Amaravati: Raising strong objection over the jurisdiction of the state CID in the matter, the Andhra Pradesh High Court has stayed proceedings for eight weeks in the case registered by the AP CID against Margadarsi Chit Fund Private Limited (MCFPL) chairman Ramoji Rao and managing director Sailaja Kiran based on the complaint by one G Yuri Reddy alleging transfer for shares through forgery.
The court issued notices to the CID, who is the defendant in the lawsuit, and complainant Reddy on Wednesday. The hearing was adjourned to December 6, directing to file a counter. During the hearing, the High Court asked several questions about the conduct of the CID and raised a strong objection over its jurisdiction in the matter.
The court asked AP CID about its jurisdiction to register a case when the complainant said the incident took place in Hyderabad. Yuri Reddy has stated in the complaint to the CID that he had signed the transfer of shares.
"For instance, if jewellery is bought in Hyderabad and it gets stolen there..how is it valid to file a case in Vijayawada on the ground that the jewellery was bought with the money earned in Vijayawada?" the High Court asked referring to AP CID.
Taking these factors into consideration, High Court judge Justice BVLN Chakravarthy gave an interim order on Wednesday, suspending all further proceedings in the case registered by the CID for 8 weeks.
On October 13, Mangalagiri CID Police registered a case against Margadarsi Chit Fund Chairman Ramoji Rao and MD Shailaja Kiron based on the complaint given by Yuri Reddy for allegedly transferring 288 shares registered from his father G. Jagannatha Reddy (GJ Reddy) to Margadarsi MD with forged signatures.
It is known that both of them filed petitions in the High Court to dismiss the case registered against them. Senior advocates Siddhartha Luthra, Nagamuthu, and Posani Venkateswarlu appeared for the petitioners
"For buying Yuri Reddy's shares, the Margadarsi company paid him money in the form of a cheque. The complainant signed the transfer of those shares to the Margadarsi company. Yuri Reddy complained to the Registrar of Companies that he did not cash the check and accidentally signed a blank form. It is still pending. After six years, he suddenly filed a complaint with the AP CID. A new allegation that he had signed under threat was brought to the fore. The complainant sent an e-mail on 15 June 2016 thanking the petitioner (Ramoji Rao) for buying their shares earlier. Margadarsi Company is registered in Hyderabad. The transfer of shares took place there. According to the allegation of the complainant, the incident took place in Hyderabad. In this context, CID has no jurisdiction to register a case and investigate," the advocates representing Margadarsi Chit Fund asked.
"If CID registers a case, it should be transferred to Telangana as it is not within its purview. Margadarsi MD Sailaja Kiron has nothing to do with the transfer of shares. She was not there when the procedure took place. After the transfer of shares from Yuri Reddy to the company, the shares were transferred to the name of Sailaja Kiron following the provisions of the law. There are no allegations against her in the FIR either. The complainant did not mention the reasons for the extreme delay in filing the complaint," the advocates pointed out.
They appealed to the court that, considering these factors, the investigation in the case registered by the CID should be stopped. Speaking on behalf of the CID, Sivakalpana Reddy said that the petitioners approached the High Court to quash the FIR within three days of registration.
He asked the court that no interim order should be given at this stage. He said that the Supreme Court has ruled that courts cannot issue interim orders mechanically. He also asked to give them time to file the counter. "If the CID concludes that the case does not come under their purview, it will be transferred to Telangana, he said.
Justice Chakravarthy responded that the court was aware of the judgments given by the Supreme Court. After the hearing, based on the FIR registered by the CID, an interim order was passed, staying all further proceedings including investigation for 8 weeks.
