Karnataka High Court Stays Further Investigation Against State Bar Council Chairman Accused Of Misappropriating Funds

The Karnataka High Court on Friday stayed further investigation against Chairman of the Karnataka State Bar Council, Vishal Raghu, accused of allegedly misappropriating official funds to the tune of several lakhs.

A single judge bench of Justice S Vishwajith Shetty granted interim relief and said “There shall be interim stay as prayed for as against the petitioner. Liberty is granted to respondent no 2 to file a statement of objections and seek modification of order, notice is accepted by the HCGP for the state government.”

Raghu had approached the court seeking to quash the FIR registered against him at Vidhana Soudha police under sections 37,34,120B,403,406,409,420,465,468,471,477A of the Indian Penal Code. The FIR was registered by a Member of the Council, Senior Advocate Basavaraj S against the Chairman, Vice Chairman and office bearers.

It is alleged that the KSBC had organised a State Advocates' convention on 12-13 August 2023 at Mysuru and Rs 3.3 crore was collected for the convention from different sources, including Rs 1.16 crore collected as donations from advocates and others, Rs 1 crore as contribution from the State government, and Rs 75 lakh from KSBC's own funds.

It is alleged that the accused showed that ₹3.12 crore was spent on the convention, by using forged documents and falsified accounts, and misappropriating the funds collected for their personal use.

Senior Advocate Uday Holla appearing for the petitioner submitted that the income and expenditure statement has been approved by the Council. The statement was ratified again before the committee in October and the second respondent was also present in the meeting.

The complainant appearing in person argued that he had produced tons of documents to show how they manufactured the bills and Rs 50 lakh was withdrawn by the Chairman and Vice-chairman and paid to Sharif furniture.

Further, he said that the complaint makes out a serious offence of forging documents and making fake bills and withdrawing Rs 50 lakhs. It was stated that several thousands of advocates' money was being swindled.

He sought time till Monday to produce all the necessary documents and prayed that no interim relief should be granted till then.

Case Title: Vishal Raghu AND State of Karnataka

Case No: CRL.P 3666/2024