1 Reserved on : 05.03.2025 Pronounced on : 13.06.2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 13TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR. JUSTICE M. NAGAPRASANNA CRIMINAL PETITION No.12350 OF 2023 C/W CRIMINAL PETITION No.4855 OF 2023 CRIMINAL PETITION No.10795 OF 2023 CRIMINAL PETITION No.10941 OF 2023 CRIMINAL PETITION No.12349 OF 2023 CRIMINAL PETITION No.12358 OF 2023 IN CRIMINAL PETITION No.12350 OF 2023 BETWEEN: SRI RAMESH S.BULCHANDANI AGED ABOUT 62 YEARS DIRECTOR RESIDING AT <NIRMALA= NO. 344 RMV 2nd STAGE 2nd BLOCK, I CROSS BENGALURU - 560 094. ... PETITIONER (BY SRI R.V.S.NAIK, SR. ADVOCATE A/W., SRI RAGHAVENDRA K., ADVOCATE) AND: STATE OF KARNATAKA BY THE STATION HOUSE OFFICER 2 BELLANDURU POLICE STATION BENGALURU 3 560 096 REPRESENTED BY SPP HIGH COURT OF KARNATAKA VIDHANA VEEDHI BENGALURU 3 560 001. ... RESPONDENT (BY SRI B.N.JAGADEESHA, ADDL. SPP) THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF CR.P.C., PRAYING TO SET ASIDE THE ORDER DATED 07.10.2023 IN CR.NO.143/2023 OF BELLANDURU P.S., BENGALURU PENDING ON THE FILE OF THE XLI A.C.M.M BENGALURU CITY WHILE ALLOWING THE APPLICATION FILED BY THE PETITIONER FOR DE - FREEZING OF THE ACCOUNTS BEARING NOS. (i) 00090350003449, (ii) 00091000165049, (iii) 00097630000260, (iv) 50100311831049, (v) 50200013449867 MAINTAINED AT HDFC BANK, KASTURBA ROAD BRANCH, BENGALURU. IN CRIMINAL PETITION No.4855 OF 2023 BETWEEN: 1 . M/S. KRISHNA CAMPUS PVT. LTD., REPRESENTED BY ITS MANAGING DIRECTOR RAMESH BULCHANDANI SHYAM. 2 . RAMESH BULCHANDANI SHYAM MANAGING DIRECTOR AGED ABOUT 64 YEARS S/O SHYAM K. BULCHANDANI M/S. KRISHNA CAMPUS PVT. LTD., 3 . SUNITA BULCHANDANI RAMESH DIRECTOR AGED ABOUT 59 YEARS 3 W/O RAMESH BULCHANDANI M/S. KRISHNA CAMPUS PVT. LTD., 4 . NITYN BULCHANDANI RAMESH DIRECTOR AGED ABOUT 34 YEARS S/O RAMESH BULCHANDANI M/S. KRISHNA CAMPUS PVT. LTD., 5 . BENNETT K. ALOYSIOUS AGED ABOUT 41 YEARS S/O K.P.ALOYSIUS REPRESENTATIVE OF M/S. KRISHNA CAMPUS PVT. LTD., 6 . LEONARD RODRIGUES S/O GORDON RODRIGUES AGED ABOUT 37 YEARS REPRESENTATIVE OF M/S. KRISHNA CAMPUS PVT. LTD., ALL HAVING OFFICE AT <NIRMAL=, NO.344 RMV 2ND STAGE, I STAGE BENGALURU 3 560 094. ... PETITIONERS (BY SRI R.V.S.NAIK, SR. ADVOCATE A/W., SRI RAGHAVENDRA K., ADVOCATE) AND: 1 . STATE OF KARNATAKA BY THE STATION HOUSE OFFICER BELLANDURU POLICE STATION BENGALURU REPRESENTED BY STATE SPP HIGH COURT OF KARNATAKA 4 VIDHANA SOUDHA BENGALURU 3 560 001. 2 . MR. SANGIEVE S. BULCHANDANI AGED ABOUT 61 YEARS S/O SHYAM K. BULCHANDANI RESIDING AT <NIRMAL=, NO.344 RMV 2ND STAGE, I CROSS BANGALORE 3 560 094 REP. BY GPA HOLDER SMT. NEETA BULCHANDANI ... RESPONDENTS (BY SRI B.N.JAGADEESHA, ADDL. SPP FOR R1; SRI SIDDHARTH SUMAN, ADVOCATE FOR R2) THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF CR.P.C., PRAYING TO SET ASIDE THE ORDER DATED 11.04.2023 PASSED IN PCR NO.2957/2023 AND TO QUASH THE FIR IN CR.NO.143/2023 REGISTERED AT BELLANDURU POLICE STATION, BANGALORE, FOR AN OFFENCE WHICH IS MADE PENAL UNDER SECTION 420 R/W 34 OF IPC, PENDING ON THE FILE OF THE XLI ADDL. CHIEF METROPOLITAN MAGISTRATE, BANGALORE. CRIMINAL PETITION No.10795 OF 2023 BETWEEN: 1 . M/S. KRISHNA CAMPUS PVT. LTD., REPRESENTED BY ITS MANAGING DIRECTOR RAMESH BULCHANDANI SHYAM. 2 . RAMESH BULCHANDANI SHYAM MANAGING DIRCTOR AGED ABOUT MAJOR S/O SHYAM K. BULCHANDANI 5 M/S. KRISHNA CAMPUS PVT. LTD., 3 . SUNITHA BULCHANDANI RAMESH DIRECTOR AGED ABOUT MAJOR W/O RAMESH BULCHANDANI M/S. KRISHNA CAMPUS PVT. LTD., 4 . NITYN BULCHANDANI RAMESH DIRECTOR AGED ABOUT MAJOR S/O RAMESH BULCHANDANI M/S. KRISHNA CAMPUS PVT. LTD., 5 . BENNETT K. ALOYSIOUS AGED ABOUT MAJOR S/O K.P.ALOYSIUS REPRESENTATIVE OF M/S. KRISHNA CAMPUS PVT. LTD., 6 . LEONARD RODRIGUES AGED ABOUT MAJOR S/O GORDON RODRIGUES REPRESENTATIVE OF M/S. KRISNA CAMPUS PVT. LTD., ALL HAVING OFFICE AT =NIRMAL=, NO.344 RMV 2ND STAGE, 1ST STAGE BENGALURU 3 560 094. ... PETITIONERS (BY SRI R.V.S.NAIK, SR. ADVOCATE A/W., SRI RAGHAVENDRA K., ADVOCATE) AND: 1 . STATE OF KARNATAKA BY THE STATION HOUSE OFFICER 6 BELLANDUR POLICE STATION BENGALURU 3 560 094 REPRESENTED BY STATE SPP HIGH COURT OF KARNATAKA VIDHANA SOUDHA BENGALURU 3 560 001. 2 . MR. SOUREN SANGIEVE BULCHANDANI AGED ABOUT 31 YEARS S/O SANGIEVE S. BULCHANDANI RESIDING AT <NIRMAL=, NO.344 RMV 2ND STAGE, 1ST CROSS BENGALURU 3 560 094. ... RESPONDENTS (BY SRI B.N.JAGADEESHA, ADDL. SPP FOR R1; SRI SIDDHARTH SUMAN, ADVOCATE FOR R2) THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF CR.P.C., PRAYING TO SET ASIDE THE ORDER DATED 04.10.2023 PASSED IN PCR.NO.10263/2023 AND TO QUASH THE FIR IN CR.NO.484/2023 DATED 12.10.2023 REGISTERED AT BELLANDURU POLICE STATION, BENGALURU FOR AN OFFENCE WHICH IS MADE PENAL U/S 420 R/W 34 OF IPC PENDING ON THE FILE OF XLI ADDL.C.M.M., BENGALURU. IN CRIMINAL PETITION No.10941 OF 2023 BETWEEN: 1 . M/S. KRISHNA CAMPUS PVT. LTD., REPRESENTED BY ITS MANAGING DIRECTOR RAMESH BULCHANDANI SHYAM 2 . RAMESH BULCHANDANI SHYAM MANAGING DIRECTOR MAJOR IN AGE 7 S/O SHYAM K. BULCHANDANI M/S. KRISHNA CAMPUS PVT. LTD., 3 . SUNITA BULCHANDANI RAMESH DIRECTOR MAJOR IN AGE W/O RAMESH BULCHANDANI M/S. KRISHNA CAMPUS PVT. LTD., 4 . NITYN BULCHANDANI RAMESH DIRECTOR MAJOR IN AGE S/O RAMESH BULCHANDANI M/S. KRISHNA CAMPUS PVT. LTD., 5 . BENNETT K.ALOYSIOUS S/O K.P.ALOYSIUS MAJOR IN AGE REPRESENTATIVE OF M/S. KRISHNA CAMPUS PVT. LTD., 6 . LEONARD RODRIGUES S/O GORDON RODRIGUES MAJOR IN AGE REPRESENTATIVE OF M/S. KRISHNA CAMPUS PVT. LTD., ALL HAVING OFFICE AT =NIRMAL=, NO. 344 RMV 2ND STAGE, 1ST STAGE BENGALURU 3 560 094. ... PETITIONERS (BY SRI R.V.S.NAIK, SR. ADVOCATE A/W., SRI RAGHAVENDRA K., ADVOCATE) 8 AND: 1 . STATE OF KARNATAKA BY THE STATION HOUSE OFFICER BELLANDURU POLICE STATION BENGALURU 3 560 094 REPRESENTED BY THE STATE SPP HIGH COURT OF KARNATAKA VIDHANA SOUDHA BENGALURU 3 560 001. 2 . SMT. NEETA SANGIEVE BULCHANDANI AGED ABOUT 56 YEARS W/O SANGIEVE SHYAM BULCHANDANI RESIDING AT <NIRMAL=, NO. 344 RMV 2ND STAGE, 1ST CROSS BENGALURU 3 560 094. ... RESPONDENTS (BY SRI B.N.JAGADEESHA, ADDL. SPP FOR R1; SRI SIDDHARTH SUMAN, ADVOCATE FOR R2) THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF CR.P.C., PRAYING TO SET ASIDE THE ORDER DATED 04.10.2023 AND QUASH THE PROCEEDINGS IN PCR.NO.10264/2023 FOR AN OFFENCE P/U/S 420 R/W 34 OF IPC PENDING ON THE FILE OF XLI ADDL.C.M.M., BENGALURU. IN CRIMINAL PETITION No.12349 OF 2023 BETWEEN: SRI NITYN BULCHANDANI RAMESH AGED ABOUT 34 YEARS DIRECTOR S/O RAMESH S. BULCHANDANI M/S. KRISHNA E CAMPUS PRIVATE LIMITED HAVING ITS REGISTERED OFFICE AT 9 <NIRMAL=, NO.344, RMV 2ND STAGE 2ND BLOCK, I CROSS BENGALURU 3 560 094. ... PETITIONER (BY SRI R.V.S.NAIK, SR. ADVOCATE A/W., SRI RAGHAVENDRA K., ADVOCATE) AND: 1. STATE OF KARNATAKA BY THE STATION HOUSE OFFICER BELLANDURU POLICE STATION BENGALURU 3 560 096 REPRESENTED BY SPP HIGH COURT OF KARNATAKA VIDHANA VEEDHI BENGALURU 3 560 001. 2. MR. SANGIEVE S. BULCHANDANI AGED ABOUT 61 YEARS S/O SHYAM K. BULCHANDANI RESIDING AT <NIRMAL=, NO.344 RMV 2ND STAGE, I CROSS BENGALURU 3 560 094 IMPLEADED VIDE COURT ORDER DATED 12.01.2024. ... RESPONDENTS (BY SRI B.N.JAGADEESHA, ADDL. SPP FOR R1; SRI SIDDHARTH SUMAN, ADVOCATE FOR R2) THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF CR.P.C., PRAYING TO SET ASIDE THE ORDER DATED 07.10.2023 IN CR.NO.143/2023 OF BELLANDURU POLICE STATION, BENGALURU PENDING ON THE FILE OF THE XLI ACMM BENGALURU CITY WHILE 10 ALLOWING THE APPLICATION FILED BY THE PETITIONER FOR DE- FREEZING OF THE ACCOUNTS BEARING NOS.(i) 2847182468 (ii) 2847223503 (iii)09582040064075 (iv)09582040030140, MAINTAINED AT KOTAK MAHINDRA BANK, MUMBAI-NARIMAN POINT BRANCH. IN CRIMINAL PETITION No.12358 OF 2023 BETWEEN: SMT. SUNITA BULCHANDANI RAMESH AGED ABOUT 59 YEARS DIRECTOR W/O SRI RAMESH S. BULCHANDANI RESIDING AT <NIRMAL=, NO.344 RMV 2nd STAGE, 2nd BLOCK, 1ST CROSS BENGALURU - 560 094. ... PETITIONER (BY SRI R.V.S.NAIK, SR. ADVOCATE A/W., SRI RAGHAVENDRA K., ADVOCATE) AND: STATE OF KARNATAKA BY THE STATION HOUSE OFFICER BELLANDURU POLICE STATION BENGALURU 3 560 096 REPRESENTED BY SPP HIGH COURT OF KARNATAKA VIDHANA VEEDHI BENGALURU 3 560 001. ... RESPONDENT (BY SRI B.N.JAGADEESHA, ADDL. SPP) THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF CR.P.C., PRAYING TO SET ASIDE THE ORDER DATED 11 07.10.2023 IN CR.NO.143/2023 OF BELLANDURU POLICE STATION, BENGALURU, PENDING ON THE FILE OF THE XLI ADDL. CHIEF METROPOLITAN MAGISTRATE, BENGALURU CITY, WHILE ALLOWING THE APPLICATION FILED BY THE PETITIONER FOR DE-FREEZING OF THE ACCOUNTS BEARING NOS.(i)00091000165066, (ii)501000358843923 MAINTAINED AT HDFC BANK, KASTURBA ROAD BRANCH, BANGALORE AND ACCOUNT BEARING NOS. (i) 093701515164 (ii) 000205025579 (iii0 000205025578, MAINTAINED AT ICICI BANK, BEL ROAD BRANCH, BANGALORE. THESE CRIMINAL PETITIONS HAVING BEEN HEARD AND RESERVED FOR ORDERS ON 05.03.2025, COMING ON FOR PRONOUNCEMENT THIS DAY, THE COURT MADE THE FOLLOWING:- CAV ORDER The batch of these petitions call in question registration of a crime by different home-buyers against the petitioners and the Company. Since all these cases arise out of similar transactions between the common builder/developer and different home-buyers, they are taken up together and considered in this order. (i) Criminal Petition No.12350 of 2023 is filed seeking the following prayer: CORAM: THE HON'BLE MR JUSTICE M.NAGAPRASANNA 12 <Therefore, the Petitioner/second accused above named, humbly prays that this Hon9ble Court be pleased to call for the records in Crime No.143/2023 pending on the file of the XLI Addl. Chief Metropolitan Magistrate, Bengaluru City and Set aside the order dated 07.10.2023 in Crime No.143/2023 of Bellanduru Police Station, Bengaluru, pending on the file of the XLI Addl. Chief Metropolitan Magistrate, Bengaluru City while allowing the application filed by the petitioner for de - freezing of the accounts bearing Nos. (i) 00090350003449, (ii) 00091000165049, (iii) 00097630000260, (iv) 50100311831049, (v) 50200013449867 maintained at HDFC Bank, Kasturba Road Branch, Bengaluru, in the ends of justice. (ii) Criminal Petition No.4855 of 2023 is filed seeking the following prayer: <Therefore, the petitioners/accused above named, humbly pray that this Hon9ble Court be pleased to call for the records in PCR No.2957/2023 presently pending on the file of the XLI Addl. Chief Metropolitan Magistrate, Bangalore and further be pleased to set aside the Order dated 11.04.2023 passed in PCR No.2957/2023 and to quash the FIR in Crime.No.143/2023 registered at Bellanduru Police Station, Bangalore, for an offence which is made penal under Section 420 read with Section 34 of IPC, pending on the file of the XLI Addl. Chief Metropolitan magistrate, Bangalore, in the ends of justice.= (iii) Criminal Petition No.10795 of 2023 is filed seeking the following prayer: <Therefore, the petitioners/accused above named, humbly pray that this Hon9ble Court be pleased to call for the records in PCR No.10263/2023 presently pending on the file of the XLI Addl. Chief Metropolitan Magistrate, Bangalore and further be pleased to set aside the order dated 04.10.2023 passed in PCR.No.10263/2023 and to quash the FIR in Crime No.484/2023 dated 12.10.2023 registered at Bellanduru Police 13 Station, Bengaluru, for an offence which is made penal u/s 420 r/w 34 of IPC pending on the file of XLI Addl.C.M.M., Bengaluru in the ends of justice.= (iv) Criminal Petition No.10941 of 2023 is filed seeking the following prayer: <Therefore, the petitioners/accused above named, humbly pray that this Hon9ble Court be pleased to call for the records in PCR No.10264/2023 presently pending on the file of the XLI Addl. Chief Metropolitan Magistrate, Bangalore and further be pleased to set aside the order dated 04.10.2023 and to quash the proceedings in PCR.No.10264/2023, for an offence u/s 420 r/w 34 of IPC pending on the file of XLI Addl.C.M.M., Bengaluru in the ends of justice.= (v) Criminal Petition No.12349 of 2023 is filed seeking following prayer: <Therefore, the petitioners/fourth accused above named, humbly prays that this Hon9ble Court be pleased to call for the records in Crime No.143/2023 pending on the file of the XLI Addl. Chief Metropolitan Magistrate, Bangalore City and set aside the Order dated 07.10.2023 in Crime No.143/2023 of Bellanduru Police Station, Bengaluru, pending on the file of the XLI Addl. Chief Metropolitan Magistrate, Bengaluru City while allowing the application filed by the petitioner for de-freezing of the accounts bearing Nos. (i) 2847182468 (ii) 2847223503 (iii)09582040064075 (iv) 09582040030140, maintained at Kotak Mahindra Bank, Mumbai-Nariman Point Branch, in the interest of justice.= (vi) Criminal Petition No.12358 of 2023 is filed seeking following prayer: 14 <Therefore, the petitioner/third accused above named, humbly prays that this Hon9ble Court be pleased to call for the records in Crime No.143/2023 pending on the file of the XLI Addl. Chief Metropolitan Magistrate, Bangalore City and set aside the Order dated 07.10.2023 in Crime No.143/2023 of Bellanduru Police Station, Bengaluru, pending on the file of the XLI Addl. Chief Metropolitan Magistrate, Bengaluru City while allowing the application filed by the petitioner for de-freezing of the accounts bearing Nos. .(i)00091000165066, (ii)501000358843923 maintained at HDFC Bank, Kasturba Road Branch, Bangalore and ACCOUNT bearing Nos. (i) 093701515164 (ii) 000205025579 (iii) 000205025578, maintained at ICICI Bank, BEL Road Branch, Bangalore, in the ends of justice.= 2. The petitioners in all these cases seek de-freezement of their accounts maintained at different Banks. The freezement has come about on registration of crime in Crime No.143 of 2023 and Crime No.484 of 2023. The challenge is to the registration of crimes as well, including the direction to de-freeze the accounts of the petitioners. 3. Heard Sri R V S Naik, learned senior counsel appearing for petitioners , Sri B N Jagadeesha, learned Additional State Public Prosecutor appearing for State and Sri Siddharth Suman, learned counsel appearing for the 2nd respondent/complainant. 15 4. Before embarking upon consideration of facts in the cases at hand, I deem it appropriate to notice the order passed in Crl.P.No.12350 of 2023 from time to time. On 15-12-2023 an interim order is granted in the light of an interim order operating in Crl.P.No.4855 of 2023. The interim order granted in Crl.P.No.12350 of 2023 reads as follows: <ORDER Learned counsel for the petitioner submits that notice issued under Section 102 of Cr.P.C directing the bank to freeze the account is in contravention of Sub-Section 3 of Section 103 of Cr.P.C. He further submits that the FIR is stayed by this Court in Crl.P.No.4855 of 2023. Learned HCGP accepts notice for the respondent. Interim order, as prayed for, insofar as it relates to petitioner herein, subject to condition the petitioner deposits 50% of the amount in the said account before this Court within two weeks from today. List on 20-12-2023 along with Crl.P.Nos. 4855 of 2023 and 10941 of 2023. Counsel submission accepted. Office objection overruled.= On 06-11-2024, this Court on the submission of both the parties that there were talks of settlement passed the following order: 16 <ORAL ORDER Heard Sri R.V.S.Naik, learned senior counsel for the petitioner and Sri S. Suman, learned counsel for respondent No.2. Learned counsel for respondent No.2 would take this Court through several orders passed by this Court or the co-ordinate bench as the case would be from time to time. As directed, a deposit of Rs.10/- crore is made and the respondents have withdrawn the same. He would submit that if four weeks time is granted, the balance amount according to the learned senior counsel which is at Rs.24/- crores would be deposited before this Court. Learned counsel for respondent No.2 disputes the calculation of Rs.34/- crores and according to him, the amount is far beyond Rs.34/- crores. Therefore, without prejudice to the rights of the respondents - complainants in all these cases and in the light of the submissions of the learned senior counsel for the petitioner, the amount of Rs.24/- crores shall be deposited before this Court, which would be subject to further orders that would be passed by this Court, on the next date of hearing. Learned senior counsel for the petitioner submits that in the companion petitions close to 15 accounts in crime Nos.143/2023 and 484/2023, have been frozen and if the accounts are directed to be defrozen only for the purpose of accumulation of Rs.6/- crores, would help for deposit to be made before this Court as directed. Therefore, the accounts that are frozen in crime Nos.143/2023 and 484/2023, shall be defrozen only for the purpose of transfer of Rs.6/- crores, towards the deposit that is to be made before this Court. It is made clear that the accounts shall not be permitted to operate for any other purpose. 17 List these matters on 06.12.2024, at 2.30 p.m., for further hearing. Interim order granted earlier, subsisting in these cases, is extended till the next date of hearing.= (Emphasis supplied) After this order, again on 08-01-2025, the following order comes to be passed: <ORAL ORDER 1. Heard the learned senior counsel Sri.R.V.S.Naik appearing for the petitioner and the learned counsel Sri.Siddarth Suman representing the respondent. 2. In these petitions, this Court has passed plethora of orders from time to time, beginning from 13.06.2023. 3. On 13.06.2023 in Crl.P.No.4855/2023, the following order: <Learned High Court Government Pleader is directed to accept notice for respondent No.1. Issue emergent notice to respondent No.2. The petitioners are before this Court calling in question investigation/proceedings in crime No.143/2023 pending on the file of XLI Additional Chief Metropolitan Magistrate Court, Bengaluru City for the offence punishable under Sections 34, 420 of the Indian Penal Code, 1860. Respondent No.2 is the complainant, who is an applicant to buy a property from the hands of the petitioners, who are Developers. A crime is registered on the score that the amount was received in full in 2016 and the flats has not been handed over. Therefore, complaint comes to be registered in crime No.143/2023. 18 The learned counsel appearing for the petitioner submits that the project is now complete and the sale deed will be executed in favour of the complainant with all terms and conditions, according to the agreement. The submission is placed on record. Therefore, there shall be an interim order of stay of further proceedings/investigation in crime No.143/2023, till the next date of hearing. List this matter on 05.07.2023.= (Emphasis supplied) 4. Later on 05.07.2023, the following order: This Court on 13.06.2023 had passed the following order: <Learned High Court Government Pleader is directed to accept notice for respondent No.1. Issue emergent notice to respondent No.2. The petitioners are before this Court calling in question investigation/proceedings in crime No.143/2023 pending on the file of XLI Additional Chief Metropolitan Magistrate Court, Bengaluru City for the offence punishable under Sections 34, 420 of the Indian Penal Code, 1860. Respondent No.2 is the complainant, who is an applicant to buy a property from the hands of the petitioners, who are Developers. A crime is registered on the score that the amount was received in full in 2016 and the flats has not been handed over. Therefore, complaint comes to be registered in crime No.143/2023. The learned counsel appearing for the petitioner submits that the project is now 19 complete and the sale deed will be executed in favour of the complainant with all terms and conditions, according to the agreement. The submission is placed on record. Therefore, there shall be an interim order of stay of further proceedings/investigation in crime No.143/2023, till the next date of hearing. List this matter on 05.07.2023.= Learned counsel for the 2nd respondent on appearance would submit that in terms of the interim order they are ready and willing to comply with any of the conditions in the agreement for registration of the sale deed. Learned counsel for petitioner submits that the complainant is in due of certain amount. Learned counsel for 2nd respondent would then submit that all the dues would be cleared if the sale deed would be registered in favour of the complainant. Learned counsel for petitioners now submits that the agreement itself is terminated. But the petitioners are ready and willing to comply with the order dated 13.06.2023 In the event the order dated 13.06.2023 is not complied with by the next date of hearing, the interim order granted earlier which was only on the premise that the project is now complete and the sale deed would be executed will stand automatically vacated. At this juncture, both the learned counsel would submit that if the matter is referred to mediation a settlement could be arrived at. Hence, parties are directed to appear before the Bengaluru Mediation Centre on 12.07.2023 at 2.30 p.m. List the matter on 14.07.2023 at 2.30 p.m. 20 Interim order, granted earlier, is extended till the next date of hearing, subject to the aforesaid condition.= (Emphasis supplied) 5. On 27.07.2023, the following order: <Learned Senior Counsel for the petitioner would submit that the respondents are in due of Rs.65,26,378/- in respect of two apartments. Learned Senior Counsel for respondents would submit that if the petitioners would fix a date, subject to verification the same, the amount would be paid and on payment of such amount, the sale deeds shall be executed. Respondents shall appear before the petitioner on 02nd August, 2023 at 11.00 am for registration of sale deeds in respect of two apartments viz. 101 and 714. List next week. Interim order subsisting shall continue till the next date of hearing.= 6. On 15.12.2023, the Coordinate Bench has passed the following order: <Learned counsel for the petitioner submits that notice issued under Section 102 of Cr.P.C directing the bank to freeze the account is in contravention of Sub-Section 3 of Section 103 of Cr.P.C. He further submits that the FIR is stayed by this Court in Crl.P.No.4855/2023. Learned HCGP accepts notice for the respondent. Interim order, as prayed for, Insofar it relates to petitioner herein, subject to condition the petitioner deposits 50% of the amount in the said account before this Court within two weeks from today. List on 20.12.2023 along with Crl.P.Nos. 4855/2023 and 10941/2023. 21 Counsel submission accepted. Office objection over ruled.= 7. Later the matter comes up before this Court and this Court has passed a detailed order after hearing the parties on 06.11.2024. The order dated 06.11.2024 reads as follows: <Heard Sri R.V.S.Naik, learned senior counsel for the petitioner and Sri S. Suman, learned counsel for respondent No.2. Learned counsel for respondent No.2 would take this Court through several orders passed by this Court or the co- ordinate bench as the case would be from time to time. As directed, a deposit of Rs.10/- crore is made and the respondents have withdrawn the same. He would submit that if four weeks time is granted, the balance amount according to the learned senior counsel which is at Rs.24/- crores would be deposited before this Court. Learned counsel for respondent No.2 disputes the calculation of Rs.34/- crores and according to him, the amount is far beyond Rs.34/- crores. Therefore, without prejudice to the rights of the respondents complainants in all these cases and in the light of the submissions of the learned senior counsel for the petitioner, the amount of Rs.24/- crores shall be deposited before this Court, which would be subject to further orders that would be passed by this Court, on the next date of hearing. Learned senior counsel for the petitioner submits that in the companion petitions close to 15 accounts in crime Nos. 143/2023 and 484/2023, have been frozen and if the accounts are directed to be defrozen only for the purpose of accumulation of Rs.6/- crores, would help for deposit to be made before this Court as directed. Therefore, the accounts that are frozen in crime Nos.143/2023 and 484/2023, shall be defrozen only for the purpose of transfer of Rs.6/- crores, towards the deposit that is to be made before this Court. 22 It is made clear that the accounts shall not be permitted to operate for any other purpose. List these matters on 06.12.2024, at 2.30 p.m., for further hearing. Interim order granted earlier, subsisting in these cases, is extended till the next date of hearing.= 8. The order dated 06.11.2024 forms the fulcrum at this juncture. This Court while observing that the petitioner had deposited Rs.10 crore and the respondent had withdrawn the same, directed the balance amount as was agreed by the petitioner at Rs.24 crore to be deposited. Therefore, Rs.10 crore has been deposited earlier and Rs.24 crore now, thus Rs.34 crore has come into the corpus of the respondent. The accounts that were frozen were directed to be de-frozen for the purpose of deposit of the amount. 9. In compliance with the order dated 06.11.2024, the deposit has been made. The issue now is whether the amount of Rs.24 crore that is in deposit should be permitted to be withdrawn by the respondent or otherwise. I deem it appropriate to permit the respondent to withdraw the amount in the light of plethora of orders passed by this Court or the Coordinate Bench of this Court as the case would be, as is quoted supra. 10. This Court on 06.11.2024 had captured the entire submissions of both the counsel for the petitioner and the respondent. 11. The issue boils down to what is the amount of interest that the respondent is entitled to whether it is, at 12% or 18% or at market value. 12. The contention of the learned senior counsel for the petitioner is that when Rs.10 crore was deposited, it was permitted to be withdrawn unconditionally. At that time, the interest that was paid was 12%, therefore, it is 23 presumed that the respondent has accepted the interest at 12%. 13. The learned counsel Sri.Siddarth Suman representing the respondent would dispute the position that the respondent is entitled to interest at 18% and not 12%, was an oral observation of a Coordinate Bench considering the issue. 14. The learned senior counsel would submit that the amount that is now to be paid to the respondent would attract tax deduction at source, at 10% on the interest component. Therefore, to protect the interest to the petitioner and the respondent and to balance the situation now, I deem it appropriate to permit the respondent No. 2 to withdraw Rs.22.25 crore, out of Rs.24 crore that is in deposit and the remainder of Rs.1.75 crore or the claim of the respondent for higher interest, or the defence of the learned senior counsel for the petitioner with regard to adequate interest already paid, shall remain subject to further orders before this Court. 15. With the amount that is now released in favour of the respondent No.2, the learned counsel for the respondent submits that all the encumbrances on the flats if there are any, would be cleared and those cleared documents would be deposited before this Court by the next date. The submission in the nature of an undertaking is placed on record. 16. The Registry is directed to release the aforesaid amount without brooking any delay which would mean forthwith. 17. It is made clear that the amount in deposit being permitted to withdraw by the respondent is without prejudice to contentions of both the petitioner and the respondent. 18. In the light of the aforesaid order, the accounts that are frozen of the petitioner shall be de-frozen forthwith. 24 19. The investigating officer who has directed freezement of the account shall direct, forthwith de-freezement of the accounts, of the petitioner in the companion petitions. 20. List on 30.01.2025 at 2.30 p.m. for further hearing.= (Emphasis supplied) The Investigating Officer had been directed to de-freeze the accounts for the purpose of transfer of amounts to the complainants in the case at hand. After the said order, on 06-02-2025 the following order is passed: <ORAL ORDER Learned counsel for the parties would submit that the earlier orders have been complied with. The amount that was directed to be released is released in favour of the respondent. Therefore, list matter on 05.03.2025 for further hearing. Interim order subsisting shall continue to the next date.= (Emphasis supplied) 5. The learned senior counsel appearing for the petitioners submits that the amounts claimed by the complainants are paid in their entirety, while the learned counsel for the respondents disputes that the amount that is paid is not in accordance with the interest that is claimed by these complainants. Therefore, the 25 matter is heard, with the consent of parties, only on interest payable to the complainants. 6. It is the submission of the learned counsel for the complainants that the 2nd respondent and the family are entitled to a sum of ¹55,10,98,800/- which is towards the sale of flats without the consent of the family. In the light of this claim, it is necessary to notice the genesis of the problem. 7. A complaint comes to be registered by the 2nd respondent/complainant against M/s Krishna E-Campaus Private Limited and the office bearers of the said Company in P.C.R No.2957 of 2023. The reason for registration of the complaint is that the complainants/home buyers had, reposing faith in accused No.2, invested for purchase of certain flats developed by the Company. The advertisement by the Company led to the purchase of residential flats after having interacted with accused Nos. 1 to 6 by making a booking in the apartments/L.A.Palazzo. The complainants booked the respective flats in all these cases based on the assurances and the representation of the Company9s Directors 26 and representatives that they would deliver possession of the property by the end of 30-04-2016 in terms of the agreement of sale and construction. The complainants pay the following amounts to all the properties mentioned in those agreements: Sl. No. Particulars Total Consideration (Rs.) Payments Advanced/paid Till date (Rs.) 1. Schedule A Property 2,13,53,704 1,87,70,905 2. Schedule B Property 2,13,62,798 1,87,80,000 3. Schedule C Property 2,45,76,665 4. Schedule D Property 2,49,51,020 2,20,04,322 Total Payments made towards booking of the flats Rs.8,41,31,892 Pursuant to the aforesaid payments, it is also a matter of record that the complainants have made payments to the tune of `34/- crores, way back in the year 2014, from which year saga of agony begins. The cup of woe comes to the brim. It is on that score that afore-quoted orders are passed by the coordinate bench and this Court from time to time. This Court directed the parties to explore the possibilities of settlement in terms of the order dated 06.11.2024. It transpires that the parties sat on two occasions for mediation, which did not yield any fruits. After the mediation, it transpires that the petitioners enter into a sale deed with certain 27 third parties and those third parties have also mortgaged the said property with the Union Bank of India. The sale deeds that were entered into on 02.08.2024 for `5,00,62,246/- at the market value of `14,200/- per sq.ft. The settlement talks were still on. The complainant further alleges that flats Nos.307 and 310 were alienated pursuant to two sale deeds on 23.08.2024 and 28.08.2024, these were the very properties for which the petitioners had received valuable consideration of close to Rs.16,30,02,073/- (Rupees Sixteen Crores, Thirty Lakhs, Two Thousand and Seventy Three only) as early on 2014. It is the further allegation that the petitioners undertook to register flat No.101 in favour of respondent No.2. This is what was observed in the order dated 27.07.2023. The petitioner alienate the said flat as well. 8. In all, as observed hereinabove, in the year 2014 or 2016, the second respondent has in total paid `34/- crores out of which `10/- crores was permitted to be withdrawn initially, and `24/- crores is permitted to be withdrawn now. Thus, the developer did not adhere to the timeline of delivery of flats. Since possession was 28 not delivered, complainants continuously represented to the Company and later come to know that flats to which they had made payment of advance and in certain cases complete payment, have been sold to third parties. The sale deeds to the third parties are also produced by the complainants. There are three sale deeds and three construction agreements. This is an admitted fact. 9. In the light of the admitted fact of the property which was to be in possession of the petitioners being sold to the third parties, the question that now casts its long shadow over the proceedings is one of interest - should the complainants who parted with their funds way back in 2014, be left to reclaim merely the principle amount, strip off its time value or, should they be compensated for the betrayal and delay with a fair return for their investment. 10. In the considered view of this Court, to deny the complainants such recompense would be to reward the transgression and diminish the sanctity of trust and would be putting a premium on the activity of the accused. The 29 conduct of the accused, as observed, squarely attracts the rigors of Sections 406 and 420 of the IPC. The amount that these complainants gave to the accused, way back in 2014, was to be held in trust. The said amount has been diverted with a dishonest intent and what was promised to be delivered to the complainants is sold to strangers. 11. In the aforesaid circumstance, a mere restitution of the principle amount would be but, a pale shadow of justice. Therefore, this Court deems it fit, in the facts and circumstances of the case, just and equitable as well, that the complainants be paid the interest on the amount paid by them in 2014, till its return at 18% p.a. 12. The petitioners-accused shall ensure that such interest is paid in full, to the complainants within 12 weeks from the date of receipt of the copy of this order. 30 13. For the aforesaid reasons, the following: ORDER (i) Criminal Petitions are disposed. (ii) In view of the foregoing reasons and on the afore- quoted conditions as found in paragraphs 10 and 11, the Crimes registered in Crime Nos.143/2023 and 484/2023 before the Bellanduru Police Station, Bengaluru, and pending on the file of the XLI Addl. Chief Metropolitan Magistrate, Bengaluru City stand quashed. (iii) The accounts of the petitioners shall be de-frozen. (iv) The quashing of the criminal proceedings and the direction to de-froze the accounts would be subject to the condition of payment of interest on the amount at 18% p.a. from the date the petitioners have received the payment from the second respondent, till its return in terms of the observations made in the course of the order. 31 (v) The petitioners in the event would fail to comply with the payment of interest within 12 weeks as directed, they would run the risk of the revival of these proceedings, as these proceedings are now obliterated on tacit settlement between the parties. Sd/- (M.NAGAPRASANNA) JUDGE Bkp CT:SS