The Gujarat High Court has directed that multiple FIRs registered across different police stations in the State in connection with alleged fraud linked to the Aadarsh Group of companies be clubbed together and investigated as part of a single case, holding that the offences prima facie arise from the same set of transactions and allegations.
The bench of Justice M. R. Mengdey while partly allowing a petition filed under Article 226 of the Constitution of India and Section 528 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023, seeking consolidation of three FIRs registered in 2019 in Gujarat.
The petitioners/assessees are facing prosecution in three separate FIRs registered for offences punishable under Sections 420 (cheating), 406 (criminal breach of trust) and 120B (criminal conspiracy) of the Indian Penal Code, along with Section 3 of the Gujarat Protection of Interest of Depositors (in Financial Establishments) Act, 2003.
The FIRs include FIR No. I/43/2019 dated May 30, 2019 at B Division Police Station, Himmatnagar; FIR No. I/154/2019 dated September 13, 2019 at B Division Police Station, Junagadh; and FIR No. I/8/2019 dated August 20, 2019 at CID Crime Police Station, Gandhinagar.
According to the petitioners, all three FIRs emanate from identical transactions relating to alleged financial irregularities involving the same group of entities and accused persons. They argued that continuation of parallel investigations and trials would lead to duplication of proceedings, conflicting findings, and serious prejudice.
Earlier Proceedings Before the Supreme Court
The petitioners had earlier approached the Supreme Court seeking consolidation of similar FIRs registered across multiple States. While the Supreme Court was not inclined to grant nationwide consolidation, it granted liberty to the petitioners to approach the respective High Courts for consolidation of FIRs within each State.
Significantly, during those proceedings, the State of Gujarat filed an affidavit indicating that it may be possible to club FIRs within the State and try them together, rather than transferring trials to another State, in line with principles laid down in Radhe Shyam & Others v. State of Haryana & Others (2022 SCC OnLine SC 1935).
Submissions Before the High Court
Counsel for the petitioners clarified that they were not pressing, at this stage, any prayer for quashing of the FIRs. Instead, they confined their request to consolidation and a common trial, stressing that the allegations stem from the same alleged fraudulent scheme and involve the same accused.
The State opposed the plea, contending that its affidavit before the Supreme Court could not be treated as a binding concession and that the three FIRs were based on distinct facts, making a common trial inadvisable.
Court’s Analysis
The High Court noted that on June 20, 2018, the Union Ministry of Corporate Affairs had directed the Serious Fraud Investigation Office (SFIO) to investigate the Aadarsh Group of companies under Section 212(1)(c) of the Companies Act, 2013. Subsequent to the SFIO probe, numerous FIRs were registered across different States.
The Court recorded that as many as 197 FIRs were registered in Rajasthan, while three FIRs were registered in Gujarat and nine in Madhya Pradesh, all arising out of the same investigation and broadly similar allegations.
Taking note of this factual matrix and the stand earlier taken by the State before the Supreme Court, the Court held that the offences in question appear to arise from the same transactions and involve common accused, justifying consolidation.
Operative Directions
Allowing the petition in part, the High Court ordered that the FIRs registered at Himmatnagar B Division Police Station and Junagadh B Division Police Station shall be clubbed with FIR No. I/8/2019 dated August 20, 2019 registered with CID Crime Police Station, Gandhinagar. The consolidated case will proceed on the basis of the CID Crime FIR as the principal case.
The Court did not grant any relief with respect to quashing of FIRs or staying trials beyond the consolidation direction.
Case Details
Case Title: Rahul Virendra Modi & Ors. Versus State Of Gujarat & Ors.
Case No.: R/Special Criminal Application (Direction) No. 8233 Of 2025
Date: 09/02/2026
Counsel For Petitioner: Bhadrish S. Raju
Counsel For Respondent: Rohan Shah, APP
