SC sets aside HC's order quashing FIR against Mehul Choksi, wife

New Delhi: The Supreme Court has asked the Gujarat police to go ahead with its investigation into a case of criminal breach of trust and cheating against fugitive businessman Mehul Choksi and his wife Priti Choksi on a complaint for failing to return 24 carat gold bars in terms of agreements entered into 2013.

A bench of Justices Sanjiv Khanna and S V N Bhatti set aside a Gujarat High Court order quashing the FIR lodged on January 23, 2015 in Gandhinagar, saying a detailed factual examination and evaluation has been undertaken by the High Court which should not have been done.

"Suffice it is to observe that the High Court should not have examined and recorded conclusion on the disputed fact to quash the FIR. At this stage, we record that pursuant to the registration of the FIR, the investigation had proceeded," a bench of Justices Sanjiv Khanna and S V N Bhatti said.

The court also pointed out the High Court in its order of September 14, 2016 noted that 17 persons had been examined by the investigating officer and statements under Section 161 of the Code of Criminal Procedure, 1973 had been recorded. The High Court notes that statements under Section 164 of the Code had also been recorded.

"Investigation will continue without being influenced by any of the findings or observations made in the impugned judgment or in the present order. We also clarify that while conducting the investigation, the Investigating Officer will keep in mind the rulings of this Court and High Courts interpreting Sections 406, 420, 464 and 465 etc of the IPC," the bench said.

In his plea, appellant Digvijaysinh Himmatsinh Jadeja said all allegations have to read holistically and not in a pedantic manner.

He contended that the High Court has undertaken a detailed factual examination and evaluation of the matter, though there are disputed questions of facts.

The Choksi couple, on their part, had claimed two agreements of July 25, 2013 and August 13, 2013 are not binding on the company Geetanjali Jewellery Retail Limited, which is a subsidiary of Gitanjali Gems Limited.

Mehul Choksi, a fugitive businessman and owner of Gitanjali group, is reported to be residing in Antigua and Barbuda after getting citizenship there. Choksi, along with his nephew Nirav Modi, is wanted in the Punjab National Bank (PNB) scam where it is alleged that the Choksi-Modi duo defrauded the bank of more than Rs 14,000 crore.

The petitioner, however, claimed the agreements are valid and binding. In terms of the agreement of August 13, 2013, the private respondents had agreed to return 24 karat pure gold bars for which the consideration or price stood paid, but were in deposit with GJRL in fiduciary capacity.

The appellant also referred to documents in the form of confirmation letters, which are signed by Santosh Srivastava as the Managing Director at GJRL and Shivendra Singh, Associate Vice-President (Finance), on behalf of GJRL, as well as the statement of accounts, which again is signed. These documents, it was submitted, confirmed the fiduciary nature of the deposit.

"We should not go into these aspects, as it is a matter to be considered and examined in the investigation. A wrong may be civil wrong, or in a given case be a civil wrong and equally constitute a criminal offence. The ingredients of a criminal offence should be satisfied," the bench said.