan, Sachin Mhatre and Ishita Kamath instructed by Mhatre Law AssociatesCounsel for State: Chief Public Prosecutor Hiten Venegavkar assisted by Additional Public Prosecutor Prajakta ShindeCounsel for...

Investigation Can't Linger For Years Keeping Investors In Lurch: Bombay HC Pulls Up Mumbai Police's EOW Over Delay In Finishing Fraud Probe

Narsi Benwal

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