The Allahabad High Court has annulled all criminal case proceedings based on a police charge sheet filed without complying with mandatory provisions under Sections 29 and 30 of the Unregulated Deposit Schemes Prohibition Act.
The court also granted the competent authority the liberty to initiate fresh proceedings in accordance with the law.
Justice Saurabh Srivastava delivered the order on a petition filed by Parikshit Paras.
Advocate Ashwani Kumar Ojha argued the petition, stating that the police had registered a First Information Report (FIR) under various sections of the Act, including Section 3/21, at the Talbehat police station in Lalitpur and initiated an investigation, subsequently filing a charge sheet.
The special court had taken cognisance of the matter and issued a summons.
The petitioner argued that the competent authority alone can order a CBI inquiry under Section 29 of the Act once it receives and is satisfied with the information, and therefore challenged the entire proceedings.
Legal Arguments and the Court’s Reasoning
The petitioner argued that the police do not possess the authority to register an FIR or conduct an investigation independently in such cases without adherence to the binding provisions of Sections 29 and 30.
According to the petition, criminal proceedings initiated without following these mandatory legal provisions are unlawful in the eyes of the law.
The court found that the trial court had passed orders without properly considering these statutory provisions, thereby allowing proceedings that were not legally valid.
As a result, the High Court quashed all proceedings initiated on the police charge sheet.
While cancelling the proceedings, the court granted the competent authority the right to initiate fresh action under Sections 29 and 30 of the Act.
This will ensure that any future investigation and prosecution comply strictly with the legal requirements laid down for dealing with unregulated deposit schemes.
Significance of the Judgement
This ruling underscores the importance of adhering to procedural safeguards in criminal investigations under the Unregulated Deposit Schemes Prohibition Act.
It reinforces that police must follow mandatory legal steps; otherwise, courts will declare their actions invalid and quash them.
The judgment also clarifies the role of competent authorities in supervising investigations related to unregulated deposit schemes, ensuring lawful and orderly proceedings.
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