Case Note & Summary
The applicant, Rajiv Ranjan Singh, filed an anticipatory bail application under Section 438 of the Code of Criminal Procedure, 1973 (CrPC) in connection with FIR No. 370 of 2024 registered by the Securities and Exchange Board of India (SEBI) at the SEBI Police Station, Mumbai. The FIR alleged offences under Sections 11, 12, and 24 of the Securities and Exchange Board of India Act, 1992 (SEBI Act) and Sections 420, 406, 409, 120B, and 34 of the Indian Penal Code, 1860 (IPC). The applicant was accused of being involved in a fraudulent scheme related to securities trading. The court noted that the investigation was at a nascent stage and the applicant's role required detailed scrutiny. The applicant argued that he was innocent and had no criminal antecedents, but the court found that the allegations were serious and economic offences of this nature require thorough investigation. The court held that anticipatory bail cannot be granted as it would hamper the investigation and the applicant failed to make out a prima facie case that no offence was made out. The application was dismissed.
Headnote
A) Criminal Procedure Code - Anticipatory Bail - Section 438 CrPC - Investigation Stage - The court considered whether anticipatory bail should be granted when the investigation is at a nascent stage and the applicant's role in an alleged fraudulent scheme requires detailed scrutiny. Held that anticipatory bail cannot be granted as it would hamper the investigation and the applicant failed to make out a prima facie case for no offence (Paras 1-10). B) Securities Law - SEBI Act - Sections 11, 12, 24 - Fraudulent Trading - The court examined the allegations of fraudulent trading in securities and the need for custodial interrogation. Held that economic offences of this nature require thorough investigation and custodial interrogation may be necessary to unearth the conspiracy (Paras 5-8).
Issue of Consideration
Whether the applicant is entitled to anticipatory bail under Section 438 of the Code of Criminal Procedure, 1973 in connection with an FIR registered by SEBI for alleged offences under the Securities and Exchange Board of India Act, 1992 and Indian Penal Code, 1860.
Final Decision
The anticipatory bail application is dismissed.
Law Points
- Anticipatory bail
- Section 438 CrPC
- SEBI Act
- 1992
- Securities fraud
- Investigation stage
- Prima facie case
- Custodial interrogation
- Economic offences
