- 1 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 IN THE HIGH COURT OF KARNATAKA, KALABURAGI BENCH DATED THIS THE 20TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MRS JUSTICE M G UMA CRIMINAL PETITION NO. 200393 OF 2025 BETWEEN: 1. DR. BHIMASHANKAR BILGUNDI S/O CHANDRASHEKAR, AGED ABOUT 72 YEARS, R/AT: SY.NO.71, BILGUNDI LAYOUT, KALABURGI TALUK, KALABURGI DISTRICT-585316 2. DR. SIDDANAGOWDA (DR. S M PATIL) S/O CHANDRASHEKAR AGED ABOUT 62 YEARS, OCC: MEDICAL PRACTITIONER R/O GDA COLONY, KALABURGI TALUK KALABURGI DISTRICT-585316 3. SRI. SUBHASH S/O MALLIKARJUN JAGANNATH AGED ABOUT 51 YEARS, OCC: ACCOUNTANT AT MRMC R/O H.NO.10-22-798/A NAGA KRUPA SANGAMESHWAR COLONY, KALABURGI TALUK KALABURGI DISTRICT-585316 … PETITIONERS (BY SRI. S.M. CHANDRASHEKAR, SR. COUNSEL FOR SRI. SHIVAPRASAD SHANTANAGOUDAR, ADVOCATE) Digitally signed by PRASHANTH N V Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 AND: 1. THE STATE OF KARNATAKA, CEN CRIME POLICE STATION, KALABURGI, REPRESENTED BY ADDL. STATE PUBLIC PROSECUTOR, HIGH COURT OF KARNATAKA KALABURGI BENCH, KALABURGI-585103 2. VINOD KUMAR S/O SHARANAPPA JENWERI AGED ABOUT 49 YEARS, H NO.10-727, AJAD CHOWK, BEHIND SHARANABASWESHWAR TEMPLE, BRAHMPUR, KALABURGI KALABURGI CITY - 585 103 … RESPONDENTS (BY SRI. GOPALKRISHNA .B YADAV, HCGP FOR R1 SRI. ASHOK HARANAHALLI, SR. COUNSEL FOR SRI. R.S. KADGANCHI, ADVOCATE FOR R2) THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF CR.P.C.(OLD), U/SEC.528 OF BNSS(NEW), PRAYING TO I) QUASH THE COMPLAINT DATED 31.03.2024 AT (ANNEXURE-A) AND FIRST INFORMATION REPORT DATED 31.03.2024 IN CRIME NO. 19/2024 (KALABURAGI CITY CEN CRIME PS) AT (ANNEXURE-B) AND ALL FURTHER INVESTIGATION PURSUANT THERETO AGAINST THE PETITIONER PENDING ON THE FILE OF THE I ADDL. CIVIL JUDGE (J.D) AND JMFC GULBARGA, FOR THE OFFENCE PUNISHABLE UNDER SECTION 34, 419 AND 420 OF INDIAN PENAL CODE, 1860. II) FURTHER THIS HONOURABLE COURT MAY BE PLEASED TO GRANT SUCH RELIEFS AS DEEMED FIT IN THE INTEREST OF JUSTICE AND EQUITY. THIS CRIMINAL PETITION HAVING BEEN HEARD AND RESERVED FOR JUDGMENT ON 18.09.2025 COMING ON FOR PRONOUNCEMENT OF ORDERS THIS DAY, THE COURT PASSED THE FOLLOWING: CORAM: HON'BLE MRS JUSTICE M G UMA - 3 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 CAV ORDER (PER: HON'BLE MRS JUSTICE M G UMA) The petitioners being accused Nos.1 to 3 in Crime No.19 of 2024 of CEN Crime Police Station, Kalaburagi City, pending on the file of the learned I Additional Civil Judge (Jr.Dn.) and JMFC, Kalaburagi, registered for the offences punishable under Sections 419 and 420 read with Section 34 of Indian Penal Code [for short ‘IPC’] are seeking to quash the criminal proceedings initiated against them. 2. Facts of the case in brief are that, respondent No.2 has filed the first information with CEN Crime Police Station, Kalaburagi City, against accused Nos. 1 to 4 and others alleging commission of the offences punishable under Sections 419 and 420 read with Section 34 of IPC. It is contended by respondent No.2 that accused No.1 was the President of Hyderabad Karnataka Education Society [hereinafter referred to as 'the Society' for short], accused No.2 being the Dean and accused No.3 being the Accountant of MRMC Medical College, Kalaburagi, (hereinafter referred to as 'the College' for short); and accused No.4 being the Manager of Canara Bank, MRMC - 4 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 Branch, Kalaburagi, (hereinafter referred to as 'the Bank' for short) have siphoned off an amount of Rs.81,21,60,000/- for the period from 01.01.2018 till 01.03.2024, from the bank accounts of 282 Post Graduate (PG) medical students held in their respective accounts with Canara Bank, MRMC Branch, Kalaburagi, by getting their signatures on blank cheques and withdrawing the amounts. 3. It is stated that, 282 PG medical students studying in the College run by the Society were getting stipend at Rs.45,000/- per month per student during the first year, Rs.50,000/- per month per student during the second year and Rs.55,000/- per month per student during the third year of the PG Course. The stipend amount was being credited to their respective bank accounts at an interval of once in 3 to 4 months. It is alleged that, accused Nos. 1 to 3 being the President of Society, Dean and Accountant of the College respectively, threatened the students at the beginning of the academic year and collected blank cheques signed by them under coercion to withdraw a sum of Rs.37,000/- per month per student for the first year, Rs.40,000/- per month per student for the second year, and Rs.43,000/- per month per - 5 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 student for the third year of PG Course from their respective bank accounts. When the students were aggrieved and questioned accused No.2 regarding such illegal withdrawal of the stipend amount from their respective bank accounts, accused Nos.1 and 2 criminally intimidated the students with dire consequences of manipulating their internal assessment and practical marks, if they venture to complain about the same. It is stated that eight students referred to in the FIR are the victims of such cheating among others, from whose account, money was being withdrawn regularly as referred to in the first information. Thereby, the accused have committed the offences punishable under Sections 419 and 420 read with Section 34 of IPC. Accordingly, the FIR came to be registered and the investigation was undertaken. In the meantime, petitioner Nos.1 to 3 have approached this Court seeking to quash the criminal proceedings initiated against them. 4. Heard Sri. S.M. Chandrashekar, learned senior advocate for Sri Shivaprasad Shantanagoudar, learned counsel for the petitioners, Sri. Gopalkrishna B. Yadav, learned High Court Government Pleader for respondent No.1 - State, and Sri.Ashok Haranahalli, learned senior advocate for Sri. R. S. - 6 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 Kadganchi, learned counsel for respondent No.2. Perused the materials on record. 5. Learned senior advocate for the petitioners contended that, respondent No.2 is a total stranger unconnected either to the Society or to the College. He has no locus-standi to file the criminal complaint, as he is not the victim of any crime. It is also contended that, accused No.1 was the former President of the Society, who served the Institution for two terms i.e., for the period of 6 years till March-2024. When fresh election was notified on 15.02.2024, the present President and his henchmen projected respondent No.2 as the informant, and managed to file the complaint with cooked-up story, with malafide intentions and vengeance. It is contended that, son of accused No.1 had contested the elections that was held for the post of the Member of Governing Council of the Society, and therefore, criminal conspiracy was hatched by the present President, Vice-President and the Members of Governing Council to wreck vengeance against the petitioners and to tarnish their images in the Society. - 7 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 6. Learned senior advocate further contended that, according to respondent No.2, a huge sum of more than Rs.81.00 crores is said to have been siphoned off by the accused from the accounts of 282 PG students, by forcefully getting the blank cheques signed by each of the students at the beginning of their course. It is stated that, offences in question was committed from 01.01.2018 till 01.03.2024, but till date, not even a single student has complained about the same, or has came forward to file the complaint with the Police making allegations against the petitioners. When none of the students made any such allegations against the petitioners, the President and other office bearers of the present body of the Society managed to showcase respondent No.2 - an Advocate by profession to file a false complaint making baseless allegations. The first information does not carry any reasonable explanation as to why respondent No.2 who is a total stranger to the Society has filed the complaint, and why, till date, none of the students who are alleged to be aggrieved have come forward to make such allegations, or to file criminal complaint. He further contended that, there is inordinate delay in lodging the complaint. No reasons are assigned for the same - 8 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 in Column No.3(c) of the FIR. There is also no reason assigned by the informant as to how he received the information as detailed in FIR, and how he is interested or aggrieved. 7. Learned senior advocate for the petitioners also contended that, the first information produced as per Annexure - A contains many specific details belonging to the students, regarding the stipend and their bank accounts. Without the support by the President and other office bearers of the present Governing Council of the Society, such details could not have been furnished by respondent No.2, who is a stranger and unconnected to the Society. Therefore, the conspiracy in lodging the complaint by the informant at the instance of the President and other office bearers is prima facie evident. 8. Learned senior advocate contended that, even according to respondent No.2, stipend amount was being credited directly to the bank accounts of PG students. Once the amount is credited to their bank accounts, it is at their sweet will and wish that, they can withdraw the amount at any point of time. The same cannot be attributed against the present petitioners to contend that they have withdrawn the alleged - 9 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 amount. Even according to respondent No.2, such withdrawal of amount was through the cheques signed by the students referred to in the complaint. Under such circumstances, no offence whatsoever is made out against the petitioners. When none of the persons aggrieved have invoked either Sections 419 or 420 of IPC, respondent No.2, who is a stranger to the Institution, and admittedly, not the victim of any offences as alleged, is not entitled to prosecute the petitioners. 9. Learned senior advocate contended that, the President and other office bearers of the present Governing Council have made their efforts to induce few PG students to file complaint against the petitioners. When none of these students were ready to file such a false complaint, they managed to file the same through respondent No.2. The FIR came to be registered on 31.03.2024. After registration of the FIR, an Enquiry Committee was constituted by nominating their own persons for the purpose of getting a favourable report. The Committee had never issued any notice to the petitioners. The petitioners were not heard by the Enquiry Committee. They were not called upon to participate in the enquiry. But a report dated 29.08.2024 came to be submitted to the President - 10 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 of the Society and for the first time, a copy of the report is produced by respondent No.2 before this Court only to prejudice the mind of the Court. 10. Learned senior advocate contended that, when the FIR is already registered and the investigation was undertaken, there was absolutely no reason for the Governing Council to appoint such a Committee to hold an enquiry. Even if such a Committee was constituted, it had no reason for not calling upon the petitioners to have their say in the matter. The very fact that, even though report is dated 29.08.2024, the same had not seen the light of the day till it was produced before this Court, speaks volumes about the intention of respondent No.2 who is the proxy complainant for the persons behind him. 11. Learned senior advocate contended that, the enquiry report said to have been submitted by the Three Members Committee is not worth relying on for any purpose, as it is a self-serving report prepared in the name of the Enquiry Committee. It is a tainted report meant to create grounds to wreak vengeance against the petitioners. It is a desperate - 11 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 attempt made due to political rivalry to fix the petitioners and tarnish their image in society. 12. Learned senior advocate also refers to the report of the Enquiry Committee to contend that, there is reference to one Usha Reddy, Rajeshwari and Arunkumar, but none of them are the accused in the present criminal case. Then why only accused No.3 is arrayed as accused is not explained by the informant. He also contended that, the worst part of the situation is that, even the Enquiry Committee Report does not refer the names of accused Nos.1 and 2 to contend that, they have explicitly committed the alleged offences in any manner. The report is said to have been submitted to the Chairman of Medical College on 29.08.2024. But, inspite of that, the Management has not thought it fit to file any complaint on the basis of such report, but arranged respondent No.2 as its spokesperson, who has no interest whatsoever in the Institution. 13. Learned senior advocate has referred to the order dated 07.02.2025 passed in Criminal Petition No.12704 of 2024 connected with Criminal Petition No.9690 of 2024, which is - 12 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 produced by respondent No.2 along with the statement of objections to contend that petitioner No.1 in Criminal Petition No.12704 of 2024 is the present President of the Society and the other petitioners therein are his henchmen. A similar complaint was filed against the petitioners in the said petitions, alleging commission of the offence under Section 420 read with Section 34 of IPC, registered in Crime No.38 of 2024 of CEN Crime Police Station, Kalaburagi City. In the said complaint, it was alleged that, the present President and others have misappropriated a sum of Rs.65.00 crores for the period from 2009 to 2018 by siphoning off the stipend amount credited to the account of PG students studying in the Medical College, and the co-ordinate Bench, considering the contention taken by the petitioners therein, allowed both the petitions vide order dated 07.02.2025. 14. Learned senior advocate has drawn the attention of the Court to the submissions made by the learned senior advocate representing the petitioners therein as it was submitted that on 31.02.2024, the petitioners in Criminal Petition No.12704 of 2024 have registered a criminal case against the former Governing Council Members of the Society in - 13 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 Crime No.19 of 2024 for the offences under Sections 419 and 420 of IPC. Therefore, the petitioners therein being the present President and the Members of Governing Council have made a candid admission that, it was they who filed the present complaint registered in Crime No.19 of 2024 for the offences punishable under Sections 419 and 420 of IPC and respondent No.2, who is shown as the informant is only a name lender. 15. Learned senior advocate has also contended that, a three Members Enquiry Committee was constituted only with an intention to get a favourable report, when none of the students were ready to give their statements before the Police. Without any basis, the names of eight PG students were referred to in the FIR as victims, even though, they were not ready to give any statement before the Police. However taking advantage of the position of President and the Members of present Governing Council, they are wielding money and muscle power to induce few students, to have their say in the matter supporting the contentions raised by respondent No.2. 16. Learned senior advocate contended that, when similar complaint registered against the President and the - 14 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 Members of the present Governing Council is already quashed by the co-ordinate Bench of this Court, the petitioners are also entitled for similar relief. He has referred to the discussions made by the co-ordinate Bench of this Court, while allowing the criminal petitions referred to above to contend that, the Court has formed an opinion that it was only the persons aggrieved who can set the law into motion. But, an Advocate by profession, who is unconnected to the Society or the Medical College, cannot have any grievance against non-payment of stipend for the PG students, when till date, not even a single student has raised such a plea nor filed any complaint alleging that they have been cheated by any of these petitioners. Under these circumstances, initiation of criminal proceedings against the petitioners is nothing but an arm-twisting tactics adopted by them, which amounts to abuse of process of law. 17. Learned senior advocate for the petitioners contended that several documents were produced before this Court along with the memo dated 18.09.2025, only to prejudice the mind of the Court. Instead of filing a complaint, letters were said to have been addressed to the Chief Minister, the Governor and others, done only to provoke the students - 15 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 against the petitioners, making it a motivated and coloured attempt against them. 18. Learned senior advocate further contended that, in none of the representations/complaints referred to by respondent No.2, there is any allegation regarding non- payment of stipends and non-compliance of Regulation - 13 of PGMER 2000. But there is allegation that, after payment of stipend, the same was being withdrawn by using the cheques signed by the students. There is no allegation that, the cheque books containing such blank cheques with signatures of the students were collected by the petitioners. Under such circumstances, there are absolutely no materials to proceed with the criminal case. 19. Learned senior advocate referred to the definition of the word ‘cheating’ found in Section 415 of IPC to contend that, there must be a person, to whom, the damage or harm is either caused, or likely to be caused, to invoke Section 420 of IPC. In the present case, even according to respondent No.2, the stipend was paid to the PG students on regular intervals. If the said amount was withdrawn by the students by using their - 16 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 own cheques, the petitioners cannot be held responsible for the same, that too, when the students have never made any such allegations against any of the petitioners. 20. Learned senior advocate also places reliance on the order passed by the co-ordinate Bench of this Court in Criminal Petition No.12704 of 2024 connected with Criminal Petition No.9690 of 2024 disposed off vide order dated 07.02.2025 to contend that, the Court has taken a specific stand that there must be a person, who is lured and cheated by the accused. It is also held that, a stranger, that too a practicing Advocate, who complained of non-payment of stipend for several years to the students, cannot be a justifiable cause for registration of the FIR. The Court has also observed that without there being any aggrieved persons, who have been cheated, the act cannot be complained by all and sundry and therefore, Section 420 of IPC is not attracted even remotely. The Court has agreed that it was an act of wrecking vengeance and under such circumstances, it has applied the principles laid down by the Hon'ble Apex Court in State of Haryana Vs Bhajanlal1 to 1 1992 supplement-1 SCC 335 - 17 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 allow the petitions and to quash the criminal proceedings. The same yardsticks is to be applied in the present case to quash the criminal proceedings. 21. Learned senior advocate places reliance on the decision of the Hon'ble Apex Court in Ashok Kumar Pandey Vs State Of W.B.1 to contend that, when the criminal case is registered to attain personal, political gain and also publicity in the Society, the same cannot be entertained. 22. Learned senior advocate further contended that, respondent No.2 is only a name lender and definitely not an aggrieved person. He is a puppet in the hands of present Governing Council. Even though, similar complaints were filed against them, the same got quashed, wherein it is categorically admitted that, it was the present President and the members of the present Governing Council, who are responsible for registering the present FIR. Now the question arises, as to why none of the 282 PG students, who are projected as victims, or the present President, or the members of the Governing Council, have not filed any complaint against the petitioners. Under such circumstances, the criminal proceedings is to be - 18 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 quashed in limine. Accordingly, he prays for allowing the petitions. 23. Per contra, learned senior advocate for the informant - respondent No.2 opposing the petition contended that, respondent No.2 is an advocate by profession. The aggrieved students have approached him about the criminal acts committed by the petitioners. Hence, he has filed the first information. He further contends that, serious allegations are made against the petitioners who are arrayed as accused Nos.1 to 3. Petitioner No.1 being the former President of the Society, petitioner No.2 being the Dean and petitioner No.3 being the Accountant in the college have siphoned more than Rs.81 crores for the period from 01.01.2018 to 01.03.2024. Respondent No.2 filed the first information making specific allegations with all details. A detailed enquiry will have to be conducted to unearth the scam in the College during the period from 01.01.2018 to 01.03.2024. The informant suspects that the amount of Rs.81,21,60,000/- was siphoned by these petitioners. The modus adopted by these petitioners had begun when the PG students were admitted to the course in the first year, compelling them to handover their respective cheque - 19 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 books with their signatures on the blank cheque leafs. Whenever the stipend amount of the students was being credited to their respective accounts, accused No.3 used to withdraw Rs.37,000/- each from the account of first year students, Rs.40,000/- each from the account of second year students and Rs.43,000/- each from the account of third years students. Thereby, they have cheated the students and siphoned off huge sums of money. A detailed investigation will enable the Court to consider the criminal acts committed by these petitioners. 24. Learned senior advocate contended that even though respondent No.2 has filed the first information, he has given a list of eight PG students who are the aggrieved persons, along with several others. Their statements were recorded by the Investigating Officer, who have stated as to how these accused committed cheating by forcing the students to handover their blank signed cheques at the beginning of the academic year. Several students have submitted their representation to accused No.2 on 06.11.2023 which is produced along with the memo dated 08.09.2025 – alleging non payment of stipend amount, getting signed blank cheque books and withdrawing - 20 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 the amount from their account by threatening them. When no steps were taken by petitioner No.2, a similar complaint was submitted by PG students of the college to the Governor, Chief Minister etc., on 08.12.2023. The Directorate of Medical Education wrote a letter to petitioner No.2 dated 01.03.2024, requesting him to enquire into the same and to initiate action, but in spite of that, no action was initiated as he was hand in glove with petitioner No.3. 25. Learned senior advocate contended that, when such allegations came to the knowledge of present governing body, three member Committee was constituted on 29.08.2024 to enquire into the allegations and to submit a report. The three Member Committee enquired into the allegations and submitted its report dated 29.08.2024. On the basis of this report, a departmental enquiry was initiated against petitioner No.3. 26. Learned senior advocate also contended that respondent No.2 being the social worker and an advocate is having concern about the welfare of the students as well as the Institution and therefore, he came forward to file the first information. He is the voice of students, as they are afraid of - 21 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 coming forward to give any complaint against the petitioners. However, now that the students have came forward to give statements against the petitioners, a cognizable offence is made out from the allegations made in the first information. Hence, it is a fit case for proceeding for investigation by the police. He further contended that, since any citizen can set the law into motion by placing prima facie materials. 27. Learned senior advocate contended that a similar complaint was filed against the earlier office bearers of the Society, but none of the aggrieved party have came forward to give statement with regard to the role played by any of the accused in that case. Under such circumstances, the co- ordinate Bench of this Court quashed the said criminal proceedings. But in the present case, 8 students are shown as victims and they have given their statements against the petitioners before the Investigating Officer. Therefore, the petitioners are not entitled for the similar relief of quashing the criminal proceedings. 28. Learned senior advocate submitted that, the Investigating Officer conducted the investigation for the period - 22 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 from 31.03.2024 i.e., when the FIR came to be registered till 28.02.2025 when the order of stay was passed by this Court. If those materials are taken into consideration, the victims might have appeared before the Investigating Officer to give statements about their grievances, which will make strong prima facie materials to constitute the offences. 29. Learned senior advocate has drawn the attention of the Court to the endorsement issued to respondent No.2 by the Sub-Inspector of Police, wherein, he has specifically stated that the grievances of the students will be enquired into by summoning such students. This endorsement was in response to the complaint dated 24.03.2024. Inspite of that, no FIR was registered. Therefore, the present complaint came to be filed on 31.03.2024. Thus, learned senior advocate for respondent No.2 submits that, there are sufficient materials to go for investigation, since serious allegations of siphoning of crores of rupees belonging to PG students is involved in the present case. Hence, it is not a fit case for quashing the criminal proceedings. Accordingly, prays for dismissal of the petition. - 23 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 30. In view of the rival contentions urged by learned counsel for both the parties, the point that would arise for my consideration is: "Whether the petitioners have made out any grounds for quashing the criminal proceedings initiated against them?" My answer to the above point is in 'partly in the affirmative' for the following: REASONS 31. Respondent No.2 being an advocate has filed the first information dated 31.03.2024 produced as per Annexure -A, making allegations against accused Nos.1 to 4 for having committed the offences punishable under Sections 419, 420 read with Section 34 of IPC. It is the specific contention of the informant that, accused No.1 who has committed the offences, was the former President of the Society, who served the Institution for the period from 2018 till 2024. Accused No.2 was the Dean and accused No.3 was the Accountant of the college. These accused in collusion with accused No.4, who is the - 24 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 Manager of Canara Bank, siphoned off an amount of more than Rs.81 crores for the period from 01.01.2018 till 01.03.2024. 32. The modus operandi alleged against the petitioners and accused No.4 is that, the PG Medical Students who get admitted to the college were entitled for stipend. But at the beginning of their academic year, accused No.3 used to insist each and every student to hand over blank bearer cheques with their signatures. The students who were very much particular about their career, without any afterthought, used to hand over such cheques to accused No.3. The stipend which the students were entitled to, were being credited to their respective bank accounts in Canara Bank, M.R.M.C. Branch, where accused No.4 was the Manager. Whenever such stipends were being credited to their respective accounts, it was accused No.3 who used to present the cheques signed by the students to withdraw a sum of Rs.37,000/- per month per student of the first year, Rs.40,000/- per month per student for the second year and Rs.43,000/- per month per student during the third year of the course. Thus, accused No.3 in collusion with accused No.4 was withdrawing these amounts from the account of each and every student. - 25 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 33. It is stated that, accused No.3 being the Accountant of the college was acting at the instance of accused Nos.1 and 2 and similarly, accused Nos.2 and 3 have criminally intimidated the students with dire consequences of manipulating their internal assessment marks, practical marks, etc., if they venture to complain about the misdeeds committed by them. Therefore, it is stated that since 01.01.2018 till 01.03.2024 the accused have managed to withdraw various amounts from the bank account of about 282 PG students and thereby, siphoned off more than Rs.81 crores. Therefore, the complainant requested the police to register the case and to initiate legal action. Accordingly, the criminal case came to be registered and the investigation was undertaken. In the meantime, the petitioners being accused Nos.1 to 3 approached this Court seeking to quash the criminal proceedings initiated against them. 34. The first ground urged by the learned senior advocate for the petitioners is that, the complainant had no locus standi, as he was not the victim or the aggrieved person. Therefore, the first information itself is not maintainable. He placed reliance on the decision of the Hon’ble Apex Court in - 26 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 Ashok Kumar Pandey (supra) in support of such contention and also placed reliance on the decision of the co-ordinate Bench of this Court in Sri. Sushil G Namoshi and others Vs State of Karnataka2. 35. The Hon’ble Apex Court in Ashok Kumar Pandey (supra), considered a petition filed as a public interest litigation. The Court considered the grievance of the petitioner and felt it necessary to observe that public interest litigation is gradually occupying the field in the administration of law as a 'publicity interest litigation', or a 'private interest litigation', or 'politics interest litigation' and also the latest trend being, 'paisa income litigation'. It was also observed that, if the public interest litigation, which was being considered by the Court with all seriousness is not properly regulated, it will become a tool in the hands of unscrupulous persons to use it to wreck vengeance and to release vendetta. Therefore, the Courts are cautioned to identify the real and genuine public interest in litigations and to be cautious about the petitions which enter the Court under the garb of such litigation. 2 Crl.P.No.12704/2024 C/W Crl.P.No.9690/2024 DD07.02.2025 - 27 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 36. In the present case, the complainant has made specific allegations against the petitioners for having committed the offences under Sections 419, 420 read with Section 34 of IPC. It is basically a criminal complaint made by the informant. It is pertinent to note that, the informant even though not concerned with the Society or the college, is projected as an advocate, who filed the complaint said to be to safeguard the interests of PG students. He has provided specific details of the amounts that were credited to the accounts of various students, for a specified period with precision. 37. Learned senior advocate for the petitioners contended that, but for the support by the present governing body, the informant could not have got hold of such information with such precision. Looking at the details furnished by the informant in the first information, the contention raised by the learned senior advocate appears to be true, as otherwise, the informant who is no way connected to the Society or the college could not have got such information with necessary details and with mathematical precision. Now the question arises as to whether, simply because the informant who has filed the complaint, is not concerned either with Society or with - 28 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 the college, the said complaint is to be ignored without considering the seriousness of the allegation made in the first information. 38. When a very serious allegation with available particulars are furnished by the informant, making specific allegations against each of the accused and such allegation relate to 282 PG Medical Students, who are studying in the college of which accused No.2 was the Dean and accused No.3 an Accountant, the same cannot be ignored on flimsy grounds stating that the complainant is not concerned with either the Society or the college. 39. It is pertinent to note that in the FIR, there is reference to at least 8 such PG students who are said to be the victims of crime and it is the contention of respondent No.2 that, all these 8 students have given their statements before the Investigating Officer during investigation. 40. Even though, further investigation in the matter was stayed vide order dated 28.02.2025, registration of FIR was on 31.03.2024. As per order dated 18.09.2025, IA.No.3/2025 is filed by the learned counsel for respondent No.2 under Section - 29 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 91 of Cr.P.C, seeking to summon the investigation papers regarding the investigation that was undertaken by the Investigation Officer from 31.03.2024 till 28.02.2025. The said application was allowed and the Investigating Officer was directed to submit the investigation papers in a sealed cover. In compliance of such direction, the Investigating Officer has submitted the copies of investigation papers for perusal of the Court in a sealed cover. The said papers disclose that after registration of the FIR, on the basis of first information, a spot mahazar was drawn in the presence of the mahazar witnesses at the scene of occurrence i.e., in the office of the College where accused No.3 is said to have collected the blank signed cheques from various students. Several documents pertaining to the students concerned are also collected by the Investigating Officer. 41. The statement of Dr. Anup, referred to in the FIR at Sl.No.4 as the victim was recorded on 07.10.2024. According to the statement, he is the resident of Kalaburagi and he studied MBBS from 2014 till 2019 in the M.R.M.C. Medical College. After practicing for over four and half years and working as an intern, he passed the PG NEET examination during 2022 and got - 30 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 admitted to the college. This witness referring to the name of accused No.3 has specifically stated that, it was accused No.3 who insisted him to open an account with Canara Bank, M.R.M.C. Branch, and demanded 15 blank cheques with his signatures. Accordingly, he handed over those blank cheques to accused No.3. The witness specifically states that, he has not complained about this fact either to the Dean i.e. accused No.2 or to the Managing Committee represented by accused No.1. However, he states that during 2024, when the stipend amount credited to his account was being withdrawn regularly and he came to know that similar withdrawals were made from the account of more than 200 PG students, all of them had met accused No.2 and submitted a written representation. Accused No.2 by referring to the representation, heard and promised the students to bring it to the notice of accused No.1 and to set-right the things. The witness also states that, even though such a promise was made by accused No.2, no steps whatsoever were taken by him worth mentioning. The witness also stated that, whenever his bank account was credited with the stipend amount, the signed blank cheques were made use of for encashment. Thus, he came to know about withdrawal of - 31 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 the amount from his account. He gives details as to what was the amount that was credited to his account, what was the amount that was withdrawn, and on what date he received the message. Witness specifically states that, for the period from 11.10.2022 to 01.03.2024, an amount of Rs.10,90,000/- was credited to his bank account with Canara Bank, out of the same, a sum of Rs.7,24,000/- was withdrawn by making use of the blank cheques issued by him to accused No.3. Only the balance amount of Rs.3,66,000/- was left in his account, which he utilized for his personal use. 42. If the statement of this witness is taken into consideration, there are very specific allegations made against accused No.3 who was working as Accountant in the college. There is also reference to accused No.2 who was the Dean of the college, stating that all these misdeeds of accused No.3, and the illegal transactions were brought to his notice by submitting a written representation with a request to set-right the things. The statement of accounts of the witnesses issued by Canara Bank, M.R.M.C College Branch, for the period from 07.02.2023 till 06.02.2024 is enclosed with the statement to support his say. - 32 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 43. Similar statements of Dr. Priyanka H.Y., Dr. Priyanka Patil, Dr. Yogesh Gowda, Dr.Anil Kumar, Dr. Shreya Mishra, and Dr. Priyanka P, along with their respective bank statements are part of the investigation papers submitted by the Investigating Officer. These statements recorded by the Investigating Officer during investigation assumes importance about the allegations made against petitioner Nos.2 and 3. 44. It is pertinent note that, even if the statements of these witnesses whose names appear in the FIR as victims of crime are taken into consideration, they specifically refer to the active role played by accused No.3 in committing the offences. There is also reference to accused No.2 to whom the students are said to have complained about the misdeeds i.e. collecting of blank cheques with the signatures of the students at the beginning of their academic year, withdrawal of the stipend amount periodically and he promising the students to set-right the things. Therefore, prima facie it could be said that the allegations made by the informant, spoken to by the witnesses were brought to the notice of accused No.2 much prior to filing of the first information. The question arises as to what steps accused No.2 had taken in that regard. All the witnesses in - 33 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 categorical terms state that accused No.2 has not taken any steps to address their grievance. Under such circumstances, I am of the opinion that there are prima facie materials against accused Nos.2 and 3 in commission of the abovementioned offences. 45. The present management is said to have appointed a three Member Enquiry Committee to enquire into the allegations that are made against the petitioners. The copy of Enquiry Committee is produced before this Court by the learned counsel for respondent No.2. As per this report dated 29.08.2024, the Committee has been constituted as per the Resolution of the Governing Council of the Society directing them to hold an enquiry with regard to the allegations made against accused Nos.1 to 3 for the academic years 2018 to 2024. 46. Admittedly, on that day, the FIR was already registered against the petitioners based on the first information lodged by respondent No.2. However, the Governing Council chose to appoint the Enquiry Committee for the reasons best known to it. As rightly contented by the learned senior - 34 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 advocate for the petitioners, no notice of such enquiry appears to have been issued to any of the petitioners. However, as per the report, they enquired with various students and were satisfied that it was accused No.3 who demanded to handover blank cheques with their signatures, both on the front and back side of the cheque leafs, which were used for withdrawal of the money from their respective bank accounts, which was credited as stipend amount, for which they are entitled to. 47. In the enquiry report, it is stated that the blank cheques signed by the students were being taken under duress. There is reference to 6 other staff members working in the accounts section, who are said to have stated that they have acted as per the directions of accused No.3. However, they plead ignorance about receiving of the blank cheques. There is reference to one Smt. Rajeshwari, the First Division Assistant, who stated that she was writing the cheques and entering the register as per the instructions by accused No.3 and used to take the signatures of accused No.2. She was referring to the cheques that were being credited to the account of the students towards a stipend since 2018. There is reference to Smt. Usha Reddy, who used to collect the bank details of the students for - 35 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 crediting the stipend, and it is stated that it was accused No.3 along with Smt. Usha Reddy who were looking after the stipend issue. There is also reference to one Sri. Arun Kumar, who was also the staff working in the accounts section, who is said to have received the signed cheque books from the students. The Enquiry Committee formed an opinion that Smt. Usha Reddy and Smt. Rajeshwari, were suppressing the truth to save their skin. However, they are not arrayed as accused in the FIR. When the police investigation is already in progress, no purpose whatsoever appears to have been achieved by appointing the Enquiry Committee, but for receiving a report, against the petitioners. 48. Learned senior advocate for the petitioners has drawn the attention of the Court to the order dated 06.02.2025 passed in Criminal Petition No.12704 of 2024 connected with Criminal Petition No.9690 of 2024, where a similar complaint filed against the members of present Governing Council came to be filed, and they have approached the Court seeking to quash the criminal proceedings. The learned senior advocate representing the petitioners in those cases appears to have addressed his arguments contending that, on 31.03.2024 the - 36 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 petitioners therein have registered a criminal case against the former Governing Council members of the Education Institution in Crime No.19 of 2024 for the offence punishable under Sections 419 and 420 of IPC. Obviously, the said reference is to the criminal complaint that is registered against the petitioners in this case. Therefore, the members of the present Governing Council may be behind the first information that was lodged against the petitioners. After going through the order dated 07.02.2025, prima facie, it is clear that there is a seesaw situation in the management of the college, as alternatively the petitioners will be in power, and for the next term the petitioners in Criminal Petition No.12704 of 2024 will be in power. Presently, the petitioners in Criminal Petition No.12704 of 2024 appear to be in power, which led to filing of the present complaint. But, the same cannot be a sole ground to quash the first information report made with specific allegations, that too, when some of the PG students who are identified as victims, have given their statements specifying the acts committed by accused Nos.2 and 3. 49. Learned senior advocate for the petitioners contended that when the similar case registered against the - 37 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 members of the present Governing Council in Crime No.38 of 2024 came to be quashed, the petitioners are also entitled for similar relief on principles of parity. On going through the order dated 07.02.2025, it is clear that the co-ordinate Bench of this Court quashed the criminal proceedings on the ground that, an advocate who was also the member of the Society for several years, and who was in know-how of things about the misdeeds, had filed the complaint belatedly after lapse of 15 years without explaining as to why he has not chosen to file the complaint immediately. The Court has also observed that, the complaint that was registered in Crime No.38 of 2024 was verbatim similar to the allegations made in the present complaint which was registered at the first instance. The Court has observed that the members of the Governing body were waiting to shoot from the shoulders of the defacto complainant. But none of the students who could be termed as victims of crime have came forward, either to file the complaint or to give a statement. Under such circumstances, the Court held that the informant therein was not an aggrieved party, or in other words the aggrieved party or the victims of crime are not before the Court - 38 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 and under such circumstances proceeded to quash the criminal proceedings. 50. In the present case, it is to be noted that even though respondent No.2 is not concerned to the Society or to the college, but who is said to be an advocate, has filed the complaint with specific particulars. More than that, the FIR itself refers to atleast 8 such victims who are the PG students. 51. The investigation papers submitted by the Investigation Officer disclosed that 7 such PG students have given their statements before the Investigating Officer referring to the name of accused No.3 and also stating that they have explained their grievance to accused No.2 by submitting a representation and requested him to set-right the things. They have also stated that their grievance was never considered either by accused No.2 or by accused No.3. This assumes importance in considering the contentions taken by both the parties in the present case. When atleast a few students came forward with their grievance, and they have given the statement before the Investigating Officer, I am of the opinion that the allegation against petitioner Nos.2 and 3 is only a tip of - 39 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 iceberg. More serious and detailed investigation is required to be held to unearth the illegality committed in the college in the matter of withdrawing the stipend amount that was credited to various students over a period of time. I do not see any reason to restrict the investigation with regard to the withdrawal of the stipend credited to the account of various PG students only for the period from 01.01.2018 till 01.03.2024. But, a thorough investigation about the functioning of the college is required to be held. 52. It is surprising to note that, for several years the post graduate students, who have completed their MBBS, qualified in the NEET exam for post graduation are handing over the blank signed cheques to the unscrupulous staff members in the college on mere asking. In the present case, it is stated more than 280 students are victims of such crime, but none of them have come forward to register the complaint. This can lead to a conclusion either that there is no truth in allegations or the very matured and responsible professional students are not even ready to raise their voice against the illegality committed under their very nose when their right to get stipend itself was taken away by asking them to hand over - 40 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 the blank signed cheques, which were later used to withdraw the amount from their bank account. If there is truth in the allegations made against accused Nos.2 and 3, definitely it can be said that the students are joining hands with such unscrupulous persons, which is nothing but encouraging the illegality and perpetuating the same. 53. The youngsters who are considered as the protectors of our democracy and future of this nation, should be alert and vigilant to curb any such practice which comes to their knowledge. But here is an incident, where they themselves are the victims. But inspite of that no steps are taken by them, except saying that they have complained to accused No.2, who in-turn promised them to set-right the things. However, nothing has been done, but the students who are supposed to be responsible have kept quiet. This is not an encouraging situation where the youngsters, that too, the post graduate medical students have potentially joined their hands in perpetuating such illegality. Therefore, I deem it appropriate not to quash the criminal proceedings against accused Nos.2 and 3, as there are strong prima facie materials against them for having committed the offences, and direct the Investigating - 41 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 Officer to seriously and thoroughly investigate into the matter, if need be with the help of any expert agency, without restricting the period of offences only from 01.01.2018 till 01.03.2024, with the objective to unearth any such illegality in the management of the college, if such investigation shows that there was withdrawal of stipend amount consistently from the account of the students over a period of time and the victims are traceable and their statements in support of such illegality could be obtained. 54. It is unfortunate to note that, Kalaburagi is still considered to be one of the backward Districts in the State of Karnataka. It is part of the Hyderabad-Karnataka region, which is now referred to as the 'Kalyana-Karnataka region' consisting of 7 districts. It is given special recognition under 371(J) of the Constitution of India. The Kalyana Karnataka Regional Development Board (KKRDB) is constituted with the noble object of providing necessary funds and other assistance for development of this region. 55. The college of which accused No.2 is the Dean and accused No.3 is the Accountant is one such medical college - 42 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 established in this Kalyana-Karnataka region at Kalaburgi, managed by Hyderabad-Karnataka Education Society, of which accused No.1 is the President. Now the question arises as to the manner in which the Institutions that are established in this region are functioning and imparting education to the students, who are aspiring to become Specialized Medical Officers. If in fact, such students are victims of crime and they join hands with the criminals in siphoning off the amount that is paid as stipend, one can visualize the future of our society. 56. Article 39A of the Constitution of India was inserted by the 42nd amendment dated 18.12.1976, with the noble object of providing equal justice and free legal aid. Pursuant to the same, Legal Services Authorities came into existence, at the National, State, District and Taluk levels. Its object is to spread legal awareness, providing free legal aid and also to encourage Lok-adalath. If the educated youngsters, who are the students at large are not aware of their rights, and if such students are not gathering courage to raise their voice against injustice, or any crime that was committed to them or in their presence, such inaction will lead to a disaster. Therefore, I deem it appropriate to direct the Member Secretary of - 43 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 Karnataka State Legal Services Authority to launch a legal awareness camp amongst the students of various schools and colleges in the State about their rights and to educate them as to the steps that they have to take by approaching the appropriate authority or the jurisdictional police, in case such an instance either happens to them or it was brought to their notice. 57. These awareness programs must not be considered as an instigation to make false or baseless allegations against the management of any institution, much less, M.R.M.C Medical College, Kalaburagi of which accused Nos.2 and 3 are the Dean and Accountant respectively. The Karnataka State Legal Services Authority, Bengaluru, through the District Legal Services Authorities and the Taluk Legal Services Committees shall prepare a module to create awareness amongst young students studying in various schools and colleges, which may help them in raising voice in case of violation of any of their rights or even rights of a common man. - 44 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 58. As regards the allegations made against accused No.1, it is observed that, the allegations in the first information are leveled against him only on the ground that he is the President of the Society. Apart from making such allegations, there are absolutely no materials against him. It is not the contention of even the victims who are referred to above, who have given their statements before the Investigating Officer, that they have approached him with their grievance and even after knowing the same, he either ignored such representations or was not ready to readdress the same. Therefore, I am of the opinion that, simply because accused No.1 was the President of the Society, he is not liable to be subjected to criminal investigation without there being any prima facie materials against him. Hence, the criminal proceedings against him are liable to be quashed. 59. In view of above, I answer the above point ‘partly in the affirmative’ and proceed to pass the following: - 45 - HC-KAR NC: 2025:KHC-K:7054 CRL.P No. 200393 of 2025 ORDER i) The Criminal Petition is allowed in part. ii) The criminal proceedings registered in Crime No.19 of 2024 (Kalaburagi City CEN Crime PS), against accused No.1/petitioner No.1 - Dr.Bhimashankar Bilgundi, is hereby quashed. iii) The petition filed by petitioner Nos.2 and 3/accused Nos.2 and 3 is hereby rejected. iv) The Investigating Officer is directed to conduct a detailed investigation about the illegalities alleged against the college, without restricting it only for the period referred to in the FIR. Office is directed to hand back the investigating papers submitted by the Investigating Officer in a sealed cover, along with copy of this order for information and for necessary action. Office is also directed to forward copy of this order to the learned Member Secretary of Karnataka State Legal Services Authority, Bengaluru for information and for necessary action. Sd/- (M G UMA) JUDGE SBS/PNV List No.: 19 Sl No.: 1