DWARIKA PRASAD JHA AND 3 OTHERSversusSTATE OF U.P. AND ANOTHER

         HIGH COURT OF JUDICATURE AT ALLAHABAD
                 APPLICATION U/S 528 BNSS No. - 41174 of 2025

Dwarika Prasad Jha And 3 Others
                                                           .....Applicant(s)
                                    Versus

State of U.P. and Another
                                                                .....Opposite
                                                                      Party(s)

Counsel for Applicant(s)                          :    Vijit Saxena
Counsel for Opposite Party(s)                     :    G.A.

Court No. - 75
                 HON'BLE DR. GAUTAM CHOWDHARY, J.

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

2. The instant application has been preferred for quashing the entire
proceedings of Special Sessions trial No. 1167 of 2024 (State vs. Alok
Jain and others) under sections 111, 318 (2), 336(3), 340(2), 61(2) BNS
and sections 3/21 of Banning of Unregulated Deposit Scheme Act, 2019,
arising out of Case Crime No. 687 of 2024, P.S. Kotwali Lalitpur,
District- Lalitpur, pending in the court of learned Additional Session
Judge 1st/Special Judge (BUDS Act), Lalitpur, including charge-sheet
dated 27.10.2024 as well as cognizance/summoning order dated
05.11.2024.

3. It is the opening submission extended by learned counsel for applicants
that initially the applicants have been implicated in Case Crime No.687 of
2024 in pursuance to sections 111, 318, 336(3), 340(2), 61(2) BNS,
wherein after conducting detail investigation, concerned Investigating
Officer preferred charge-sheet on dated 27.10.2024 by way of implicating
the applicants in pursuance to sections 111, 318 (2), 336(3), 340(2), 61(2)
BNS along with sections 3/21 of Banning of Unregulated Deposit Scheme
Act, 2019, whereupon cognizance of offence has been taken up by
learned court concerned vide order dated 05.11.2024 in pursuance to
sections 111, 318 (2), 336(3), 340(2), 61(2) BNS and sections 3/21 of
Banning of Unregulated Deposit Scheme Act, 2019. It is further argued
on behalf of the applicants that the application filed under Section 528
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BNSS on behalf of the co-accused of this case, namely Vishal Khurana,
has been allowed by the Hon'ble Court vide order dated 09.09.2026 and
the entire proceedings of this case have been quashed. The case of the
present applicants stands on the same footing as that of the co-accused.

4. While challenging the entire proceedings conducted by concerned
Investigating Officer in shape of preferring charge-sheet along with
cognizance order dated 05.11.2024, learned counsel for applicants 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


     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
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                                3


     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 applicants
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 applicants 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 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 applicants,
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 State Police who lodged the F.I.R. being Case Crime No.
687 of 2024 and started investigation and submitted charge-sheet on dated
27.10.2024, whereupon cognizance of offence has been taken up by
learned court concerned without looking into the mandatory provisions
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                                    under sections 29 & 30 of BUDS Act of 2019 and as such entire
                                    proceedings is hereby set- aside only after receiving information by
                                    concerned police and thereafter the mandatory provisions as defined
                                    under sections 29 & 30 of the Act of 2019 has to be followed by
                                    concerned police station.

                                    9. However, it is made clear that quashing of the entire proceedings as
                                    directed above 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.



                                                                                 (Dr. Gautam Chowdhary,J.)
                                    September 30, 2026
                                    CP.sahani




Digitally signed by :-
CHANDRA PRAKASH SAHANI
High Court of Judicature at Allahabad