The Supreme Court on Friday issued notices to several state governments on a writ petition filed by Chartered Accountant Sharad Chandra Toshniwal, who has sought the consolidation of multiple FIRs registered against him in connection with the alleged Rs. 792 crore Falcon Invoice Discounting Scam.
A Bench comprising Chief Justice of India B.R. Gavai, and Justices K. Vinod Chandran and N.V. Anjaria heard the plea, which seeks to merge and transfer the investigation and trial to a single jurisdiction to avoid multiplicity of proceedings.
In his petition, Toshniwal sought the clubbing of 12 FIRs lodged in different states—four in Telangana, three in Maharashtra, one each in Delhi, Rajasthan, Andhra Pradesh, and West Bengal—all related to the same alleged fraudulent scheme.
The petition contends that multiple FIRs on identical facts violate the principle against double jeopardy and lead to unnecessary harassment. Toshniwal has requested that all these cases be consolidated and tried at one place for convenience and judicial efficiency.
Appearing on behalf of the petitioner, Advocate-on-Record Syed Shahid Hussain Rizvi submitted that other accused persons in similar FIRs have already been granted bail and sought interim protection for Toshniwal from coercive action.
While the Supreme Court agreed to issue notice to the respondent states, it declined to grant interim relief at this stage. However, it did issue notice on Toshniwal’s application seeking temporary protection from arrest or coercive measures.
The matter has been listed for hearing after four weeks.
Toshniwal has asserted that he had resigned from M/s Capital Protection Force Pvt. Ltd. nearly two and a half years before the alleged fraudulent “Falcon Invoice Discounting Scheme” was launched. He further contends that he has not been named in any of the FIRs directly and is being wrongly implicated.
The Enforcement Directorate (ED), however, maintains that Toshniwal served as the statutory auditor of M/s Capital Protection Force Pvt. Ltd. since its incorporation and had full knowledge of the company’s fraudulent financial activities.
The Directorate of Enforcement, Hyderabad Zonal Office, arrested Toshniwal on August 20, 2025, under the Prevention of Money Laundering Act (PMLA), 2002, in connection with the investigation into M/s Capital Protection Force Pvt. Ltd., its promoter Amardeep Kumar, and others.
According to the ED, the company, under the brand name “Falcon Invoice Discounting Scheme,” collected large sums of money from investors by promising high returns based on invoice discounting operations. However, the entity allegedly defaulted on repayments, resulting in investor losses estimated at around ₹792 crore.
The ED alleges that Amardeep Kumar was the mastermind behind the fraudulent operation and that Toshniwal, in his capacity as statutory auditor, was aware of the company’s deceptive practices. The agency also claims that Toshniwal assisted in laundering proceeds of crime (POC) through several entities, including Rhett Healthcare Pvt. Ltd., Rhett Herbal Pvt. Ltd., RDP Workstations Pvt. Ltd., and Swastik Ghee Pvt. Ltd.
The ED’s press release further states that Toshniwal acquired shares in some of these companies in the names of relatives and benami holders as part of the laundering process. It is also alleged that he arranged cash equivalent to ₹14.81 crore against the transfer of proceeds of crime to various entities without legitimate business transactions.
Following his arrest, Toshniwal was produced before the Special PMLA Court, Hyderabad, which remanded him to 14 days’ judicial custody. He was subsequently granted bail. The ongoing probe continues to examine the extent of his alleged role in facilitating fund movements and concealing illicit gains.
Case Details
Case Title: Sharad Chandra Toshniwal Versus The State Of Telengana & Ors.
Case No.: Writ Petition(s)(Criminal) No(s). 423/2025
Date: 31/10/2025
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