Facts
The applicant sought relief under Section 482 of the Code of Criminal Procedure, 1973, to quash an FIR alleging offences under Sections 406, 409, 420, 114 and 120B of the Indian Penal Code, 1860, in connection with an alleged Ponzi scheme operated through the “Victory World” application.
Source reference: p.1–2The applicant was not named in the FIR; his name emerged during the investigation, and the charge-sheet identified him as the person who developed the application.
Source reference: p.3He said he had undertaken freelance work, was not involved in the company or the scheme, and had received payment only for developing the application.
Source reference: p.3The State opposed quashing, relying on the charge-sheet and the applicant’s alleged role in developing the application used to commit the offences.
Source reference: p.3–4Issues
1. Whether the FIR and consequential proceedings against the applicant should be quashed under Section 482 CrPC where the charge-sheet alleged that he developed the application used in the scheme, but disclosed no further overt act or complicity.
Source reference: p.42. Whether continuing the prosecution against the applicant would amount to an abuse of process of law in the circumstances.
Source reference: p.4Law Applied
Section 482 CrPC confers inherent power on the High Court to quash criminal proceedings where their continuation would amount to an abuse of process of law.
Source reference: p.1, p.4The FIR invoked Sections 406, 409, 420, 114 and 120B IPC; the Court’s decision turned on whether the charge-sheet disclosed material connecting the applicant to the alleged offences beyond his development of the application.
Source reference: p.1, p.4Reasoning
The Court noted that the applicant was not named in the FIR and that the charge-sheet’s allegation against him was limited to developing the Victory World application.
Source reference: p.4It found no material showing an overt act, complicity in the alleged scheme, connection with Games for Victory Pvt. Ltd., or a stake in the alleged fraud.
Source reference: p.4On that record, the Court concluded that there was no evidence indicating the applicant’s involvement in cheating the public and that continuation of the proceedings would serve no useful purpose and would constitute an abuse of process.
Source reference: p.4–5Holding
The Court allowed the application and quashed the FIR, C.R. No. I-11191011200180 of 2020, registered with DCB Police Station, Ahmedabad, together with any consequential proceedings, insofar as they concerned the applicant.
Rule was made absolute.
Source reference: p.5Acts & Sections Cited
5 provisions across 2 statutes referred to in this judgment. Each provision opens on LawLens.
Code of Criminal Procedure, 19731
Indian Penal Code, 18604
Original Court PDF
RIYAZ ALLADIN MAMDU KHANvsSTATE OF GUJARAT
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