My client is in the business of running a company which sells one insurance policy to its customers (the market value of which is Rs. 650/-) for Rs. 4,000/- at the time of membership. If you bring more members then a fixed commission is given to the customer. Recently the concerned SHO, on his own accord as first informant, registered a case against the directors of the company for offences under section 420 and Secions 4, 5 & 6 of Prize Chits and Money Circulation Schemes (Banning) Act, 1978. My client is the director of the company and is a woman with two children of ages 4 & 7. She resigned from the post in he month of september and the case was registered in December. My question is can the SHO register an FIR in this manner? as no wrongful loss has been caused to him which is a must for offence u/s 420 and so far no customer has come forward caiming he's been cheated. What are the chances of bail for his lady? how is this case different from other multi level marketing companies like amway etc.? if anyone can give me a case law in favour of accused hen i would bve highy obliged.
