Yogesh Makkar vs The State (Govt. Nct Of Delhi)

Headnote AI-drafted · Reviewed and approved

The petitioner Yogesh Makkar, Head of Demat/Depository Service Department of M/s. Modex International Securities Ltd. (MISL), filed a bail application under Section 439 read with Section 482 Cr.P.C. seeking regular bail in FIR No. 195/2020 registered at PS: Economic Offences Wing under Sections 409/420/120B IPC. The FIR was registered on a complaint alleging that MISL and its officials, including the applicant, induced complainants to open Demat/trading accounts with MISL, transferred their shares and securities to MISL's pool/margin accounts, traded without authorisation, and misappropriated the proceeds, causing wrongful loss to the complainants.

During investigation, 50 additional complainants filed similar complaints which were clubbed in the present FIR. Forensic audit by KPMG and inspection by NSE revealed misappropriation of funds to the tune of approximately Rs.136.29 crores. MISL had received net cash settlements of Rs.126.31 crores from exchanges against sale and purchase of clients' securities but failed to transfer the proceeds to its clients. The applicant was alleged to be one of the key officials who approached and induced complainants to open accounts and was instrumental in the fraudulent scheme.

The Delhi High Court considered the bail application of the petitioner in the context of the serious financial fraud involving multiple complainants and large-scale misappropriation of client securities and funds by MISL and its officials.

Catchwords: bail application · economic offences · criminal breach of trust · cheating · criminal conspiracy · Demat accounts · share misappropriation · securities fraud · broker fraud · forensic audit · MISL · pool accounts · margin accounts

Quashing of FIR (Section 482 CrPC / 528 BNSS)