The
appellants and the respondent are stated to be Directors of a Company- M/s
Spectrum Power Generation Limited (hereinafter referred to as "the Power
Company") incorporated under the Indian Companies Act, 1956,
having its registered office at Secundrabad, in the State of Andhra Pradesh.
The respondent filed the complaint alleging offences under Sections 60, 63,68, 68-A read with Section 621 of
the Act, against the appellants, alleging inter alia that the accused persons
by making false, deceptive and misleading statements and by suppressing
relevant facts induced various persons to pay them money for purchase of shares
of the Power Company; raised millions of Dollars from Non-Resident Indians
(NRIs); siphoned off those funds into bogus companies exclusively owned by them
in off-shore companies and purchased shares of the Power Company in India in
the names of bogus off-shore companies owned/controlled by them. The matter
came to the notice of the complainant when some of the prospective NRI
investors made correspondence with the Power Company demanding share
certificates for which they had paid substantial amounts to the appellants. The
off-shore companies through which the appellants purchased the shares of the
Power Company in Hyderabad are - M/s Spectrum Technologies, USA, M/s Spectrum
Infrastructures Ltd., Jersey, Channel Islands and M/s Spectrum Infrastructures
Ltd. at Mauritius. In this process the original investors who were promised
shares in Power Company were never allotted any shares. On the other hand
shares were allotted to off-shore companies which have nothing to do with the
Power Companies and which are exclusively owned and controlled by the accused
persons. It was specifically alleged in the complaint petition that the accused
persons have in effect committed fraud on the Power Company in whose name they
collected money, invested that in their own companies and those companies in
turn applied and got shares at the instance of the accused persons with the
result that all these overseas investors are left high and dry. These acts, it
is alleged by the complainant, constitute offences under Sections 68 and 68-A of the Act.
The Court view that in the context of the
facts and circumstances of the case, the High Court was right in declining to
quash the complaint petition and the proceedings initiated on its basis. In the
result, this appeal being devoid of merit is dismissed.
Post a Comment