Court of Additional Chief Judicial Magistrate – II,

Court No – 26, Lucknow

Wealth Mantra Ltd. v. Dilip Kr. Gupta & Ors.

Complaint No – 92/18

Police Station – Mahanagar

District - Lucknow

Date – 09.02.18

Plaint Presented. The Learned Counsel for Complainant

Present. The plaint is put for hearing/order at the point of
summoning. The statement made by the complainant in the
complaint letter in brief is as follows-

The company of the complainant is trading in shares and is

also an authorized agent of the National Stock Exchange and
Bombay Stock Exchange and is also registered under the Securities
and Exchange Board of India, whose registration number is – INB
231168635 and conducts business under rules and regulations of
SEBI. In the year 1996, the company of the complainant (formerly
named) Sita Financial Services in which Dilip Kumar Gupta
(Respondent No.–1) joined as an employee and later under a well-
planned conspiracy gradually took the Company Director and other
employees into his confidence by working faithfully. The photocopy
of the welcome letter prepared by the complainant company in the
name of Respondent No.–1 is annexed with this complaint letter in
Annexure No.–1. Taking in view of the works of Respondent No.–1,
the complainant company also increased his salary and from time-
to-time promoted him and, subsequently work of other important
departments was handed over to the Respondent No–1, which was a
part of the ploy of Respondent No.–1. The complainant company,
placing full faith in Respondent No.–1, assigned him the full control
over the financial accounting software and shares’ operations in the
stock market business. Respondent No.-1 taking full advantage of
the trust of the company started operating shares and also started
work of trading shares for company’s clients. Company has also
given authorization to Respondent No.–1 to alter the accounts due to
which the clients of the company placed full faith in Respondent
No.–1 and used to do trading of shares as per his directions. The
business of company was in crores due to which slowly, the
intention of Respondent No.–1 started turning malicious.
Respondent No.–1 in his name opened a trading account no. – 3002
and an Demat account no. 12032700-00000086 in the company and
he himself started trading shares and subsequently opened his wife
Rinki Gupta’s (Respondent No.–2) trading account no. – 3011,
Demat account no. 12032700-00000090, his brother-in-law Raj
Kumar Madheshia’s (Respondent No.–3) trading account no. –
10294, Demat account no. 12032700-00323064, and opened
account of other relatives/

2.

known person Chandra Kumar Mishra’s (Respondent No.–4)

trading account no. – 4928 and Demat account no. 12032700-
00116705, Manorma Mishra’s (Respondent No.–5) trading account
no. – 4494 and Demat account no. 12032700-00116711, Divya
Singh’s (Respondent No.–6) trading account no. – 117444 and
Demat account no. 12032700-00158070, Dhirendra Singh’s
(Respondent No.–7) trading account no. – 4117 and Demat account
no. 12018601-00001421, Kamal Kanti’s (Respondent No.–8)
trading account no – 131177 and Demat account no. 12032700-
00347229A, in the company and started doing share trading.
Because Respondent No.–1 was authorized to operate shares, so he
started benefiting his people by taking full advantage of the credit
limit of the company in the purchase and sale of shares. Him being
an old employee of the company, the company didn’t pay attention
to his personal business, whose benefit he took including the other
8, who started benefiting by their mutual collision and they started
causing financial loses to the company from within, this information
which was not disclosed to the company during his tenure. Copies
of the Client Registration Forms opened in the company by
Respondent No.-2 to 8 have been annexed in the complaint in the
form of Annexure No.- 2,3,4,5,6,7, & 8. Respondent No.-1 to 8 by
their mutual collision benefited immensely from the company’s
credit limit after which many times, the accounts became irregular
but the said persons together with Respondent No.-1 continued to
trade in the conspiracy account. Due to continuous damage to the
company, when a special audit was conducted by the complainant
company in January 2016, then the very first information received
was that foul play had happened in the account of the company by
making many wrong entries, after knowing this, it was found that
Respondent No.-1 has caused loss to the company by wrongly
entering the shares in the account of many clients of the company
and Respondent No.-2 to 8’s accounts and the entry of shares of the
demo account have been done in a different share account. The
Statement of Accounts of the trades conducted by Respondent No.-1
to 8’s copies have been annexed in this complaint letter in the form
of Annexure No.-9,10,11,12,13,14 & 15. When the complainant
company became aware about the wrong entries made by
Respondent No.-1, a detailed investigation of Respondent No.-1 and
his associate clients’ (Respondent No.-2 to 8) accounts was
conducted and investigation of old company accounts lead to the
finding that Respondent No.-1 for many years, by making deals, had
entered the shares left in the accounts of many clients into his own
people’s accounts, also in some accounts, wrong entries of shares
had been done. Apart from this, Respondent No.-1 had rigged other
clients’ accounts of the company,

3.

causing financial loss to the company by a well thought out

conspiracy to embezzle the company’s money.

The accounts by trading shares through which Respondent No. 1

benefitted them are as follows-

Company Client Rinki Gupta Account No. – 3011,

Chandra Kumar Mishra Account No. – 4928,

Manorma Mishra Account No. – 4494,

Raj Kumar Madheshia Account No. – 10294,

Kamal Kanti Account No. – 131177,

Divya Singh Account No. – 117444,

Dhirendra Singh Account No. – 4117

 In this way, Respondent No.-1 has embezzled the company's
money under a fraudulent conspiracy by making wrong entry in his
own account and benefiting each other by mutual collusion. Apart
from this, Respondent No.-1 debited the accounts of the company
and credited the accounts of the said persons by wrongly
transferring the deals of the said company to the accounts of their
conniving clients and also fraudulently entered several shares. A
copy of the business done by Respondent No.-1 to 8 in their Demat
accounts is annexed in the form of Annexure No. 16, 17, 18, 19, 20,
21 and 22 to this complaint letter. Respondent No.-1 has
additionally traded in the account of the company's client Vijay Jain,
whose trading account number is 4287, without his knowledge, due
to which he suffered a loss of Rs.19,55,828.89/-, to compensate the
said loss. Respondent No.-1 stole the shares lying in their Demat
accounts and sold them quietly and made wrong entries in the
account, which the company never let the company know about
during its tenure. Respondent No.-1, being knowledgeable about
financial accounting software, fraudulently entered into the accounts
of the above company clients, himself and Respondent No.-2 to 8
and wrongly transferred credit to the said account and taking
advantage of that credit. As mentioned in Para 10, the clients and
Respondent No.-1 to 8 benefited themselves by doing trading and
deliberately stealing the company's money and utilizing it.

4.

Apart from this, Respondent No.-1 and 2, in mutual connivance,

stealthily stole some shares of the company and first transferred
them to their Demat accounts in the complainant company and
thereafter the shares were transferred to his other Demat account
number-1203460000449003 opened in another company
"Systematic Shares & Stocks India Ltd." and embezzled the money
of the complainant company under a pre-planned conspiracy by
selling the shares that reached the other company. By this way,
Respondent No.-1 has embezzled the amount of Rs.3,55,117.50/- by
conspiracy and cheating by stealing the shares of the company. A
copy of the Statement of Accounts of the shares sent by Respondent
No.-1 to the other company is attached as Annexure No.-23 to this
complaint letter. Respondent No.-1 in connivance with the
mentioned clients mentioned in Para 10 by wrongly entering his
trading code and the trading codes of those clients has cheated the
complainant company of approximately Rs.1,65,74,295.38/-; in
addition to this, Respondent No.-1 stole the shares of the
complainant company mentioned in Para-13, whose value was
Rs.355117.50/- and transferred them to his other account, by selling
the same and has received benefit from the same. Thus, in this
manner, Respondent No.-1 earned profit by selling the shares
despite knowing that they were stolen shares, for which he is liable
to be punished with maximum punishment under the sections of the
Indian Penal Code. A copy of the Statement of Accounts of the
stolen shares in the company by Respondent No.-1 is annexed in the
form of Annexure No.-24 to this complaint. When the Director of
the complainant company spoke to Respondent No.-1 in this regard
and showed the account status of the company, Respondent No.-1
accepted his mistake and started apologizing and assured the
company that he would soon return all the money and make up for
the losses in the accounts and he also promised to return the money
in a written form to assure the company. Photocopy of the written
letter given by Respondent No.-1 to the company is annexed as
Annexure No.-25 to this complaint letter. Due to mutual connivance
of Respondent No.-1 to 8, the complainant company suffered a lot
of financial loss due to operation in the shares but still Respondent
No.-1 has not returned the embezzled money till date despite
knowing this due to which the company has become liable for loss
of debit of accounts. The statement of loss caused to the
complainant company is annexed with this complaint letter in the
form of Annexure No.-26. When Respondent No.-1 did not return
the embezzled money, the complainant company asked to file a
report against him in the police station

5.

after which Respondent No.-1 also stopped coming to the

complainant company from 12.12.2016. Thereafter, whenever the
complainant company demanded back the company's usurped
amount of Rs.1,65,74,295.38 + Rs.3,55,117.50 (mentioned in para
13) along with 18 percent interest from Respondent No.-1, but
Respondent No.-1 kept asking for time by giving false assurance of
payment son on some pretext or the other and slowly about 10
months passed. On 04.11.2017, when the complainant went to the
different house addresses of Respondent No.-1,2 and 4 to 8 and
contacted them, then at the house of Respondent No.-1 and 2, also
met Respondent No.-3. Thereafter, Respondent No.-3 to 7 and
Respondent No.-8's son Dhirendra Singh were met separately at
their houses. There, the Director of the complainant company,
Sanjeev Agrawal, by showing the Statement of Accounts, demanded
his dues of Rs 1,65,74,295.38 + Rs 3,55,117.50 plus 18 percent
interest, then the Respondent No.-1 and 2 again after deliberation
and demanded time. And Respondent No.-3 to 7 and Respondent No
-8’s son Dhirendra Singh, said that whatever you want to talk about,
you should do it with Respondent No.-1. Because we had traded the
shares only on his directions and whatever money we have received
is because of the business of Respondent No.-1, so we are not
responsible for the loss caused to your company. You talk to
Respondent No.-1, if he tells us, then we will return your company's
money. The complainant said that you, the responding parties, in
mutual connivance, had stolen the shares of the company and
transferred them to each other's account and earned profit by doing
business in it, for which you are fully responsible. Therefore, you
become liable for the stolen shares of the company and you are
legally responsible for compensating the loss caused to the
complainant company, so you should return the money that was
stolen by the conspiracy from complainant company. He also
mentioned that the complainant will not be able to come again and
again to ask for money, that's why you give postdated cheque. Then,
Respondent No.-1 to 7 and Respondent No-8’s son Dhirendra Singh
refused with malicious intent to give that also. When the
complainant said that he will not go back without taking the money,
Respondent No.-1 to 7 indulged in indecency with the Director of
the complainant company and the Director of the complainant
company was evicted from the house by using indecent language.
Along with this, he was threatened that

6.
 if the money is asked again in future, then the complainant
and the entire family of the complainant will be killed. After this,
when the complainant started leaving after saying that he would go
to the police station, then Respondent No.-1 to 7 started asking for
forgiveness and asked the complainant to give them a week's time as
they have a bank in Mahanagar, they will withdraw money from it
and give. The complainant believed their words and gave them a
week's time. On 12.11.2017, when the complainant contacted
Respondent No.-1 by phone and demanded the due amount,
Respondent No.-1 said that he would withdraw the money from the
bank on the next day dated- 13.11.2017 and give it. The
complainant asked that how will he meet other people and how will
he get their money, then Respondent No.-1 said that I will meet you
tomorrow with all those people, there will be a discussion and I will
also return their money. On contacting Respondent No.-1 on date-
13.11.2017, he called him to the State Bank of India located in
Mahanagar. When the complainant was going to the spot with his
driver, then a little distance before the bank, where there was some
silence, Respondent No.-1 to 7 were seen with their four
companions. When the Director of the complainant company went
to Respondent No.-1 to 7 and started talking and showed the
Statement of Accounts and demanded the dues, then suddenly
Respondent No.-1 to 7 and the four persons who came with him
indulged in indecency and started threatening the complainant by
abusing profanity and then Respondent No.-1 to 7 told each other to
break his legs and throw him away so that he would lie on the bed
for years and could not dare to ask for money again. After which
Respondent No.-1 to 7 and four other persons started beating the
complainant with the aim of causing serious injury, hearing the
commotion, because the driver and other people came on the spot,
the responding parties ran away threatening him and said that today
you have survived, if you ever asking for money again, you will not
be alive. The Director of the complainant company immediately
reported the incident to Police Station-Mahanagar, Lucknow on
date- 13.11.2017, but due to the influence of the responding parties,
the complaint of the complainant was not registered. Photocopy of
the application dated 13.11.2017 given to the Station House Officer,
Police Station- Mahanagar, Lucknow is annexed as Annexure No.-
27 with this complaint. After this, the complainant company sent a
reminder letter to Respondent No.-1 to 8 for payment through
registered post on date- 09.12.2017 and asked them to return the
money of the complainant company, but Respondent No.-1 to 8
neither paid the money of the complainant company nor replied to
the letter. A copy of the reminder letter sent to Respondent No.-1 to
8

7.

along with the registry receipt is annexed with this complaint letter
in the form of Annexure No.-28, 29, 30, 31, 32, 33 and 34.

The complainant's own statement was recorded under Section

200, Cr.P.C. while witnesses Rajesh Jaiswal and Tauseef Ahmed’s
evidence was recorded in writing under Section- 202 Cr.P.C.
Annexure No. 1 to 35 has been submitted as archival evidence.

Heard and perused the plaint.

 In the opinion of the court and in the light of the complaint
letter, assertation under Section- 200 Cr.P.C., and evidence under
Section- 202, Cr.P.C. and archival evidence, prima facie the
Repondents Dilip Kumar Gupta, Rinki Gupta, Rajkumar Madheshia,
Chandra Kumar Mishra, Manorama Mishra, Divya Singh, Dhirendra
Singh and Kamal Kanti prima facie are found liable under Sections-
406, 417, 420, 467, 468, 471, 120B, 379, 323, 504, 506 I.P.C.
Therefore, the said accused persons are fit to be summoned.

Order

The accused Dilip Kumar Gupta, Rinki Gupta, Rajkumar

Madheshia, Chandra Kumar Mishra, Manorama Mishra, Divya
Singh, Dhirendra Singh and Kamal Kanti were booked under
sections 406, 417, 420, 467, 468, 471, 120B, 379, 323, 504, 506 of
I.P.C. are called for consideration. Let the summons be issued.
Arguments should be finished within a week. Respondents should
be present for appearance on 04.04.18.

Additional Chief Judicial Magistrate – II

Court No – 26, Lucknow

(TRUE TRANSLATED COPY)