Telangana High Court grants anticipatory bail to Chartered Accountant accused in alleged fraudulent share transfer

Facts of the Case

The complainant, Managing Director of M/s Vannsh Life Sciences Pvt. Ltd, said that 19% of his and his wife’s shares were fraudulently transferred without consent. The accused included the company’s Finance Officer, Auditor, and others. Documents were found to be falsified and signed by a Company Secretary who wasn’t appointed at the relevant time, and it’s suggesting collusion.

The petitioner, a Chartered Accountant, was accused of being involved in the fraudulent alteration of shares.

Issue of the Case

Was the petitioner directly involved in the fraudulent transfer of shares and was custodial interrogation/arrest necessary?

Decision of the Court

The Court Held that the petitioner was only an Auditor and not responsible for day-to-day financial or administrative affairs. Relying on precedent, the Court observed that custodial interrogation of a Chartered Accountant is not required in such circumstances.

Anticipatory bail was granted with the following conditions:

• Petitioner must surrender before the police within two weeks, Also Execute a bond of ₹25,000 with two sureties.
• Petitioner must Appear before the SHO every Monday for eight weeks or until the charge sheet is filed.
• Petitioner must Cooperate with the investigation and follow Section 482(2) BNSS conditions.