Rajasthan High Court Denies Bail In Rs 2.67 Crore Franchise Fraud, Cites Pattern Of Misconduct

The Rajasthan High Court denied bail to the director of Taskar Global Pvt Ltd, accused of inducing people to invest large sums in a franchise business by falsely promising high returns and a profitable business model.

Justice Praveer Bhatnagar was hearing bail applications filed by the accused in connection with two FIRs registered over allegations that he, along with others, persuaded complainants to invest money by promising franchise rights in a healthcare business.

The prosecution argued that economic offences of this nature must be approached differently at the bail stage, given their wider impact on society's financial health and public confidence.

Appearing for the petitioner, defence counsel maintained that the dispute stemmed from a commercial franchise agreement between the complainants and the company, making it civil in nature rather than criminal. The petitioner also described the case as a failed business venture, an entrepreneurial risk that by itself should not invite criminal prosecution.

The defence further submitted that the chargesheet had already been filed, leaving no need for further custodial interrogation. Since the offences were triable by a magistrate, keeping the accused in custody for a prolonged period would infringe his right to personal liberty.

The Court, however, noted that witness statements pointed to the petitioner, in his capacity as director, actively persuading victims to part with substantial sums under the franchise scheme.

It also took into account multiple FIRs lodged against him across different jurisdictions involving around Rs 2.67 crore, observing that they reflected a continuous pattern of misconduct rather than an isolated incident.

“The case involves a serious scheme of economic fraud affecting many victims. Given the scale, previous FIRs, and the nature of the allegations, bail is denied.”, the court observed.

Accordingly, the bail applications were rejected.

For Petitioners: Advocate Anshuman Saxena; Advocate Jitendra Bakhar; Advocate Akshaya Verma; Advocate Amit Choudhary

For Respondents: Public Prosecutor Vivek Choudhary; Advocate Sahaj Veer Baweja; Advocate Kanak Sharma