- 1 - CRL.P No. 102539 of 2022 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 19TH DAY OF OCTOBER, 2022 BEFORE THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR CRIMINAL PETITION NO. 102539 OF 2022 (482) BETWEEN: 1. SIDDARTH S/O KADAPPA JAMBAGI AGE. 25 YEARS, OCC. BUSINESS (SOFTWARE), R/O. MATRUKRUPA NIVASA, 4TH CROSS, NAZAR CAMP, VADAGAON, TQ. AND DIST. BELAGAVI-590009 2. RAJU S/O. SHIVAPPA DONGARE AGE. 33 YEARS, OCC. BUSINESS, R/O. CHIKKODI TOWN SBI COLONY, AT. CHIKKODI, TQ. CHIKKODI, DIST. BELAGAVI-591201 …PETITIONERS (BY SRI. GANAPATI M.BHAT, ADVOCATE) AND: THE STATE OF KARNATAKA BY P.S.I. CHIKKODI POLICE STATION, R/BY STATE PUBLIC PROSECUTOR HIGH COURT DHARWAD BENCH BUILDING, DHARWAD-11 …RESPONDENT (BY SRI. V.S.KALASURMATH, HCGP) THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF CR.P.C. SEEKING TO QUASH THE ENTIRE PROCEEDINGS PENDING ON THE FILE OF PRINCIPLE DISTRICT AND SESSIONS COURT, BELGAUM DIST., BELGAUM IN CRIME NO. 0257/2021 OF CHIKKODI P.S. FOR THE OFFENCES PUNISHABLE U/SEC. 21(1) AND 21(2) OF THE BANNING OF UNREGULATED DEPOSIT SCHEMES ACT, 2019 R/W SECTIONS 420, 511 OF IPC,, IN SO FAR AS PETITIONERS/ACCUSED NOS. 1 AND 4 RESPECTIVELY. THIS CRIMINAL PETITION COMING ON FOR ADMISSION, THIS DAY, THE COURT MADE THE FOLLOWING: - 2 - CRL.P No. 102539 of 2022 ORDER The FIR is registered in Crime No.257/2021 for the offences punishable under Sections 420 and 511 of IPC and Sections 21(1) and 21(2) of the Banning of Unregulated Deposit Schemes Act, 2019 (hereinafter referred to as “Act” for short) alleging that the petitioners have induced the people to deposit money stating that the amount invested will be doubled and the said amount which is invested by the public have been utilized for own purpose and for other purposes. Taking exception to the same, this petition is filed. 2. Learned counsel appearing for the petitioners submits that Section 27 of the Act specifies that no Designated Court shall take cognizance of an offence punishable under that section except upon a complaint made by the Regulator. He further submits that the registration of the FIR for the offences punishable under Sections 21(1) and 21(2) of the Act is one without authority of law. 3. The learned HCGP appearing for the respondent- State submits that the petitioners having collected money illegally from the people and also having utilized the said money for their own purpose and for other purposes, - 3 - CRL.P No. 102539 of 2022 committed the aforesaid offences and the Police have registered the FIR and the same does not warrant any interference. 4. I have examined the submissions made by the learned counsel for the parties. 5. Section 7 of the Act, specifies that appropriate government shall, by notification, appoint one or more officers not below the rank of Secretary to that government, as the competent authority for the purpose of this Act. Section 8 specifies that the appropriate government shall, with the concurrence of the Chief Justice of the concerned High Court, by notification, constitute one or more Courts known as the Designated Courts for such area or areas to deal with the matters to which the provisions of the Banning of Unregulated Deposit Schemes Act applies. Section 27 of the Act specifies that no Designated Court shall take cognizance of an offence punishable under that section except upon a complaint made by the Regulator. 6. A conjoint reading of this provision indicates that the government shall first appoint a Regulator and thereafter - 4 - CRL.P No. 102539 of 2022 designate a Court to deal with the matters to which the provisions of this Act apply and the Designated Court can take cognizance only on a complaint in writing made by the Regulator. 7. In the instant case, the Regulator has not filed a complaint before the Designated Court so as to take cognizance of the offences punishable under Sections 21(1) and 21(2) of the Act. However, the Police without jurisdiction have registered the FIR for the aforesaid offences. Hence, the registration of the FIR for the aforesaid offences is one without authority of law. Accordingly, I pass the following: ORDER Criminal Petition is allowed. The impugned FIR in Crime No.257/2021 filed by the Chikkodi Police Station insofar it relates to accused Nos.1 and 4 are hereby quashed. Sd/- JUDGE RSH LIST NO.: 1 SL NO.: 93