Holding

The court held that the FIRs and all consequential proceedings must be quashed and set aside as the dispute has been amicably settled and further prosecution would be futile and an abuse of process.

Summary

The father‑son applicants were charged under Sections 406, 409, 420, 120B and 34 of the IPC and Section 3 of the Gujarat Protection of Interest of Depositors Act for allegedly cheating investors of about Rs 2.48 crore. They contended that they had already repaid Rs 1.69 crore to 984 investors and were willing to settle the remaining dues, depositing Rs 1.25 crore with the trial court and offering further security. The State opposed the applications, arguing the seriousness of the offences, while the complainant accepted the settlement. Relying on the parties’ amicable resolution, the court held that proceeding with the FIRs would be futile and an abuse of process, and exercised its inherent powers under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023 to quash the FIRs subject to conditions of further deposits and de‑freezing of bank accounts.

Issues considered

Whether the FIRs and related proceedings can be quashed under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023 on the ground of an amicable settlement and repayment of dues.
Whether continuation of criminal proceedings would amount to an abuse of process of law.
Whether the court may impose conditions such as additional security deposits and de‑freezing of bank accounts while quashing the FIRs.

Legislation cited

Bharatiya Nagarik Suraksha Sanhita, 2023s. 528
Indian Penal Code, 1860s. 120B, s. 34, s. 406, s. 409, s. 420

Subjects

cheatingcriminal breach of trustinvestor fraudquash of FIRSection 528inherent powers of courtabuse of processsettlementrestitutionGujarat depositor protection act

Judgment

R/CR.MA/13442/2025 ORDER DATED: 22/01/2026

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

R/CRIMINAL MISC.APPLICATION (FOR QUASHING & SET ASIDE
FIR/ORDER) NO. 13442 of 2025
With
R/CRIMINAL MISC.APPLICATION NO. 13499 of 2025
With
R/CRIMINAL MISC.APPLICATION NO. 20681 of 2025
With
R/CRIMINAL MISC.APPLICATION NO. 20356 of 2025

================================================================
PARTH SARATHY RAGHUNATH DEY
Versus
STATE OF GUJARAT & ANR.
================================================================
Appearance:
MR. VIMAL PATEL for VMP LEGAL(7210) for the Applicant(s) No. 1
MR. HARDIK A.DAVE, PUBLIC PROSECUTOR with MR. MANAN MAHETA,
APP for the Respondent(s) No. 1
MR. ZALAK B PIPALIA(6161) for the Respondent(s) No. 2
================================================================

CORAM:HONOURABLE MR. JUSTICE VIMAL K. VYAS

Date : 22/01/2026

COMMON ORAL ORDER

1. By way of preferring the present applications under Section

528 of the Bharatiya Nagarik Suraksha Sanhita, 2023, the

applicants-accused (father and son) seek to invoke the inherent

powers of this Court, praying to quash and set-aside the FIR

No.I-203 of 2018 and FIR No.I-120 of 2018 registered with the

Nilam Baug Police Station, Bhavnagar, for the offences

punishable under Sections 406, 409, 420, 120B, 34 of the

Page 1 of 15
R/CR.MA/13442/2025 ORDER DATED: 22/01/2026

Indian Penal Code and under Section 3 of the Gujarat Protection

of Interest of Depositors (in Financial Establishments) Act, 2003.

2. RULE returnable forthwith. Learned APP Mr.Manan

Maheta waives service of notice of rule for and behalf of the

respondent no.1 – State and learned advocate Mr.Zalak B.Pipalia

waives service of notice of rule for and on behalf of the

respondent no.2 – complainant.

3. On 17.07.2025, a Coordinate Bench of this Court had

passed the following order :

“1. Learned advocate Mr.Vimal Patel appearing for the
applicant appraises the Court that the amount alleged in the
charge-sheet which has allegedly been siphoned off is
Rs.2.44 Crores, out of which an amount of Rs.1.69 Crores
has already been paid to 984 Investors/Victims, whose
affidavits have already been submitted before the
Investigating Officer for verification indicating that all the
984 Investors/Victims have received the amount towards
full and final settlement in respect of dues of the Company
for which the applicant was inducted as Additional Director
subsequently in the year 2014 whereas the scam has
allegedly taken place prior to his appointment.

2. As far as remaining genuine Investors/Victims are
concerned, upon instructions received from the applicant
who is personally present in the Court, learned advocate
Mr.Vimal Patel submitted that the applicant is ready and
willing settle with them as well, which may not have been
noticed by the applicant, but have actually invested in the

Page 2 of 15
R/CR.MA/13442/2025 ORDER DATED: 22/01/2026

Company and, therefore, it was suggested by learned
advocate Mr.Vimal Patel that the applicant is ready and
willing to publish the advertisement within a period of one
week from today in two Gujarati Newspapers as well as one
English Newspaper, having wide circulation. Accordingly,
the applicant is directed to publish an advertisement in
“Gujarat Samachar” and “Divya Bhaskar” (Gujarati Daily)
(Gujarat and Bombay Edition) and “Times of India” (English
Daily) (Gujarat and Bombay Edition) within a period of one
week from today clearly mentioning therein that whosoever
shall have any claim against the Company shall approach
the Investigating Officer on the Phone Number and Name
given in the advertisement and such claims shall be
entertained only upto the period of 30 days from the date of
publication of such advertisement and only after verification
of those genuine claims, upon preparation of a list, which
will be approved and verified by the Investigating Officers,
the applicant is ready and willing to settle with those
genuine Investors/Victims as well.

3. Learned advocate Mr.Vimal Patel, upon instructions,
states that a sum of Rs.75 Lacs is already lying with the
learned Trial Court at Bhavnagar and the said amount be
utilized towards the settlement of outstanding dues of the
Investors/Victims who may come forward pursuant to
publication of advertisement. He further submitted that if the
claims which are found to be genuine goes beyond an
amount of Rs.75 Lacs, in that case, the applicant shall come
with appropriate formula to arrive at settlement with those
persons. However, at this juncture, the applicant is ready
and willing to pay a total sum of Rs.2.44 Crores, as stated
in the Charge-sheet filed against the co-accused. However,
at the same time, learned advocate Mr.Vimal Patel
submitted that any claims which may come beyond an
amount of Rs.2.44 Crores, the same will not be discarded
outrightly and all efforts will be made to ensure that
settlement is arrived at with those genuine Investors/
Victims, after their claims are approved and verified by the
Investigating Officer.

4. In addition, it was also submitted by learned advocate

Page 3 of 15
R/CR.MA/13442/2025 ORDER DATED: 22/01/2026

Mr.Vimal Patel that the applicant is ready and willing to
deposit a sum of Rs.1 Crores before this Court once the
number of claims are ascertained and there is a clear picture
about the number of claims and the amount that the
applicant is required to pay, over and above Rs.2.44 Crores
and upon completion of such exercise of identifying the
genuine Investors/Victims, if any are left out after
publication of advertisement, the Court may pass further
order directing the applicant to deposit a sum of Rs.1 Crore
with the Registry of this Court upon the final order of
quashing the impugned complaints can be passed which
may be subject to any objections by the State Authorities.
Accordingly, the applicant is directed to file an undertaking
to the above effect.

5. Considering the fact that at present, there are 984
Investors/Victims who have filed their affidavits and whose
claims are forwarded to the Investigating Officer for
verification about its genuineness and whether such claims
are settled in reality or not, it is desirous that the Officer of
the rank of Dy.S.P. may supervise the entire process and the
applicant would be at liberty to name one of his
representative who shall be coordinating with the aforesaid
Supervising Officer.

6. In the meantime, the respondents are directed to start
the process of identification of claims in the way State
Authorities may deem it appropriate.

7. Learned advocate Mr. Patel has requested the Court
that since the applicant has shown his bonafides and has
already settled with 984 Investors/Victims by paying
Rs.1.69 Crores, he may be protected. Accordingly,
respondents are hereby restrained from taking any coercive
steps against the applicant till the next date of hearing.

8. Issue Notice returnable on 28.7.2025 for compliance as
regards publication of the advertisement as directed above.
Learned Additional Public Prosecutor waives service of
notice on behalf of respondent No.1 – State. Direct service to

Page 4 of 15
R/CR.MA/13442/2025 ORDER DATED: 22/01/2026

respondent No.2 through concerned Police Station is
permitted.”

4. Pursuant to the aforesaid order, Shri M.J.Trivedi, Detective

Police Inspector, CID Crime, Bhavnagar, had filed a detailed

report dated 01.12.2025, which was ordered to be taken on

record vide order passed by this Court on 01.12.2025.

5. It is the case of the prosecution that the present applicants

and other co-accused, who are the Founders/ Administrators/

Directors/ Promoters/ of Jay Vinayak Buildcorp Company

Limited and Anuraj Multi-State Urban Cooperative Credit Society

Limited, in connivance with each other, had opened offices at

Bhavnagar and offered huge returns to the investors on making

investment in their companies. However, as a part of the

conspiracy, at the time of maturity, the applicants and other co-

accused had neither paid the amount of investment made by

over 763 investors (including the victims and the agents) in their

companies nor the amount of interest earned over it, thereby

they committed the offence of cheating and criminal breach of

trust by duping the investors to the tune of Rs.2,47,87,710=00.

Page 5 of 15
R/CR.MA/13442/2025 ORDER DATED: 22/01/2026

6. It appears from the report filed by the police that the

present applicants-accused are still required to repay

Rs.21,57,162=00 towards the remaining 30% of the amount of

investment made by 276 victims/investors out of the total 982

victims/investors who have been repaid the amount of

investment made by them in Jay Vinayak Buildcorp Ltd. It

further appears that the amount of Rs.97,60,550=00 is also

required to be repaid to 678 newly found victims/investors/

claimants. In all, Rs.1,28,52,445=00 is required to be repaid to

over 1157 victims/investors/claimants including 143 victims/

investors/claimants who have invested Rs.6,44,493=00 in

Anuraj Multi-State Urban Cooperative Credit Society Limited.

7. It also appears that after the publication of the

advertisement in the newspapers, around 60 new claimants have

claimed the amount of Rs.2,90,240=00 invested by them in the

company, but since the company has been closed long before,

they have no certificate, ledger or documentary evidence

regarding their investment in the company.

8. Learned advocate Mr.Vimal Patel appearing for the

Page 6 of 15
R/CR.MA/13442/2025 ORDER DATED: 22/01/2026

applicants-accused has taken this Court through the factual

matrix arising out of the present applications and has submitted

that the present applicants-accused have repaid the dues to 984

victims/investors/claimants and also undertake to settle future

claims that may be made by the claimants. Learned advocate

has, therefore, submitted that since the parties have amicably

resolved the dispute inter se and they do not want to proceed

further with the matter, continuing further with the proceedings

pursuant to the impugned FIRs would be nothing but futile

exercise and the same would amount to abuse of process of law.

Further, it would create unnecessary harassment to the parties.

He has, therefore, submitted that considering the fact that the

dispute has been amicably settled between the parties, the

present applications may be allowed and the impugned FIRs as

well as all other consequential proceedings arising pursuant

thereto may be quashed and set-aside in exercise of the powers

conferred under Section 528 of the Bharatiya Nagarik Suraksha

Sanhita, 2023.

9. The applicants-accused had also filed the detailed

affidavits dated 18.12.2025, which were taken on record vide

order passed by this Court on 22.12.2025. The same reads

Page 7 of 15
R/CR.MA/13442/2025 ORDER DATED: 22/01/2026

thus :

“1. I state that this Hon’ble Court by an order dated
01/12/2025 has taken on record a report dated
01/12/2025 submitted by Police Inspector, CID Crime,
Bhavnagar. I state that as per the said report it is confirmed
that Rs.1,69,56,543/- has been refunded to the investors.
Further from the police report it is found that total amount for
investment by 763 persons comes to Rs.2,47,87,710/-.

2. As per the said report an amount of Rs.1,28,52,445/-
is yet to be paid to the balance 1157 investors. The break-up
of the 1157 investors as per the report is as under :

Sr. Details Total Invested Amount Remarks
No. Victim Annexure

01 The balance 30% amount 276 21,57,162/- A
remaining to be paid by
the applicant/ accused

02 Total victims found upon 678 97,60,550/- C
publication of the notice
in the newspaper

03 Total investors/victims 143 6,44,493/- B
who made investment in
Anuraj Multi-State Urban
Cooperative Credit
Society Limited

04 Public Notice published -- -- B1, B2,
in the newspapers B3
(1) Gujarat Samachar,
(2) Divya Bhaskar, and
(3) Times of India

05 Newly found victims but 60 2,90,240/- E
not having certificates

1,28,52,445/-

Page 8 of 15
R/CR.MA/13442/2025 ORDER DATED: 22/01/2026

3. I state that an amount of Rs.50,00,000/- is deposited
by Aditya Dey (son of the present Applicant) before the trial
court as per the order dated 07/03/2024 read with order
dated 15/04/2024 passed by this Hon'ble Court pursuant
to which bail was granted to me. Similarly, I have deposited
an amount of Rs.75,00,000/- before the trial court as per the
order dated 13/05/2025 passed by the trial court granting
bail to me. Therefore, total amount of Rs.1,25,00,000/- is
deposited before the trial court in both the FIR being FIR
No.I-120 of 2018 and FIR No.I-203 of 2018. Hence, the said
amount of Rs.1,25,00,000/- can be utilised for payment of
Rs.1,28,52,445/-. Therefore, the balance amount of
Rs.3,52,445/- would be required to be arranged.

4. I state that during investigation, 3 Savings Bank
Accounts being, 1) Account No.50200076560756 held with
HDFC Bank, Delhi, having a balance of Rs.18,400/-, 2)
Account No.50100029708278 held with HDFC Bank,
Kolkata, having a balance of Rs.11,61,877/-, and 3)
Account No.9150100052175606 held with Axis Bank, Delhi,
having a balance of Rs.15,93,000/- were frozen by the
Investigating Officer. The said 3 savings Accounts have an
approx. balance of Rs.27,73,277/-. I say that an amount of
Rs.3,52,445/- can be utilised to pay the balance amount of
Rs.3,52,445/- from Account No.50100029708278 held with
HDFC Bank, Kolkata, having a balance of Rs.11,61,877/-. I
have no objection if HDFC Bank, Kolkata, or concerned bank
is directed to deposit an amount of Rs.3,52,445/- before the
Ld. Special Court for GPID Act, Bhavnagar, or before any
Authority appointed by this Hon'ble Court for disbursing the
amounts to the balance investors as per report dated
01/12/2025.

5. In view of the above, I state that the entire amount of
Rs.1,28,52,445/- is secured for payment to the investors as
per report dated 01/12/2025. I state that the amount of
Rs.1,28,52,445/- may be paid to the investors as per the
police report dated 01/12/2025 and I have no objection if
the amount is paid to the investors identified as per the
police report dated 01/12/2025 and I grant consent for such
payment as may be paid by the special court or by such

Page 9 of 15
R/CR.MA/13442/2025 ORDER DATED: 22/01/2026

authority as may be appointed by this Hon'ble Court for
disbursing the amount to the investors as per the report
dated 01/12/2025. This includes the 60 investors (as
mentioned at Sr. No.5) who have been unable to provide the
certificates of investment.

6. I state that the present affidavit is filed considering the
fact that the FIR No.I-120 of 2018 and FIR No.I-203 of 2018
may be quashed as prayed by the applicant.

7. I say that this Hon’ble Court may direct the Ld. Special
Court for GPID Act, Bhavnagar, or any other authority
appointed by this Hon’ble Court to disburse the amounts to
the balance investors as per report dated 1 st December
2025, as it may deem fit and proper.”

10. Learned Public Prosecutor Mr.Hardik A.Dave assisted by

learned APP Mr.Manan Maheta for the respondent – State has

vehemently opposed the present applications and has submitted

that having regard to the gravamen and seriousness of the

offence, the applications may not be entertained and the same

may be rejected.

11. Learned advocate Mr.Zalak B.Pipalia appearing for the

respondent – complainant has submitted that considering the

fact that the applicants-accused have amicably resolved the

dispute with the complainants and have also filed affidavits

whereby they have undertaken to repay the investment amount

Page 10 of 15
R/CR.MA/13442/2025 ORDER DATED: 22/01/2026

to the victims/investors/claimants, this Court may pass

appropriate orders.

12. It appears from the materials on record that the applicants

– Aditya Parth Sarathy Dey and his father – Parth Sarathy

Reghunath Dey have deposited Rs.50 lakh and Rs.75 lakh,

respectively, before the trial court as per the orders dated

07.03.2024/15.04.2024 and dated 13.05.2025, respectively,

while granting bail to them. In all, Rs.1,25,00,000=00 has been

deposited by the applicants-accused before the trial court, which

can be utilized for payment of dues of Rs.1,28,52,445=00 to the

victims/investors/claimants. The remaining amount of dues of

Rs.3,52,445=00 to be paid to the victims/investors/claimants

can be arranged from the savings bank account of the applicant-

accused, namely, Parth Sarathy Raghunath Dey, bearing

no.50100029708278 with the HDFC Bank, Kolkata.

13. Since the dispute has been amicably resolved between the

parties and the applicants-accused are ready and willing to

refund the amount to the victims/investors, the present

applications deserve consideration.

Page 11 of 15
R/CR.MA/13442/2025 ORDER DATED: 22/01/2026

14. Having heard learned advocates appearing for the

respective parties as well as considering the facts and

circumstances arising out of the present applications, so also

taking into consideration the affidavits filed by the applicants-

accused and the decisions rendered in the cases of Gian Singh

vs. State of Punjab & Another, reported in (2012) 10 SCC 303,

Madan Mohan Abbot vs. State of Punjab, reported in (2008) 4

SCC 582, Nikhil Merchant vs. Central Bureau of

Investigation & Another, reported in (2009) 1 GLH 31, Manoj

Sharma vs. State & Others, reported in (2009) 1 GLH 190, and

Narinder Singh & Others vs. State of Punjab & Another,

reported in (2014) 2 Crime 67 (SC) as well as State of Haryana

vs. Bhajanlal, reported in AIR 1992 SC 604, it appears that to

continue further with the proceedings pursuant to the impugned

FIRs would be a futile exercise and the same would amount to

abuse of process of law. Hence, to secure the ends of justice, the

impugned FIRs as well as all other consequential proceedings

arising pursuant thereto are required to be quashed and set-

aside in exercise of the powers conferred under Section 528 of

the Bharatiya Nagarik Suraksha Sanhita, 2023.

Page 12 of 15
R/CR.MA/13442/2025 ORDER DATED: 22/01/2026

15. In the result, the applications are allowed. The FIR bearing

No.I-203 of 2018 and FIR bearing No.I-120 of 2018 registered

with the Nilam Baug Police Station, Bhavnagar, for the offences

punishable under Sections 406, 409, 420, 120B, 34 of the

Indian Penal Code and under Section 3 of the Gujarat Protection

of Interest of Depositors (in Financial Establishments) Act, 2003,

as well as all other consequential proceedings arising pursuant

thereto are hereby ordered to be quashed and set-aside qua the

present applicants-accused, on the following conditions :

(i) The applicants-accused are hereby directed to deposit

an amount of Rs.3,52,445=00 before the trial court, in

addition to Rs.1,25,00,000=00, which has already been

deposited with the trial court, towards payment of dues to

the victims/investors/claimants.

(ii) The applicants-accused are further directed to

deposit an additional amount of Rs.25,00,000=00, within a

period of four weeks from the date of de-freezing the bank

accounts of the accused, before the concerned trial court

as security deposit towards the future claims that may be

Page 13 of 15
R/CR.MA/13442/2025 ORDER DATED: 22/01/2026

made by the victims/investors/claimants.

(iii) The concerned trial court is hereby directed to

disburse the amount of Rs.1,28,52,445=00 towards the

remaining payment of dues to the victims/ investors/

claimants, upon proper verification.

(iv) The concerned trial court is further directed to utilize

the amount of Rs.25,00,000=00, which shall be deposited

by the applicants-accused as additional security, towards

the future claims by the claimants, and if no claim is made

by any claimant within a period of six months from the

date of this order, then the said amount be refunded to the

applicants-accused. However, if any amount is paid

towards the future claims, then after deducting the said

amount, the remainder be refunded to the applicants-

accused.

16. The concerned banks are hereby directed to de-freeze the

savings bank accounts of the applicant-accused, namely, Parth

Sarathy Raghunath Dey, held with them, more particularly, (i)

Page 14 of 15
R/CR.MA/13442/2025 ORDER DATED: 22/01/2026

Account No.50200076560756 with HDFC Bank, Delhi, having a

balance of Rs.18,400=00; (ii) Account No.50100029708278 with

HDFC Bank, Kolkata, having a balance of Rs.11,61,877=00; and

(iii) Account No.9150100052175606 with Axis Bank, Delhi,

having a balance of Rs.15,93,000=00.

17. Rule made absolute. Direct service is permitted.

(VIMAL K. VYAS, J.)
/MOINUDDIN

Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: MOINUDDIN ABDULLAH SAIYED(HC00172), PRINCIPAL PRIVATE SECRETARY, at High Court of Gujarat on 22/01/2026 14:32:46

Page 15 of 15