STATE OF TAMIL NADU Vs. PROMOD KUMAR IPS & ANR

JUDGEMENT

(1.) Leave granted.

(2.) The first Respondent is a member of the Indian Police Service and was allotted to the State of Tamil Nadu. He was posted as Inspector General of Police, West Zone, Coimbatore from 10.09.2008 to 19.02010. During his tenure in the said post, an FIR was registered against K.Mohanraj, K. Kathiravan and Kamalavalli Arumugam who were the Directors of M/s Paazee Forex Trading India Private Limited (hereinafter referred to as "M/s Paazee Forex") by the Central Crime Branch, Tirupur under Section 3 and 4 of the Prize Chits and Money Circulation Scheme (Banning) Act, 1978 and Section 420 of the Indian Penal Code, 1860 (IPC). M/s Paazee Forex was alleged to have cheated a large number of depositors to the tune of Rs.1,210 crores. The Directors of the company were granted anticipatory bail on 08.10.2009. Crime No.3068 of 2009 was registered under Section 365 IPC on 09.12009 pursuant to a written complaint that one of the Directors of M/s Paazee Forex, Ms. Kamalavalli Arumugam, was missing since 08.12009. The missing Director Kamalavalli Arumugam submitted a complaint to the Deputy Superintendent of Police, Tirupur that she was kidnapped on 08.12009. She stated in the complaint that three police officials and a private individual extorted Rs. 3 Crores approximately for her release. The investigation of Crime No.26 of 2009 registered against M/s Paazee Forex on 24.09.2009 was transferred to the CB-CID, Vellore on 23.03.2010. Crime No.3068 of 2009 pertaining to the kidnapping of Kamalavalli Arumugam was also transferred to the CB-CID, Vellore.

(3.) An association of investors of M/s Paazee Forex filed Criminal O.P. No.5356 of 2011 under Section 482 Cr.P.C. for a direction to transfer the investigation to the CBI. Mr.K. Loganathan, an investor in M/s Paazee Forex filed Criminal O.P. No.2691 of 2011 seeking transfer of investigation of Crime No.26 of 2009 from the State police to the CBI since he apprehended that the State police was protecting the Directors of M/s Paazee Forex and delaying the disbursal of money payable to the depositors.