The Andhra Pradesh High Court on Thursday admitted a writ petition in the larger interest of public. The writ petition submitted by a journalist appealed the High Court to order the police to reopen a criminal case against a fraudulent company, PACL (India) Ltd aka Pearls India. The police for the reasons best known to them closed the criminal case against the company on the pretext of a Mistake of Fact.
The writ petition wanted to know the details of the Mistake of Fact. After elaborately discussing the writ petition, the Division Bench comprising Justice C V Nagarjuna Reddy and Justice Meena Kumari served notices to the Police Officials and the PACL (India) Ltd.
A glance at the facts of the case reveals that the PACL (India) Ltd, a Jaipur, Rajastan-based registered company has been illegally mobilising deposits from public without any permission from the Reserve Bank of India. Moreover, the company is offering hefty commission to the twelve-level from agent to the Executive Member. In effect, all the members in the 12-level hierarchy share up to 30 per cent of the amount collected from public. This is nothing but illegal money circulation scheme.
Above all, the company claims that it is into real estate business. It offers land to people for the deposits it had collected. Though the company's prospectus claims that it would allot a plot to the depositors within 270 days after payment of the deposit, it never allotted any land to any depositor so far. In fact, the Company has not sufficient land in its possession to allot plots to all its depositors. The clause on the deposit bond states that the money would be paid back after due date. If it is for the piece of land, why should there be maturity date of deposit.
These are glaringly visible to the police or to any ordinary mortal. Still, the police shut their eyes and closed the criminal case against the company.
Now, the police have to answer to the High Court what Mistake of Fact led to the closure of the criminal case.