Full Judgment Text
2023 INSC 612
REPORTABLE
IN THE SUPREME COURT OF INDIA
CRIMINAL APPELLATE JURISDICTION
CRIMINAL APPEAL NO 1793 OF 2023
[Arising out of Special Leave Petition (Crl.) No.8146 2023]
[Arising out of Special Leave Petition (Crl.) D.No.20936 of 2022]
| Pratibha Manchanda & Anr. | … Appellant(s) |
|---|---|
| VERSUS | |
| State of Haryana & Anr. | … Respondent(s) |
JUDGMENT
Surya Kant, J.
1. Application seeking permission to file the SLP is
allowed. Leave Granted.
2. The instant appeal arises from a judgment of
the High Court of Punjab and Haryana at
Signature Not Verified
Digitally signed by
satish kumar yadav
Date: 2023.07.07
16:29:47 IST
Reason:
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Chandigarh (hereinafter, ‘High Court’) dated
31.05.2022, whereby the High Court allowed the
petition filed under Section 438 of the Code of
Criminal Procedure, 1973 (hereinafter, ‘Cr.P.C’) and
granted anticipatory bail to Respondent No. 2 in FIR
No. 113 of 2022, dated 16.03.2022, registered at PS
Badshahpur, district Gurugram, under Sections
406, 420, 467, 468, 471 and 120B of the Indian
Penal Code, 1860 (hereinafter, ‘IPC’).
A. FACTS
3. The abovementioned FIR was lodged by the
Appellants against Respondent No. 2 and other
coaccused individuals, namely, Shel Narang, Bhim
Singh and Vinod. According to the contents of the
FIR, the Appellants are senior citizens who were
owners and had possession over the land bearing
rect. No. 55, Killa No. 3/1 (79), 4/1 (713),
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measuring 15 Kanal 2 Marla, situated within the
revenue estate of Village Begampur Khatola, Tehsil
Kadipur, District Gurugram (hereinafter, ‘Subject
Land’) for over a period of 30 years. The Appellants
claim that they never sold the Subject Land to
anyone nor have they ever executed any power of
attorney (hereinafter, ‘GPA’) in favor of any third
party. The area has, in their version of events,
always been unequivocally under their possession
and has never been ceded in any form or fashion to
people outside the family.
4. On 28.02.2022, Appellant No. 2 went to Patwar
Bhawan, Gurugram to obtain revenue papers for the
Subject Land. He discovered there only that a
person named Bhim Singh Rathi had approached
the halqa patwari to sanction mutation of the
aforementioned land. The application for mutation
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was, as per the Appellants, based on a forged and
fabricated sale deed bearing vasika No. 11493 dated
24.02.2022 (hereinafter, ‘2022 Sale Deed’). After
looking into the matter further, Appellant No. 2
learned that the said sale deed was registered in the
office of SubRegistrar Kadipur, District Gurugram
and was executed by Respondent No. 2. The
execution in question was based on yet another,
purportedly, forged and fabricated GPA bearing
Vasika No. 13907 dated 18.09.1996 (hereinafter,
‘1996 GPA’), registered in the office of
SubRegistrarV, South East Delhi.
5. The Appellants, as alluded to earlier, have
adopted the stance that they never executed or
registered any GPA in favor of Respondent No. 2,
nor are they even acquainted with him in any form
or fashion. Instead, both the 1996 GPA and the
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2022 Sale Deed were completely fraudulent
documents created by Respondent No. 2 and the
remaining coaccused named in the FIR, in
collusion with other officials at the SubRegistrar's
office. These actions were carried out in complete
subterfuge and without any involvement of the
Appellants.
6. The Appellants claim that they are in
possession of the original sale deed for the Subject
Land, and a true copy of it was attached to the
complaint. Upon examining the 2022 Sale Deed, it
was apparent to them that the accused had failed to
provide a PAN Number, which is mandatorily
required for a valid sale deed. Furthermore, there
was no mention of the 1% amount of Tax Deducted
at Source (hereinafter, ‘TDS’) being deposited, which
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also forms part of the requirements for execution
and registration of a sale deed.
7. The complaint also mentioned the current
market value of the Appellants' land, measuring 15
Kanal 2 Marla, as being approximately not less
than Rs. 50 crores. However, in the 2022 Sale Deed,
the sale consideration was shown as an abjectly low
and meager amount of Rs. 6,60,62,500/, which
was significantly below its actual asking price.
Moreover, the Appellants had not received even this
miniscule amount even if the 2022 Sale Deed was
hypothetically considered to be valid. Thus, this
document was clearly created by Respondent No. 2
and the coaccused in collusion with the witnesses,
the scribe, and officials of the SubRegistrar Tehsil
Kadipur, District Gurugram, with the unholy
intention to wisk the property away from the the
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complainants and place it under the possession of
the accused.
8. Accordingly, the First Information Report was
registered at Police Station, Badshahpur,
Gurugram, and an investigation was initiated.
Respondent No. 2, fearing arrest if he were asked to
appear before the Investigating Officer, filed an
application for Anticipatory Bail before the
Additional Sessions Judge, Gurugram.
The Additional Sessions Judge, Gurugram,
9.
dismissed Respondent No. 2's application for
anticipatory bail in an order dated 23.05.2022,
while observing that:
i. Respondent No. 2 was accused of allegedly
forging a GPA and executing the 2022 Sale
Deed. The original 1996 GPA was still to be
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recovered by the police. Several questions
pertaining to the whereabouts of the 1996 GPA,
the execution of the sale deed, the payment of
sale consideration, sanctioning of the mutation,
and the relationship between Respondent No. 2
and the Appellants, were all to be ascertained;
ii. The allegations against Respondent No. 2 were
serious, and filing a civil suit did not absolve
them of criminal liability. Anticipatory bail was
to be granted only in exceptional
circumstances, as a person under prearrest
bail may not disclose all the relevant facts
under questioning, due to the safeguard
provided under Section 438 of the Cr.P.C.
Custodial interrogation of Respondent No. 2
was necessary for a thorough investigation,
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given all the outstanding points of inquiry that
remained pending.
10. Aggrieved, Respondent No. 2 filed an
application for Anticipatory Bail before the High
Court. The High Court, vide impugned order dated
31.05.2022, allowed the application and granted
him Anticipatory Bail. The High Court, inter alia ,
observed that:
i. The dispute involves the validity of the 1996
GPA and the misappropriation of the purported
sale consideration. Civil suits have been filed
regarding the ownership and possession of the
property already and a handwriting expert's
report was crucial in determining the
authenticity of the signatures;
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ii. The High Court acknowledged the pendency of
ongoing civil suits and suggested that the
validity of the 1996 GPA's execution could be
determined by the civil court, and did not need
to be a determinative factor in the proceedings
for anticpatory bail;
iii. Prima facie , it seemed that the involvement of
the criminal justice system, initiated by the
Appellants, might be an attempt to settle
certain transactions and resolve ongoing
disputes between them. In this background, to
ensure that justice was done for both the
Appellants and Respondent No. 2, directions
were issued for them to provide their specimen
signatures. The handwriting expert was tasked
with comparing the writings and signatures to
assess their similarity.”
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11. The High Court ordered that no arrest of
Respondent No. 2 would be carried out as long as he
provided personal and surety bonds of Rs. 2 lakhs
each to the satisfaction of the investigating officer.
While extending these protections, Respondent
No. 2 was also instructed to cooperate with the
investigation whenever required and to give an
undertaking to avoid tampering with prosecution
evidence, or influence any of the witnesses.
Furthermore, a deposit of of Rs. 1.50 Crores was to
be subimtted before the concerned Magistrate which
would serve as victim compensation and be
disbursed based on the outcome of the trial.
12. The Appellants being aggrieved at the grant of
anticipatory bail, are before us.
B. CONTENTIONS
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13. Shri Saket Sikri, learned counsel for the
Appellants, vehemently contended that the High
Court acted on the erroneous assumption that the
alleged 1996 GPA in favor of Respondent No. 2 is
genuine. The original copy of 1996 GPA has not
been recovered by the police till date, and hence,
custodial interrogation is required. Furthermore, the
High Court failed to consider that despite the 1996
GPA being executed in favour of Respondent No. 2,
he applied for its certified copy only in February
2022, i.e., 26 years later, whereas he should have
possessed the original already if his claim is to be
bona fide . The present case is one where
Respondent No. 2, in collusion with other accused
persons, has carried out an elaborate fraud against
the Appellants, who are vulnerable owing to their
age and the NRI status. Additionally, the signatures
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used by Appellant No. 2 during the period between
19902000 are dissimilar, unalike and nonidentical
from those inscribed on the alleged GPA dated
18.09.1996. In addition, the consideration of the
alleged sale deed Rs. 6.60 crores is far less than
the market value of the Subject Land, which is
stated to be Rs. 50 crores.
14. Ms. Bansuri Swaraj, learned Additional
Advocate General appearing on behalf of
Respondent No. 1 – State of Haryana, strongly
contested the grant of anticipatory bail to
Respondent No. 2 and supported the stand taken by
the Appellants. It was argued that a strong prima
facie case has been made out against Respondent
No. 2, and that his custodial interrogation is vital to
the objective of unearthing the larger conspiracy.
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15. Shri Maninder Singh, learned Senior Counsel
representing Respondent No. 2, vigorously defended
High Court’s view and asserted that each and every
allegation, contention, and submission made by the
Appellants was factually and legally incorrect.
Learned Senior Counsel argued that Respondent
No.2 had originally purchased the land in question
from the Appellants in the year 1996. However, at
that time, there was a thirdparty lease existing on
the land. In order to address this, the Appellants
executed 1996 GPA, which was duly registered at
the office of the SubRegistrar, Kalkaji, Delhi. This
GPA has not been disputed in any court of law and
has not been challenged by the Appellants up to the
time the civil suits were filed, clearly showing that
the contestation of its validity was merely an
afterthought. Respondent No. 2 had full
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authorization through the 1996 GPA to execute a
registered deed of conveyance for the property in
question and receive consideration for it. On
24.02.2022, Respondent No. 2 sold the land
through the exercise of power vested in him by
virtue of the 1996 GPA. However, the purchasers
have not been included as parties before this Court.
The authenticity of the GPA had been verified
according to the report of the Sub Registrar, Kalkaji,
dated 13.02.2022 and the sale of the land only took
place after the receipt of the verification report. It
was only after this that the Appellants began
threatening Respondent No. 2 and the purchasers,
and subsequently filed the civil suits contesting the
validity of the GPA. Furthermore, the High Court
has granted anticipatory bail to Respondent No. 2
subject to strict conditions such as providing
specimen signatures to the Investigating Officer and
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depositing Rs. 1.50 crores. The police have also
obtained records from the Sub Registrar's office and
Respondent No. 2 has complied with all the
conditions imposed on him by the High Court.
C. ANALYSIS
16. It goes without saying that the alleged offences
of forging documents for transferring ownership of
land worth crores of rupees are grave in nature.
Hence, while it is extremely important to protect the
personal liberty of a person, it is equally incumbent
upon us to analyze the seriousness of the offence
and determine if there is a need for custodial
interrogation.
17. In
Siddharam Satlingappa Mhetre v. State
1
of Maharashtra , this Court carefully considered
the principles established by the Constitution Bench
1 (2011) 1 SCC 694.
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2
in Gurbaksh Singh Sibbia v. State of Punjab
case. After a thorough deliberation, this court
arrived at the following conclusion:
"112. The following factors and
parameters can be taken into
consideration while dealing with
anticipatory bail:
(i) The nature and gravity of the
accusation and the exact role of the
accused must be properly comprehended
before arrest is made;
(ii) The antecedents of the applicant
including the fact as to whether the
accused has previously undergone
imprisonment on conviction by a court in
respect of any cognizable offence;
(iii) The possibility of the applicant to
flee from justice;
(iv)The possibility of the accused's
likelihood to repeat similar or other
offences;
(v) Where the accusations have been made
only with the object of injuring or
humiliating the applicant by arresting him
or her;
(vi)Impact of grant of anticipatory bail,
particularly in cases of large magnitude
affecting a very large number of people.
xxx xxx xxx”
2 (1980) 2 SCC 565.
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18. In Sushila Aggarwal v. State (NCT of
3
, the Constitution Bench reaffirmed that
Delhi)
when considering applications for anticipatory bail,
courts should consider factors such as the nature
and gravity of the offences, the role attributed to the
applicant, and the specific facts of the case.
19. The relief of Anticipatory Bail is aimed at
safeguarding individual rights. While it serves as a
crucial tool to prevent the misuse of the power of
arrest and protects innocent individuals from
harassment, it also presents challenges in
maintaining a delicate balance between individual
rights and the interests of justice. The tight rope we
must walk lies in striking a balance between
safeguarding individual rights and protecting public
interest. While the right to liberty and presumption
3 (2018) 7 SCC 731.
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of innocence are vital, the court must also consider
the gravity of the offence, the impact on society, and
the need for a fair and free investigation. The court's
discretion in weighing these interests in the facts
and circumstances of each individual case becomes
crucial to ensure a just outcome.
20. Adverting to some of the undisputed facts in
this case, it is clear that the 1996 GPA has not yet
seen the light of the day. No indication regarding the
location of the original document has been placed
before us. In light of Respondent No. 2’s own
contention, what transpired in 1996 was the sale of
the Subject Land through the GPA. Upon reviewing
a copy of the alleged 1996 GPA presented to the
court, the Appellants relinquished all crucial rights
pertaining to the Subject Land. These rights include
possession of the land, handling water, sewer,
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electricity, power connections, and other services
related to the property, paying lease payments and
other dues, making additions or modifications to the
existing structure with required permissions,
renting out the land, issuing receipts, and managing
tenantrelated matters. Furthermore, the Appellants
granted authority for selling, disposing, or
transferring the land, entering into agreements, and
receiving consideration on behalf of the principal.
However, regardless of obtaining all the rights over
the Subject Land, Respondent No. 2 does not appear
to have ever informed the Revenue/local authorities
that he had purportedly ‘purchased’ the Subject
Land through a GPA. The ownership of the land
always remained in the name of the Appellants in
the revenue record and no application for change of
nd
mutation, etc. was moved by the 2 Respondent.
We are informed that at a very belated stage, after
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the execution of the alleged 1996 GPA, a portion of
the Subject Land was acquired by the Government
and compensation in this regard was paid to the
Appellants. Respondent No. 2 neither objected to the
payment of such compensation nor asserted his title
over the land, which he normally would have done
had he possessed any rights over it. It would be
incongrous to accept transfer of ownership rights in
an immovable property merely on execution of a
power of attorney.
We must keep in mind that the Subject Land is
21.
a prime property situated in the National Capital
Region. Even in the year 1996, it’s value must have
nd
been quite significant. The 2 Respondent has so
far not been able to show payment of any
consideration to the Appellants in the year 1996.
The original GPA, as we have noted on multiple
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ocassions, is conspicuous by its absence. A certified
copy of this GPA is said to have been relied upon to
execute the disputed sale deed. We fail to
understand or comprehend as to how a
bona fide
purchaser could pay crores of rupees as sale
consideration to a person who neither possesses
documents showing ownership and title nor has
original GPA of the true owner(s) of the property
being sold. The fact that the sale deed was allegedly
executed without mentioning the PAN Number or
without deducting TDS, underlines the dubious
nature of this transaction. We are equally intrigued
at the behaviour of the Registering Authorities and
their acceptance of the conveyance deed in the
absence of these formalities being completed. The
SubRegistrar and his officials were obligated to
verify the ownership rights before registration of the
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sale deed. As per the Appellants’ claim, the prior
original sale deeds of the land are still in their
possession. The fact that the vendee agreed to pay
such massive sums of money to Respondent No. 2
without obtaining the original records as of now
casts a shadow over the legitimacy of the
transaction.
22. It warrants mention here that the Appellants
are elderly couple. Being NRIs, the majority of their
time is spent abroad. They have stated that they
were not in India at the time of execution of
disputed sale deed. The Appellants’ claim that the
market value of the land is not less than Rs. 50
crores, although not got verified yet by a valuation
expert, does not appear to be far off the mark. There
is a serious allegation of undervaluation of the land
at the time of execution of the allegedly fraudulent
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sale deed. The contention that the consideration of
Rs.6.60 crores is much less than the market value
of the Subject Land, thus, also requires a deeper
probe.
We are not oblivious of the fact that
23.
Respondent No. 2 is said to have applied for the
certified copy of the 1996 GPA in February, 2022
after a period of 26 years since its execution. It is
also unclear why, given that when the Subject Land
is situated in Gurugram District, the GPA in relation
to the property was registered in Kalkaji, New Delhi.
It raises some suspicion regarding the genuineness
of the GPA. There is, thus, overwhelming and clear
cut prima facie evidence to indicate that the version
of events provided by Respondent No. 2, the buyers
of the property, and the Sub Registrar, should be
viewed with scepticism. These parties, prima facie,
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appear to be acting in concert with each other and
might be hands in glove, with the ulterior motive of
duping the absentee landowners. This angle
requires thorough consideration by the investigating
authorities. The Appellants have seemingly fallen
prey to a wellorchestrated conspiracy hatched to
rob them of their highly valuable property. In such
cases where the victims of a crime, on account of
their old age and geographical distance, are unable
to secure justice on their own, it falls upon Courts
and the State to carry out their solemn duty to
ward off injustice and restore the faith of one and all
in the rule of law.
24. All these material facts which go to the root of
the matter were unfortunately not brought to the
notice of the High Court. Had there been proper
assistance, the High Court also would have given a
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free hand to the investigating agency to investigate
the role of Respondent No. 2, the vendees, the Sub
Registrar and other officials of the Registering
Authority, so as to uncover the collusion,
connivance and conspiracy, if any, engineered to
commit fraud at the expense of the Appellants.
25. Land scams in India have been a persistent
issue, involving fraudulent practices and illegal
activities related to land acquisition, ownership, and
transactions. Scammers often create fake land titles,
forge sale deeds, or manipulate land records to show
false ownership or an encumbrancefree status.
Organized criminal networks often plan and execute
these intricate scams, exploiting vulnerable
individuals and communities, and resorting to
intimidation or threats to force them to vacate their
properties. These land scams not only result in
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financial losses for individuals and investors but
also disrupt development projects, erode public
trust, and hinder socioeconomic progress.
While we do not wish to comment further on
26.
this issue, we believe it is necessary to foil any trace
of organised crime perpetrated by land mafia,
through an unimpaired and unobstructed
investigation.
It is inarguable that the cancellation of bail
27.
should be done only for substantial and compelling
reasons, however, setting aside an erroneous bail
order is altogether different from cancelling bail.
This Court does not intend to interfere with the
judicial discretion exercised by the High Court in
granting bail to an accused as a standard practice.
However, it is essential to ensure that all the
material facts are brought on record and thereafter
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only the discretionary jurisdiction is exercised in
accordance with the fundamental principles of
anticipatory bail laid down in various decisions over
time by this Court.
It is immaterial that the genuineness of the
28.
1996 GPA is already subjudice before the Civil
Court in the civil suits pending between the parties.
The appellants, owing to their age and residential
status, cannot be expected to await indefinitely for
the outcome of these civil proceedings. Regardless,
the pendency of these cases does not estop the
issues of forgery and fabrication being considered in
the course of criminal investigation. The facts of the
case speak for themselves and an element of
criminality cannot be ruled out at this stage.
Whether or not the alleged offences were committed
by Respondent No. 2 and his coaccused in active
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collusion with each other can be effectively
determined by a free, fair, unhampered and
dispassionate investigation. In the peculiar facts
and circumstances of this case, custodial
interrogation of not only Respondent No. 2 but all
other suspects is, therefore, imperative to unearth
the truth. Joining the investigation with a protective
umbrella provided by prearrest bail will render the
exercise of eliciting the truth ineffective in such like
case. We are, as mentioned, also skeptical,
suspicious and incredulous about the verification
process of the 1996 GPA carried out by the Sub
Registrar, Kalkaji, New Delhi. Hence, the conduct of
the officials of SubRegistrar Office, Kalkaji, New
Delhi is also required to be examined to take the
investigation to its logical conclusion.
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29. It is clarified that the observations made
hereinabove are prima facie in nature and shall not
be taken as final conclusions.
D. CONCLUSION
In light of above discussion and without
30.
expressing any views on the merits of the case, the
st
appeal is allowed and the impugned order dated 31
May, 2022 passed by the High Court granting
prearrest bail to Respondent No. 2 is hereby set
aside.
Given the facts and circumstances of this case,
31.
we expand the scope of inquiry in these proceedings
and direct the Commissioner of Police, Gurugram
to constitute a Special Investigation Team (SIT) to be
headed by an officer not below the rank of Dy.
Superintendent of Police along with two Inspectors
as its members. The SIT shall take over the
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investigation forthwith. The SIT shall have the
liberty to subject Respondent No. 2, the vendee(s),
the Sub Registrar/officials, or other suspects to
custodial interrogation to arrive at a definite
conclusion, strictly in accordance with law.
32. In case the vendees, the officers/officials of the
Registering Authority have secured anticipatory bail
from Sessions Court/High Court, the SIT shall be at
liberty to seek suitable modifications to such orders
so that no impediment is caused in carrying out a
fair and free investigation.
33. No interlocutory/interim order passed by the
Civil Court shall obstruct the ongoing investigation.
The Civil Court shall not, from this point forth, pass
any such order in pending civil suits which may
hamper the ongoing investigation.
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34. The SIT shall conclude the investigation as
early as possible and not later than two months
from the date of this order.
35. The Commissioner of Police, Gurugram shall
be personally responsible for monitoring the day to
day investigation.
The authorities of NCT of Delhi shall extend
36.
full cooperation in the matter of verification of the
genuineness of the GPA alleged to have been
registered in the office of Sub Registrar, Kalkaji, New
Delhi in the year 1996.
…………………………..J.
[Surya Kant]
…………………………..J.
[C.T. Ravikumar]
New Delhi;
July 07, 2023
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