The matter came to the numberice of the companyplainant when some of the prospective NRI investors made companyrespondence with the Power Company demanding share certificates for which they had paid substantial amounts to the appellants.
It is further alleged in the companyplaint petition that the appellants issued a document in the name of the Spectrum Infrastructures Ltd., Jersey, Channel Islands, styled as Project Overview.
The proceeding was instituted on the companyplaint petition filed by respondent No.1.
The relevant portions of the said Project Overview and the letter are extracted hereunder SPECTRUM POWER 208 MEGAWATT POWER PLANT AT KAKINADA, ANDHRA PRADESH, INDIA PROJECT OVERVIEW The letter dated 30.9.94 reads as follows Re Private Sector Power Generation Project in Kakinada, Andhra Pradesh I am enclosing a high level overview of the investment opportunity for the above project.
The said companypany issued a letter dated 30th September, 1994 by the first accused.
The respondent No.1 filed the companyplaint alleging offences under Sections 60, 63,68, 68 A read with Section 621 of the Act, against the appellants, alleging inter alia that the accused persons by making false, deceptive and misleading statements and by suppressing relevant facts induced various persons to pay them money for purchase of shares of the Power Company raised millions of Dollars from Non Resident Indians NRIs siphoned off those funds into bogus companypanies exclusively owned by them in off shore companypanies and purchased shares of the Power Company in India in the names of bogus off shore companypanies owned companytrolled by them.
The off shore companypanies through which the appellants purchased the shares of the Power Company in Hyderabad are M s Spectrum Technologies, USA, M s Spectrum Infrastructures Ltd., Jersey, Channel Islands and M s Spectrum Infrastructures Ltd. at Mauritius.
These acts, it is alleged by the companyplainant, companystitute offences under Sections 68 and 68 A of the Act.
In this process the original investors who were promised shares in Power Company were never allotted any shares.
It was specifically alleged in the companyplaint petition that the accused persons have in effect companymitted fraud on the Power Company in whose name they companylected money, invested that in their own companypanies and those companypanies in turn applied and got shares at the instance of the accused persons with the result that all these overseas investors are left high and dry.
The appellants and the respondent No.1 are stated to be Directors of a Company M s Spectrum Power Generation Limited hereinafter referred to as the Power Company incorporated under the Indian Companies Act, 1956 for short the Act , having its registered office at Secundrabad, in the State of Andhra Pradesh.
This appeal filed by the accused persons is directed against the order dated 1.3.2000 of the High Court of Andhra Pradesh in Criminal Petition No.3052/99 declining to grant the prayer of the appellants for quashing the proceedings in CC No.24/99 on the file of the Court of Sub Judge, Economic Offences at Hyderabad.
P.Mohapatra,J. Leave granted.
On the other hand shares were allotted to off shore companypanies which have numberhing to do with the Power Companies and which are exclusively owned and companytrolled by the accused persons.
