'Robbed People Of Their Dreams, Worse Than Murder': Orissa HC Denies Bail To Accused Who Duped Home Buyers Of ₹4.16 Crore

The Orissa High Court on Friday observed that economic offences involving unfair exploitation of depositors and causing total imbalance in the economy are 'worse than murders'.

The Court was adjudicating upon a bail plea filed under Section 439 CrPC by one Maheswar Sahoo, accused of duping home-buyers//investors of more than Rs 4.16 crore on the pretext of providing them with duplexes.

Justice SK Sahoo observed that the instant case was a 'glaring example' of unfair exploitation of depositors by robbing them of their dreams of owing houses.

"Who does not want to have a house of his own? It is not just a dream, it is a basic need of everyone which gives him comfort, peace of mind, identity, privacy and stability where he can live with his family safely, secured, healthy and enjoy complete freedom. It gives a loving, supportive environment in which one can grow up and discover oneself. It creates emotional attachment, familiarity with physical surroundings and enriches sweet memories. The present case is a glaring example of unfair exploitation of the depositors and mysteriously cheating them of their dreams of having their own houses", Justice Sahoo candidly remarked.

In the instant case, the petitioner in the capacity of M.D. of MX Infra Ltd had collected more than four crores sixteen lakh rupees from thirteen investors including the informant to provide them duplexes and had executed agreements with them to this effect.

A police case was registered under sections 406, 420, 467, 468, 471 and 120-B of the Indian Penal Code read with section 6 of the Odisha Protection of Interests of Depositors (in Financial Establishments) Act, 2011 (OPID Act) on failure of the petitioner to fulfill his promise. He was taken into custody by the Police in February this year, on finding a prima facie case.

Thereafter, the Petitioner moved the designated Court under the OPID Act for bail which was subsequently rejected vide order dated April 15, 2021. Consequently, the instant bail application was filed before the High Court.

Justice Sahoo while rejecting the bail plea underscored that economic offences are always considered grave offences as they have the effect of making lives of people economically weaker and miserable and also cause huge loss of public fund.

"Economic offences are always considered as grave offences as it involves deep rooted conspiracy and huge loss of public fund. Such offences are committed with cool calculation and deliberate design solely with an eye on personal profit regardless of the consequence to the community. It brings about total imbalance in the economy of the country, which has the effect of making lives of people economically weaker and miserable. Such offences are treated worse than murders. In such type of offences, while granting bail, the Court has to keep in mind, inter alia, the larger interest of public and State", the Court observed.

The Court further opined that the nature and seriousness of an economic offence and its impact on the society are always important considerations while passing an order on bail applications.

It was further noted by the Court that investors who had invested huge amount of their hard earned money had been duped by the petitioner on the basis of false promises made in the advertisements floated in the newspapers and during negotiations. False agreements, sale deeds and brochures were executed by the petitioner to deceive the investors that they would be provided dispute free clear title duplexes, the Court stated further. It was further noted that the investors have not yet received back the principal money or any interest.

"The fact remains that the investors who have invested huge amount of their hard earned money or after availing loan from different sources and were dreaming to have the houses of their own, have been duped by the petitioner on the basis of false promises made in the advertisements floated in the newspapers and during negotiations", the Court remarked further.

Justice Sahoo further recorded in the order that when a query had been posed to the counsel appearing for the petitioner as to whether the petitioner is ready and willing to deposit the entire money that had been taken by him from the investors, the inability of the petitioner in this respect had been expressed.

Accordingly, the Court held that it is prima facie satisfied that the ingredients of the offences under which charge sheet has been submitted are made out against the petitioner. Rejecting the bail application, the Court observed,

"Considering the nature and gravity of the accusation, the nature of supporting evidence, availability of prima facie case against the petitioner, severity of punishment likely to be imposed in case of conviction and since huge amount of public money has been misappropriated and the investors have been cheated of their hard earned money of more than four crores and sixteen lakh rupees on the false assurance of providing them duplexes for which agreements were executed by the petitioner with them and when further investigation of the case is under progress and many more vital links of the case are yet to be unearthed, since it is an economic offence and reasonable apprehension of tampering with the evidence cannot be ruled out at this stage and above all in the larger interest of society, I am not inclined to release the petitioner on bail."

Case Title: Maheswar Sahoo @ Sahu v. State of Odisha 

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