- (1.) The petitioners have filed this Criminal Revision Petition aggrieved by the order dated 7-5-1993, passed by the learned Principal Sessions Judge, Bangalore, in Criminal Miscellaneous No. 578 / 93, so far it relates to the rejection of their petition and with regard to imposition of Condition No. 4 for return of the building materials seized by the Police in Crime No. 455 / 93 of Ulsoorgate Police Station (Crime No, 1344/93 of C.O.D.).
(2.) The facts briefly stated leading to this petition are : The petitioners filed the petition under S. 457 of the Code of Criminal Procedure (for short the Code) for the following reliefs in the Court of the Principal Sessions Judge, Bangalore : (a) Return of the steel fabricated, finished and semi finished articles, seized in the case from the factory premises of the claimant's establishment to the custody of the claimants forthwith. (b) Direct the return of the demand draft seized in the case from the possession of the claimants which the claimants had purchased in its name as well as in the names of its constituents. (c) Order the withdrawal of the order which is in the nature of a prohibitory order issued by the Investigating Agency to the bankers of the claimants concerning its banking operations in the accounts maintained by it, on such terms and conditions. The petitioners are the accused in Crime No. 455/93. They were entrusted with the construction of houses under Ashraya Housing Scheme by the Karnataka Housing Board (for short the Board) after calling for tenders. They were to construct 16,000 houses estimated at the cost of Rs. 24 crores at various places in different Districts, where the houses belonging to various persons had collapsed due to heavy rainfall. The first petitioner represented that it had stored 30,000 steel doors, 30,000 steel windows and 60,000 steel ventilators in its firm at Shimoga, similarly, second petitioner represented that it had stored 38,000 steel windows, 38,000 steel doors and 76,000 steel ventilators in its firm at Shimoga; on that basis they managed to get an advance of Rs. 2,95,60,000 / - and 2,96,00,000 - by 17-12-1992 and thereafter they pleaded their inability to construct the houses for Ashraya Scheme, but they agreed to supply the doors, windows and ventilators required for the construction of houses. Further, even after lapse of 11 months materials were not supplied. The Housing Commissioner addressed a letter on 18-2-1993 to the Inspector General of Police, COD, that there was a false representation about the availability, of the building materials and on that basis heavy amount of advance had been drawn by the petitioners. It was also alleged that the other accused persons, that is Executive Engineer, Chief Engineer and other officials of the Board had colluded and conspired for the sanction of the advances to the contractors. After investigation it was found that the petitioners and others have committed the offences punishable under Ss. 463, 465, 471, 420, 409 read with S.120(B), IPC and 13(1)(D)(i)) and (iii) of the Prevention of Corrupation Act. Initially, Crime No. 455 / 93 was registered in Ulsoorgate Police Station, which was transferred to COD later. During the course of investigation, the materials stocked in the factory premises of the petitioners were seized by the Investigating Officer on 14-4-1993 under a mahazar and the materials so seized were retained by the Police with the permission of the Court it Shimoga. Further, during the course of investigation 9 demand drafts of the value of Rs. 27 lakhs have been seized from accused Nagaraj and prohibitory orders were issued by the Police Officers to the banks so as to prevent the petitioners from operating the bank accounts. The petitioners pleaded that they had stocked huge quantities of finished and semifinished products and raw-materials of the steel fabrications for being delivered to the Board, but the Board did not take delivery of the same. Hence, they filed W.P. Nos. 2297 / 93 and 2787/93 before this Court, in which directions were issued to the Board for receiving the steel fabricated materials as per the agreement subject to certain conditions. As per the order in the said writ petitions articles were to be removed within four months from the date of the order. The orders were made subject to what was stated in para 6 of the statement of objections filed by the Board in the aforementioned writ petitions. It is contended that all efforts were made by the petitioners to make the articles ready by fabricating; since the materials were seized by the police they were not in a position to deliver them to the Board as directed by this Court; the properties seized are lying in open place exposed to vagaries of nature and if that is allowed they will lose the utility and value and that the petitioners would not be in a position to effect delivery of articles to the Board; since the demand drafts are seized they are put to great difficulty and therefore necessary directions are required to be given to the police to return the properties, demand drafts and to permit the petitioners to operate the bank accounts. Hence, the application was filed under S.457 of the Code in the Court of the Principal Sessions Judge, Bangalore City, for the aforesaid reliefs.
(3.) The State opposed the petition contending that the investigation is still in progress; the articles seized are subjected to valuation and checking of the quantity; that an advance of Rs. 5.316 crores were already drawn by the petitioners without delivery of articles; the demand drafts are all subject matters of fraudulent transactions; in case the articles are returned to the petitioners there is no guarantee to recover the money advanced and that the investigation will be hampered. On these grounds the State pleaded for rejecting the petition.;