High Court exercises inherent powers under Section 482 CrPC, quashing FIR against applicants due to lack of prima facie evidence, while one applicant faces proceedings due to financial misappropriation.
In a significant ruling, the Nagpur Bench of the Bombay High Court, comprising Justices Urmila Joshi-Phalke and Nandesh S. Deshpande, delivered a judgment on December 17, 2025, addressing the quashing of an FIR related to the controversial Platin Ultima investment scheme. The case, registered as Crime No. 470/2023 under Sections 406 and 420 read with Section 34 of the Indian Penal Code (IPC), involved allegations of inducement and fraudulent investment practices.
The FIR, lodged by Dr. Kishor Shridharrao Dhone, accused the applicants of enticing him and others into investing in the Platin Ultima scheme with promises of extraordinarily high returns. The scheme allegedly defrauded investors of over Rs. 50 crores. The applicants included Walmik Sahebrao Dhone, Pallavi Akshay Khade, Pradeep Haribhau Khade, Akshay Pradeep Khade, and Ashay Pradeep Khade.
The High Court, invoking its inherent powers under Section 482 of the Code of Criminal Procedure (CrPC), quashed the FIR against four of the applicants, namely Walmik Sahebrao Dhone, Pallavi Akshay Khade, Pradeep Haribhau Khade, and Ashay Pradeep Khade. The court found no specific roles attributed to these applicants beyond their mere presence at a seminar promoting the scheme. Justice Urmila Joshi-Phalke emphasized that compelling these individuals to face trial would constitute an abuse of the legal process, as no prima facie case was established against them.
However, the court refused to quash the FIR against Akshay Pradeep Khade, citing substantial evidence of financial misappropriation. The investigation revealed that Akshay Pradeep Khade had received and withdrawn significant amounts of money from investors, establishing a prima facie case of financial benefit and breach of trust. Consequently, the court denied his application for quashing, allowing proceedings against him to continue.
The judgment aligns with precedents set by the Supreme Court, which mandate a careful, step-wise inquiry before quashing criminal complaints. The court highlighted the necessity of preventing the misuse of the legal process while ensuring that those genuinely culpable face trial.
The ruling underscores the delicate balance courts must maintain between safeguarding individual rights and upholding the integrity of judicial proceedings. This decision serves as a reminder that the High Court's inherent powers are to be exercised judiciously, ensuring justice is served without subjecting individuals to unwarranted legal harassment.
Bottom Line:
Power under Section 482 of the Code of Criminal Procedure, 1973 should be exercised by the High Court to prevent the abuse of the process of law, especially when no prima facie case is made out against the accused.
Statutory provision(s):
- Section 482 of the Code of Criminal Procedure, 1973
- Sections 406, 420, 34 of the Indian Penal Code, 1860
Walmik v. State of Maharashtra, (Bombay)(Nagpur Bench)(DB) : Law Finder Doc Id # 2828314
