Bangalore District Court
Cbi vs Swamy H M on 21 November, 2024
KABC010216942010
IN THE COURT OF THE XXXII ADDL. CITY CIVIL
& SESSIONS JUDGE AND SPL. JUDGE FOR CBI &
ED CASES AT BENGALURU (CCH-34)
Dated this the 21st Day of November 2024
-: PRESENT :-
Sri.H.A.Mohan, B.A.L., LL.B.
XXXII Addl. City Civil & Sessions Judge
and Spl. Judge for CBI & ED Cases, Bengaluru
Spl.C.C.No.315/2010
COMPLAINANT : State by Inspector of Police,
CBI / BS & FC, Bengaluru
(By Public Prosecutor)
-vs-
ACCUSED : 1. H.M.Swamy
S/o Krishnamurthy
Date of Birth:24.09.1952
R/at No.29,
Harikrishnan Layout
Ramamurthy Nagar
Bengaluru-560 016
2. Sri.Asadulla Khan,
S/o Rahmathulla Khan
2
Spl.C.C.315/2010
Date of Birth:4.12.1966
R/at No.132/2481, 5th Cross
Gandhinagar, Dist. Mandya
3. P.K.Vittal Das
S/o Krishna Pillai
Date of Birth:14.02.1954
R/at No.834-A, 4th Main
25th Cross,Vidyaranyapuram
Mysore-570 008.
4. Ayub Pasha
S/o Khaleel Ahamed
R/at 3rd Cross, Sankar Nagar
Mandya District.
(Abated since dead)
5. Salim Pasha
S/o Khaleel Ahamed
Date of Birth:20.07.1979
R/at 3rd Cross, Sankar Nagar
Mandya District.
6. Najamodeen
S/o Fakruddin
Date of Birth:20.04.1944
R/at 3rd Cross, Sankar Nagar
Mandya District.
7. Smt.Ayesha Najam
D/o Najamoddeen
R/at No.132/2481, 5th Cross,
Gandhinagar, Mandya Dist.
3
Spl.C.C.315/2010
8. Smt.Naseemunnissa
W/o Sardar Pasha,
R/at 6th Cross, Gandhinagar
Mandya District.
9. Smt.Nasreen Taj
W/o Najamoddeen,
Date of Birth:26.07.1980
Beside Mahaveer Provision
Store, 3rd Cross, 2nd Stage
KHB Colony, Mandya District.
(SPLIT UP)
(Sri.R.V.,Adv., for A.1,
Sri.R.N.N., Adv. for A3,
Sri.K.S.J.,Adv., for A2, 5 to 8)
Date of commission of For the period from 2006-
the offence/s : 2008
Date & time of Report of 15.04.2009
the offence/s:
Offences charged : U/s.120B r/w Sec.420 of
IPC and Sec.13(2) r/w
13(1)(d) of P.C.Act, 1988
Name of the Sri.M.R.Bagade,
Complainant : Chief Vigilance Officer,
Syndicate Bank, Corporate
office, Bengaluru
4
Spl.C.C.315/2010
Date of commencement 07.07.2022
of the evidence:
Evidence of accused 30.09.2024
closed on:
Evidence of prosecution 06.08.2024
closed on:
Statement of accused u/ 18.9.2024 - 4.10.2024
S 313 of Cr.P.C.:
Final Verdict: Accused No.1 & 3 are
convicted for the offence
punishable u/s.120B r/w
Sec.420 of IPC and
Sec.13(2) R/W Sec.13(1)
&(d) of PC Act.
Accused No.2 is
convicted for the offence
punishable u/s.120B r/w
Sec.420 of IPC.
Accused No.5 to 8 are
acquitted of the offence
punishable u/s.120B r/w
Sec.420 of IPC.
Digitally signed
by MOHAN
MOHAN Date: 2024.11.21
15:40:15 +0530
(H.A.Mohan)
XXXII Addl.C.C. & S.J. and
Special Judge for CBI & ED Cases,
Bengaluru.
5
Spl.C.C.315/2010
JUDGMENT
This case emanates from the charge sheet filed by the Inspector of CBI/BS & FC, Bengaluru, in RC.4(E)/2009-BLR, against the accused No.1 to 9 for the offences punishable under Sections 120B r/w Sec.420 of IPC and Sec.13(2) r/w 13(1)(d) of Prevention of Corruption Act, 1988.
2. The gist of the allegations made in the charge sheet is that, accused No.1-H.M.Swamy while working as bank manager of Syndicate Bank, Mandya Branch, Mandya District, had criminal conspiracy with accused No.2-Asadulla Khan, Ex- President of Mandya Urban Development Authority and in furtherence of their conspiracy, accused No.1 & 3 have extended temporary over draft facilities in 6 Spl.C.C.315/2010 favour of accused No.2, 6 and others in excess of their delegated powers. In order to have wrongful gain and to cheat the bank, accused No.2, in collusion with accused No.1, had opened Savings Bank Accounts in the names of accused No.5 to 9 who are his close relatives and also obtained GPA from one Md. Imam Surq and Smt. Naseem Aftab Begum and on that basis got sanctioned 23 agricultural loans under various schemes totaling Rs.563 lakhs that too against the legal opinion given by the Advocate Sri.A.Sunil Kumar.
3. It is further alleged that, several loans were sanctioned in favour of accused No.2 and his relatives even though they were not eligible to get agricultural and other loans. Accused No.2 with an intention to do real estate business, got sanctioned 7 Spl.C.C.315/2010 the temporary over drafts from accused No.1 & 3 and also got sanctioned agricultural loans, but did not repay the same. Accused No.2 has offered fabricated documents as collateral security to the said loans, but did not utilise the loan amounts for the purpose for which they were obtained. Accused No.1 being the public servant and responsible bank manager, in violation of the banking guidelines, had sanctioned several lakhs of rupees in favour of accused No.2 that too without obtaining prior permission from the Regional Office, Mysore and in some cases not informed to the regional office.
4. It is further alleged that even collateral securities obtained from accused No.2 and others, were not sufficient to meet the loan borrowed by accused No.2. They have adopted illegal methods to 8 Spl.C.C.315/2010 borrow the loans and to defraud the bank. Accused No.2 had no bonafides to obtain several loans. He had malafide intention and accordingly, colluded with accused No.1 and by having criminal conspiracy, obtained several loans. But accused No.2 & others have failed to repay the loans and thereby caused loss to an extent of Rs.1054 lakhs to the bank and thereby committed the offences alleged.
5. After receipt of the charge sheet, my learned predecessor in office has taken cognizance of the offences and ordered to issue summons to the accused No.1 to 9.
6. In response to the summons issued, accused No.1 to 8 appeared along with their 9 Spl.C.C.315/2010 advocates and they were released on bail. Subsequently, accused No.4 reported to be dead. Separate case has been registered against accused No.9, since she has not been traced.
7. After having served charge sheet documents to the accused No.1 to 3, 5 to 8 as per Sec.207 Cr.PC., charge were framed for the offences punishable u/s.120B r/w Sec.420 of IPC and Sec.13(1)(d) r/w Sec.13(2) of P.C.Act. Accused No.1 to 3, 5 to 8 pleaded not guilty and claimed to be tried.
8. In order to prove the guilt of the accused persons, the prosecution has examined Cws.1, 2,19,21, 4, 5, 10, 6, 11, 7, 8, 3, 24, 22, 25, 31, 32, 33, 35, 36, 18,13, 16, 26, 27, 39 as PWs.1 to 23, 26 10 Spl.C.C.315/2010 to 28 respectively and two additional witnesses as PW24 & 25 and got marked Ex.P.1 to P.306. During the course of cross-examination, the Accused got marked Ex.D.1 to D.10.
9. Thereafter, statement as contemplated under Section 313 Cr.P.C. has been recorded by putting the incriminating evidence available against each of the accused No.1 to 3, 5 to 8 who are facing the trial. They have given answers and that have been typed in the respective columns.
10. Accused have not chosen to adduce oral evidence.
11. Heard the arguments of learned Public Prosecutor and Sri.R.Vidhyasagar learned counsel 11 Spl.C.C.315/2010 for Accused No.1, Sri.P.R.S., learned counsels for accused No.2, 5 to 8 and Smt.B.V., Advocate for accused No.3.
12. The following points that would arise for my consideration are:
1. Whether the prosecution proves beyond all reasonable doubt that during the year 2006-08, while accused No.1 working as Branch Manager and accused No.3 working as a staff of the then Syndicate Bank, Mandya Branch, being public servants had a criminal conspiracy with accused No.2, 4 to 9 by agreeing to sanction and disburse of various unsecured loans in their favour by illegal means and with an intention to cheat the bank and further in furtherence of their criminal conspiracy accused No.1 & 3 with dishonest intention and in a fraudulent manner allowed accused No.2, 4, 6, 8 & 9 to utilise the loan schemes under 12 Spl.C.C.315/2010 Synd Jai Kissan and other forms of loans without taking detailed approval, project report and other required documents and accordingly made them to utilise the funds of Rs.15 Lakhs in an illegal manner and caused loss to the bank in a sum of Rs.1054 lakhs since, accused No.2, 4 to 9 did not repay the loan amounts and thereby committed the offences punishable u/s.120B r/w Sec.420 IPC ?
2. Whether the prosecution proves beyond all reasonable doubt that accused No.1 and 3 being public servants, while discharging their public duties during the said period, by misusing their official power, helped accused No.2, 4 to 9 in an illegal manner with regard to various credit facilities including agricultural loans for their undue advantage and thereby abused their official position for corrupt and illegal means and caused loss to the bank and thereby committed the offences punishable u/s.120B of IPC r/w 13 Spl.C.C.315/2010 Sec.13(2) r/w Sec.13(1)(d) of Prevention of Corruption Act?
3. What order?
13. My findings on the above points are as under:
Point No.1 : In the affirmative in respect of A 1 to 3 and Negative in respect of A.5 to 8.
Point No.2 : Affirmative Point No.3 : 'As per final order' for the following:
REASONS
14. POINT NO.1 & 2: Since there two points are inter linked with each other, they are taken up together for consideration, to avoid repetition of facts.
14
Spl.C.C.315/2010
15. The learned Public Prosecutor Sri.Balaji Francis by taking through the observations made by PW2 - S.Madan in his detailed enquiry report, marked as Ex.P73 and with the evidence of other witnesses, has argued that the facts pleaded by the prosecution have not been specifically disputed by accused No.1 to 3, 4 to 8 who are facing the trial. On the other hand, they themselves have admitted that the alleged acts are only irregularities and not illegalities, therefore, it is clear that the prosecution has able to prove the illegal acts on the part of accused No.1 to 3, in collusion with accused No.2, 5 to 8 particularly with accused No.2 who is master minded person to prevail over accused No.1 to sanction various credit facilities in violation of banking regulations. The observations made by PW2 15 Spl.C.C.315/2010 in Ex.P73 are sufficient to conclude that there was a malafide intention on the part of these accused persons to sanction various loans, even though accused no.5 to 8 were not agriculturists and they were not cultivating the lands and growing any crops in the lands. Admittedly, several loans have not been cleared by accused persons.
16. It is further argued that the report is very clear that during evening hours, ie., after 4.50pm., several cash payments were made in favour of accused No.2, even though sufficient balance was not available in his and his family member's accounts. More cash was made available in the double lock system which was suppose to be deposited in near by bank. Accused No.1 being the branch head and who was required to take proper 16 Spl.C.C.315/2010 steps to monitor financial transactions, but several credit facilities were extended in favour of accused No.2 and his family members, even before sanctioning of various loans that too, without taking prior approval from the regional office, at Mysore, which is against to the banking guidelines. The report clearly pointed out that these loan facilities were availed by accused No.2 by using his influence as Ex.Chairman of Mandya Urban Development Authority and prevailed over accused No.1, by having criminal conspiracy for doing Real Estate Business and not with an intention to do agricultural activities and to do other business. Of course, some of the loans were utilised for construction of houses and other purposes, but admittedly 23 loans were extended in favour of accused No.2 and his family 17 Spl.C.C.315/2010 members that too, without taking prior approval from the regional office. Therefore, it is not a mere irregularities, but it was with a malafide intention to cheat the bank, such loan facilities were extended in favour of accused No.2 and his family members. Accordingly prayed to punish the accused persons.
17. On the other hand, Sri.R.Vidya Sagar, learned counsel for accused No.1 has argued that even as per the admissions made by PW2 who has conducted internal investigation and submitted the report as per Ex.P73, the alleged acts cannot be considered as illegalities and they are only irregularities and curable. The alleged irregularities cannot be considered as misconduct and more over all the credit facilities were well within the knowledge of the regional office. PW2 has not 18 Spl.C.C.315/2010 considered important documents. Evidence of PW23 Sri.Varuna indicates that machineries were available at the spot and loan amounts were utilised for the purpose for which they were obtained.
18. It is further argued that evidence of PW3 to 5 clearly establishes that regional office had information about these loan facilities. Evidence of PW8 establishes about the end use of the funds. Evidence of PW9 is relating to legal opinion and that is not in dispute. Evidence of PW7 reveals about the report. Evidence of PW13 supports with regard to valuation report. Evidence of PW14, 15, 17, 18 and 22 to 28 clearly supports the defence. Therefore, absolutely even as per case of the prosecution, there was no illegalities committed by accused No.1. In order to establish that it is a misconduct 19 Spl.C.C.315/2010 within the meaning of Sec.13 of PC Act, the prosecution has failed to place legally acceptable evidence. Admittedly all the loans were secured and therefore, there was no intention on the part of either accused No.1 or borrowers to cheat the bank. Under some unforeseen circumstances, accused No.2 could not repay some loans. Even now a fixed deposit of Rs.5 crores kept by the brother of accused No.2 is with the bank. Therefore, there is no question of defrauding the bank. Accordingly, prayed to reject the case of the prosecution.
19. On the other hand, learned counsel for the accused No.3, Smt.B.V., has argued that accused No.3 was not a scrutining authority or sanctioning authority. He had not processed any loan. He was a manager and acted as per instructions of accused 20 Spl.C.C.315/2010 No.1, who was a branch head. Therefore, accused No.3 has not committed any illegalities as alleged by the prosecution.
20. The learned counsel Sri.PRS., for accused No.2, 5 to 8 has argued by taking this court to the evidence of PW14, 2, 10 & 12 and Ex.P73, 245 and PW4, 8 & 6. It is argued that even now FD of Rs.1 crore is available with the bank. As per the evidence of PW2 and other important witnesses, Accused No.2 had been a very good customer of the bank and he had no malafide intention. As per evidence available several loans were utilised for the purpose for which they were taken. Just because some loan amounts have not been repaid by accused No.2 and his family members, case of the prosecution that there was malafide intention, while taking several 21 Spl.C.C.315/2010 loans and that was with an intention to cheat the bank, cannot be accepted. Prosecution has failed to place sufficient and acceptable documents to prove the factum of malafide and illegalities.
21. It is further argued that as per the evidence of PW4 and others, it was well within the knowledge of the regional office at Mysore with regard to the sanctioning of several loans by accused No.1 in favour of accused No.2 and others and the regional office admittedly did not take any serious action against accused No.1. The evidence of prosecution would show that the alleged acts are only irregularities and curable and therefore they cannot be construed as illegalities with malafide intention. Admittedly, all the loans are secured and matter is pending before DRT, for recovery of the 22 Spl.C.C.315/2010 arrears. When such being the case, registering a criminal case under various provision of law alleging that accused have committed fraud with an intention to cheat the bank is absolutely not acceptable.
22. Relying upon the judgment of Hon'ble High Court of Karnataka rendered in Criminal Appeal No.780/2007 clubbed with Crl.Appeal. No.141/2012 (between CV.Krishnamurthy Vs. State) dtd.14.11.2018, it is argued that the facts, in the said case are similar to the facts in the case on hand. In that judgment also Hon'ble High Court of Karnataka has observed that some times banks can show discretion in favour of good customers to help them for doing their business and their work and that cannot be construed as illegalities. The alleged 23 Spl.C.C.315/2010 irregularities cannot be considered as an offence, unless it is proved that there was malafide intention.
23. The learned counsel has also cited various decision as under:
1. 2024 SCC Online 2248 - Delhi Race Club Ltd & others Vs. State of Uttar Pradesh & another.
2. 2024 SCC Online SC 58 -Mariam Fasihuddin & another Vs. State by Adugodi PS & another
3. (2019) 9 SCC 148 - Sathish chandra Ratanlal Shah Vs. State of Gujarat & another.
4. (2020) 7 SCC 1 - Arjun Panditrao Khotkar Vs. Kailash Kushanrao Gorantyal & another.
5. AIR 1957 SC 614 - Vadivelu Devar VS.
State of Madras 24 Spl.C.C.315/2010
6. (2009) 8 SCC 1 - Sudhir Shantilal Mehta Vs. CBI.
24. In the light of the said arguments and the materials placed by the prosecution and the accused persons, let me examine the facts and the evidence.
25. There is no dispute with regard to sanctioning of 23 loans in favour of accused No.2, deceased accused No.4 and 9 and present accused No.5 to 8 for agricultural and other purposes. There is no dispute that all the loans are secured. It is also not in dispute that some of the loans have not been cleared by accused No.2, 5 to 8 and in that regard matter is pending before the DRT. The fact of irregularities while sanctioning and disbursing 25 Spl.C.C.315/2010 several loans by accused No.1 & 3 in favour of accused No.2, 5 to 8 and others also has not been disputed by accused during the course of arguments.
26. Now the point for consideration is, whether there was any malafide intention on the part of accused no.2 to get several loans in his name and in the name of his family members and there were serious irregularities committed by accused No.1 & 3 while sanctioning and releasing of several loans and whether all the loans were utilised for the purpose for which they were sanctioned.
27. The case of the prosecution is that, accused No.2 is a former Chairman of Mandya Urban Development Authority and a politician and a 26 Spl.C.C.315/2010 powerful person and by taking undue advantage of that situation, he prevailed over accused No.1 and got sanctioned 23 loans in the name of agricultural and other small industries including for construction of residential houses and the loan amounts were utilised for doing real estate business, thereafter he sustained loss in that business. Hence the loan accounts were became NPA. So, according to the prosecution, there were no bonafides to get so many loans and it was with an intention to do real estate business and banks are not meant for encouraging such type of people.
28. As soon as regional office came to know about some irregularities taken place at Mandya branch, PW4 visited the branch and conducted some enquiry and other officers also visited the 27 Spl.C.C.315/2010 branch and conducted some enquiries. In fact, Sri.K.L.N Joshi who was working as regional officer at Mysore and given evidence as PW10, has deposed that on 5.8.2008, he visited Mandya branch, participated in Lok Adalath and Insurance Mela and seen accused No.2 and advised accused No.1 to set right the irregularities. He also stated that on that day he found there was excess cash balance in a sum of Rs.3.26 crores approximately and on that day six cheques amounting to Rs.2.56 crores was debited to SB account which were held in Double Lock for which cash was already paid and cash balance came down to Rs.55 Lakhs. He has also deposed about non-taking of prior approval from Regional Office with regard to sanctioning of several loans and also rejecting the loan proposal 28 Spl.C.C.315/2010 pertaining to M/s. Farah Industries. He has also deposed about discussion held with accused No.2.
29. Prosecution has mainly relying upon the evidence of PW2 one Sri.Madan and his report marked as Ex.P73. He has highlighted as to various irregularities committed by accused No.1 & 3 and also one Nalini Rao and one deceased Manager. The main serious irregularities noticed by him which are as under:
61. In my said report I pointed out the following important irregularities:
1) Sri.H.M.Swamy has indiscriminately allowed TOD much beyond delegated powers in the SB accounts of Mr.Asadullah Khan and his relatives and besides unduely accommodating 29 Spl.C.C.315/2010 Sri.Asadullah Khan also exposed bank's huge funds to the tune of Rs.216.59 Lakhs plus interest from 01.10.2008 thereon to a risk of financial loss.
2) Sri.Swamy failed to report certain TOD's allowed in the AR 3013 Statements.
3) Sri.H.M.Swamy failed to obtain and place on record the approval from regional office by sending annexure -2D.
4) In respect of CA307/735 of Sri.Ashokananda M.R., Sri.Swamy
allowed TOD of Rs.3 lakh which is beyond his delegated powers in spite of un satisfactory answers in the accounts.
5) In respect of SB account 218/1510 of Sri.Nanjegowda and SB account 218/3493 of Sri.Shivanna J., Sri.Swamy allowed TOD beyond delegated powers their DL accounts were irregular.30
Spl.C.C.315/2010
6) Sri.H.M.Swamy fraudulently accommodated Mr.Asadullah Khan by paying huge amount of cash against cheques drawn without balance in the accounts on various dates by keeping un debited cheques in the double lock in lieu of actual cash. In the process Sri.Swamy caused loss of revenue to the Bank by way of interest on funds parted with and by showing huge cash balances.
7) Sri.Swamy in collusion with Sri.Asadullah Khan, sanctioned and released accommodative agricultural loans or huge amounts to the tune of Rs.556.60 lakhs under Synd Jai Kisan and FL (Development)in the name of Sri.Asadullah Khan and his relatives who are not basically agriculturalists, beyond his delegated powers, very well knowing 31 Spl.C.C.315/2010 fact the funds are utilized by Sri.Asadullah Khan himself for real estate business. Thus, Sri.Swamy abused his official position unduly accommodated Sri.Asadullah Khan at the cost of the Bank. In the process Sri.Swamy floated all the guidelines applicable to agricultural loans and committed certain irregularities as mentioned below:-
a)Proper process notes are not prepared and take note of sanction/review of sanction by Regional office not placed on record by sending photocopies of the process notes.
b)In respect of the loans sanctioned to Sri.Mohammed Imam Surq and Smt. Naseem Afthab, Sri.Swamy failed to comply with the suggestion of the panel advocate in respect of GPA thereby facilitated Sri.Asadullah Khan to 32 Spl.C.C.315/2010 fraudulently avail loans to the tune of Rs.163.60 Lakhs in the name of the said parties without their knowledge by misusing the GPA and concealing the agreement for sale document executed by the parties in his favour.
c)Failed to ensure that the parties are cultivating the lands and ascertain repaying capacity by calling for income certificates from the concerned authorities.
d)Sanctioned the loans without getting the valuation of the properties.
e)Sanctioned the loans without ascertaining technical feasibility and economic viability of the proposals by calling for the details of nature of developmental work to be undertaken, plan and estimates of expenditure etc.,
f)Prior permission in respect of Synd Jai Kisan loans of Rs.5 lakhs and above 33 Spl.C.C.315/2010 sanctioned to Mrs.Naseem Agthab , Mr.Mohammed Imam Surq, Mr.Saleem Pasha and Mrs.Nasreen Taj who having track record of lessthan 2 years as stipulated in the scheme vide HO circular No.48/2007/BC dt:19-02-2007.
g) In respect of loan sanctioned to Nijammuddin, Mrs.Nasreen Taj and Mr.Ayub Pasha the loans were sanctioned and released without obtaining the legal opinion.
h) In respect of FLGEN 4/2008 of Mr.Nijamuddin for Rs.43 lakhs the loan application and loan documents have not been apparently signed by the party indicating that the loan has been released without obtaining documentation and to cover up the mistake Sri.Swamy got the same signed by somebody.34
Spl.C.C.315/2010
i) In respect of Mr.Nijamuddin and Mr.Ayub Pasha as on the date of sanction of Agricultural loans their earlier loans were irregular and slipped to NPA.
j) In respect of FLGEN 13/08 of Mr.Saleem Pasha and FLGEN 09/2008 of Mr.Ayub Pasha the loans were released on 23.08.2008, but the loan documents are dt:24.08.2008 (Sunday) and the loan was arranged on 29.08.2008 and those variations in the dates may prove difficult in the court of law in the question of cause of action comes.
k) In respect of Mr.Mohammed Imam Surq and Mrs.Naseem Afthab fresh loans under SJK Scheme were sanctioned during the pendency of earlier loans financed under this scheme.
l) In respect of Tractor loan FLGEN 110/2007 of Mr.Mohammed Imam Surq 35 Spl.C.C.315/2010 the Tractor has not been registered in the name of the borrower and bank's charge got noted.
8) On 08-07-2008 Sri.Swamy released 6 Form loans aggregating to Rs.215 Lakhs without obtaining application forms, without processing and without arranging loans and credited the amounts to the respective SB accounts and on 21.07.2008 reversed the entries by debiting the respective SB accounts.
9) In respect of SOD 124/645 of Mr. Nijamuddin, In spite of no operations in the account, Sri.H.M.Swamy allowed exceeding beyond delegated powers and failed to obtain and place on recored approval from the Regional office by sending Annexure 2-D.
10) On 20-09-2007 Sri.Swamy sanctioned and released OSL 722/7015 for Rs.13 Lakhs to Sri.Nijamudding under 36 Spl.C.C.315/2010 Synd Mortgage Scheme , without ensuring credit worthlessness of the party, repaying capacity of party, without ensuring required security coverage ratio, without ensuring closure of OSL 722/3645 and when his other liabilities under OSL 722/3645 to the tune of Rs.18.93 Lakhs sanctioned against the security of the same property were irregular and slipped to NPA status.
11) In respect of SOD 124/16 of Sri.Ayub Pasha, inspite of no operation in the account, Sri.Swamy frequently allowed exceeding beyond delegated powers and failed to obtain and place on record approval from RO by sending Annexure 2-D.
12) On 20-09-2007 Sri.Swamy sanctioned OSL 722/7023 for Rs.13 Lakhs to Sri.Ayub pasha under Synd 37 Spl.C.C.315/2010 Mortgage Scheme, without ensuring creditworthiness of the party, repaying capacity of the party, without ensuring required security coverage ratio and when his other liabilities under OSL 722/3333, OSL 722/3656 and SOD 124/645 sanctioned against the security of the same property and OSL 722/6273 to the tune of Rs.39.46Lakhs were irregular and slipped to NPA Status.
13) On 30-08-2006 Sri.Swamy released TL of Rs.18 lakhs vide OSL No.722/6273 for purchase of machinery to Sri.Ayub Pasha without ensuring obtention of power supply , when his earlier liabilities were over due and failed to ensure establishment of the unit.
14)Sri.Swamy sanctioned a housing loan of Rs.25 Lakhs to Smt.Ayesha Najam W/o Sri.Asdullah Khan without ascertaining the income of the party and 38 Spl.C.C.315/2010 further sanctioned second housing loan of Rs.60 lakhs beyond his delegated powers and unduly accommodated the party.
15) Sri.Swamy allowed exceedings in the ODD accounts of Smt.Ayesha Najam beyond his delegated powers in violation of RBI guidelines and when pointed out in the inspection of the Bank during January , 2008 he reported that the parties ODD Account 121/239 was closed where as the same was outstanding with balance of Rs.3.62 Lakhs without any security. Thus, Sri.Swamy Misrepresented the regional office.
16) In respect of M/s Farah Industries, Sri.Swamy failed to ensure establishment of the unit and the when the status of accounts of the firm in which Sri.Asadullah Khan was involved 39 Spl.C.C.315/2010 were not in order, sri.Swamy went on accommodating Sri.Asadullah Khan by sanctioning further loans.
17) In respect of M/s GAD Industries, Sri.Swamy released the term loan proceeds without the ensuring the end use of the earlier releases made and unduly accommodated Sri.Asadullah Khan.
18) By committing the above acts of commission and omission, Sri.Swamy by abusing his official position besides fraudulently accommodated Sri.Asadullah khan by paying cash against un debited cheques, by arranging accommodative form loans in the names of various parties for the purpose of investing the same in the real estate business, exposed Bank's funds to the tune of Rs.1054.11 Lakhs plus interest there on from 01.10.2008 to a 40 Spl.C.C.315/2010 risk of financial Loss without sufficient security to fall back upon.
19) The following officials who were functioning as joint custodians during the relevant period are also responsible and parties to the fraudulently act of accommodating the Sri.Asadullah Khan by paying huge amount of cash against cheques drawn without balance in the accounts on various dates by keeping un debited cheques in the double lock in lieu of actual cash and in the process causing loss of revenue to the Bank by way of interest on funds parted with and by showing huge cash balances.
a) Sri.P.K.Vittaldas, Emp.No.200031, Manager -Functioned as joint custodian during the entire period.
b) Sri.P.Swamy, Emp No. 271459, Asst.Manager (Since deceased)- 41
Spl.C.C.315/2010 Functioned as joint custodian during the entire period.
c) Smt.Nalini S. Rao, Emp. No.143773, Asst.Manager - Functioned as joint custodian on 02.06.2008, 07.06.2008 to 14.06.2008, 09.07.2008, 17.07.2008 and 04.08.2008 to 11.08.2008.
30. Further, on careful perusal of the Ex.P73, the report submitted by PW2, he has observed several irregularities on the part of accused no.1. It is pointed out that accused No.2 Sri.Asadulla Khan used to visit the branch during evening hours and by putting pressure on accused no.1, drawn 10 Farm loans of Rs.55 Lakhs each by debiting cheques on 26.8.2008. It is also pointed out that without any balance in the account, several lakhs of rupees were released in favour of accused No.2 and his family 42 Spl.C.C.315/2010 members, even though cheques tendered by accused No.2, were held in double lock in lieu of cash for several days. It is also pointed out that cash drawn from double lock on 26.8.2008 indicating that cash was parted with the parties on an earlier dates and cheques were held in the double lock. Joint custodians Sri.P.K.Vittal Dass (Accused No.3) and Sri.P.Swamy informed that these cheques under question were handed over to them by branch head (accused no.1) on different prior dates which were reportedly obtained by him with the loan documents for making payments at a future dates, on the day arranging of loans. It is further observed that accused No.3 being supervisory authority, has also colluded with accused No.1 for arranging cash loans. It is pointed 43 Spl.C.C.315/2010 out that accused No.1 has fraudulently accommodated accused No.2 at the cost of bank. Accused No.3 P.K.Vittal Dass, Sri.P.Swamy and Smt. Nalini S. Rao were joint custodians during relevant period from 17.5.2008 to 26.8.2008 and they are also responsible and parties to the fraudulent acts.
31. It is further pointed out that accused no.1 has sanctioned many agricultural loans in favour of accused no.2 and his relatives and his known persons, beyond his sanctioning power and without obtaining prior permission of the regional office. Accused No.1 has also did not submit the photocopies of the PNs to Regional Office for renew and take note of sanction.
32. It is further pointed out that in addition to 44 Spl.C.C.315/2010 the agricultural loans, loans in favour of M/s. Farah Industries and M/s. GAD Industries, both are brain child of accused No.2 Sri.Asadullah Khan, were also sanctioned and released.
33. It is also pointed out that during the course of spot inspection, along with Sri.Varuna. V.S, Assistant Manager, it was noticed that all the lands were barren lands and there were no sign of crops grown and in most of the cases, no irrigation facilities are available.
34. If the report as per Ex.P73 is carefully perused, PW2 has pointed out all the serious irregularities committed by accused No.1 & 3 with respect to each of the 23 loans sanctioned in favour of accused No.2 and his family members. 45
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35. It is to be noted that this report has not been seriously challenged by accused persons during the course of cross-examination. Their main concentration was only to elicit that they were only irregularities and no illegalities were committed and these borrowers were honest and bonafide customers.
36. In order to prove the loan obtained in the name of Mohammed Imam Surq on the basis of fabricated documents, said person has been examined as PW14. He has deposed that he himself and his wife were owning 15.20 acres situated at Maganahalli, Malavalli Taluk, and sold the same to accused no.2 about 15 years ago, through one Noorulla Khan and in that regard they have executed registered agreement of sale. They had 46 Spl.C.C.315/2010 received Rs.50,000/-, in the beginning as advance and thereafter, accused No.2 paid Rs.5lakhs, Rs.2.25 Lakhs and Rs.4 Lakhs.
37. He further deposed that, on one day accused No.2 had asked him and his wife to come to Syndicate bank, Mandya Branch, they were taken by accused no.2 himself in his Qualis car and reached syndicate bank at about 9.00pm., and during that period, accused No.1 was present in the bank. Accused No.2 told him that he would give one site and also will provide loan and accordingly, taken signatures of himself and his wife on several papers by telling that account will be opened in his name and get the loans. Signatures were also taken on cheques and vouchers. But thereafter, accused No.1 & 2 did not call them to the bank. Accused No.1 & 2 47 Spl.C.C.315/2010 had also taken LTMs on several papers and they do not know reading and writing, since he studied only upto 4th standard and signature and LTMs were taken on blank papers.
38. PW14 further deposed that after two years, accused No.1 had called him to the bank stating that there was a loan in his name. On the next day he visited Syndicate Bank, Mandya Branch and asked accused No.1 as to why loan was sanctioned in his name, eventhough he was assured to sanction the loan but, did not sanction the same later. He also did not receive any loan amount from the bank and it was not informed to him at any point of time. Then accused No.1 informed him that accused no.2 had taken the loan in his name and cheated, therefore he could not do anything. 48
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39. PW14 further deposed that he himself and his wife never visited the bank subsequent to taking their signatures in the presence of accused No.1 & 2, as per Ex.P26 & 31, for the purpose of withdrawing any loan amounts. They never presented any cheque or withdrawal form to the bank ,for the purpose of drawing the loan amounts. Accused No.2 had also taken General Power of Attorney from them, but never disclosed about taking loans in their names. Thereafter he met accused No.2 along with his wife and asked him as to why he had taken the loans in the name of himself and his wife and for that he informed that he had kept some FDs in the bank and for the purpose of doing transactions, he has taken some loan and they would be cleared.
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40. During the course of cross-examination, even though, Ex.D5 to 10 were got marked and they are subsequent GPA documents taken from this witness and his wife on 4.9.2015 in order to show that this witness has not questioned the agreement of sale and GPAs, but nothing has been suggested to deny the allegations made by this witness with regard to taking his signatures on blank papers during night hours and also withdrawing loan amounts from the accounts of this witness and his wife.
41. It is to be noted that just because this witness has executed agreement of sale and registered GPAs, accused No.2 was not entitled to take loans in the name of this witness and his wife and utilise the same for his own purpose. Now, the 50 Spl.C.C.315/2010 loan borrowed in the name of this witness and his wife have not been cleared and therefore made this person and his wife to become liable for repayment of the said loan amounts. Of course, this witness has fairly deposed about the receipt of Rs.50,000/-, 5 Lakhs, 2.25 Lakhs and 4 lakhs. But the manner in which accused no.2 in collusion with accused No.1 taken these two uneducated people to the bank that too during night hours at 9.00pm., and taken their signatures on blank papers, cheques and utilised the same for sanctioning and drawing of loan amounts from their accounts, clearly establishes the malafides on the part of the accused no.1 & 2. Otherwise, there was no necessity for accused no.2 to take this person along with his wife to the bank during night hours and to take their signatures on 51 Spl.C.C.315/2010 the blank papers. It is not suggested that the said loan account has been cleared by accused No.2. Therefore, it is not mere irregularities but it was done with malafide intention to cheat PW14 and his wife. Therefore, this evidence of PW14 clearly establishes the malafides on the part of accused No.1 & 2 to cheat not only PW14 but also bank. The method adopted by accused No.1 & 2 to borrow the loans in the name of these two persons, was illegal and not permitted under any procedure or guidelines. Therefore, prosecution has clearly proved the malafides on the part of accused No.1 & 2 through this important witness.
42. Further, eventhough the loans are admittedly secured and some fixed deposit amounts are available with the bank, but the manner in 52 Spl.C.C.315/2010 which accused No.1 has favoured accused no.2 by extending 23 loans that too without obtaining prior approval and in some cases it was not at all intimated to the regional office, clearly indicates about the malafides on the part of both accused persons. It has not been disputed about the payments of several lakhs of rupees in favour of accused no.2 that too in cash and after 4.50pm., on several occasions, even though sufficient balance amount were not available in the account of accused no.2, 5 to 9. Excess cash amounts were kept in double lock and even though accused No.1 has not handled, but he was a unit head, hence it was his duty to monitor all the transactions and day today business as per banking guidelines. Banks have been nationalised with an object to provide 53 Spl.C.C.315/2010 loan facilities to the needy people for generating income and to provide jobs and to develop the economy of the country. It was not the object of banking system to help one person by extending several repeated over draft facilities by ignoring fundamental guidelines. It is not permissible for accused No.1 to give several lakhs of rupees in cash to accused No.2, even though balance was not available in the accounts. It has come in the record and not disputed by accused that subsequent to making cash payments, loans were sanctioned and adjusted to the loan accounts. This is totally against to the banking guidelines and an illegal act and not a mere irregularity.
43. It is to be noted that if one loan was sanctioned by committing some irregularities and 54 Spl.C.C.315/2010 later if it was cured and the same was done with bonafide reason, then the court of law could have accepted it. But here in this case, series of loan facilities were extended beyond the powers of accused No.1, that too without taking prior approval. Of course PW10 had a knowledge about these illegalities, but for obvious reasons, he also did not take proper steps. But unfortunately, I.O., has not arrayed him as an accused. But at the same time, above said illegalities committed by accused no.1 with the assistance of accused No.3 and in collusion with accused No.2 by having a criminal conspiracy, cannot be ignored.
44. With regard to the arguments that all the loans and OD facilities extended in favour of accused no.2 by accused No.1, were within the 55 Spl.C.C.315/2010 knowledge of the regional office is concerned, it is to be noted that eventhough there is an evidence to that effect, but at the same time, evidence that loan proposal pertaining to M/s. Farah Industries has been rejected, is not questioned by accused. Further the report with regard to the fact of not cultivating the lands and not growing of crops on the basis of agricultural loans taken, also has not been specifically disputed. The evidence available is with regard to the existence of some machineries. But, evidence of PW8 Sri.Sandeep Shah discloses that about 10 years ago, accused No.2 came to his company which was manufacturing industrial machineries and obtained 2 -3 quotations as per Ex.P92. He has furnished demand draft for Rs.18,03,375/- issued by Diamond Cement Block 56 Spl.C.C.315/2010 Company, in favour of said company. He has also identified the quotations marked as Ex.P141 & 119 with regard to M/s. GAD Industries and M/s. Farah Industries and also two demand drafts for Rs.9,03,375/- and Rs.9 Lakhs. He further deposed that subsequently accused No.2 submitted a letter as per Ex.P246 & 247 for cancellation of orders, accordingly, amounts were refunded to him by retaining advance amount of Rs.3 Lakhs.
45. In the cross-examination, nothing worth has been elicited to show that the said transations were not true. This witness has withstood the test of cross-examination with regard to the receipt of quotations, payments and DDs and cancellation of orders by accused No.2.
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46. From the evidence of this witness, court can very well come to the conclusion that the purpose for which the loan application were submitted, were not intending to do business as proposed, but it was with an intention to misutilise the loan proceeds for some other purpose. Why the orders have been cancelled and why amount of Rs.18 Lakhs has been taken back by accused No.2, has not been explained at all. Therefore, the evidence of this witness is very good piece of evidence to prove the conduct on the part of accused No.2 and the collusion on the part of accused No.1 & 3.
47. It is to be noted that keeping so much of cash amount in the double lock system, without depositing in the nationalised banks also has not 58 Spl.C.C.315/2010 been explained properly. Showing so much of favour to accused No.2 by accused No.1 & 3 by releasing cash amounts on regular basis that too after office hours, also has not been explained by accused no.1. It is a matter on record that without any balance amount in the account, lakhs of rupees were paid to accused No.2 and same were adjusted by sanctioning loans subsequently, that too without obtaining prior approval from the regional office as per banking guidelines. This aspect clearly establishes that banking guidelines were floated and thrown to winds by accused No.1 & 3 while extending undue favour in favour of accused No.2. This evidence is sufficient to come to a conclusion that, the acts done by accused No.1 to 3 shall be considered as illegal acts with malafide intention 59 Spl.C.C.315/2010 and not with any bonafide intention, as argued by learned counsel for accused no.1 to 3. Therefore, the arguments of learned PP in that regard is required to be believed and accepted.
48. The decisions cited by the learned counsel for the accused No.2, 5 to 8 cannot be applied to the defence of accused. Because, the facts and circumstances of the said judgments, are different and observations made by Hon'ble Courts cannot be extended in favour of accused No.1 to 3, for the observations made above.
49. With regard to the role of accused No.5 to 8 is concerned, I have carefully perused the evidence adduced on behalf of the prosecution. Of course, it is not in dispute that the properties 60 Spl.C.C.315/2010 standing in the names of accused No.5 to 8 were offered as collateral security for getting several agricultural and other loans from Syndicate Bank, Mandya Branch during relevant periods. But, if entire evidence is carefully perused, it indicates that main allegations have been made against accused No.2 alone. There is no either malafide or criminal intention have been made against accused No.5 to
8. There is no evidence to show that accused No.5 to 8 had a knowledge about getting loans and thereafter cheated the bank. They are the family members and relatives of accused No.2. As we are aware, some times at the instance of the manager/elder of the family and who was controlling entire family, takes decision to do some thing either with regard to the business or with 61 Spl.C.C.315/2010 regard to borrowing of loans from the bank, the family members will just follow the instructions of the manager of the family and subscribe their signatures without understanding and questioning the contents of the documents and the purpose for which they were taken.
50. It is to be noted that, even as per Ex.P73 report and the evidence of PW2, entire allegations have been made against accused No.2 by specifically stating that accused no.2 alone used to visit the bank during evening hours and in collusion with accused No.1, got several loans by way of withdrawal. There is no evidence to show that accused No.5 to 8 also used to go to bank along with accused No.2 for withdrawing the amounts. Therefore, just because these persons ie., accused 62 Spl.C.C.315/2010 No.5 to 8 have offered their properties as collateral securities for getting several loans, in the absence of specific evidence to show that they also had criminal conspiracy with accused No.1 and they had malafide intention to cheat the bank, it is not possible to come to a conclusion that accused No.5 to 8 also have committed fraud and cheated the bank. Therefore, court is required to hold that the prosecution has failed to establish the alleged guilt of accused No.5 to 8, by placing cogent, convincing and satisfactory evidence. So to that effect, point No.1 is required to be answered partly in the negative.
51. In view of my above discussion, I hold that prosecution has placed cogent, convincing and satisfactory evidence to answer the points 63 Spl.C.C.315/2010 pertaining to accused No.1 to 3 in the Affirmative. Therefore, I am not inclined to accept the arguments of learned counsel for accused No.1 to 3. Accordingly I answer point No.1 in the affirmative in respect of A 1 to 3 and Negative in respect of A.5 to 8 and Point No.2 in the Affirmative.
52. POINT NO.3: In the result, I proceed to pass the following:
ORDER Acting U/s.248(1)&(2) of Cr.P.C., I hereby convict accused No.1 & 3 for the offence punishable u/s.120B r/w Sec.420 of IPC and Sec.13(2) R/W Sec.13(1)(d) of PC Act.
Further, accused No.2 is hereby convicted for the offence punishable 64 Spl.C.C.315/2010 u/s.120B r/w Sec.420 of IPC.
Further, accused No.5 to 8 are acquitted of the offence punishable u/s.120B r/w Sec.420 of IPC.
The bail bonds of accused no.1 to 3, 5 to 8 and that of their surety shall stand cancelled.
(Dictated to the Judgment-writer, transcribed and computerized by him, corrected and then signed by me on this the 21st day of November, 2024).Digitally signed by MOHAN
MOHAN Date: 2024.11.21 15:40:54 +0530 (H.A.Mohan) XXXII Addl.C.C. & S.J. and Special Judge for CBI & ED Cases, Bengaluru.65
Spl.C.C.315/2010 ORDER ON SENTENCE The Learned Public Prosecutor Sri.Balaji Francis has argued that, the loss caused to the bank on account of the fraud played by these accused persons is more than Rs.10 crores. Therefore, maximum sentence is required to be imposed along with heavy fine, in order to make good the loss and to send strong message to these type of fraud people.
On the other hand, learned counsel for accused no.1 & 2 have submitted that, subsequently the bank has accepted the proposal for one time settlement in respect of the commercial loans by agreeing to accept Rs.131 lakhs, Rs.130 lakhs, Rs.55 Lakhs and that has been cleared by accused No.2 and in that regard, copies of the demand drafts 66 Spl.C.C.315/2010 are furnished today. It is also submitted that other applications in respect of agricultural loans, seeking OTS Scheme is pending for consideration, before the bank.
It is further argued that, accused no.1 to 3 are all senior citizens and having family members to take care. Since this case was registered under Old P.C. Act, minimum sentence may kindly be imposed and that would serve the purpose.
Perused the documents submitted today by the learned counsel for accused no.2. It is seen that accused No.2 and his family members made an application to present Canara Bank, Chief Manager, since Syndicate Bank has been merged with Canara Bank subsequently and on that basis canara bank has issued two letters dtd.30.10.2024 and 67 Spl.C.C.315/2010 29.10.2024. As per the said letters, bank has agreed to settle the loan borrowed in the name of accused No.2 for Rs.131 Lakhs, and the loan borrowed in the name of his wife Ayesha Najam in respect of Farah Industries at Rs.130 lakhs. Another loan was agreed to be settled for Rs.55 Lakhs. He has furnished the copies of demand drafts for Rs.50 Lakhs, Rs.50 Lakhs, Rs.3.05 lakhs, Rs.98,45,000/- and for Rs.45,000/-. It is seen that as per the terms of OTS Scheme, Rs.51 lakhs and Rs.77.45 lakhs shall be paidon or before 30.11.2024 ie., by the end of this month. It is seen that other applications for OTS Scheme in respect of agricultural loans are still pending before the head office of canara bank for consideration.
It is to be noted that how much is loss caused 68 Spl.C.C.315/2010 to the bank and what are the factors to be taken note off by the bank, for giving concession under OTS Scheme is to be decided by the bank itself, in terms of banking guidelines. The loss shown in the charge sheet towards the bank was based upon the statement of accounts prevailed as on that date. The said amount was shown along with interest accrued as on that date. Now the bank came forward to settle the loan accounts under OTS Scheme.
Further, admittedly all the loans are secured and the matter is pending before DRT. It is not the case of the bank that it is not possible to recover the due amounts from, out of sale proceeds, if mortgaged properties are put in public auction. So, it is very clear that the loans have been secured 69 Spl.C.C.315/2010 and the bank is empowered to recover the balance outstanding by putting the properties in public auction or by agreeing for settlement under OTS Scheme. Now accused No.2 has shown some bonafides by paying more than Rs.3 crores. Now, it is for the bank to take note of the problems being faced by accused No.2 and his family members, keeping in mind the securities available and also the public interest. Because public interest shall be the paramount consideration while dealing with pubic money, which has meant for public use.
As observed during the course of discussion, banks have been nationalised for providing loan facilities to needy people for improving their economic conditions and for producing more food grains and to improve the economic system of the 70 Spl.C.C.315/2010 country. So, if any undue favour is shown to the borrower while recovering the due amount and while giving consent for OTS scheme, that would go against the sprit of public policy. Therefore, I hope and trust that the bank would consider these aspects while giving concession under OTS Scheme, having regard to the fact that sufficient security is available to recover the due amount. As rightly pointed out by learned PP, on account of fraud, played by accused No.2 in collusion with accused No.1, a case was registered and made CBI to conduct detailed investigation and to submit final report and thereafter, for several reasons, it has reached about 14 years to conclude the trial and during this period, Government was made to spend lakhs of rupees for conducting the 71 Spl.C.C.315/2010 trial. This has happened only due to the fraudulent act on the part of accused No.2 in collusion with accused No.1. So keeping all these aspects in mind, adequate sentence is required to be awarded. It is a fact that accused No.1 & 3 are aged more than 70 years. Accused No.3 has played a limited role while committing fraud by yielding to the pressure of accused no.1 in the matter of disbursing the amount. Therefore, some leniency is required to be shown in favour of accused no.3. But, too much leniency cannot be shown in favour of accused No.1. Because he being the public servant and dealing with public money had colluded with accused no.2 on many occasions and sanctioned and released several loans that too by ignoring the banking guidelines.
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Spl.C.C.315/2010 Keeping all these factors in mind, since Old PC.Act is applicable to the present case and which prescribes minimum sentence of one year for the offence punishable u/s.13(2) of PC Act and since no minimum sentence is prescribed for the offence punishable u/s.420 of IPC r/w Sec.120B of IPC, I am of the opinion that if SI for a period of two years for the offence punishable u/s.120B r/w Sec.420 of IPC along with fine of Rs.1,00,000/- is imposed to accused No.1 and simple imprisonment for one year along with fine of Rs.50,000/- is imposed in respect of offence punishable u/s.13(2) of PC Act, that would meet the ends of justice.
As for as accused No.2 is concerned, having regard to his fraudulent acts, I am of the opinion that minimum of 3 years simple imprisonment along 73 Spl.C.C.315/2010 with fine of Rs.50 lakhs is required to be imposed for the offence punishable u/s.120B r/w Sec.420 of IPC.
In the case of accused No.3 is concerned, if simple imprisonment for one year with fine of Rs.25,000/- for the offence punishable u/s.120B r/w Sec.420 IPC and one year simple imprisonment along with fine of Rs.25,000/- for the offence punishable u/s.13(2) of PC Act are imposed, that would meet the ends of justice.
Further, it is made clear that since the loans are secured and the matter is pending before the competent authority of the bank with regard to giving approval for OTS Scheme and since already morethan Rs.3 crores has been recovered from accused No.2 and his family members, it is 74 Spl.C.C.315/2010 observed that it is for the bank to recover the balance amount in accordance with law, keeping in mind the public interest, since loans are secured. This order in any way does not empower the bank to give too much concession in favour of accused No.2 and his family members while giving OTS Scheme. With these observations I proceed to pass the following:
ORDER Accused No.1 shall undergo Simple Imprisonment for a period of two years and shall pay fine of Rs.1,00,000/- for the offence punishable u/s.120B r/w Sec.420 of IPC. In default of payment of fine, he shall further undergo simple imprisonment for a period of six months.
Accused No.1 shall further undergo simple 75 Spl.C.C.315/2010 imprisonment for one year for the offence punishable u/s.13(2) of PC Act and shall pay fine of Rs.50,000/-. Indefault payment of fine he shall further undergo simple imprisonment for a period of 3 months.
Accused No.2 shall undergo simple imprisonment for 3 years and shall pay fine of Rs.50 Lakhs for the offence punishable u/s.120B r/w Sec.420 of IPC. Indefault payment of fine he shall further undergo Simple Imprisonment for a period of one year.
Accused No.3 shall undergo simple imprisonment for one year and shall pay fine of Rs.25,000/- for the offence punishable u/s.120B r/w Sec.420 IPC. Indefault of payment of fine he shall undergo further simple imprisonment for 3 months. 76
Spl.C.C.315/2010 Further accused No.3 shall undergo simple imprisonment for one year and shall pay fine of Rs.25,000/- for the offence punishable u/s.13(2) of PC Act. Indefault of payment of fine he shall undergo simple imprisonment for a period of 3 months.
All the sentences shall run concurrently. The period of custody already undergone by the accused No.1 to 3 if any, shall be given set off under Section 428 of Cr.P.C.
Office to furnish free copy of the judgment to the Accused No.1 to 3, forthwith. (Dictated to the Judgment-writer, transcribed and computerized by him, corrected and then signed by me on this 21st day of November, 2024). Digitally signed by MOHAN
MOHAN Date: 2024.11.21
15:41:08 +0530
(H.A.Mohan)
XXXII A.C.C. & S.J. and Spl. Judge for CBI & ED Cases, Bengaluru.
77
Spl.C.C.315/2010 ANNEXURE LIST OF WITNESSESS EXAMINED ON BEHALF OF PROSECUTION PWs CWs Name of the Date of Witness examinatio n PW1 CW1 Muralidhar.R 07.07.2022 PW2 CW2 S.Madan 27.07.2022 PW3 CW19 Govindarama Bhatt 03.11.2022 PW4 CW21 Smt.J.Hemalatha 25.11.2022 PW5 CW4 N.Swamy 20.03.2023 PW6 CW5 Smt.Nalini S Rao 20.03.2023 PW7 CW10 Yogesh Rao 18.04.2023 PW8 CW6 Sandeep Sha 25.05.2023 PW9 CW11 Sunil Kumar A 25.05.2023 PW10 CW7 Lakshminarayan 21.06.2023 PW11 CW8 Ashok Malya 06.07.2023 PW12 CW3 K.Ramesh Kumar Pai 16.08.2023 PW13 24CW Srinidhi MV. 27.09.2023 PW14 CW22 Mohammed Imam 18.10.2023 Surq PW15 CW25 BN.Akbar 18.10.2023 PW16 CW31 HN.Vijendra 27.01.2024 PW17 CW32 M.Srinivasulu 27.01.2024 PW18 CW33 CB.Nanjundaswamy 27.01.2024 PW19 CW35 N.C.Ramakrishna 27.01.2024 PW20 CW36 Smt.AC.Sunanda 27.01.2024 PW21 CW18 Sadananda Bangera 23.02.2024 PW22 CW13 HS.Krishnamurthy 23.02.2024 78 Spl.C.C.315/2010 PW23 CW16 Varuna VS 23.02.2024 PW24 Addl. HN.Vishweshwara 04.03.2024 witness PW25 Addl. P.Vijaya Shankar 19.04.2024 witness PW26 CW26 Smt.Zareen Taj 19.04.2024 PW27 CW27 CL.Ramachandran 19.06.2024 PW28 CW39 Jaboy K.R. 06.08.2024 LIST OF DOCUMENTS EXHIBITED ON BEHALF OF PROSECUTION Exhibit Description Number Ex.P.1 Complaint Ex.P.1(a) Signature of PW1 Ex.P.2 Statement of accounts in the name of Asadullah Khan ( 8 sheets) Ex.P.3 Withdrawal slip dated 18.11.2006 in the name of Asadullah Khan Ex.P.4 Cheque dated 16.05.2007 for Rs.5,00,000/-
in the name of Asadullah Khan Ex.P.5 Cheque dated 22.05.2007 for Rs.5,00,000/-
in the name of Asadullah Khan Ex.P.6 Cheque dated 08.05.2007 for Rs.6,00,000/-
in the name of Asadullah Khan Ex.P.7 Cheque dated 28.06.2007 for Rs.6,00,000/-
in the name of Asadullah Khan Ex.P.8 Cheque dated 29.06.2007 for Rs.2,00,000/- 79
Spl.C.C.315/2010 in the name of Babu, drawn by Asadullah Khan Ex.P.9 Cheque dated 05.07.2007 for Rs.1,00,000/-
in the name of Babu, drawn by Asadullah Khan Ex.P.10 Cheque dated 06.12.2007 for Rs.4,00,000/-
in the name of Bakash, drawn by Asadullah Khan Ex.P.11 Cheque dated 07.12.2007 for Rs.9,00,000/-
in the name of Saleem, drawn by Asadullah Khan Ex.P.12 Cheque dated 07.12.2007 for Rs.9,00,000/-
in the name of Asadulla Khan Ex.P.13 Cheque dated 08.12.2007 for Rs.9,00,000/-
in the name of Bakash, drawn by Asadullah Khan Ex.P.14 Withdrawal form dated 29.02.2008 for Rs.7,50,000/- withdrawn by Asadullah Khan Ex.P.15 Withdrawal form dated 29.02.2008 for Rs.25,00,000/ withdrawn by Aadullah Khan Ex.P.16 Withdrawal form dated 20.03.2008 for Rs.23,00,000/ withdrawn by Asadullah Khan Ex.P.17 Withdrawal form dated 20.03.2008 for Rs.13,00,000/ withdrawn by Asadullah Khan Ex.P.18 Withdrawal form dated 25.04.2008 for Rs.39,000/ withdrawn by Asadullah Khan Ex.P.19 Original account opening form in the name of Asadullah Khan (5 sheets) Ex.P.20 Account opening form in the name of 80 Spl.C.C.315/2010 Accused No.8 (5 sheets) Ex.P.21 Statement of account in the name of Accused No.8 for the period from 29.04.2006 to 30.01.2010 (5 sheets along with 65B Certificate) Ex.P.22 Cheque dated 25.04.2007 for Rs.7,00,000/-
in the name of Nasimmunissa payable to Akbar Ex.P.23 Cheque dated 06.06.2007 for Rs.10,00,000/ in the name of Nasimmunissa payable to Bakash Ex.P.24 Cheque dated 11.06.2007 for Rs.5,00,000/-
in the name of Nasimmunissa payable to Akbar Ex.P.25 Cheque dated 18.07.2007 for Rs.6,00,000/-
in the name of Nasimmunissa payable to Bakash Ex.P.26 Account opening form in the name of Mohammed Himam Surq, which was opened on 14.11.2006 (6 sheets) Ex.P.27 Statement of account in the name of Mohammed Imam Surq, for the period from 14.11.2006 to 20.11.2008 (4 sheets along with 65B Certificate) Ex.P.28 Cheque dated 14.11.2006 for Rs.7,25,000/-
in the name of Mohammed Imam Surq. Ex.P.29 Withdrawal slip dated 3.11.2007 for Rs.5,00,000/- in the name of Mohammed Imam Surq.
Ex.P.30 Withdrawal slip dt. 01.02.2008 for Rs.7,50,000/- in the name of Mohammed Imam Surq.
81
Spl.C.C.315/2010 Ex.P.31 Account opening Form in the name of Mrs.Nasimma Afthab Begum (6 sheets) Ex.P.32 Statement of account in the name of Mrs.Nasimma Afthab Begum for the period from 14.11.2006 to 30.01.2010 (5 sheets along with 65B Certificate) Ex.P.33 Cheque dated 14.11.2006for Rs.7,25,000/- Ex.P.34 & Withdrawal slip dated 03.11.2007 and 35 01.02.2008 for Rs.10,00,000/- and Rs.7,00,000/- in the name of Mrs.Nasimma Afthab Begum Ex.P.36 Account opening form in the name of Mr.Saleem Pasha (6 sheets) Ex.P.37 Statement of account in the name of Mr.Saleem Pasha for the period from 26.07.2007 to 30.01.2010 (5 sheets along with 65B Certificate) Ex.P.38 Cheque dated 10.09.2007 for Rs.10,00,000/ in the name of A5 Ex.P.39 Another cheque dated 13.09.2007 for Rs.4,75,000/- in the name of A5 Ex.P.40 to Withdrawal slip dated 01.01.2008 for 42 Rs.46,00,000/- dated 18.03.2008 for Rs.21,00,000/ and dated 20.03.2008 for Rs.28,00,000/0 in the name of A5 Ex.P.43 Account opening Form in the name of Mrs.Nasrim Taj(A9) (6 sheets) Ex.P.44 Statement of account in the name of Mrs.Nasrim Taj for the period from 01.02.2008 to 30.01.2010 (5 sheets along with 65B Certificate) 82 Spl.C.C.315/2010 Ex.P.45 Withdrawal slip dated 08.02.2008 for Rs.18,00,000/ in the name of A9 and signed by A2 Ex.P.46 Withdrawal slip dated 15.02.2008 for Rs.1,00,000/- in the name of A9 Ex.P.47 Withdrawal slip dated 09.02.2008 for Rs.7,50,000/- in the name of A9 Ex.P.48 Withdrawal slip dated 09.02.2008 for Rs.7,50,000/- in the name of A9 Ex.P.49 Withdrawal slip dated 27.03.2008 for Rs.40,00,000/- in the name of A9 Ex.P.50 Cheque dated 30.04.2008 for Rs.19,00,000/ in the name of A9 Ex.P.51 Cheque dated 19.05.2008 for Rs.15,00,000/- in the name of A9 Ex.P.52 Account opening form in the name of Mr.Ayub Pasha (A4) (5 sheets) Ex.P.53 Statement of account in the name of Mr.Ayub Pasha for the period from 28.01.2006 to 31.08.2008 (6 sheets along with 65B Certificate) Ex.P.54 & Withdrawal slip dated 01.03.2008 for 55 Rs.7,50,000/- each in the name of A4 Ex.P.56 & Lock Register for the period from 57 01.02.2008 to 23.09.2008 and Single Lock Register for the period from 05.11.2007 to 22.09.2008 pertaining to Mandya Ex.P.58 Cheque dated 21.08.2008 for Rs.55,00,000/ drawn by A8 Ex.P.59 Cheque dated 26.07.2008 for Rs.50,00,000/ drawn by A2 83 Spl.C.C.315/2010 Ex.P.60 Cheque dated 23.08.2008 for Rs.55,00,000/ drawn by A2 Ex.P.61 Cheque dated 02.08.2008 for Rs.30,00,000/ drawn by Mohammed Imam Surq signed by A2 Ex.P.62 Cheque dated 02.08.2008 for Rs.25,00,000/ drawn by Naseem Afthab Begum and signed by A2 Ex.P.63 Cheque dated 08.07.2008 for Rs.48,00,000/ drawn by A5 Ex.P.64 Cheque dated 18.07.2008 for Rs.55,00,000/ drawn by A4 Ex.P.65 Cheque dated 30.05.2008 for Rs.17,00,000/ in the name of Mohammed Imam Surq signed by A2 Ex.P.66 Cheque dated 30.05.2008 for Rs.15,00,000/ in the name of A8 signed by A8 Ex.P.67 Cheque dated 30.05.2008 for Rs.30,00,000/ in the name of Naseem Afthab signed by A2 Ex.P.68 Cheque dated 06.06.2008 for Rs.10,00,000/ in the name of Naseem Aftab signed by A2 Ex.P.69 Cheque dated 06.06.2008 for Rs.55,00,000/ in the name of A2 signed by A2 Ex.P.70 Cheque dated 17.05.2008 for Rs.35,00,000/ in the name of A9 signed by A9 Ex.P.71 Cheque dated 19.06.2008 for Rs.45,00,000/ in the name of A9 signed by A9 84 Spl.C.C.315/2010 Ex.P.72 Cheque dated 29.06.2008 for Rs.55,00,000/ in the name of A9 signed by A9 Ex.P.73 Investigation report dated 27.11.2008 (39 sheets) Ex.P.73(a) Signature of PW2 Ex.P.74 Loan documents with respect of P.K.Vittaldas, P.Swamy and Smt.Nalini and Najamuddin (25 sheets) Ex.P.75 Statement of account in respect of said loan (5 sheets along with 65B Certificate) Ex.P.76 Debut slip dated 20.09.2007 for &77 Rs.13,00,000/- and credit voucher for Rs.13,00,000/- (2 sheets) Ex.P.78 Statement of account pertaining to SB A/c of Najamuddin (along with 65B Certificate 3 Sheets) Ex.P.79 & Withdrawal slip dated 18.03.2008 for 80 Rs.21,00,000/- and 20.03.2008 for Rs.22,00,000/- in respect of Najamuddin Ex.P.81 Loan documents in respect of Najamuddin pertaining to over draft A/c No.124/615 ( 18 sheets) Ex.P.82 Statement of account in respect of said account (6 sheets along with 65B Certificate) Ex.P.83 & Cheque dated 24.01.2007 for Rs.9,00,000/- 84 and cheque for Rs.9,00,000/- dated 26.06.2007 drawn by Najamuddin Ex.P.85 Housing Loan account documents in the 85 Spl.C.C.315/2010 name of Najamuddin bearing No.722/3645 (22 sheets) Ex.P.86 Statement of account in respect of said account (6 sheets along with 65B Certificate) Ex.P.87 Loan application and loan documents for vehicle loan pertaining to Ayub Pasha (19 sheets) Ex.P.88 Loan application and loan documents for housing loan pertaining to Ayub Pasha (29 sheets) Ex.P.89 Loan application and loan documents for business loan pertaining to Ayub Pasha (24 sheets) Ex.P.90 Statement of account in respect of Sri.Ayub Pasha along with 65B Certificate (4 sheets) Ex.P.91 Documents relating to Diamond Loan Application form in respect of Diamond Cement Blocks Ex.P.92 Documents relating to process of loan prepared by the Syndicate Bank Officer along with process note quotation invoice and the legal opinion issued by Sunil Kumar Advocate and other documents (57 sheets) Ex.P.93 Report in respect of loan sanctioned in favour of Diamond Cement Bricks dated 17.11.2006 Ex.P.94 Statement of account in respect of Diamond Cements along with 65B Certificate (6 sheets) Ex.P.95 Housing loan application form of Mrs.Ayeesha Najam dated 20.08.2006 (6 86 Spl.C.C.315/2010 sheets) Ex.P.96 Property valuation report dated 23.08.2006 (4 sheets) Ex.P.97 Income Certificate issued by Tahsildar, Mandya in respect of Ayeesha Najam) Ex.P.98 Estimation for residential building issued by Srinidhi Architect Ex.P.99 Statement of account in the name of Mrs.Ayeesha Najam for the period from 01.01.2002 to 01.02.2010 issued by Syndicate Bank, Mandya along with 65B Certificate Ex.P.100 Loan documents in respect of same person with regard to housing loan (49 sheets) Ex.P.101 Housing Loan application dated 10.09.2007 in respect of another house (6 sheets) Ex.P.102 & Two A and L Statements in respect of 103 Mrs.Ayeesh Najam and Sri.Asadullah Khan (4 sheets) Ex.P.104 Process note for housing loan dated 19.09.2007 in respect of same person (6 sheets) Ex.P.105 Inspection Report dated 22.10.2007 Ex.P.106 Statement of account in respect of said person along with 65B Certificate (6 sheets) Ex.P.107 Debit Voucher in the name of Mrs.Ayeesha Najam dated 23.10.2007 for Rs.60,00,000/- (1 sheet) Ex.P.108 Credit Voucher dated 23.10.2007 in the name of Mrs.Ayeesha Najam 87 Spl.C.C.315/2010 Ex.P.109 Loan documents in respect of said loan of Rs.60,00,000/- (22 sheets) Ex.P.110 Process memo in respect of housing loan for Rs.25,00,000/- (7 sheets) Ex.P.111 Letter dated 17.10.2006 received from Regional Office, Mysore Ex.P.112 Letter dated 17.10.2006 received from Regional Office, Mysore in respect of housing loan of Ayeesha Najam Ex.P.113 Letter dated 04.11.2006 received from Regional Office, Mysore in respect of housing loan of Ayeesha Najam Ex.P.114 Letter dated 23.11.2006 addressed to Regional Office, Mysore by Mandya Branch in respect of housing loan Ex.P.115 Letter dated 25.11.2006 received from Regional Office, Mandya in respect of housing loan of Ayeesha Najam (2 sheets) Ex.P.116 Letter dated 02.11.2007 addressed by Regional Office, Mysore to Mandya Branch regarding housing loan in favour of Ayeesha Najam Ex.P.117 Loan proposal in respect of Farah Industries Proprietor Mrs.Ayeesha Najam (29 sheets) Ex.P.118 Loan documents in respect of same industries along with all relevant documents (42 sheets) Ex.P.119 Set of loan documents in respect of Farah Industries (50 sheets) Ex.P.120 Estimate book for the proposed construction of M/s Farah Industries dated 27.04.2007 (full book) 88 Spl.C.C.315/2010 Ex.P.121 Statement of accounts in respect of Farah Industries regarding loan (4 sheets) Ex.P.122 Letter dated 05.02.2007 of Regional Office, Mysore in respect of loan account of Ayeesha Najam Ex.P.123 Letter dated 02.03.2007 of Mr.Govindaram Bhat of Mysore, K.R.Circle, Branch (3 sheets) Ex.P.124 Letter dated 10.03.2007 of Regional Office, Mysore addressed to Mandya Branch in respect of loan proposal of M/s Farah Industries (3 sheets) Ex.P.125 Income Certificate dated 10.04.2007 issued in favour of Mrs.Ayeesha Najam Ex.P. 126 Letter dated 23.06.2008 of Corporate office, Bengaluru Ex.P.127 Letter dated 24.06.2008 of Regional Office, Mysore in respect of Farah Industries Ex.P.128 Letter dated 25.06.2008 of Mandya Branch addressed to Regional Office, Mysore (3 sheets) Ex.P.129 Letter date 27.06.2007 of Regional Office, Mysore addressed to Mandya Branch Ex.P.130 Sanction letter dated 22.08.2007 of Regional Office, Mysore in respect of loan proposal of Farah Industries (5 sheets) Ex.P.131 Letter dated 04.09.2007 of Corporate Office Bengaluru addressed to Regional Office, Mysore ( 3 sheets) Ex.P. 132 Letter dated 21.07.2008 of Regional Office, Mysore addressed to Mandya Branch in respect of loan account of Farah Industries. 89
Spl.C.C.315/2010 (2 sheets) Ex.P.133 Letter dated 15.09.2008 of Regional Office, Mysore to Mandya Branch Ex.P.134 Letter dated 13.11.2007 of Mandya Branch addressed to Regional Office, Mysore in respect of housing loan of Mrs.Ayeesha Najam (1 sheet) Ex.P.135 Letter dated 15.11.2007 of Regional Office, Mysore addressed to Mandya Branch in respect of Housing loan proposal of Mrs.Ayeesh Najam Ex.P.136 Letter dated 18.12.2007 of Regional Office, Mysore addressed to Mandya Branch in respect of Housing loan proposal of Mrs.Ayeesh Najam Ex.P.137 Letter dated 20.12.2007 of Regional Office, Mysore addressed to Corporate Office, Bengalru in respect of Housing loan of Mrs.Ayeesh Najam Ex.P.138 Letter dated 09.01.2008 of Mandya Branch addressed to Regional Office, Mysore addressed to in respect of Housing loan of Mrs.Ayeesh Najam Ex.P. 139 Supplementation opening dated 09.01.2008 in respect of property of Ayeesha Najam issued by A.Sunil Kumar, Advocate Ex.P140 Letter dtd.21.1.2008 of Regional office Mysore to Mandya.
Ex.P141 Original loan application dtd.29.6.2005 for Rs.50 Lakhs of GID industries and entire papers 90 Spl.C.C.315/2010 Ex.P142 Valuation report dtd.12.1.2008 issued by Sri.H.T.Vasudeva (6 Sheets) Ex.P143 Letter dtd.20.1.2008 of Mandya Branch Regional office, Mysore in respect of M/s.GID Industries (2 sheets) Ex.P144 Letter dtd.25.1.2008 of Regional office Mysore to Zareen Raj of M/s.GID Industries (2 sheets) Ex.P145 Statement of accounts in respect of loan pertaining to M/s.GID Industries (5 sheet along with 65B certificate Ex.P146 Loan application dtd.4.1.2007 for Rs.2,60,000/- for purchase of vehicle infavour of BN.Akabar (2 sheets) Ex.P147 Statement of account in respect of loan (5 sheets with 65B certificate) Ex.P148 Observations made by KLN Joshi DTD.5.8.2008 (3 sheets) (D-295) Ex.P149 Covering letter dtd.15.6.2009 issued by Syndicate Bank to IO, CBI (15 sheets) Ex.P150 Cheque for amount of Rs.8,00,000/-
dtd.26.6.2007 Ex.P151 Loan documents in the name of A2 for sanctioning 40 lakhs agricultural loan ( 23 sheets) Ex.P152 Loan documents in the name of A8 for sanctioning 15 lakhs agricultural loan, released on 23.8.2008 (19 sheets) Ex.P152(a) Signature of Accused No.1 & 8. Ex.P153 Loan documents in the name of A8 for sanctioning 30 lakhs agricultural loan, (17 91 Spl.C.C.315/2010 sheets) Ex.P154 Debit and Credit slips dtd.25.4.2007 in respect of A/c. Of A8 (2 sheets) Ex.P155 Statement of account in the name of A8 for the period from 27.1.2005 to 10.2.2010 (4 sheets) Ex.P156 Loan documents in the name of A8 for sanctioning 40 lakhs agricultural Development loan, released on 23.8.2008 (15 sheets) Ex.P156(a) Signature of Accused No.1 Ex.P157 Loan documents in the name of A9 for sanctioning 55 lakhs agricultural Development loan, released on 26.8.2008 (16 sheets) Ex.P157(a) Signature of Accused No.1 Ex.P158 Loan documents in the name of A9 for sanctioning 40 lakhs FL Loan (agricultural) (17 sheets) Ex.P158(a) Signature of accused No.1 Ex.P159 Debit slip dtd.23.6.2008 in the name of accused No.9 for Rs.40 Lakhs Ex.P160 Credit voucher Ex.P161 Loan account statement in the name of A9 Ex.P162, Loan documents in the name of A2 for 162(a) sanctioning 13 lakhs (9 sheets) and signature of A.1 Ex.P163 & Debit and Credit slips dtd.31.3.2008 for 164 Rs.13 Lakhs in respect of said loan Ex.P165 Account statement pertaining to A.2 (4 sheets) 92 Spl.C.C.315/2010 Ex.P166 & Loan documents in the name of 166(a) Mohammed Himam Surq for Rs.7 Lakhs (16 sheets) and signature of A1.
Ex.P167 & Debit and credit slips dtd.3.11.2007 for 168 Rs.5 Lakhs Ex.P169 Account Statement along with 65 B certificate (4 sheets) Ex.P170 Loan documents in the name of Mohammed Himam Surq for Rs.7.1 Lakhs granted for purchase of tractor(25 sheets) Ex.P171 & Debit and Credit slips dtd.5.9.2007 for 172 Rs.7.1 Lakhs Ex.P173 & Debit and credit slips dtd.5.9.2007 for 174 Rs.6,85,000/-
Ex.P175 Account statement pertaining to loan along with 65B certificate (4 sheets) Ex.P176 & Loan document in the name of Mohammed 176(a) Himam Surq for Rs.55 Lakhs (40 sheets) & sign. Of A.1 Ex.P177 & Debit and Credit slips dtd.23.8.2008 for 178 Rs.55 Lakhs Ex.P179 Account statement pertaining to the loan (4 sheets) Ex.P180 Loan document in the name of Mohammed Himam Surq for Rs.7,50,000/- (12 sheets) Ex.P181 & Debit and credit slips dtd.31.3.2008 for 182 Rs.7.5 lakhs Ex.P183 Account statement relating to loan with 65 B certificate (4 sheets) Ex.P184 Loan document in the name of Mohammed Himam Surq for Rs.7.5 Lakhs for Farm 93 Spl.C.C.315/2010 Agricultural purposes (17 sheets) Ex.P185 & Debit and Credit slips dtd.30.11.2006 for 186 Rs.7.5 Lakhs Ex.P187 Account statement pertaining to loan with 65 B certificate(4 sheets) Ex.P188 Loan document in the name of Smt.Naseem Afthab Begum for Rs.7Lakhs(14 sheets) Ex.P189 & Debit and Credit slips dtd.31.3.2008 for 190 Rs.7 Lakhs Ex.P191 Account Statement pertaining to loan with 65B certificate (4 sheets) Ex.P192 Loan document in the name of Smt.Naseem Afthab Begum for Rs.7.5 Lakhs (18 sheets) Ex.P193 & Debit and credit slips dtd.30.11.2006 for 194 Rs.7.5 Lakhs Ex.P195 Account statement relating to loan with 65B certificate (4 sheets) Ex.P196 Loan documents in the name of Smt.Naseem Athab Begum for Rs.55 lakhs (21 sheets) Ex.P197 & Debit and credit slips dtd.23.8.2008 for 198 Rs.55 Lakhs Ex.P199 Account statement relating to loan with 65B certificate ( 4 sheets) Ex.P200 Loan documents in the name of Naseem Afthab Begum for Rs.13.30 lakhs (16 sheets) Ex.P201 & Debit and credit slips dtd.3.11.2007 for 202 Rs.10 Lakhs 94 Spl.C.C.315/2010 Ex.P203 Account statement relating to the loan (4 sheets) Ex.P204 Loan documents in the name of A.5 Aalim Pasha for Rs.15 Lakhs (21 sheets) Ex.P205 & Debit and credit slips dtd.20.9.2007 for 206 Rs.14.5 Lakhs Ex.P207 Account statement relating to loan (4 sheets) Ex.P208 Loan document in the name of A.5 for Rs.21 Lakhs for (Farm Agriculture purpose) 18 sheets Ex.P209 & Debit and credit slips dtd.27.3.2008 for 210 Rs.21 Lakhs Ex.P211 Account Statement pertaining to loan (4 sheets) Ex.P212 Loan documents in the name of A.5 for Rs.55 Lakhs (16 sheets) Ex.P213 & Debit and Credit slips dd.24.8.2008 for 214 Rs.55 Lakhs Ex.P215 Account statement pertaining to loan (4 sheets) Ex.P216 Loan document in the name of A.6 for Rs.43 lakhs (31 sheets) Ex.P217 & Debit and credit slips dtd.27.3.2008 for 218 Rs.43 lakhs Ex.P219 Account statement relating to loan (4 sheets) Ex.P220 Loan document in the name of A.6 for Rs.5 Lakhs (22 sheets) Ex.P221 & Debit and credit slips dtd.28.3.2007 for 222 Rs.5 Lakhs 95 Spl.C.C.315/2010 Ex.P223 Account statement relating to the loan (4 sheets) Ex.P224 Loan document in the name of A.4 for Rs.15 Lakhs (15 sheets) Ex.P225 & Debit and credit slips dtd.31.3.2008 for 226 Rs.15 Lakhs Ex.P227 Account statement relating to the loan (3 sheets) Ex.P228 Loan document in the name of A.6 for Rs.55 Lakhs (24 sheets) Ex.P229 & Debit and credit slips dtd.23.8.2008 for 230 Rs.55 Lakhs Ex.P231 Account statement relating to the loan (3 sheets) Ex.P232 Debit voucher dtd.8.7.2008 for Rs.15 Lakhs in favour of Najamunnissa Ex.P232(a) Credit Voucher for Rs.15 lakhs Ex.P233 Credit voucher pertaining to loan of 15 Lakhs in respect of different transaction issued by a.1 Ex.P233(a) Corresponding debit voucher for Rs.15 lakhs Ex.P234, Debit and Credit voucher for Rs.40 Lakhs in 234(a) favour of Md. Imam Surq dd.8.7.2008 Ex.P235, Debit and credit voucher for Rs.40 Lakhs 235(a) dtd.21.7.2008 in favour of Md.Imam Surq Ex.P236, Debit and credit voucher for Rs.40 Lakhs in 236(a) favour of Naseem Afthab Begum dtd.8.7.2008 Ex.P237, Debit & credit voucher for Rs.40 lakhs in 237(a) favour of Naseem Afthab Begum 96 Spl.C.C.315/2010 dtd.21.7.2008 Ex.P238 & Debit and credit voucher for Rs.40 Lakhs in 238(a) favour of Ayub pasha dtd.8.8.2008 Ex.P239, Debit and credit voucher for Rs.40 Lakhs in 239(a) favour of Ayub Pasha dtd.21.7.2008 Ex.P240, Debit and credit voucher for Rs.40 Lakhs in 240(a) favour of Saleem Pasha dtd.8.7.2008 Ex.P241, Debit and credit voucher for Rs.40 lakhs in 241(a) favour of Saleem Pasha dd.21.7.2008 Ex.P242, Debit & Credit voucher for Rs.40 Lakhs in 242(a) favour of Nazeemunnissa dtd.8.7.2008 Ex.P243, Debit & Credit voucher for Rs.40 Lakhs in 243(a) favour of Nazeemunnissa dtd.21.7.2008 Ex.P244 Letter dtd.26.8.2008 of Regional office Mysore Ex.P245, Report of PW5 dtd.26.9.2008 to S.Madan 245(a) and his signature Ex.P246 & Two cancellation letters dd.31.1.2007 & 247 5.2.2008 Ex.P248 & Letter dtd.1.7.2010 to CBI about details of 248(a) cheque and sign of PW8 Ex.P249, Receipt memo dtd.2.7.2010 and sign of 249(a) PW8 Ex.P250, Legal Opinion with regard to GPA executed 250(a) by Md.Himam Surq and Nasim Afthab Begum in favour of Asadullah Khan and sign of PW9 Ex.P251 Original Power of attorney and connected documents (10 sheets) Ex.P252 Copy of letter dtd.7.8.2009 written to Branch Manager, Mandya 97 Spl.C.C.315/2010 Ex.P253, Letter in the form of office Note & sign of 253(a) PW12 Ex.P254 3 sets of documents on which endorsement to256 made by PW12 Ex.P257 Computer generated statement Ex.P258, Valuation property document dtd.7.9.2008 258(a) (3 sheets) & sign.
Ex.P259,, Valuation property document dtd.6.9.2008 259(a) and sign. (3 sheets) Ex.P260, Valuation of property document 260(a) dtd.20.10.2009 issued in the name of Ayisa Nasam and sign.(3 sheets) Ex.P261, Valuation property document 261(a) dd.20.10.2009 in the name of Jaleem Taj and sign of PW13(4 sheets) Ex.P262 Documents with regard to the loan for purchase of Tata Ace Vehicle (page 1 to 49) Ex.P263 & Statement dtd.20.3.2010 & 12.10.2010 264 Ex.P265 & Two cheques issued by ZarinRaj as 266 Proprietor of GAD Industries Ex.P267 Letter dtd.19.3.2010 issued by the then sub-registrar (2 sheets) Ex.P268 Letter dtd.10.6.2010 issued by the then Sub-registrar (2 sheets) Ex.P269 Letter dtd.17.3.2010 issued by PW18 (3 sheets) Ex.P270 Letter dtd.19.3.2010 issued by the then sub-registrar(4 sheets) Ex.P271 Letter dtd.5.4.2010 issued by the then Sub-
registrar (3 sheets) 98 Spl.C.C.315/2010 Ex.P272 Attendance register of Syndicate Brank Mandya branch Ex.P273 Document called as AB-1026 of Syndicate Bank, Mandya (8 Sheets) Ex.P274, Joint visit report dtd.23.9.2008 & sign of 274(a) PW23 Ex.P275 Sanction order dtd.30.9.2010 submitted to CBI officer through vigilance officer (4 sheets) Ex.P275(a) Sign of PW24 Ex.P276 Guidelines issued by bank Ex.P277 Order dtd.16.9.2010 for initiation of Departmental Proceedings and punishment imposed to several officers Ex.P278 & Covering letter dtd.16.8.2010 submitted to 279 SP/CBI/BS&FC and report dtd.30.6.2010 (7 sheets) Ex.P279(a) Sign. Of Pw25 Ex.P280 Specimen Sign. Submitted along with annexure-B Ex.P281 Statement dtd.29.3.2010 ( 3 sheets) Ex.P282 CC of details furnished by Syndicate Bank regional officer (10 sheets) Ex.P283 Search List dd.2.5.2009 (4 sheets) Ex.P283(a) Search warrant Ex.P284 Search list dtd.2.5.2009 with inventory memo ( 8 sheets) Ex.P285 Original FIR & complaint ( 8 sheets) Ex.P286 3 sets of project reports seized during search in the house of A.2 Ex.P287 File containing xerox documents 99 Spl.C.C.315/2010 Ex.P288 Original title documents Ex.P289 File relating to GAD Industries. Ex.P290 File relating to notices issued by Bank and others Ex.P291 File relating to GAD Industries Ex.P292 Project report documents pertaining to GAD Industries Ex.P293 Original agreement and other documents Ex.P294 File relating to GAD Industries Ex.P295 File in the name of Ayub Pasha Ex.P296 File relating to GAD Industries. Ex.P297 File in the name of Ayub Pasha Ex.P298 File with regard to original property documents pertaining to Banaguru Ex.P299 File in the name of Canara Bank Ex.P300 Valuation report documents Ex.P301 Loan application document pertaining to M/ s.Faara Industries Ex.P302 File relating to loan in the name of Ayesha Najam Ex.P303 File relating to credit policies Manuals. Ex.P304 Process notes monitoring register Ex.P305 Another process notes monitoring register Ex.P306 Review Register.
LIST OF WITNESSES EXAMINED ON BEHALF OF DEFENCE DWs. Name of the witness Date of examination
- NIL -
100
Spl.C.C.315/2010 LIST OF DOCUMENTS MARKED ON BEHALF OF DEFENCE Exhibit Particulars No. Ex.D1 AR 3013 & AR 3014 statement submitted by Mandya Branch Ex.D2 Evidence in Departmental Proceedings (7 Pages) Ex.D3 Receipts of 10 Challans of A.2 Ex.D4 Statement of PW14 u/s.161 Cr.PC. Ex.D5 Regd.General Power of Attorneydtd.4.9.2015 by Md. Imam Surq, his wife and children in favour of Md. Asadulla Khan Ex.D6 Regd.General Power of Attorney dtd.4.9.2015 executed by Md. Imam Surq, his wife and children in favour of Md. Asadulla Khan Ex.D7 Regd.General Power of Attorney dtd.4.9.2015 executed by Md. Imam Surq, his wife and children in favour of Md. Asadulla Khan Ex.D8 Regd.General Power of Attorney dtd.4.9.2015 executed by Md. Imam Surq, his wife and children in favour of Md. Asadulla Khan Ex.D9 Regd.General Power of Attorney dtd.4.9.2015 executed by Md. Imam Surq, his wife and children in favour of Md. Asadulla Khan 101 Spl.C.C.315/2010 Ex.D10 Regd.Mortgage Deed dtd4.9.2015 executed by Md.Imam Surq, his wife and children in favour of Md.Jakaullakhan Digitally signed by MOHAN MOHAN Date: 2024.11.21 15:41:35 +0530 (H.A.Mohan) XXXII Addl.C.C. & S.J. and Special Judge for CBI & ED Cases, Bengaluru.
102Spl.C.C.315/2010 Order of sentence pronounced in the open court vide separate orders. The order portion reads as under:
ORDER Accused No.1 shall undergo Simple Imprisonment for a period of two years and shall pay fine of Rs.1,00,000/- for the offence punishable u/s.120B r/w Sec.420 of IPC. In default of payment of fine, he shall further undergo simple imprisonment for a period of six months.
Accused No.1 shall further undergo simple imprisonment for one year for the offence 103 Spl.C.C.315/2010 punishable u/s.13(2) of PC Act and shall pay fine of Rs.50,000/-. Indefault payment of fine he shall further undergo simple imprisonment for a period of 3 months.
Accused No.2 shall undergo simple imprisonment for 3 years and shall pay with fine of Rs.50 Lakhs for the offence punishable u/s.120B r/w Sec.420 of IPC. Indefault payment of fine he shall further undergo Simple Imprisonment for a period of one year.
Accused No.3 shall undergo simple imprisonment for one year and shall pay fine of Rs.25,000/- for the offence punishable u/s.120B r/w Sec.420 IPC. Indefault of payment of fine he shall undergo further simple imprisonment for 3 months.
Further accused No.3 shall undergo simple imprisonment for one year and shall pay fine of Rs.25,000/- for the offence punishable u/s.13(2) of PC Act. Indefault of payment of fine he shall undergo simple imprisonment for a period of 3 months.
All the sentences shall run concurrently. The period of custody already undergone by the accused No.1 to 3 if any, shall be given set off under Section 428 of Cr.P.C.
Office to furnish free copy of the judgment to the Accused No.1 to 3, forthwith.
(H.A.Mohan) XXXII Addl.C.C. & S.J. and 104 Spl.C.C.315/2010 Special Judge for CBI & ED Cases, Bengaluru.