Accused Belongs To Lower Strata Of Society, Doesn't Have Finances To Approach SC: MP HC Releases Man Who Was Made 'Scapegoat' In Fraud Case

The Madhya Pradesh High Court has ordered the release of a petitioner's father, who had been imprisoned for nearly a year without substantial evidence linking him to the charges under the IPC for being the director of a company which had been accused of financial fraud.

The court discussed that the petitioner could have either availed the remedy under 226 or approached the Supreme Court but due to belonging to the lower strata of society, he had no finances to approach the Apex Court

“In the present case also, the petitioner could have approached the Supreme Court but a person who is having equity share of Rs.6,250/ only and belongs to a lower strata of the society, has no courage/finances to approach the Supreme Court by engaging a private counsel; and is facing mental agony of rejection of multiple bail applications on the false averments/allegations, as apparent on the fact of the record by the concerned Police Station”

Further, the court stated that this continuous detention amounted to illegal custody, as the petitioner's father was neither a director nor a managing director of the company, which had been accused of financial fraud.

The court stated: “The undisputed fact is that only the father of the petitioner has been made a scapegoat. It is shocking that except for the father of the petitioner, no one else has been arrested so far.”

Background

The petition, filed by Jibrakhan Lal Sahu's daughter, Kusum Sahu, sought relief under Article 226 of the Constitution, challenging multiple previous bail rejections. Petitioner's father was accused of misappropriating Rs. 1.98 lakh from various investors in connection with the company.

He was charged under Sections 420 and 409 of the Indian Penal Code. However, as per the petitioner, her father neither held the position of Director nor Managing Director in the company and had not collected any money from complainants.

Despite these facts, his four successive bail applications had been rejected, which the petitioner deemed wrongful and unlawful detention. The petitioner argued that her father was wrongfully implicated in a case involving the misappropriation of investor funds by a company called Suvidha Land Developers India Pvt. Ltd.

The Court ordered the immediate release of the petitioner's father from Central Jail, Bhopal, on furnishing a personal bond of Rs. 5,000 and one surety of the same amount satisfactory to the trial court.

Furthermore, the Court ordered that the Superintendent of Police personally monitor the interrogation of the actual directors and managing director of Suvidha Land Developers India Pvt. Ltd.,  “In the interest of justice and to save the interest of the investors, we hereby direct the concerned Police Station to interrogate the Directors and Managing Director of the Company.”

Case title: Kusum Sahu Versus The State Of Madhya Pradesh And Others

Case No.: WP-24337-2024

Citation: 2024 LiveLaw (MP) 236

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