PRAKASH KUMAR GUPTA V. THE UNION OF INDIA

WPC/3878/2019

AI Insights

The case involves multiple petitioners who filed writ petitions against various respondents, including the Union of India and the Central Bureau of Investigation, seeking a comprehensive investigation and recovery of funds from the Rainbow Multi-State Credit Co-operative Society Ltd. The petitioners alleged that the society had engaged in fraudulent activities, cheating the public under the guise of investment schemes. The CBI had already initiated an investigation, which revealed substantial defalcation. The court's decision to dispose of the petitions was based on the progress of the ongoing investigation and the recovery of a large portion of the defalcated funds.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 680026 (HC-JHARKHAND)
• Appeal Type: Others
• Pronouncement Date: 10-06-2022
• Assessment Year: misc
• Laws Referred To: Jharkhand Rajya Ke Jamakartao Ke Hit Ke Sanrakshan (Bititiye Sthapnao May Bidhayek), 2011
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: PRASHANT PALLAV
• Assessee Lawyers: ALKA KUMARI; DEEPAK DUBEY
• Keywords: Central Bureau of Investigation; Defalcation; Enforcement Directorate; Fraudulent Means; Income Tax Department; Recovery of Money; High Level enquiry; Rainbow Multi-State Credit Co-operative Society Ltd.

Judgement Text

" IN THE HIGH COURT OF JHARKHAND AT RANCHI W.P. (PIL) No. 3878 of 2019 1. Prakash Kumar Gupta 2. Sumant Kumar Singh 3. Mahadeo Saw 4. Raj Kumar Saw 5. Omprakash Saw 6. Archana Kumari 7. Suganti Devi 8. Pawan Praveen 9. Ravindra Kumar Rana 10. Abdul Sattar 11. Sanjay Kumar 12. Tuklal Saw 13. Nitesh Kumar 14. Tileshwar Rana 15. Baidyanath Gupta 16. Ranjeet Kuamr Sahu @ Ranjeet K. Saw 17. Meena Devi … … … … … … Petitioners Versus 1. The Union of India 2. The Director, Enforcement Directorate, New Delhi 3. The Director (Investigation) Income Tax, Ranchi 4. The Director General of Police, Ranchi 5. Rainbow Multi State Credit Co-Operative Society Limited, Dhanbad 6. Director General, Central Bureau of Investigation, New Delhi 7. Bishnu Rawani … … … … … … Respondents WITH W.P. (PIL) No. 4588 of 2019 1. Gorakh Prasad Gutpa 2. Gudiya Devi 3. Sakaldev Saw 4. Krishana Rana 5. Babita Devi 6. Arshad Imam 7. Manju Devi 8. Rina Devi 9. Basanti Devi 10. Umesh Saw 11. Md. Saddam Ansari 12. Tribhuwan Kumar Gupta 13. Bipin Bihari Pandey 14. Subodh Kumar Sharma 15. Parmeshwar Bhuiyan 16. Anil Kumar 17. Sanjay Kumar 18. Manoj Kumar Saw 19. Mahfuz Ansari 20. Mahendra Dangi 21. Nayeem Ansari 2. 22. Md. Shakil Akhtar 23. Ainul Haque 24. Hasibun Nisha 25. Md. Irshad Alam 26. Rubeda Khatoon 27. Birendra Kumar Rana 28. Sanjay Kumar Dangi 29. Narsingh Rana 30. Kunti Devi 31. Mohammad Riyasat Ali 32. Md. Kausar Azad 33. Ramsewak Kumar 34. Abdus Samad 35. Mahendra Sharma 36. Jitendra Kumar Gupta 37. Rekha Devi 38. Krishna Kumar … … … … … Petitioners Versus 1. The Union of India 2. The Director, Enforcement Directorate, New Delhi 3. The Director, (Investigation) Income Tax, Ranchi 4. The Director General of Police, Ranchi 5. Rainbow Multi State Credit Co-Operative Society Limited 6. Bishnu Rawani 7. The Director General, Central Bureau of Investigation, New Delhi … … … ... Respondents --------- CORAM: HON’BLE THE CHIEF JUSTICE HON’BLE MR. JUSTICE SUJIT NARAYAN PRASAD --------- For the Petitioners: Ms. Alka Kumari, Advocate Mr. Deepak Kumar Dubey, Advocate For the UOI: Mr. Prashant Pallav, A.S.G.I. --------- Oral Order 06/Dated: 10.06.2022 These writ petitions have been filed inter alia for grant of following relief(s):- (a) For issuance of writ(s), direction(s), order(s) upon the respondents for conduction of a High Level enquiry by Central Bureau of Investigation, Enforcement Directorate and Income Tax Department against the Rainbow Multi-State Credit Co-operative Society Ltd., its authorized personnel’s and Bank Account Statements and their respective properties of the authorized personnel’s including movable and immovable assets for the 3. purpose of recovery of the amount which has been cheated by the public. (b) For issuance of writ(s), direction(s), order(s) upon the respondents for making a mechanism for the recovery of the money of the public which has been acquired by the Rainbow Multi-State Credit Co-Operative Society Ltd., in the name of investment by cheating and using fraudulent means and after recovery distributing it according to the investment made by the public. (c) For issuance of writ(s), direction(s), order(s) for setting up of investigation against the Rainbow Multi-State Credit Co-operative Society Ltd., and its officials so as to assess the total number of victims who have been defrauded by the company and also for the assessment of the total funds involved in the whole scenario. (d) For issuance of writ(s), direction(s), order(s) upon the concerned respondent for taking all necessary steps against Rainbow Multi- State Credit Co-Operative Society Ltd., and its officials for procurement of the documents, details of the investors and the amount invested, attachment and confiscations of the properties of both the company and the officials or any other person involved in the Pongy Scheme by which the company has cheated the public in mass. (e) The petitioners further pray for a direction upon the respondents to make arrangement for the return of their hard earned money which was invested in the company on their allurement and since the huge profit has been acquitted/attached by the competent authority. (f) For issuance of writ(s), direction(s), order(s) for proper implementation of the provisions of the Jahrkhand Rajya Ke Jamakartao Ke Hit Ke Sanrakshan (Bititiye Sthapnao May Bidhayek), 2011 so as to track any other such company(ies) who are involved in such false schemes and are befooling the public and after tracking such company (ies) take all coercive steps against them like institution of criminal case, confiscation of properties etc., so as to curb the practices of such company (ies). A counter affidavit has been filed by the Central Bureau of Investigation and in paragraphs 3 & 4, following statements have been made:- 4. “3. That, it is most humbly stated that the answering respondent is investigating Rainbow Multi-State Credit Co-Operative Society, Panki and it’s unnamed Manager & Proprietors, vide CBI FIR RC 12 (S)/2016-R dated 27.09.2016. Earlier, this case was being investigated by P.S. Panki vide FIR No.01 of 2014 dated 01.01.2014 of Distt. Palamu, Jharkhand. Investigation has revealed the defalcation of a sum of Rs.148,68,00,000/- (INR One Hundred and Forty Eight Crores Sixty Eight Lakhs only), out of which a sum of Rs.83,09,00,000/- (INR Eighty Three Crores Nine Lakhs only) have been collected from the depositors in Jharkhand. 4. That, the investigation is at an advance stage and the answering Respondent is currently in the process of scrutinizing numerous vouchers and statement of accounts. The key persons under investigation are S/Shri Dhiren Rawani and Barun Kumar Rawani, both the then President, Nand Lal Koiree, the then Secretary, Manoj Kumar Sinha, the then Chief Executive Officer, Bisun Rawani and Sunil Kumar both the then Directors of the said Society.” Since the recovery of large chunk of the defalcated amount has been made and the investigation is in the advanced stage and hopefully it will be completed soon, admittedly the purpose of filing the writ petitions has been served and the writ petitions have become infructuous. Accordingly, the writ petitions stand disposed of. (Dr. Ravi Ranjan, C.J.) (Sujit Narayan Prasad, J.) Manoj/VK "