PARIKSHIT PARSEversusSTATE OF U.P. AND ANOTHER

         HIGH COURT OF JUDICATURE AT ALLAHABAD

           APPLICATION U/S 528 BNSS No. - 18358 of 2026

Parikshit Parse
                                                             .....Applicant(s)
                                   Versus
State of U.P. and Another
                                                                .....Opposite
                                                                      Party(s)

Counsel for Applicant(s)           :   Adarsh Ojha, Ashwini Kumar Ojha
Counsel for Opposite Party(s)      :   G.A.

Court No. - 77
                  HON'BLE SAURABH SRIVASTAVA, J.

1. Heard learned counsel for applicant and learned A.G.A. for State.

2. The instant application has been preferred for quashing the entire
proceedings of Case No.892 of 2026 (State vs. Parikshit Parse and Others)
under sections 111, 318(4), 336(3), 340(2), 61(2) BNS, arising out of Case
Crime No.236 of 2024, P.S. Mehrauni, District- Lalitpur, pending in the
court of learned Additional Chief Judicial Magistrate, Mehrauni, Lalitpur,
including cognizance/summoning order dated 31.03.2026.

3. It is the opening submission extended by learned counsel for applicant
that initially the applicant has been implicated in Case Crime No.236 of
2024 in pursuance to sections 111, 318(4), 336(3), 340(2), 61(2) BNS,
wherein after conducting detail investigation, concerned Investigating
Officer preferred charge-sheet on dated 03.06.2025 by way of implicating
the applicant in pursuance to sections 111, 318(4), 336(3), 340(2), 61(2),
whereupon cognizance of offence has been taken up by learned court
concerned vide order dated 31.03.2026.

4. While challenging the entire proceedings conducted by concerned
Investigating Officer in shape of preferring charge-sheet along with
cognizance order dated 31.03.2026, learned counsel for applicant sought the
attention of Court over sections 29 and 30 of Banning of Unregulated
Deposit Scheme Act, 2019 (herein after referred to as "the Act of 2019"),
which are reproduced herein below:-

"29. Competent Authority to be informed of offences
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                               2


- The police officer shall, on recording information about the commission of
an offence under this Act, inform the same to the Competent Authority.

30. Investigation of offences by Central Bureau of Investigation.

(1) On receipt of information under section 29 or otherwise, if the
Competent Authority has reason to believe that the offence relates to a
deposit scheme or deposit schemes in which -

(a) the depositors, deposit takers or properties involved are located in more
than one State or Union territory in India or outside India; and

(b) the total value of the amount involved is of such magnitude as to
significantly affect the public interest, the Competent Authority shall refer
the matter to the Central Government for investigation by the Central
Bureau of Investigation.

(2) The reference made by the Competent Authority under sub-section (1)
shall be deemed to be with the consent of the State Government under
section 6 of the Delhi Special Police Establishment Act, 1946.

(3) On the receipt of the reference under sub-section (1), the Central
Government may transfer the investigation of the offence to the Central
Bureau of Investigation under section 5 of the Delhi Special Police
Establishment Act, 1946."

5. From plain reading of above sections, learned counsel for applicant
submitted that the mandatory provisions available under section 29
specifically assigned powers to the competent authority under the Act of
2019 without receiving information from concerned police officers who
received some information in respect of offence committed by any person or
group, which attracts offences mentioned under Chapter-VI of the Act of
2019 and thereafter upon information so received under section 29, if the
competent authority has reasons to believe that the offence relates to a
deposit scheme or deposit schemes, the matter shall be referred to Central
Bureau of Investigation in compliance of section 30(1)(a) & (b) of the Act of
2019.

6. Learned counsel for applicant further submitted that in absence of due
compliance of sections 29 & 30 of the Act of 2019, the entire proceedings as
automatically initiated and cognizance of offence drawn by learned court
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                                                                    3


                                    concerned is also bad in the eye of law and the entire proceeding is liable to
                                    be quashed by this Court.

                                    7. Per contra, learned A.G.A. although vehemently opposed the prayer as
                                    made in the application and rebutted the stand taken up by learned counsel
                                    for applicant, but at the same time did not dispute the provisions available
                                    under sections 29 & 30 of the Act of 2019.

                                    8. In view of the arguments so raised by learned counsel for applicant, which
                                    seems to be justified that the mandatory provisions as available under
                                    sections 29 & 30 of the Act of 2019 has not been complied with, rather it is
                                    the concerned police who started investigation and submitted charge-sheet
                                    on dated 03.06.2025, whereupon cognizance of offence has been taken up by
                                    learned court concerned without looking into the mandatory provisions
                                    under sections 29 & 30 of BUDS Act of 2019 and as such, entire
                                    proceedings of Case No.892 of 2026 (State vs. Parikshit Parse and Others)
                                    under sections 111, 318(4), 336(3), 340(2), 61(2) BNS, arising out of Case
                                    Crime No.236 of 2024, P.S. Mehrauni, District- Lalitpur, pending in the
                                    court of learned Additional Chief Judicial Magistrate, Mehrauni, Lalitpur,
                                    including cognizance/summoning order dated 31.03.2026, are hereby set-
                                    aside.

                                    9. However, it is made clear that this order shall not preclude the authorities
                                    concerned to proceed afresh against the applicant in strict consonance of
                                    sections 29 & 30 of the Act of 2019.

                                    10. The instant application stands allowed accordingly.

                                    May 5, 2026
                                    Vivek Kr.
                                                                                         (Saurabh Srivastava,J.)




Digitally signed by :-
VIVEK KUMAR
High Court of Judicature at Allahabad