Institute of Legal and Management Studies

The Supreme Court today issued notice to several states on a writ petition filed by Sharad Toshniwal, a Chartered Accountant, seeking to consolidate the FIRs in relation to the Falcom Invoice scam worth Rs. 792 crores.

The bench of CJI BR Gavai, Justices K Vinod Chandran and NV Anjaria heard the matter.

Toshniwal has approached the Top Court seeking the consolidation of 12 FIRs and trial at one place. So far, 4 FIRs are registered against him in Telangana, 3 in Maharashtra, 1 in Delhi, 1 in Rajasthan, 1 in Andhra Pradesh and 1 in West Bengal.

The counsel for Toshniwal, AOR Syed Shahid Hussain Rizvi, submitted that all other accused previously arrayed in the related FIRs were granted bail and requested interim protection from coercive action for him as well.

While the bench agreed to issue notice in the matter, it refused to grant interim relief at this time. However, notice was issued on the application seeking interim protection.

The petitioner contends that he resigned from M/s Capital Protection Force Pvt. Ltd, 2 and a half years before the floating of the Falcon Invoice Discounting Scheme. The petitioner also argues that in none of the FIRs has he been named.

As per the ED, Toshniwal was the statutory auditor of M/s Capital Protection Force Pvt. Ltd. since its incorporation. The ED alleges that he was fully aware of the fraudulent transactions carried out in M/s Capital Protection Force Pvt. Ltd in the name of 'Falcon Invoice Discounting Business'.

The matter will now be heard after 4 weeks.

He was earlier arrested by the ED in August and was later granted bail.

Background

The Directorate of Enforcement (ED), Hyderabad Zonal office, had arrested Toshniwal on August 20 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in connection with an ongoing investigation against M/s Capital Protection Force Pvt. Ltd., Amardeep Kumar & others. Sharad Chandra Toshniwal was produced before the Special PMLA Court on 20.08.2025, which remanded him to 14 days' judicial custody. Toshniwal subsequently got bail.

As per the press statement issued by the ED, it is alleged that M/s Capital Protection Force Pvt. Ltd., in the name and style of 'Falcon invoice discounting scheme', lured investors on the pretext of providing funds for invoice discounting in exchange of promising returns based on the invoices discounted, but failed to repay their invested amounts. Amardeep Kumar is the alleged mastermind behind the scam, and he developed the Falcon invoice app in order to receive deposits from the investors.

The accused have allegedly cheated investors to the tune of Rs. 792 Crore approx.

As per the ED, Toshniwal was the statutory auditor of M/s Capital Protection Force Pvt. Ltd. since its incorporation. The ED alleges that he was fully aware of the fraudulent transactions carried out in M/s Capital Protection Force Pvt. Ltd in the name of 'Falcon Invoice Discounting Business'.

It is alleged that Toshniwal assisted Amardeep Kumar in investing the Proceeds of Crime (POC) generated from the invoice discounting business into several companies viz. Rhett Healthcare Pvt. Ltd., Rhett Herbal Pvt. Ltd., RDP Workstations Pvt. Ltd. and Swastik Ghee Pvt. Ltd. For his services in laundering the POC, Sharad Chandra Toshniwal allegedly himself acquired shares in the said companies in the names of his relatives & benamis.

As per the ED, Toshniwal was also involved in arranging cash in lieu of tthe ransfer of POC to different entities without any business purpose. He was directly responsible for arranging cash to the tune of Rs. 14.81 Crore in lieu of the transfer of POC.

Case Details: SHARAD CHANDRA TOSHNIWAL Versus THE STATE OF TELENGANA AND ORS.| W.P.(Crl.) No. 423/2025