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[Cites 47, Cited by 0]

Delhi District Court

Cbi vs Sanjeev Dixit @ Sanjay Sharma on 24 December, 2025

                         IN THE COURT OF MS. SUNENA SHARMA
                      SPECIAL JUDGE : CBI-20 (PC ACT): ROUSE AVENUE
                                  COURT : NEW DELHI

                 RC No. BD1/2013/E/0006 - CBI, BS&FC, Delhi
                 Case No. 63/2019 (6669/16)
                 CNR No. DLCT11-000157-2019
                                                   Date of Institution : 17.07.2014
                                        Final arguments concluded on : 27.11.2025
                                             Judgment pronounced on : 24.12.2025

                 In the matter of:

                 Central Bureau of Investigation (CBI)
                 5B, 3rd Floor, CGO Complex,
                 Lodhi Road, New Delhi.

                                                            Versus

                 1.        Sh. Sanjeev Dixit @ Sanjay Sharma (A-1)
                           s/o Sh. Hari Shankar Dixit
                           40-Vigyan Lok Anand Vihar, Delhi
                           (declared PO vide order dated 30.10.2017)

                 2.        Sh. Nrapendra Singh [email protected] (A-2)
                           s/o Late Binayak Singh
                           r/o C-618, Sarswati Vihar, Delhi-34.

                 3.        Smt. Kulwinder Kaur Johar @ K.K.Johar (A-3)
                           w/o Sh. Harinder Pal Singh Johar
                           r/o JD-54C, Pitampura, Delhi-34.

                 4.        Sh. Ranjiv Suneja (A-4)
                           s/o Sh. Ved Prakash
                           r/o B-52, Upper Ground Floor, Rama Park,
SUNENA                     Dwarka Mor, Delhi.
SHARMA
Digitally signed by
SUNENA SHARMA
Date: 2025.12.23
08:49:57 +0530      CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
                 Case No. 63/2019 (6669/16)                             Page no.1 Of 372
 5.        Sh. Rahul Sharma (A-5)
          s/o Late Ravinath Sharma
          r/o 699 A, Gali No.2, Ganesh Nagar-II
          Shakarpur, Delhi-92.

6.        Sh. Rajeev Sharma (A-6)
          s/o Late Vijay Dayal Sharma
          r/o 40, Vigyan Lok, Anand Vihar, Delhi-92.

                                      INDEX
S.         Particulars                               Page no.
No.
     1.    Factual Matrix                               5 to 24
     2.    Framing of Charge                           24 to 25
     3.    Prosecution Evidence                       25 to 163
           (i)Witnesses from Punjab National           32 to 69
           Bank, Jorbagh Branch
           (ii)Witness from other branches and         69 to 88
           offices of PNB
           (iii)Empaneled Valuer                       88 to 89
           (iv)Witnesses from other Banks             89 to 103
           (other than PNB)
           (v)Police Witnesses                        103 to 111
           (vi)Witnesses from Sub-Registrar           111 to 119
           Office
           (vii) Sanctioning Authority                   120
           (viii) Chartered    Accountants/CMA        121 to 124
           witnesses
           (ix)Witnesses pertaining to KYC from       124 to 131
           the office of    Electoral
           Registration               Office,BSES,
           DJB/Custom/Excise/Income


CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
Case No. 63/2019 (6669/16)                            Page no.2 Of 372
           Tax/Industries
          (x)Witnesses of record                   131 to132
          (xi)Witnesses from CFSL                  132 to 136
          (xii)Witnesses pertaining to use of      136 to 152
          forged       documents/forgery    of
          title/identification documents
          (xiii)Witnesses relating to dummy        153 to 161
          bank accounts
          (xiv)Witnesses        to    Specimen     161 to 163
          signatures
   4.     Statement of Accused U/s 313 Cr. PC.     163 to 171

               Defence plea of A-2                163 to 166
               Defence plea of A-3                166 to 168
               Defence plea of A-4                168 to 169
               Defence plea of A-5 and A-6        169 to 171
   5.     Defence Evidence                             171
   6.     Final Arguments                          171 to 172
   7.     Prosecution Arguments                    172 to 178
   8.     Defence Arguments.                       178 to 192
              Defence argument on behalf of       178 to 182
               A-2
              Defence arguments on behalf         182 to 189
               of A-3 and A-4
              Defence arguments on behalf         189 to 192
               of A-5 and A-6
   8.     Discussion and Analysis of material      192 to 368
               Qua accused N.S.Parihar (A-2)      200 to 253
               Qua accused K.K.Johar (A-3)        253 to 329
                and Ranjiv Suneja (A-4)
               Qua accused Rahul Sharma 329 to 368


CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
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                    (A-5) and Rajeev Sharma (A-6)
     9.   Final Conclusion                                      369 to 372


Judgment

1.               This judgment shall dispose of the instant

case of bank fraud no. 63/2019 (old number 6669/16),

emanating from RC No. BD1/2013/E/0006/CBI/BS&FC,

registered on the complaint of the Chief Manager,

Punjab National Bank, Jor Bagh Branch Sh. C.P.Garg.

The case FIR/RC under section 120-B r/w Section

420/467/468/471 IPC was registered against Sanjeev

Dixit, proprietor of the borrower firm M/s Shankar

Metals, the guarantors Sanjay Sharma, proprietor of

M/s Super Machines and Smt. Indra Rani and some

unknown persons for committing a fraud upon the

lending bank and causing it wrongful loss to the tune of

Rs.4.0 crores.

1.01.            During         investigation,        only   one      accused

Sanjeev Dixit (A-1) @ Sanjay Sharma (borrower) was

arrested         by     the      CBI      and      after   completing        the

investigation against him, he was charge-sheeted

before the court on 17.07.2014. On 29.09.2015,

supplementary chargesheet was filed against 05 more

accused namely, Sh. N.S.Parihar (A-2) (empaneled

CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
Case No. 63/2019 (6669/16)                                         Page no.4 Of 372
 lawyer), Smt. K.K.Johar (A-3) (public servant), Sh. Ranjiv

Suneja (A-4) (public servant), Sh. Rahul Sharma (A-5) and

Sh. Rajeev Sharma (A-6), who were arrayed as accused

no. 2 to 6 respectively. The record shows that during

proceedings of the case, Sanjeev Dixit A-1 absconded

from police custody and was later on declared as

proclaimed offender vide order dated 30.10.2017.

Factual Matrix

2.      As per charge-sheet, on 02.03.2011, accused no.1

Sanjeev Dixit (A-1), S/o Hari Shankar Dixit, R/o 232,

Jagriti Enclave, having his office at 121, FIE, Patparganj

Industrial Area approached the Punjab National Bank,

Jorbagh Branch, New Delhi, for grant of credit facility

for the purpose of his business of manufacturing

sanitary goods. The bank, vide sanction letter dated

29.03.2011 granted the cash credit limit of Rs.400 lakh

and a Loan Account No. 0175008700000385 was

opened          in    the      name          of    M/s.   Shankar   Metals,

proprietorship firm of Sanjeev Dixit. Besides executing

the loan documents, following four properties were

mortgaged with the bank as collateral security:-

(a)     The guarantor Sh. Sanjay Sharma, proprietor of

M/s Super Machines R/o 17B, Shri Ram Nagar,


CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
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 Shahdara, Delhi mortgaged his immovable property

admeasuring 700 sq. yards situated at industrial plot

no. 25, Shyam Industrial Area, Village Banthla, Loni,

Ghaziabad,            U.P       by      depositing         the     Sale       Deed

purportedly executed in his favour by the erstwhile

owner Harbans Lal Sharma. The sale deed was

registered with the office of Sub-Registrar IV, Ghaziabad

on 04.06.2008.

(b)     The guarantor Smt. Indra Rani W/o Yagya Dutt

Sharma, R/o 198/2, Gali No.11, Bhola Nath Nagar, Delhi

mortgaged              her       built       up    immovable             property

admeasuring 65 sq. yards situated at No. 17B, Khasra

No. 423, Shri Ram Nagar, G T Road, Shahdara by

depositing a Sale Deed purportedly executed by Smt.

Simla Rani in her favour. The sale deed was registered

with the office of Sub-Registrar IV, Delhi on 04.10.1999.

(c)     The       borrower,          Sanjeev       Dixit    mortgaged             his

residential property admeasuring 341.40 sq. meters

C193, IIIrd Floor, Vivek Vihar, Phase-I, Delhi by

depositing a sale deed purportedly executed by R K

Manchanda in his favour, registered with the office of

Sub-Registrar VIII, Delhi on 31.01.2011.

(d)     Sanjeev         Dixit      also       mortgaged          his   industrial


CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
Case No. 63/2019 (6669/16)                                             Page no.6 Of 372
 property no. 121, FIE, Patparganj Industrial Area,

Delhi-92 by depositing a Sale Deed purportedly

executed in his favour by Ramji Lal Chawla, registered

with Sub-Registrar VIII Delhi on 25.05.2011.

2.01.              Sanjeev Dixit defaulted in repayment of loan.

The bank initiated action under SARFAESI Act, 2002 and

served notices to sell the above mentioned properties

through publication. During verification of the title

deeds         of    the      above         properties,   following     facts

emerged:-

       (i)     The title deeds of the property Plot no. 25,

       Shyam Industrial Area, Loni, Ghaziabad were

       forged and fabricated. On spot verification revealed

       that notices of several other banks were pasted on

       said property and the physical possession of the

       property had already been taken by Syndicate

       Bank, Nirman Vihar branch, Delhi against the loan

       account of Shyam Enterprises. It was found that

       multiple title deeds of said property were in

       circulation and the property was also mortgaged

       with the other banks.

       (ii)    The title deeds of the property no. 17B, Shri

       Ram Nagar, G T Road, Shahdara were also found to


CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
Case No. 63/2019 (6669/16)                                     Page no.7 Of 372
        be forged. Upon spot verification, the property was

       found locked. Enquiry revealed that number of

       notices were pasted on the property by several

       other banks. It was found that multiple title deeds

       of the property were in circulation and the property

       was mortgaged with the other banks also.

       (iii) Sale deed of property No. C193, III Floor, Vivek

       Vihar, Phase-I was also forged and fabricated. On

       spot       verification          revealed          that   the     property

       belonged to some other person.

       (iv)    The title deeds of the property no. 121, FIE,

       Patparganj Industrial Area were found to be fake

       and forged as no such property was registered with

       the office of Sub-Registrar VIII at the given details.

       On spot verification revealed that the said property

       also belonged to some other person.

2.02             As per the terms of loan, Sanjeev Dixit was

bound         to      deposit          the         sale   proceeds        of     the

hypothecated stock, which he failed to do and

misappropriated the funds. At the time of applying for

loan, Sanjeev Dixit had submitted various identification

and financial documents pertaining to himself, his firm

M/s. Shankar Metals and the guarantors. Investigation


CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
Case No. 63/2019 (6669/16)                                             Page no.8 Of 372
 however, revealed that all the said documents were

false and fabricated. Following is the list of forged/false

documents,            self      attested           copies   of   which     were

submitted with the bank:-

       (i)      Voter ID card of Sanjeev Dixit, Smt. Indira
                Rani and Sanjay Sharma.

       (ii)     PAN Cards of Sanjeev Dixit and Sanjay
                Sharma.

       (iii)    Electricity and water bills in the name of
                Sanjeev Dixit and Sanjay Sharma.

       (iv)     The Form No P2-000652 dated 28.02.2011,
                purportedly issued by the office of
                Commissioner of Industries, Government of
                NCT of Delhi.

       (v)      TIN No. 07511326352 dated 07.05.2008
                purportedly issued by Department of Trade
                and Taxes, Govt. of NCT of Delhi in the name
                of Shankar Metals.

       (vi)     Account statements of Account No.
                2867201000038 purportedly in the name of
                M/s Shankar Metals maintained with Canara
                Bank, Rajinder Nagar, Ghaziabad, U.P.

       (vii) Audit reports, profit and loss account,
             balance sheets of M/s Shankar Metals for
             the year 2008, 2009, 2010 purportedly
             audited by Sukhdev Madnani, CA and for
             the year 2011 purportedly audited by Prem
             Mishra, CA.


CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
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 2.03             Investigation revealed that Sanjeev Dixit

(A-1) (PO) dishonestly concealed previous loans availed

by him from the other banks while applying for CC limit

from Punjab National Bank, Jor Bagh branch. In June,

2010, he had availed CC Limit of Rs.2.8 crores from

Allahabad           Bank,       Vasundhara,         Ghaziabad,    U.P      as

proprietor of Golden Tap Sanitation which was declared

NPA. The bank had initiated recovery proceedings in

DRT and it was found that the property No. 232 Jagriti

Enclave which was mortgaged as collateral security was

not genuine. In October, 2010, he had availed a car loan

of Rs.37.5 lakh from Canara Bank, Karkardooma which

was also declared as NPA and the recovery suit was

pending in DRT-III. Investigation further revealed that

one Jitender Singh, who represented himself as Sanjay

Sharma and unknown lady who represented herself as

Smt. Indra Rani had stood guarantors in CC account of

M/s Shankar Metals.


2.04             Investigation             also    revealed   that     after

sanction of CC Limit, a false list of debtor firms of M/s

Shankar Metals was submitted by Sanjeev Dixit for

disbursement of loan amount. He diverted all the funds


CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
Case No. 63/2019 (6669/16)                                    Page no.10 Of 372
 from the CC account of M/s Shankar Metals either by

cash withdrawal or by transferring the amount in the

other bank accounts of the firms which were either

owned by him or by his close relatives i.e. Rahul Sharma

(A-5), brother-in-law; Sandeep Jha, Associate; Sanjay

Sharma, guarantor; Sheetal Sharma, sister-in-law; Rajiv

Sharma (A-6), brother-in-law; Rajiv Katara, brother-in-

law; Rahul Mudgal, brother-in-law and Jitender Singh

who impersonated himself as Sanjay Sharma. To show

the business transactions in the CC account, he (Sanjeev

Dixit) fraudulently credited some amount in his

account.


2.05             The funds were diverted through bank

accounts of following entitles:-


(i)     M/s Ganesh Enterprises in Canara Bank,
        Karkardooma and PNB, Shahdara.
(ii)    M/s Katara Metals, in Canara Bank, Karkardooma,
        Delhi
(iii)   M/s Paras Metals, in Allahabad Bank, Vasundhara,
        Ghaziabad, U.P,
(iv)    M/s Rajdhani Traders, in Canara Bank
        Karkardooma.


2.06.            Investigation             revealed   that   the      bank

accounts in the name of aforementioned entities were


CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
Case No. 63/2019 (6669/16)                                   Page no.11 Of 372
 opened in the following banks on the basis of forged

documents:-

       1.       M/s Ganesh Enterprises in Canara Bank,

       Karkardooma, Ms. Sheetal Sharma was mentioned

       as proprietor but the photograph affixed thereon

       was of Arti Sharma, sister-in-law of Sanjeev Dixit

       bearing the address at 232 Jagriti Enclave, Delhi,

       address of Sanjeev Dixit.2. In the account opening

       form of M/s Ganesh Enterprises in Punjab National

       Bank, Shahdara, Rajiv Sharma (A-6) was mentioned

       as proprietor with address 17-B Shri Ram Nagar,

       G.T Road, Shahdara i.e. the property which was

       mortgaged as collateral security for CC Limit.

       3.       In account opening form of M/s Katara

       Metals, in Canara Bank, Karkardooma, Delhi, Rajiv

       Katara was mentioned as proprietor but the

       photograph affixed thereon was of Rajiv Sharma

       (A-6) with the address 232 Jagriti Enclave, Delhi.

       4.       In the account opening form of M/s Paras

       Metals, in Allahabad Bank, Vasundhara, Ghaziabad,

       U.P, Rahul Mudgal was mentioned as proprietor

       but the photograph affixed thereon was of Rahul

       Sharma (A-5) with the address 5/1234, Ground


CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
Case No. 63/2019 (6669/16)                         Page no.12 Of 372
        Floor Vasundhara, Ghaziabad UP, the property

       which was mortgaged as collateral security with

       the bank in the instant case.

       5.       In the account opening form of M/s Rajdhani

       Traders, in Canara Bank Karkardooma, Jitender

       Singh was mentioned as the proprietor but, this

       person represented himself as Sanjay Sharma in

       the instant case and stood guarantor and offered

       his property bearing no. 25, Shyam Industrial Area,

       Loni which was offered as collateral security with

       the complainant bank.

2.07             Investigation further revealed that Sanjeev

Dixit had already offered the property no. C-193, IIIrd

Floor, Vivek Vihar as collateral security while availing CC

Limit of Rs.3.5 crores from Punjab National Bank, Nehru

Nagar, Ghaziabad, in favour of M/s Golden Tap

Industries on 26.05.2011 account of which had already

become NPA with Rs.3.59 crores as outstanding.

Sanjeev Dixit representing himself as Sanjay Sharma in

2008 had offered 25, Shyam Industrial Estate, Loni,

Ghaziabad as collateral security while availing CC Limit

of Rs.90 lakh from Syndicate Bank, Nirman Vihar, New

Delhi in favour of M/s Sree Sai Satyam Enterprises


CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
Case No. 63/2019 (6669/16)                         Page no.13 Of 372
 through its partners Sanjay Sharma @ Sanjeev Dixit,

Reena Sharma and Rajiv Sharma, account of which was

also      declared          as      NPA        with   Rs.1.25   crores       as

outstanding.            The       said       property   is   presently       in

possession of Syndicate Bank.


2.08             Investigation further revealed that Sanjeev

Dixit was involved in number of other cases registered

vide FIR No. 217/12, P.S Anand Vihar, Delhi, 260/13, PS

Anand Vihar, Delhi, 49/13, PS Vivek Vihar, Delhi, 86/13

P.S Preet Vihar, Delhi, RC No. 1202/013A00/3/2013 CBI

ACP Ghaziabad, 212/13 PS Kundli, Sonepat and 213/13

PS Kundli, Sonepat for defrauding the banks.


2.09             During investigation, the involvement of

panel advocate N. S. Parihar and the bank officials of

Punjab National Bank, Jor Bagh branch also emerged. It

was found that N S. Parihar, advocate, who was on the

panel of the bank, submitted a false verification report

(non encumbrance certificate) to the bank in respect of

immovable properties which were offered as collateral

securities by the accused Sanjeev Dixit. He deliberately

mentioned that Smt. Indra Rani has a clear, valid and

marketable title over the property which she offered as

collateral security. But, the investigation revealed that

CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
Case No. 63/2019 (6669/16)                                      Page no.14 Of 372
 as per the Sub-Registrar office record, Smt. Indra Rani

had already sold the above property in the year 2003.

He did not report to the bank that the photographs of

the      guarantor           Smt.       Indra      Rani    affixed     on     the

property/loan papers given to the bank were different

from that affixed in the record of the Sub-Registrar

office. In his Legal Search Report of property no. 121,

FIE, Patparganj Industrial Area vide dated 22.06.2011,

he dishonestly mentioned that Sanjeev Dixit had a clear,

valid and marketable title whereas, the investigation

revealed that the property was never owned by Sanjeev

Dixit as per the Sub-Registrar office record. Further N. S.

Parihar is also an accused alongwith Sanjeev Dixit in

other         cases         of       bank          fraud    i.e.     RC       No.

1202/013A00/3/2013 CBI ACP Ghaziabad, 212/13 PS

Kundli, Sonepat and 213/13 PS Kundli, Sonepat.


2.10.            Accused Ranjiv Suneja while functioning as

Senior Manager in the bank in conspiracy with Smt. K.

K. Johar and other accused persons dishonestly

appraised and recommended the limit of Rs.4 crores to

M/s      Shankar Metals                  and       same    was     dishonestly

sanctioned by Smt. K. K. Johar while she was working as

Chief Manager. As pe charge-sheet, the                                 banking


CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
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 procedure was violated by them in the following

manner:-


        (a)      They did not verify the Voter I Cards and PAN

        Cards of the borrower/Guarantors from the

        website of the Chief Election Officer/Income Tax

        Department.


        (b)      They        did      not          collect   and   verify      the

        documents/certificates issued by the Government

        Departments to ascertain the existence and

        ownership of firms before opening the account.


        (c)      They did not verify the membership of the

        Chartered Accountants from the website of ICAI.


        (d)      They did not verify the past conduct of the

        borrower's account from the previous bank i.e.

        Canara Bank, Karkardooma, Delhi.


        (e)      They did not ascertain the credit worthiness

        of     the      firm/proprietor/guarantor                  from     CIBIL

        before          sanctioning                the   loan.     The      credit

        information report of M/s Shankar Metals from

        CIBIL was dated 05.11.2011 while the loan was

        sanctioned on 29.03.2011. No credit information


CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
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         reports in respect of guarantors were extracted

        from CIBIL. Suspicious features in the CIBIL report

        were deliberately overlooked by them as the

        report dated 04.03.2011 of the accused Sanjeev

        Dixit disclosed Enquiry about Auto Loan of

        Rs.5,00,000/-, two more PAN i.e. AITPD0089M &

        ASDPD7032N,                two       more   Date   of    Birth      i.e.

        10.07.1973 and 01.01.1973 with the same Voter ID

        Card No.DL/04/043/171289 and the same address

        i.e. 232, Jagriti Enclave, Delhi.


        (f)      They did not communicate with the owners

        of the mortgaged properties through registered

        letters to confirm proof of residence and their

        willingness to offer the properties as collateral

        security. They did not obtain the certified copy of

        the registered title deeds from the empaneled

        lawyer to compare the contents, registration

        particulars and photographs of the title deeds

        with the original title deeds. Further, they did not

        examine the change of title and opening of bank

        account nor verified the antecedents of the

        intending mortgagor to mitigate the chances of

        impersonation.


CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
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         (g)      They deliberately and dishonestly accepted

        incomplete NEC/Legal Search Reports of the

        properties at Loni, Ghaziabad and Vivek Vihar

        Delhi, prepared by N. S. Parihar without obtaining

        the certified copies of the title deeds from the

        Sub-Registrar office. It was clearly mentioned in

        the NEC/Legal Search Report that "Applied for

        certified copy. Same is yet to be received."


        (h)      The valuation reports of three properties

        were submitted by Naveen Kamboj, Approved

        Valuer on 24.03.2011 and the report of property

        No.       5/1234         (GF      and      FF),   M11   Vasundhara

        Ghaziabad was submitted by M. L. Nasa, Valuer on

        13.05.2011 while the loan was sanctioned on

        29.03.2011.


        (i)      Independent               spot      verification       of     the

        firm/godown/showroom and residence of the

        borrower and guarantor was not done to verify

        the assets and liabilities shown and no report

        regarding the ownership of the properties/past

        conduct was collected. Investigation revealed that

        the confidential report of Sanjeev Dixit and M/s

        Shankar Metals were dishonestly prepared by

CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
Case No. 63/2019 (6669/16)                                          Page no.18 Of 372
         them on 22.03.2011 without mentioning anything

        in the column of "Enjoying facilities in other

        banks" while in the CIBIL report of Sanjeev Dixit

        dated 04.03.2011, inquiries about auto loan of

        Rs.5.0 lakh was mentioned. It was mentioned in

        the confidential report that the property at C-193

        Vivek Vihar owned by Sanjeev Dixit was visited by

        Smt. K. K. Johar on 08.03.2011 but, the Movement

        Register of Punjab National Bank does not show

        any entry of 08.03.2011.


        (j)      Confidential Report of Sanjay Sharma was

        dishonestly prepared by them on 22.03.2011

        mentioning his address as 414, Shakar Pur Delhi

        but this premises was never visited by them as per

        record/Movement                   Register.   As   per     the      CR,

        property i.e. Plot No. 25, Shyam Industrial Estate

        was visited by Smt. K. K. Johar on 08.03.2011 but

        the Movement Register does not show any such

        entry for 08.03.2011. In the report, it is mentioned

        that Sanjeev Rana, Plot No. 56, Shyam Industrial

        Estate, Loni has reported that Sanjay Sharma was

        a reputed and honest but, during investigation,

        Sanjeev Rana denied having said the same. In the


CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
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         report, it was mentioned that Mr Sharan Beer

        Choudhary who had a business of batteries had

        reported that Sanjay Sharma lived at 414 Shakar

        Pur and had the means of about Rs.70-75 lakh

        but, during investigation Sharan Beer Choudhary,

        disclosed that no lady officer had ever come to

        make any enquiry about Sanjay Sharma.


        (k)      Confidential report dated 22.03.2011 of the

        guarantor            Indra        was      dishonestly     prepared

        mentioning her address as 158/2, Gali No. 11,

        Bhola Nath Nagar but, the record/movement

        register shows that this premises was never

        visited by them. As per the CR, property at 17B,

        Shri Ram Nagar, G T Road, Shahdara was visited

        by Smt. K. K. Johar on 08.03.2011 but, the

        movement register does not show any such entry

        for 08.03.2011. In the report, it is mentioned that

        M/s Moolchand & Co. had reported that Smt.

        Indra Rani was owing property worth of about

        Rs.50 lakh. But, during investigation, the said

        person Moolchand who lives in the locality of Smt.

        Indra Rani disclosed that he did not have any firm

        namely M/s Moolchand & Co. nor any officer from


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         the bank ever came to him to enquire about Smt.

        Indra Rani.


        (l)      Confidential report dated 22.03.2011 of

        Rajesh Aggarwal, who purportedly sold out his

        property at 5/1234, M11 Vasundhara, Ghaziabad

        to Sanjeev Dixit was also prepared dishonestly

        mentioning that Smt. K.K. Johar had visited said

        property. But again, the movement register did

        not show any such entry for 08.03.2011. The loan

        was sanctioned without taking legal search report

        of the above property from the empaneled lawyer

        as the report is of 16.05.2011, whereas, the loan

        was sanctioned on 29.03.2011.


        (m)      Inventory/stock                   statements   were       not

        collected to check the security physically with the

        books of the borrowers. As per DP register, stock

        statement for the month of December, 2011 and

        January, 2012 were not submitted by the borrower

        and the stock was not inspected by the bank

        officials for the period of May, 2011, October,

        2011, December, 2011, January, 2012 and April

        2012. As per stock statement as on 30.06.2011,

        31.07.2011,               30.09.2011,            30.11.2011       and

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         31.03.2012, the stock was claimed to be inspected

        by Smt. K. K. Johar on 06.07.2011, 14.08.2011,

        20.10.2011,                15.12.2011               and      17.04.2012

        respectively but, the movement register did not

        show the entries for these dates.


        (n)      The funds were deliberately and dishonestly

        allowed to be diverted by them in the bank

        accounts of the firms which were either owned by

        accused             Sanjeev            Dixit         or     his      close

        relatives/associates                who        did    not    have       any

        business transactions with M/s Shankar Metals.


        (o)      As stated by Vijay Goel who prepared the

        CMA/financial data for M/s Shankar Metals, Smt.

        K. K. Johar was given one per cent of the loan

        amount as bribe to sanction the loan.


        (p)      After       the      sanction         of    the    loan,      they

        dishonestly replaced the collateral security i.e.

        property no. 5/1234 (GF & FF), M-11, Vasundhara,

        Ghaziabad U.P with the property No. 121, FIE,

        Patparganj Industrial Area, Delhi on 25.06.2011,

        without receiving the valuation report of the new

        property.


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 2.11.            The internal concurrent audit conducted by

the bank dated 25.10.2013 also revealed that the bank

officials were liable for this fraud as the loan was

appraised, sanctioned and disbursed without following

the guidelines of the bank. Investigation further

revealed that Rahul Sharma (A-5) managed to open

bogus bank account in the name of M/s Paras Metals

and helped the accused Sanjeev Dixit (A-1) to divert the

funds from the loan account of M/s Shankar Metals in

the account of M/s Paras Metals. The CFSL report

confirmed that the signatures of Rahul Mudgal in the

account opening form were of Rahul Sharma. Similarly,

Rajiv Sharma (A-6) who had an account in the name of

M/s Ganesh Enterprises helped Sanjeev Dixit to divert

the funds from the loan account of M/s Shankar Metals

in the account of M/s Ganesh Enterprises.


2.12.            Investigation revealed that as per the loan

documents, Sanjay Sharma was the guarantor of the

subject loan but on the loan documents, photograph of

Jitender Singh was pasted as Sanjay Sharma. Forged

Sale Deed of property no. 25, Shyam Industrial Area,

Loni, Ghaziabad was submitted on behalf of guarantor

as collateral security. Jitender Singh was the owner of


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 the bank account in the name of M/s Rajdhani Traders

maintained in Canara Bank, Karkardooma through

which the funds were diverted from the loan account of

M/s Shankar Metals.


2.13.            Investigation revealed that Smt. Indra Rani

was not the guarantor of this loan as the CFSL report

confirmed that the signatures on the loan documents

are not attributable to her and she had already sold the

property no. 17B, Shri Ram Nagar, G T Road, Shahdara

way back in the year 2003. As per the loan documents,

Smt. Indra Rani was the guarantor of this loan but the

photograph of some other lady was affixed as Smt

Indra Rani on the loan documents. Forged sale deed of

property no. 17B, Shri Ram Nagar, G T Road, Shahdara

was submitted on behalf of the guarantor as collateral

security to the bank.


Framing of Charge


3.      Vide order on charge dated 26.09.2018, a formal

charge for the offence of conspiracy punishable under

Section 120-B r/w 419/420/467/468/471 IPC with

Section 13(2) r/w 13(1)(d) of Prevention of corruption

Act, 1988 and substantive offence under Section 420


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 IPC r/w 120B IPC was framed against all the accused

persons except accused Sanjeev Dixit, who was

declared P.O. vide order dated 30.10.2017. Besides that,

accused Kulwinder Kaur Johar @ K.K.Johar and Rajiv

Suneja were also charged for the offence under Section

13(2) r/w 13(1)(d) of Prevention of corruption Act, 1988,

while       the      accused          Nrapendra    Singh   Parihar      @

N.S.Parihar was charged for the offence                    punishable

under Section 468 IPC r/w 120-B IPC. All the accused

persons pleaded not guilty and claimed trial.


Prosecution evidence


4.      In order to prove its case, prosecution examined

78 witnesses and their examination-in-chief is succinctly

discussed herein below. All the witnesses were cross

examined by the Ld. Defence Counsels but, as and

when required, relevant part of their cross-examination

shall be referred in the later part of this judgment

starting under the heading "Discussion and Analysis of

material by the Court". For the sake of convenience,

witnesses have been categorized in following broad

categories:-


(i)     Witnesses from Punjab National Bank, Jorbagh


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         Branch
(ii) Witness from other branches and offices of PNB
(iii) Empaneled Valuer
(iv) Witnesses from other Banks (other than PNB)
(v) Police Witnesses
(vi) Witnesses from Sub-Registrar Office
(vii) Sanctioning Authority
(viii) Chartered Accountants/CMA witnesses
(ix) Witnesses pertaining to KYC from the office of
       Electoral    Registration   Office,      BSES,
       DJB/Custom/Excise/Income Tax/Industries
(x) Witnesses of record
(xi) Witnesses from CFSL
(xii) Witnesses pertaining to use of forged
       documents/forgery      of  title/identification
       documents
(xiii) Witnesses relating to dummy bank accounts
(xiv) Witnesses to Specimen signatures



(i)     Witnesses from Punjab National Bank, Jorbagh
        Branch
1.      Sh. Braj Kumar Jha, the then Manager, Punjab
        National Bank, Jor Bagh Branch, New Delhi
        (PW-10)
2.      Sh. C.P. Garg, Retired Chief Manager, Punjab
        National Bank,       Ludhiana (PW-6) (the
        complainant)
3.      Sh. Prashant Mishra, the then Chief Manager,
        Punjab    National Bank, Jor Bagh, Delhi (PW-76)

(ii)    Witness from other branches and offices of
        PNB
4.      Sh. Rajnish Nangia, Manager (since retired), Circle
        Head, PNB, South, Delhi (PW-45)


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 5.      Sh. Arun Sharma, the then Sr. Manager, Circle
        Office,   PNB,       Rajender Place, New Delhi
        (PW-58)
6.      Sh. Vipin Kumar Arora, Head Clerk, PNB,
        Shahdara, Delhi (since retired) (PW-59)
7.      Sh. Virender Kumar Dhar @ V.K. Dhar, Ex-Chief
        Concurrent Auditor, PNB, BO IBB, Barakhamba
        Road, New Delhi (PW-65)
8.      Sh. Sadananda Sahoo, the then Dy. General
        Manager, Vigilance Department, HO 7, Punjab
        National Bank, Bhikaji, Cama Place, New Delhi
        (PW-71)

(iii) Empaneled Valuer
9.    Sh. Madan Lal Nasa @ M.L. Nasa, Government
      Valuer,    empanelled valuer with PNB at the
      relevant time (PW-  64)
10. Sh. Naveen Kamboj, who had worked as Valuer for
      Immovable Property for PNB (PW-78)

(iv) Witnesses from other Banks (other than PNB)
11. Sh. Indravadan Dhawan, Retire Manager, Canara
     Bank, Rajinder Nagar, Ghaziabad, U.P (PW-11)
12. Sh. Ram Lagan Singh, Manager, PNB, Scope Tower,
     Laxmi Nagar, Delhi (since retired) (PW-52)
13. Sh. Roshan Lal, Manager, Canara Bank, 177, Saini
     Enclave, Karkardooma, Delhi (since retired)
     (PW-53)
14. Sh. Arunendra Pratap Singh @ A.P. Singh, Chief
     Manager, Allahabad Bank, C-25, Sector-15,
     Vasundhra, Ghaziabad, U.P. (PW-54)
15. Sh. Devendra Kumar Sharma @ D.K. Sharma,
     Manager (retired), Syndicate Bank, ARMB, Dev
     Nagar, Delhi (PW-56)
16. Sh. Mahabir Singh, Chief Manager, Allahabad
     Bank, Vasundhara, Ghaziabad, UP (PW-62)


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 17.     Sh. Man Pal Singh @ M.P. Singh, the then Manager,
        Canara Bank, Karkardooma Branch, Delhi (PW-67)
18.     Sh. Sarvesh Kumar Dwivedi @ S.K. Dwivedi, Retd.
        Sr. Manager, Allahabad Bank, Vasundhara,
        Ghaziabd, UP (PW-70)

(v)     Police Witnesses
19.     ASI Fakhray Alam, North Zone, PCR, Delhi (PW-26)
20.     Inspector Nirbhay Kumar, EOW, Mandir Marg, New
        Delhi (PW-30)
21.     SI Ram Shankar Pandit, P.S. Kalyan Puri, Delhi
        Police
22.     ASI Narender Kumar, PS Vivek Vihar, Delhi Police
        (PW-33)
23.     HC Dinesh, PS Nangloi, Delhi Police (PW-34)
24.     SI Monu, Narcotic Cell, Shahdara, Delhi (PW-35)
25.     SI Rajbir Singh, P.S. Kalindi Kunj, South-East
        District, Delhi Police (PW-36)
26.     Sh. Rajeev Kapoor, posted at PS Anand Vihar, Delhi
        Police at the relevant time (PW-37)
27.     Inspector Pradeep Kumar, Traffic Incharge, Jhajjar,
        Haryana (PW-38)
28.     Inspector Naval Marwa, CBI, ACB, Ghaziabad, U.P.
        (PW-39)
29.     Inspector Vishal, the IO of this case (PW-77)

(vi) Witnesses from Sub-Registrar Office
30. Sh. Naveen Kumar, the then Registration Clerk
     from the office of Sub-Registrar-IV, Ghaziabad, UP
     (PW-13).
31. Sh. Chander Mohan, Registration Clerk from the
     office of Sub-Registrar-I, Ghaziabad, UP (PW-44).
32. Sh. Budh Prakash Gautam, LDC from the office of
     Sub- Registrar-IV, Seelampur, Nand Nagri
     Complex, Delhi (PW-46).
33. Sh. Manoj Kaushik, the then Sub-Registrar-IV A,


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         Shahdara/Seemapuri, Delhi (PW-47).
34.     Sh. Navin Kumar Sharma, Sub-Registrar VIII,
        Geeta Colony, LM Bandh, DC Office Complex,
        Shastri Nagar, New Delhi (PW-48).
35.     Sh. Satinder Mohan, Section Officer, CM Office,
        Delhi Secretariat, New Delhi, posted as Sub-
        Registrar-VIII, Geeta Colony at the relevant time
        (PW-49).
36.     Sh. Avtar Singh, UDC, Irrigation Flood Control
        Department, Shastri Nagar, Delhi, posted in the
        office of Sub-Registrar Seelam Pur at the relevant
        time (PW-50)

(vii) Sanctioning Authority
37. Sh. Anil Kumar Khosla, the then Dy. General
      Manager (since retired), PNB-7, Bhikaji Cama
      Place, New Delhi- 110067 (PW-73) [Sanctioning
      Authority in respect of accused Ranjiv Suneja
      (A-4)].
(viii) Chartered Accountants/CMA Data witnesses
38. Sh. Sukhdev Madnani (PW-7)
39. Smt. Prem Lata Mishra (PW-12)
40. Sh. Hardesh Kumar Jain @ H.K. Jain, the then Dy.
       Secretary, Institute of Chartered Accountant of
       India, Delhi (PW-72)
41. Sh. Vijay Kumar Goel, the then GM (Finance), MVL
       Ltd.(PW-66)
(ix) Witnesses pertaining to KYC from the office of
     Electoral Registration Offcie, BSES, DJB/
     Custom/ Excise/ Income Tax/ Industries
42. Sh. I.A. Khan, Assistant Electoral Registration
     Officer, Assembly    Constituency-59, Vishwas
     Nagar, UTCS Building, East Arjun Nagar, Shahdara,
     Delhi (PW-1).
43. Sh. Sourav Banerjee Bandyopadhyay, Divisional

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         Business Head, Office of BSES Yamuna Power Ltd.,
        I.P. Extension, Patparganj, Delhi (PW-2).
44.     Ms. Amita Sharma from the office of Zonal
        Revenue Officer-IV, Yojna Vihar, Delhi Jal Board
        (PW-3).
45.     Sh. Bhagat Singh, the then Inspector, Office of
        Commissioner of Industries, Govt. of NCT of
        Delhi, Patparganj, Delhi (PW-4).
46.     Sh. Lalit Mittal, ssistant Commissioner, Excise
        Department, NCT, IP Estate, Delhi (PW-5).
47.     Sh. Mantu Prasad, Sr. Manager, NSDL, Mumbai
        (PW- 8).
48.     Sh. Bishamber Nath, Assistant Commissioner,
        Department of Sales & Taxes, Govt. of NCT of Delhi
        (PW-9).
49.     Ms. Priya Chaudhary, the then VAT Inspector,
        Department of Trade & Taxes, Vayapar Bhawan, IP
        Estate, New Delhi (PW-17)
(x)     Witnesses of Record
50.     Sh. Ravindra Kumar Malik, Assistant Ahlmad in the
        Court of Sh. Dinesh Kumar, the then Ld. ACMM,
        Karkardooma Court (PW-25).
51.     Sh. Mahendra Maurya, JA/Ahlmad in the Court of
        Ms. Ambika Singh, the then Ld. ACMM, Shahdara,
        Delhi (PW-32)
(xi) Witnesses from CFSL
52. Sh. Anil Sharma, Sr. Scientific Officer, Grade-II
     (Documents)-cum-Assist. Chemical Examiner, CFSL,
     CBI, N.D. (PW-57)
53. Sh. Vijay Verma, the then Sr. Scientific Officer
     Grade- II (documents)-cum-Assistant Chemical
     Examiner, Block- IV, CGO Complex, Delhi (PW-75)

(xii) Witnesses pertaining to use of                 forged
      documents/ forgery of documents

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 54.     Smt. Indra Rani (PW-14)
55.     Sh. Harish Kumar (PW-15)
56.     Sh. Kamal Singh Arya (PW-16)
57.     Sh. Naresh Kumar Gupta (PW-51)
58.     Sh. Sharanveer Singh (PW-60)
59.     Sh. Mohan Kumar Aggarwal (PW-63)
60.     Sh. Romit Manchanda (PW-68)
61.     Sh. Pravesh Kumar Sharma (PW-69)
62.     Sh. Sanjeev Singh Rana (PW-74)

(xiii) Witnesses relating to dummy bank accounts
63. Sh. Vinod Kumar, Former Proprietor of M/s.
       Mahaveera Enterprises (PW-18)
64. Sh. Ankit Gupta, Proprietor of M/s. Balaji
       Sanitation (PW-19)
65. Sh. Radhey Shyam Gupta, Proprietor of M/s. King
       Sanitation (PW-20)
66. Sh. Sandeep Tanwar, Proprietor of M/s. R.S.
       Enterprises (PW-21)
67. Sh. Naresh Soni, Proprietor of M/s. Soni Sanitation
       (PW-22)
68. Sh. Raman Sharma, Partner of M/s. Rohit
       Sanitation (PW-23)
69. Sh. Ramesh Aggarwal, Proprietor of M/s. Aggarwal
       Metals (PW-24)
70. Sh. Subhash Gupta, Proprietor of M/s. Super
       Sanitary Store (PW-27)
71. Sh. Sunil Kumar Dhoot, Manager of M/s. Dhoot
       Sanitation (PW-28)
72. Smt. Saloni Dhoot, Owner of M/s. Dhoot
       Sanitation (PW-29)
(xiv) Witnesses to Specimen signatures
73. Sh. Iqbal Singh, CTOB, PNB, Jorbagh, Delhi (PW-40)
74. Sh. K.S. Mishra (since retired), the the Police
      Constable, CBI, BS&FC, New Delhi (PW-41)

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 75.     Sh. Shambhu Nath Chaudhary, Manager, Punjab
        National Bank, Finance Division, Sector-10,
        Dwarka, New Delhi (PW-42)
76.     Sh. Ram Kumar Gupta, Sr. Manager (retired),
        Punjab National Bank, GT Road, Ghaziabad, UP
        (PW-43)
77.     Sh. Kewal Krishan, retired Officer, PNB, Jorbagh,
        Delhi (PW-55)
78.     Sh. Ravi Mehta, Computer Operator, PNB, Jorbagh,
        New Delhi (PW-61)

5.      Witnesses from Punjab National Bank
5.1.1            PW-10 Shri Braj Kumar Jha is the then

Manager in Punjab National Bank, Jorbagh Branch, New

Delhi. As per his version, he was posted at Jorbagh

Branch of PNB during the year 2010-2011. He joined the

investigation of the present case with CBI in the year

2014-2015. During investigation, he (PW-10) was shown

loan documents and account opening forms.                PW-10

further deposed that vide account opening form

already exhibited as Ex.PW-6/D (D-5) submitted by M/s.

Shankar Metals, he had opened a current account

No.0175002100018768 for M/s. Shankar Metals on

11.03.2011. The form was signed by Sanjeev Dixit (since

P.O.), the proprietor of M/s. Shankar Metals and it bore

the signatures of Sanjeev Dixit at points "A-1" to "A-8"

and his (PW10's) signatures at points "B-1" to "B-4". At



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 the time of opening of said account, he had taken the

photocopies of the PAN Card and Voter I Card of

Sanjeev Dixit and had verified the same from original.

He also took KYC documents i.e. photocopy of VAT

Certificate and photocopy of certificate from District

Industry Center of the proprietorship firm M/s. Shankar

Metals, after verifying it with their originals.


5.1.2            He further deposed that Sanjeev Dixit had

signed all the photocopies in his presence and he also

signed them after verifying said documents from the

originals produced before him. PW10 identified his

signatures and that of Sanjiv Dixit on the photocopies

of KYC documents.                   He also identified signatures of

Sanjeev Dixit on various other documents submitted by

him (A-1) at the time of cash credit facility. The list of all

such documents is as under:-

    Exhibit                         Nature of document
Ex.PW-10/A              The photocopy of PAN Card.
Ex.PW-10/B,             Voter ID Card.
Ex.PW-10/C              Photocopy of VAT Certificate.
Ex.PW-10/D              Photocopy of certificate from District Industry
                        Center.
Ex.PW-10/E)             CMA Data (part of credit appraisal).
(part of D-7)
(page 68 to 80)
Ex.PW-10/F (D-7 Audited balance sheet as on 31.03.2011.
colly) (page 82 to


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 98),
Ex.PW-10/G        Provisional profit and loss account and
(page 99 to 107) balance sheet as on 31.03.2011
(D-7)
Ex.PW-10/H        Audited balance sheet as on 31.03.2008.
(pages 108 to
124) (D-7)
Ex.PW-10/I        Audited balance sheet as on 31.03.2009.
(pages 125 to
138) (D-7)
Ex.PW-10/J        Audited balance sheet as on 31.03.2010.
(page 139 to
152) (D-7)
Already           Audited balance sheet as on 31.03.2011.
Ex.PW-6/K (page
153 to 166) (D-7)
Ex.PW-10/K        Copy of draft rating / PNB Track dated
(page 167 to 09.03.2011.
171) (D-7)


5.1.3          PW-10         also      identified   the   signatures      of

accused Smt. K.K.Johar (A-3) and Rajiv Suneja (A-4) on

Credit Appraisal Note, Ex. PW6/N2 (D-8, page 200 to

209) and deposed that it also bears the signatures of

Sanjeev Dixit (A-1) at page nos. 205, 206, 208 and 209.

He also identified the signatures of Sanjeev Dixit on

loan documents Ex.PW6/O-2 (D-8 page 210), Ex.PW6/P-2

(D-8 page 211), Ex.PW6/Q-2 (D-8 page 212 and 213),

Ex.PW6/R-2 (D-8 page 214 to 216) and Ex.PW6/S-2 (D-8

page 217 to 219). He also identified                      signatures of

Sanjeev Dixit on the stock statement of M/s. Shankar

Metals dated 29.03.2011 Ex.PW6/U-2 (D-9 page 223 to

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   225); dated 07.04.2011 of Ex.PW6/V-2 (D-9 page 226 to

  228); dated 01.05.2011 of Ex.PW6/W-2 (D-9 page 229 to

  231); dated 31.05.2011 Ex.PW6/X-2 (D-9 page 232 to

  234); dated 30.06.2011 Ex.PW6/Y-2 (D-9 page 235 to

  238) and dated 31.07.2011 Ex.PW6/Z-2 (D-9 page 239 to

  242) at point A on all pages.


  5.1.4          He further deposes that cheque bearing no.

  075109 dated 05.03.2011 for an amount of Rs. 50,000/-

  Ex.PW6/F (D-15) bears signatures of Sanjiv Dixit at point

  A. Cheques already Ex.PW6/G1 to Ex. PW6/G-5 (D-17 to

  D 21) are also bearing the signatures of Sanjiv Dixit at

  point A. PW-10 also identified signatures of accused

  Sanjeev Dixit on 47 cheques with RTGS pertaining to

  various withdrawal transaction from CC account as

  Ex.PW6/H2 (colly.) (D-24) to Ex.PW6/H48 (colly.) (D-70).


  5.1.5          He also identified signatures of accused

  persons namely Smt. K.K. Johar (A3) and Ranjiv Suneja

  (A4) at points "A" and "B" respectively on the following

  documents:-

Srl. No. Document                              Pages     Exhibit
    1.   Confidential Report                 1127-1136   Ex.PW6/S        to
         dated 22.03.2011                     (D-106)    Ex.PW-6/W
    2.   Legal compliance                    1170-1171   Ex.PW6/C-1
         Certificate                          (D-111)


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 Srl. No. Document                Pages        Exhibit
    3.   Photocopy of title 184 to 2025 (part Ex.PW6/L-2
         deed register          of D-143)


5.1.6           Further, he identified signatures of accused

Smt. K.K. Johar (A3) at point "A" on following documents:-
Srl. No. Document                              Pages       Exhibit
   1.    Proforma        for                1355 (D-125)   Ex.PW6/O-1
         recording the value
         of property
   2.    Proforma        for                1356 (D-126)   Ex.PW6/P-1
         recording the value
         of property
   3.    of M/s. Shankar                    1357 (D-127)   Ex.PW6/Q-1
         Metals
   4.    Proforma        for                1358 (D-128)   Ex.PW6/R-1
         recording the value
         of property


  5.1.7          PW-10 also identified signatures of accused

  Sanjeev Dixit (A1) (since PO) at point "A" on Additional

  information obtained from the borrower for CIBIL

  purposes Ex.PW6/M; Computation of net worth of

  Sanjiv Dixit Ex.PW6/S; Agreement for hypothecation

  Ex.PW6/A-1 and Ex.PW6/B-1; Acknowledgment of title

  deed Ex.PW6/G-1 and Ex.PW6/U-1; Property declaration

  form Ex.PW6/V-1 to Ex.PW6/Y-1; stock statement

  Ex.PW6/Z-1 and Ex.PW6/A-2 to Ex.PW6/H-2. PW-1 also

  sought to prove the Request letter dated 11.03.2011

  (D-4) Ex.PW-10/L for opening of current account in the


  CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
  Case No. 63/2019 (6669/16)                                    Page no.36 Of 372
 name of M/s Shanker Metals.


5.2.1            PW-6 Sh. C.P. Garg, is Retired Chief Manager,

Punjab National Bank, Ludhiana, Punjab, who, at the

relevant time (from June 2012 to June 2014), was posted

in Punjab National Bank, Jor Bagh, New Delhi as Chief

Manager. He is the complainant in this case. As per his

deposition, this case pertains to the working capital

account of M/s. Shankar Metal of which Sanjiv Dixit was

the sole proprietor. He deposed that after the premises

of borrower Shankar Metal was visited, it was observed

that Sanjiv Dixit was not possessing the primary

security i.e. the stock at the given address. The inquiries

further revealed that borrower had availed loan from

various other banks also against same security

furnished for securing the subject loan. Thereafter, the

matter was brought to the notice of higher authorities.

The CC account was running irregular because of non-

deposit of sale proceeds in the account. The account

was later classified as NPA and recovery proceedings

were started and action under SARFAESI was also

initiated.


5.2.2            PW-6 further deposed that on a visit to 04

mortgaged properties located at Sham Industrial Area,

CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
Case No. 63/2019 (6669/16)                         Page no.37 Of 372
    Loni Ghaziabad; Sri Ram Nagar, Shahdara; Vivek Vihar

   and 121, FF, Industrial Area Patparganj, it was found

   that the said properties were not possessed by the

   persons, who had mortgaged the same. When the

   matter was referred to the higher authorities, he (PW6)

   was directed to lodge a complaint against the related

   parties with CBI. Thereafter, in the month of June, 2013,

   he (PW-6) lodged the complaint with the CBI Ex.PW6/A

   (D-1), against the borrower for filing fake and fabricated

   title deeds to secure loan and regarding disposal of

   stocks and non-deposit of the proceeds in their CC

   Account. During investigation, relevant record was

   requisitioned by the CBI which was handed over to

   them by PW6. Through PW-6, CBI sought to prove the

   following documents:-

Sl. No.       Exhibit                       Nature of document
   1.        Ex.PW6/B           Seizure memo dated 30.07.2013 vide which,
               (D-6)            PW6 handed over certain documents to CBI.
  2.         Ex.PW6/C           Letter dated 10.12.2013 vide which, he
               (D-3)            handed over letter dated 11.03.2011
                                alongwith original account opening form of
                                current account no. 0175002100018768 (D-5).
  3.         Ex.PW6/D           Account opening form of current account no.
                (D-5)           017500210001 8768 (D-5).
  4.         Ex.PW6/E           Letter dated 03.09.2013 vide which, he
               (D-14)           submitted cheque bearing No.075109 dated
                                05.03.2011 of Rs.50,000/-.
  5.         Ex.PW6/F           Aforementioned cheque bearing no.075109.
               (D-15


   CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
   Case No. 63/2019 (6669/16)                                Page no.38 Of 372
   6.       Ex.PW6/G    Letter dated 21.10.2013 (D-16) vide which, he
             (D-16)    handed over 5 cheques to the CBI.
  7.     Ex.PW6/G1 to Aforementioned 5 cheques.
          G-5 (D-17 to
              D-21)
  8.        Ex.PW6/H           Letter dated 25.07.2013 vide which, he
              (D-22)           handed over statement of CC account and 47
                               cheques with RTGS pertaining to various
                               withdrawal transactions from the CC account.
  9.       Ex.PW6/H1           Aforesaid statement of CC account bearing
            (D-23) (19         no. 0175008700000385.
             pages)



 5.2.3          PW6         also       exhibited           aforementioned            47

 cheques with RTGS pertaining to various withdrawal

 transactions            from          the           CC      account        bearing

 no.0175008700000385 and gave their details as under:-

Cheque           Exhibit                Dated             Amount (in RTGS    sent
no.                                                          Rs.)    to/Cash
                                                                     withdrawn
075103      Ex.PW6/H2              31.03.2011             32,65,820/-   Katara Metals
            (colly.) (D-24)
075104      Ex.PW6/H3              31.03.2011             27,10,715/-   Shree Balaji
            (colly.) (D-25)                                             Enterprises
075106      Ex.PW6/H4              31.03.2011             26,15,000/-   Sharp
            (colly.) (D-26)                                             Sanitation
075105      Ex.PW6/H5              31.03.2011             9,68,719/-    Shree       Sai
            (colly.) (D-27)                                             Shyam
                                                                        Enterprises
075108      Ex.PW6/H6              02.04.2011             15,37,115/-   Katara Metals
            (colly.) (D-28)
075113      Ex.PW6/H7              06.04.2011             9,10,338/-    Sharp
            (colly.) (D-29)                                             Sanitation




  CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
  Case No. 63/2019 (6669/16)                                            Page no.39 Of 372
 075112      Ex.PW6/H8              06.04.2011        12,25,000/-   Ashish
            (colly.) (D-30)                                        Enterprises
075117      Ex.PW6/H9              27.04.2011        25,75,185/-   Katara Metals
            (colly.) (D-31)
075116      Ex.PW6/H10             27.04.2011        9,00,000/-    Cash
            (colly.) (D-32)                                        withdrawal
                                                                   through
                                                                   Sachin Mehra
075122      Ex.PW6/H11             05.05.2011        8,09,181/-    Katara Metals
            (colly.) (D-33)
075120      Ex.PW6/H12             05.05.2011        8,12,000/-    Sree     Balaji
            (colly.) (D-34)                                        Enterprises
075124      Ex.PW6/H13             06.05.2011        11,72,000/-   APS      Metals
            (colly.) (D-35)                                        Pvt. Ltd
075123      Ex.PW6/H14             06.05.2011        5,56,800/-    Cash
            (colly.) (D-36)                                        withdrawal
                                                                   through
                                                                   Sachin Mehra
279114      Ex.PW6/H15             10.05.2011        5,50,000/-    Cash
            (colly.) (D-37)                                        withdrawal
                                                                   through
                                                                   Sanjay
                                                                   Sharma
279117      Ex.PW6/H16             12.05.2011        2,50,000/-    Transfer to
            (colly.) (D-38)                                        own current
                                                                   account
279121      Ex.PW6/H17             24.05.2011        11,71,600/-   Future     Tap
            (colly.) (D-39)                                        Sanitation
279119      Ex.PW6/H18             24.05.2011        9,68,086/-    Sharp
            (colly.) (D-40)                                        Sanitation
279125      Ex.PW6/H19             27.05.2011        15,63,885/-   Rajdhani
            (colly.) (D-41)                                        Traders
279126      Ex.PW6/H20             31.05.2011        12,73,000/-   Sanya
            (colly.) (D-42)                                        Enterprises
545524      Ex.PW6/H21             03.08.2011        18,00,000/-   Cash
            (colly.) (D-43)                                        withdrawal


  CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
  Case No. 63/2019 (6669/16)                                       Page no.40 Of 372
                                                                    through
                                                                   Sachin Mishra
279127      Ex.PW6/H22             01.06.2011        15,10,713/-   Sai   Trading
            (colly.) (D-44)                                        Corporation
545513      Ex.PW6/H23             29.06.2011        9,50,000/-    Cash
            (colly.) (D-45)                                        withdrawal
                                                                   through
                                                                   Sachin Mishra
545519      Ex.PW6/H24             13.07.2011        3,50,000/-    Cash
            (colly.) (D-46)                                        withdrawal
                                                                   through
                                                                   Rahul Sharma
545518      Ex.PW6/H25             13.07.2011        22,80,000/-   Sai   Trading
            (colly.)(D-47)                                         Corporation
545521      Ex.PW6/H26             18.07.2011        26,38,000/-   Future     Tap
            (colly.) (D-48)                                        Sanitation
545523      Ex.PW6/H27             03.08.2011        22,00,000/-   Cash
            (colly.) (D-49)                                        withdrawal
                                                                   through
                                                                   Sanjeev Dixit
279124      Ex.PW6/H28             31.05.2011        9,50,000/-    Cash
            (colly.) (D-50)                                        withdrawal
                                                                   through
                                                                   Rahul
545526      Ex.PW6/H29             11.08.2011        16,25,000/-   Sree     Balaji
            (colly.) (D-51)                                        Enterprises
545528      Ex.PW6/H30             23.08.2011        20,45,000/-   Paras Metals
            (colly.) (D-52)
545527      Ex.PW6/H31             23.08.2011        21,15,000/-   Jagdamba
            (colly.) (D-53)                                        Metals
545529      Ex.PW6/H32             10.09.2011        17,98,600/-   Paras Metals
            (colly.) (D-54)
545537      Ex.PW6/H33             25.11.2011        12,50,000/-   Katara Metals
            (colly.) (D-55)
545540      Ex.PW6/H34             16.11.2011        9,88,000/-    Ganesh
            (colly.) (D-56)                                        Enterprises


  CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
  Case No. 63/2019 (6669/16)                                       Page no.41 Of 372
 545544      Ex.PW6/H35             29.11.2011        12,68,000/-   Katara Metals
            (colly.) (D-57)
545546      Ex.PW6/H36             30.11.2011        9,50,000/-    Cash
            (colly.) (D-58)                                        withdrawal
                                                                   through
                                                                   Sanjay
545547      Ex.PW6/H37             13.12.2011        15,12,000/-   Diya
            (colly.) (D-59)                                        Sanitation
                                                                   India
545549      Ex.PW6/H38             21.12.2011        5,50,000/-    Cash
            (colly.) (D-60)                                        withdrawal
                                                                   through
                                                                   Sanjay
                                                                   Sharma
545551      Ex.PW6/H39             27.12.2011        9,38,045/-    Sanya
            (colly.) (D-61)                                        Enterprises
545552      Ex.PW6/H40             27.12.2011        9,97,700/-    Rajdhani
            (colly.) (D-62)                                        Traders
545553      Ex.PW6/H41             28.12.2011        15,22,600/-   Sanya
            (colly.) (D-63)                                        Enterprises
545554      Ex.PW6/H42             29.12.2011        24,60,800/-   Rajdhani
            (colly.) (D-64)                                        Traders
545555      Ex.PW6/H43             30.12.2011        21,15,065/-   Sanya
            (colly.) (D-65)                                        Enterprises
545558      Ex.PW6/H44             18.01.2012        14,15,800/-   Shri     Balaji
            (colly.) (D-66)                                        Enterprises
545557      Ex.PW6/H45             18.01.2012        9,50,000/-    Cash
            (colly.) (D-67)                                        withdrawal
                                                                   through
                                                                   Sanjay
                                                                   Sharma
545560      Ex.PW6/H46             21.02.2012        9,50,000/-    Cash
            (colly.) (D-68)                                        withdrawal
                                                                   through
                                                                   Sachin
545568      Ex.PW6/H47             11.04.2012        25,75,000/-   Sanya



  CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
  Case No. 63/2019 (6669/16)                                       Page no.42 Of 372
             (colly.) (D-69)                                        Enterprises
545571      Ex.PW6/H48             29.05.2012        10,00,000/-   Cash
            (colly.) (D-70)                                        withdrawal
                                                                   through
                                                                   Rahul



  5.2.4            As deposed further by PW-6, M/s. Shankar

  Metals was maintaining one Current Account bearing

  no. 0175002100018768 and one Cash Credit Account

  bearing no. 0175008700000385 with PNB, Jor Bagh

  branch, New Delhi. As per his version, in order to open

  an account in the bank, a customer is required to fill an

  account opening form and the customer master form.

  He is also required to submit proof of address and PAN

  Card. In case of business concern, proof of business

  entity and name of its proprietor was also required to

  be verified from two documents registered with

  government or any other agency. In the present case

  also, current account was opened with account opening

  form but the account opening form of Cash Credit

  account         was       not       available      on   record     nor      the

  government documents as proof of firm and business

  were on record.


  5.2.5            PW-6 further deposed that he had handed

  over eight files to CBI vide seizure memo Ex. PW 6/B


  CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
  Case No. 63/2019 (6669/16)                                       Page no.43 Of 372
 (D-6),      which         consisted          of    loan   application      and

supporting            documents,             sanction     note   and       loan

documents, stock statement and correspondences,

mortgage papers of properties furnished as equitable

security i.e. (1) Plot No. 25, Shyam Industrial Area VIII,

Banthala Pargana Loni, District Ghaziabad, U.P (Page 1

to Page 147), (2) 17-B, Shri Ram Nagar, G T Road,

Shahdara, Delhi (Page No. 1 to Page 83), (3) IP Industrial

Area FIE-121, Patparganj Industrial Area, New Delhi

(Page no. 1 to Page 68) and (4) C-193, III floor, Vivek

Vihar Phase-I, Delhi (Page No. 1 to Page 58), and also

the cheques and instructions to remit the amount to

different account from the account of M/s Shankar

Metals ( Page 1 to Page 81). He further deposed that

the request letter from the party for working capital

limits was Ex. PW 6/I (D-7) collectively (Page no. 1 to

Page no. 8) and loan application of bank was Ex.PW6/J

(D-7) collectively (Page no. 9 to Page no. 39).


5.2.6            He deposed that the certified copy of PAN

Card bearing No. BZYPS4132F in the name of Sanjay

Sharma S/o Janardhan Sharma is Ex. PW 6/L (D-7) and

the certification of said document was done by accused

no. 4/ Ranjiv Suneja, Senior Manager, who was working


CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
Case No. 63/2019 (6669/16)                                       Page no.44 Of 372
  with him in the same branch at that time. Through

 PW-6, prosecution seeks to prove the following

 documents:-


Sr. No.           Exhibit                           Nature of document
   1.      Ex.   PW            6/M Original of additional information CIBIL
           (D-103).                of accused Sanjeev Dixit @ Sanjay
                                   Sharma.
   2.      Ex.    PW           6/N Original of additional information CIBIL
           (D-103)                 of Indira Rani.
   3.      Ex.    PW    6/O Consumer CIBIL report of                      accused
           (D-104, Page no. Sanjeev Dixit as on 04.03.2011.
           1118 to Page no.
           1120).
   4.      Ex.    PW    6/P Copy of the commercial CIBIL of M/s
           (D-104, Page no. Shankar Metals as on 05.11.2012.
           1122 to Page no.
           1124).
   5.      Ex    PW     6/Q Report of Equifax Company in respect
           (D-105, Page no. of Sanjay Sharma dated 28.04.2011.
           1125)
   6.      Ex PW 6/R (D-105, Report of Equifax Company in respect
           Page no. 1126).   of Indira Rani dated 28.04.2011.
   7.      Ex.    PW    6/S Confidential report prepared by the bank
           (D-106, Page no. dated 22.03.2011 in respect of M/s
           1127 to Page no. Shankar Metals.
           1128).
   8.      Ex.    PW    6/T Confidential report prepared by the bank
           (D-106, Page no. dated 22.03.2011 in respect of Sanjeev
           1129 to Page no. Dixit.
           1130).
   9.      Ex.    PW    6/U Confidential report prepared by the bank
           (D-106, Page no. dated 22.03.2011 in respect of Sanjay
           1131 to Page no. Sharma.
           1132).



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   10. Ex.    PW    6/V Confidential report prepared by the bank
      (D-106, Page no. dated 22.03.2011 in respect of Indira
      1133 to Page no. Rani.
      1134).
  11. Ex.    PW   6/W Confidential report prepared by the bank
      (D-106, Page no. dated 22.03.2011 in respect of Rajesh
      1135 to Page no. Aggarwal.
      1136).
  12. Ex.    PW    6/X Net-worth statement of Sanjay Sharma.
      (D-107, Page No.
      1137).
  13. Ex.    PW    6/Y Details of assets and liabilities of Sh.
      (D-108, Page no. Sanjay Sharma.
      1138).
  14. Ex.    PW    6/Z Details of assets and liabilities of Indira
      (D-108, Page no. Rani.
      1139).
  15. Ex.    PW   6/A1 Original copy of agreement for
      (D-109, Page no. hypothecation of goods to secure a
      1140 to page no. demand cash credit dated 30.03.2011
      1154).           executed by Sanjeev Dixit as proprietor
                       of M/s Shankar Metals.
  16. Ex.    PW   6/B1 Original copy of agreement for
      (D-110, Page no. hypothecation of goods and book debts
      1155 to Page no. to secure a demand cash credit dated
      1169).           30.03.2011 executed by Sanjeev Dixit as
                       proprietor of M/s Shankar Metals.
  17. Ex.    PW   6/C1 Copy of legal compliance certificate in
      (D-111, Page No. respect of M/s Shankar Metals.
      1170 to Page no.
      1171).
  18. Ex.   PW    6/D1 Copy of the original valuation report
      (D-112 Page no. dated 24.03.2011 in respect of Plot no.
      1172 to 1180).   25, Shyam Industrial Area VIII, Banthala
                       Pargana, Loni, District Ghaziabad, U.P
                       prepared    by  Naveen     Kamboj     &
                       Associates.



CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
Case No. 63/2019 (6669/16)                         Page no.46 Of 372
   19. Ex.   PW     6/E1 Copy of the original valuation report
      (D-113 Page no. dated 24.03.2011 in respect of 17-B, Shri
      1181 to 1189).    Ram Nagar, G T Road, Shahdara, Delhi
                        prepared    by Naveen     Kamboj     &
                        Associates.
  20. Ex.   PW     6/F1 Copy of the original valuation report
      (D-114 Page no. dated 24.03.2011 in respect of C-193, III
      1190 to 1197).    floor, Vivek Vihar Phase-I, Delhi prepared
                        by Naveen Kamboj & Associates.
  21. Ex.   PW     6/G1 Copy of the original valuation report
      (D-115 Page no. dated 13.05.2011 in respect of House No.
      1198 to 1209).    5/1234 ( M-11) Sector-5 Vasundhara
                        Ghaziabad prepared by Brig. M L Nasa
                        ( Retd.).
  22. Ex.   PW    6/H1 Opinion on investigation of title in
      ( D-116 to D-117, respect of property/plot no. 25, Shyam
      Page no. 1210 to Industrial Area VIII, Banthala Pargana,
      Page no. 1227).   Loni, District Ghaziabad, U.P dated
                        26.03.2011 given by panel advocate N. S.
                        Parihar.
  23. Ex.    PW   6/I1 Opinion on investigation of title in
      (D-118, Page no. respect of property no. 17-B, Shri Ram
      1253 to Page no. Nagar, G T Road, Shahdara, Delhi dated
      1267).           26.03.2011 given by panel advocate N. S.
                       Parihar.
  24. Ex.   PW     6/J1 Opinion on investigation of title in
      ( D-119 to D-120, respect of property no. C-193, III floor,
      Page no. 1268 to Vivek Vihar Phase-I, Delhi dated
      Page no. 1284).   26.03.2011 given by panel advocate N. S.
                        Parihar.
  25. Ex.    PW   6/K1 Opinion on investigation of title in
      (D-121, Page no. respect of property I.e House 5/1234
      1285 to Page no. ( M-11), Vasundhara, Ghaziabad, U.P
      1337).           dated 16.05.2011 given by panel
                       advocate N. S. Parihar.
  26. Ex.   PW    6/L1 Opinion on investigation of title in
      (D-122, Page no. respect of property no. IP Industrial Area
      1338 to Page no. FIE-121, Patparganj Industrial Area, New



CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
Case No. 63/2019 (6669/16)                         Page no.47 Of 372
           1352).                     Delhi dated 22.06.2011 given by panel
                                     advocate N. S. Parihar.
  27. Ex.    PW   6/M1 Affidavit dated 18.05.2011 of accused
      (D-123, Page No. Sanjeev Dixit.
      1353).
  28. Ex.PW-6/N1      Copy of acknowledgment of title deed
      (D-124     Page dated 28.06.2011.
      No.1354).
  29. Ex.PW-6/O1      The original copy of property visit cum
      (D-125     Page valuation report dated 20.03.2011.
      No.1355).
  30. Ex.PW-6/P1      Original copy of property visit cum
      (D-126     Page valuation report dated 20.03.2011.
      No.1356).
  31. Ex.PW-6/Q1      Original copy of property visit cum
      (D-127     Page valuation report dated 20.03.2011.
      No.1357).
  32. Ex.PW-6/R1      Original copy of property visit cum
      (D-128     Page valuation report dated 20.03.2011.
      No.1358).
  33. Ex.PW-6/S1      Copy of acknowledgment of title deed
      (D-129     Page dated 18.05.2011.
      No.1359).
  34. Ex.PW-6/T1      Copy of acknowledgment of title deed
      (D-130     Page dated 20.05.2011.
      No.1360).
  35. 6/U1 (D-131 Page Property declaration form in respect of
      No.1361 to 1363). property No.1234/5 (M11, Vasundhra,
                        Ghaziabad) dated 18.05.2011.
  36. Ex.PW-6/V1        Property declaration form in respect of
      (D-132      Page property No.25 Shyam Industrial Area,
      No.1364 to 1366). Loni Ghaziabad, dated Nil.
  37. Ex.PW-6/W1        Property declaration form in respect of
      (D-133      Page property No.17 B, Shri Ram Nagar,
      No.1367 to 1369). Shahdara, Delhi, dated Nil.
  38. Ex.PW-6/X1                     Property declaration form in respect of



CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
Case No. 63/2019 (6669/16)                                   Page no.48 Of 372
           (D-134      Page property No.C-193, Third Floor, Vivek
          No.1370 to 1372). Vihar, Phase-I, New Delhi, dated Nil.
  39. Ex.PW-6/Y1        Property declaration form in respect of
      (D-135      Page property No. 121 FIE, Patparganj
      No.1373 to 1375). Industrial Area, Delhi, dated 25.06.2011.
  40. Ex.PW-6/Z1      Stock statement dated 31.08.2011.
      (D-136     Page
      No.1376     and
      1377).
  41. Ex.PW-6/A2      Stock statement dated 30.09.2011.
      (D-136     Page
      No.1378     and
      1379).
  42. Ex.PW-6/B2      Stock statement dated 31.10.2011.
      (D-136     Page
      No.1380     and
      1381).
  43. Ex.PW-6/C2      Stock statement dated 30.11.2011.
      (D-136     Page
      No.1382     and
      1383).
  44. Ex.PW-6/D2      Stock statement dated 29.02.2012.
      (D-136     Page
      No.1384     and
      1385).
  45. Ex.PW-6/E2      Stock statement dated 31.03.2012.
      (D-136     Page
      No.1386     and
      1387).
  46. Ex.PW-6/F2      Stock statement dated 30.04.2012.
      (D-136     Page
      No.1388     and
      1389).
  47. Ex.PW-6/G2      Stock statement dated 31.05.2012.
      (D-136     Page
      No.1390     and
      1391).



CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
Case No. 63/2019 (6669/16)                         Page no.49 Of 372
   48. Ex.PW-6/H2      Stock statement dated 30.06.2012.
      (D-136     Page
      No.1392     and
      1393).
  49. Ex.PW-6/I-2      Certificate under Section 2A of the
      ((D-137     Page Banker Book Evidence Act, 1891 r/w
      No.1394).        Section 65 B of Indian Evidence Act.


  50. Ex.PW-6/J2      Letter dated 04.06.2014 vide which, he
      (D-138     Page had handed over dispatch register from
      No.1395).       21.07.2011 to 31.12.2011 to Sub
                      Inspector      Central   Bureau      of
                      Investigation.
  51. Ex.PW-6/K2      Dispatch register from 21.07.2011 to
      (D-139     Page 31.12.2011.
      Nos.1396     to
      1594).
  52. Mark H (D-140 Letter dated 21.08.2014 vide which, Shri
      Page No.1595). Prashant Mishra, Chief Manager of the
                     bank, had handed over documents as
                     mentioned in the letter to Sub Inspector,
                     CBI.
  53. Ex.PW-6/L2      Letter dated 13.06.2014 vide which, he
      (D-143     Page had handed over photocopies of Title
      No.1983 to Page Deed Registers from Page No.42 to Page
      No. 2025).      No.84 to Sub Inspector, CBI.
  54. Ex.PW-6/M2        Letter dated 25.10.2013 vide which, he
      (D-144      page had handed over copy of internal
      No.2026 to 2059). department investigation conducted by
                        Shri V.K. Dhar to Sub Inspector, CBI.
  55. Ex. PW 6/N2 (D-8, Credit  Appraisal                       Format        dated
      Page no. 200 to 29.03.2011.
      Page no. 209).
  56. Ex.   PW   6/O2 Acceptance of terms and conditions of
      ( D-8, Page no. loan dated 29.03.2011 signed by Sanjeev
      210).           Dixit.
  57. Ex. PW 6/P2 ( D-8, Letter                    dated   30.03.2011    certifying



CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
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           Page no. 211).             execution of documents out of free
                                     consent and without any influence
                                     signed by Sanjeev Dixit.
  58. Ex.   PW   6/Q2 The letter of undertaking for availment
      ( D-8, Page no. of CC Limit of Rs.4.0 crores against stocks
      212 and Page no. signed by Sanjeev Dixit at Point A. The
      213).            letter is dated NIL.
  59. Ex. PW 6/R2 (D-8, The agreement of guarantee dated
      Page no. 214 to 30.03.2011 signed by Sanjeev Dixit (since
      Page no. 216).    P.O).
  60. Ex. PW 6/S2 ( D-8, The agreement of guarantee dated
      Page no. 217 to 30.03.2011 executed by Sanjay Sharma.
      page no. 219).
  61. Ex. PW 6/T2 ( D-8, The agreement of guarantee dated
      Page no. 220 to 30.03.2011 executed by Indira Rani.
      page no. 222).
  62. Ex. PW 6/U2 (D-9, Stock statement dated 29.03.2011 of M/s
      Page no. 223 to Shankar Metals.
      Page no. 225).
  63. Ex. PW 6/V2 (D-9, Stock statement dated 07.04.2011 of M/s
      Page no. 226 to Shankar Metals.
      Page no. 228).
  64. Ex. PW 6/W2 (D-9, Stock statement dated 01.05.2011 of M/s
      Page no. 229 to Shankar Metals.
      Page no. 231).
  65. Ex. PW 6/X2 (D-9, Stock statement dated 31.05.2011 of M/s
      Page no. 232 to Shankar Metals.
      Page no. 234).
  66. Ex. PW 6/Y2 (D-9, Stock statement dated 30.06.2011 of M/s
      Page no. 235 to Shankar Metals.
      Page no. 238).
  67. Ex. PW 6/Z2 (D-9, Stock statement dated 31.07.2011 of M/s
      Page no. 239 to Shankar Metals.
      Page no. 242).
  68. Ex.   PW   6/A3 Original title deed in respect of property
      (D-10, Page no. no. 25, Shyam Industrial Area, Banthla,
      243 to Page no. Loni, Ghaziabad, U.P.


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           277)
  69. Ex.   PW   6/B3 Sale deed dated 07.02.1967 executed by
      (D-10, Page no. M/s Shyam Land and Finance Co. New
      278 to Page no. Delhi in favour of Harbans Lal Sharma.
      280).
  70. Ex. PW6/C3 (D-10, The request letter dated 02.04.2011 for
      Page no. 281      acknowledgment of title deed by Sh.
                        Sanjay Sharma, proprietor of M/s Super
                        Machines.
  71. Ex.   PW   6/D3 Carbon      copy     of     Letter of
      (D-10, Page no. acknowledgment of title deed dated
      282).           04.04.2011 sent to Sanjay Sharma.
  72. Ex. PW 6/ E3 Original sale deed dated 24.09.1999
      (D-11, Page no. executed by Smt. Shimla Rani in favour of
      283 to Page no. Indira Rani in respect of property no. 17B
      290).           Shri Ram Nagar, Shahdara, Delhi.
  73. Ex.   PW    6/F3 GPA dated 05.12.1995 executed                           by
      ( D-11, page no. Dharam pal in favour of Shimla Rani.
      294)
  74. Ex.   PW   6/G3 Irrevocable GPA dated 14.07.1992
      (D-11, page no. executed by Dharampal Goel in favour of
      296 to page no. Dharam Pal.
      298).
  75. Ex.   PW   6/H3 Deed of Will dated 14.07.1992 executed
      (D-11, page no. by Dharam Pal Goel.
      299).
  76. Ex. PW 6/I3 (D-11, GPA dated July,            1992    executed           by
      Page no. 300 to Dharam Pal Goel.
      page no. 301).
  77. Ex.   PW    6/J3 Agreement to Sell dated July, 1992
      ( D-11, Page no. between Dharam Pal Goel and Sh.
      302 to Page no. Dharampal.
      303).
  78. Ex.   PW   6/K3 Affidavit of Sh. Dharampal Goel dated
      (D-11, Page no. 14.07.1992.
      304).
  79. Ex.          PW        6/L3 The receipt of Rs.1.50 lacs signed by


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           (D-11, Page no. Dharam Pal Goel.
          305).
  80. Ex.   PW   6/M3 The sale deed dated 15.12.1989 in
      ( D-11, Page no. respect of property no. 17B Shri Ram
      306 to Page no. Nagar, Shahdara, Delhi executed by Smt.
      309).            Yogender Kaur in favour of Sh. Dharam
                       Pal Goel.
  81. Ex.   PW   6/N3 Carbon copy of acknowledgment of title
      (D-11, Page no. deed issued on 04.04.2011 to Smt. Indira
      310)            Rani.
  82. Ex.   PW   6/O3 Request letter dated 02.04.2011 for
      (D-11, Page no. acknowledgment of title deed from
      311).           Indira Rani.
  83. Ex.   PW   6/P3 The original Sale Deed dated 31.01.2011
      (D-12, Page no. in respect of property no. C-193, III Floor,
      312 to Page no. Vivek Vihar, Phase-I, Delhi in favour of
      320).           Sanjeev Dixit (since P.O).
  84. Ex.   PW   6/Q3 The Conveyance Deed dated 03.05.2001
      (D-12, Page no. in favour of Sh. R. K. Manchanda
      321 to Page no. executed by DDA.
      324).
  85. Ex.   PW   6/R3 Perpetual Lease Deed dated 02.07.1969
      (D-12, Page no. executed by DDA in favour of R. K.
      325 to Page no. Manchanda.
      328).
  86. Ex.   PW   6/S3 Carbon copy of acknowledgment of title
      (D-12, Page no. deed dated 04.04.2011 issued to Sanjeev
      329).           Dixit.
  87. Ex.   PW   6/T3 Request letter dated 02.04.2011 from
      (D-12, Page no. Sanjeev Dixit to acknowledge deposit of
      330).           title deed.
  88. Ex.   PW   6/U3 Original sale deed dated 25.05.2011 in
      (D-13, Page no. respect of property no. 121 FIE
      331 to page no. Patparganj Industrial Area, Delhi in
      338).           favour of Sanjeev Dixit ( since P.O) by
                      Ramji Lal Chawla.
  89. Ex.          PW        6/V3 Conveyance Deed dated 26.02.2001 in



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            (D-13, Page no. favour of Ramji Lal Chawla.
           339 to Page no.
           344).
   90. Ex.   PW   6/W3 Perpetual Lease Deed dated 04.06.1991
       (D-13, Page no. in favour of Ramji Lal Chawla executed
       345 to Page no. by Deputy Secretary (Industry), Delhi
       356).           Administration.
   91. Ex.   PW   6/X3 Affidavit of Sanjeev Dixit (Since P.O) dated
       (D-13, Page no. 25.06.2011.
       357).
   92. Ex.   PW   6/Y3 Request letter dated 27.06.2011 of
       (D-13, Page no. Sanjeev   Dixit   (since      P.O) for
       358).           acknowledgment of title deed.
   93. Ex.   PW   6/Z3 Request letter dated 25.06.2011 from
       (D-13, Page no. Sanjeev Dixit for substitution of property
       359).           of Vasundhara, Ghaziabad to 121 FIE
                       Patparganj, Delhi.
   94. Ex.   PW   6/A4 Office note with approval dated
       (D-13, Page no. 25.06.2011 allowing substitution of
       360).           property.



5.2.7       PW-6 further deposed that loans were to be

disbursed on the basis of certain guidelines issued by

bank in the form of circulars and book of instructions. As

per these guidelines, certain precautions were to be

taken before and after sanction of loan which include

obtaining         loan       application,           preparing   confidential

reports, to refer CIBIL data base, conduct of account from

previous banker etc. PW6 deposed further that upon

finding deviations from bank guidelines in the grant of

subject      loan,        the      bank        decided    to    get    special


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 investigation done in the case. The investigation was

assigned to Sh. V.K. Dhar, who submitted his report to the

circle office of the bank. The report was processed by

Sh.Arun Sharma, Manager and Sh.Ajay Kumar Shukla,

Asstt. General Manager. The deviations from guidelines

were investigated by Sh. V.K. Dhar which were approved

by the circle office authority and same led to lodging of

complaint.         PW6       referred         to    various   circulars    and

guidelines, which are sought to be proved as under:-

Sl.     Exhibit                  Nature of document
No
1. Ex.PW6/B-4      Circular regarding verification of genuineness
    (D149     page of voter's identity card/Pan card.
    2375).
2. Ex.PW6/C-4 (D Inspection and audit division circular no.
    148      pages 30/2010 dated 13.04.2010.
    2262-2263).
3. Ex.PW6/D-4      L&A circular 40/2008 dated 18.03.2008.
    (D148     page
    2292).


 4.   Ex.PW6/E-4 (D Loans & Advances Circular 42 dated
      148 page 2293). 20.03.2009.
 5.   Ex.PW6/F-4 (D Book of instructions - loans Chapter IX
      148 page 2312 Confidential Report - past conduct with
      to 2318).       existing banks.
 6.   Ex.PW6/G-4      MISD circular no. 3/2011 dated 10.03.2011.
      (D148      page
      2306).
 7.   Ex.PW6/H-4      Loan and advances circular no. 56 dated 8th
      (D-149     Page July 2000 pertaining to fraud by deposit of
      2376 - 2377).   fake title deeds of properties.
 8.   Ex.PW6/I-4      Law division circular no. 9/Law/2009 dated


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       (D-148     page 27.08.2009 pertaining to investigation of title
      2294 to 2297). and search report.
9.    Ex.PW6/J-4      Loan & Advances circular no. 129 dated
      (D-149     page 9.12.2010 pertaining to loan application and
      2378 - 2380).   proposals / Prevention of Frauds - use of
                      Middlemen/outside consultants.
10.   Ex.PW6/K-4      The loans & Advances circular no. 12 dated
      (D148     pages 05.02.2007 pertaining to policy on valuation of
      2298 to 2305)   properties - empanelment of valuers.
11.   Ex.PW6/L-4      Chapter XI mortgages check list.
      (D-148     page
      2308 to 2318).
12.   Ex.PW6/M-4      Loan and advances circular no. 58 pertaining
      colly.   (D-148 to control measures - pre sanction credit
      pages 2319 to appraisal and post sanction follow up loan
      2373).          accounts.
13.   Ex.PW6/N-4      The loan and advances circular no 83
      (D-148     page pertaining to standardized credit appraisal
      2264 - 2288).   format.
14.   Ex.PW6/O-4      Loans and advances circular no. 15 dated
      (D-149     page 31.01.2011 pertaining to standardized credit
      2381 to 2388)   appraisal format for proposals upto Rs. 2
                      crore (for SME proposals upto Rs. 5 crore).
15.   Ex.PW6/P-4      Loans and advances circular no. 134 dated
      (D-149     page 27.10.2009 pertaining to loaning powers &
      2389 to 2407). guidelines for exercising such powers at
                      various levels.
16.   Ex.PW6/Q-4 (D Role of an auditor & objectives of concurrent
      147 pages 2132 audit.
      - 2135).
17.   Ex.PW6/R-4      I&A circular no. 21 dated 13.04.2006
      (D149     pages pertaining to Risk based internal audit of
      2408 - 2416).   branches (RBIA).


18. Ex.PW6/S-4                Staff movement register of Punjab National
    (D141)                    Bank, Jor Bagh Branch.
19. Ex.PW6/T-4                Drawing power register of PNB Jor Bagh
    (D-142).                  Branch page no. 92.




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 5.2.8          PW-6 further deposed that genuineness of

voter card from Chief Election Commissioner website

and that of PAN card from Income Tax Department was

required to be done but no documents regarding any

such verification were found to be available on record,

which was in violation of Ex.PW6/B-4.


5.2.9          He further deposed that any two documents

pertaining to the identity and business of the

proprietary concern were required to be obtained

before opening current account but, in this case, no

such proof was placed on record, which was in violation

of Ex.PW6/C-4. The audited balance sheet submitted by

the party were to be verified from the website of CA

institute, proof of which was also not placed on record

and this was in violation of Ex.PW6/D-4 and Ex.PW6/E-4.


5.2.10         PW-6 further deposed that report from the

existing bankers of the borrower were required to be

obtained          while        compiling           confidential   report       of

borrower and guarantor but, in the instant case, no

such report was found on record and this was in

violation of Ex.PW6/E-4. Further, the CIR from two

agencies was required to be extracted from their data

base but no CIR of the borrower was extracted from

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 EQUIFAX/EXPERIAN data base nor CIR in respect of

guarantor was found on record and same was in

violation of Ex.PW6/G-4. Processing Officer Ranjiv

Suneja (A-4) was required to place the findings of

CIBIL/EQUIFAX/ EXPERIAN in the process note but, in

this case, it was not so done and this was also in

violation of Ex.PW6/G-4.


5.2.11         Further he deposes that title deeds deposited

to create equitable mortgage to secure the loan given

to the borrower are to be verified by Panel Advocate as

well as by the branch officers along with registered

letter to be issued in case the title deeds offered as

security are in the name of the third party. But in the

instant case, no such letter was found in record and it

was in violation of Ex.PW6/H-4.


5.2.12         PW-6 further deposed that as per guidelines,

proper record was required to be obtained for

distribution of legal work amongst the panel advocates

but no such records was placed on record. This was in

violation of Ex.PW6/I-4. Loan incharge Ranjiv Suneja

(A-4) was responsible to maintain record pertaining to

distribution of legal work amongst advocates and to

seek opinion of legal expert and architects for legal

CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
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 opinion and valuation of properties furnished for

mortgage in favour of the bank to secure the loan. In

this case, title deeds were found fake and fabricated.

He further deposed that when he personally visited the

mortgaged             properties          to       take   possession    under

SARFAESI Act, none of said properties were found to be

occupied by the persons who purportedly mortgaged

them with bank claiming themselves to be the owners.

This was in violation of Ex.PW6/J-4.


5.2.13         He further deposed that the loan was

sanctioned on 29.03.2011 by Smt. K.K. Johar (A-3), the

then Branch Manager and recommended by Ranjiv

Suneja (A-4). Branch was required to obtain complete

legal opinion before creation of mortgage but in this

casc, compliance was not made. In respect of property

No. 25, Sham Industrial Estate, Village Banthala,

Ghaziabad and C-193, Vivek Vihar, Phase-I, Shahdara,

Delhi, N.S. Parihar (A-2) did not file certified copies of

the title deeds with his report dated 26.03.2011. Legal

report dated 22.06.2011 in respect of plot no. 121,

Industrial Area Patparganj was submitted late after

disbursement of loan and said property was substituted

against another property of Vasundara Enclave.


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 5.2.14         PW-6 further deposed that as per law division

circular Ex.PW6/I-4 (D-148 page 2294), guidelines were

issued for seeking legal opinion in respect of title

search of the property offered for mortgage with the

Bank. Legal search of all the four properties in the

present case was done by N.S. Parihar(A-2), who was a

panel advocate of the bank. The reports in respect of

three mortgaged property i.e. Plot no. 25, Sham

Industrial Area, Bansala, Gaziabad [Ex.PW6/H-1 (D-116

page 1210 to 1227)], property no. 17B, Sri Ram Nagar,

Shahdara, Delhi (Ex.PW6/I-1 (D-118 page 1253 to 1267)]

and property no. C-193, Vivek Vihar, Phase I, Delhi

[Ex.PW6/J-1 (D-119 page 1268 to 1284)] were submitted

on 26.03.2011. While the report in respect of property

bearing no. H.No. 5/1234, M-11, Vasundara, Ghaziabad

[Ex.PW6/K-1 (D-121 page 1285 to 1338)] was submitted

on 16.05.2011.                 However, said property was later

released on 25.06.2011 and 4th property bearing no.

121, situated at F.I.E. Industrial Area, Patparganj,

Shahdara, Delhi, was got mortgaged in its place and

title search report x.PW6/L-1 (D-122 page 1338 to 1352)]

in    respect         of     said      property    was   submitted      on

22.06.2011 by N.S. Parihar (A-2). The loan was

sanctioned to M/s Shankar Metals on 30.03.2011.

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 Certified copy of title documents was not annexed with

search report Ex.PW6/H-1 and Ex.PW6/J-1 but despite

that, the same was accepted by the concerned officials

of the bank i.e. Smt. Kulwinder Kaur Johar (A-3) and

Ranjiv Suneja (A-4) and same was done against the

circular       9/LAW/2009              dated       27.08.2009    Ex.PW6/I-4

(D-148 page 2294 to 2297).


5.2.15         It was further deposed by PW-6 that the

procedure for valuation of the property was that the

valuer used to visit the property and give his opinion

regarding the value of the property and this was

prescribed vide loans and advances circular no. 12

dated 05.02.2007 Ex.PW6/K-4 (part of D148 page 2298

to 2305). The valuation report in the present case in

respect of three properties i.e. Plot no. 25, Sham

Industrial Estates and properties no. 17-B, Sri Ram

Nagar, Shahadra and C-193, Vivek Vihar, Phase I, Delhi

were given by Sh. Naveen Kamboj, official valuer of the

bank on 24.03.2011. The valuation report in respect of

4th    property          i.e.     H.No.        5/1234,   M-11,     Vasundra

Ghaziabad was given by Sh. M.L. Nasa on 13.05.2011.

The loan was however, sanctioned on 29.03.2011,

before receipt of valuation report dated 13.05.2011 in


CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
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 respect of H.No. 5/1234, M-11, Vasundra Ghaziabad and

same was done in contravention of loans and advances

circular no. 12 dated 05.02.2007 Ex.PW6/K-4 (part of

D148 page 2298 to 2305).


5.2.16         Further, it was deposed by PW-6 that, as per

chapter 9 of Book of Instructions-Loans Ex.PW6/F-4

(part of D-148 page 2312 to 2318), the confidential

report of the borrower and the guarantor was to be

prepared by the bank official. This includes visiting the

property offered for mortgage by the proposed

borrower. The visit can be before or after receipt of the

documents of title search and valuation reports. After

the visit, the bank official concerned was required to

prepare a confidential report in specific format

provided in the instruction book itself. As per testimony

of PW-6, the confidential report is prepared prior to

sanction of loan. In the instant case, the confidential

report dated 22.03.2011 Ex.PW6/S (D-106 page 1127 to

1128) in respect of the subject loan was prepared by

Ranjiv Suneja (A-4) and Smt. K.K. Johar (A-3) and in

column no. III (b) of Ex.PW6/S - 'enjoying credit facility

with other bank' was left blank while as per the CIBIL

report of Shankar Metals, a loan of Rs. 5 lacs was


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 reflected. He further deposed that a staff movement

register was maintained in the bank, which finds

mention of record of visits made by the staff members,

in course of their duties, outside the bank.


5.2.17         PW-6 further deposed that as per confidential

report Ex.PW6/S, in respect of M/s Shankar Metals,;

Ex.PW6/U (D-106 page 1131 to 1132) in respect of

guarantor Sanjay Sharma; Ex.PW6/U dated 22.03.2011

(D-106 page 1133 to 1134) in respect of gaurantor Indra

Rani and Ex.PW6/W (D-106 page 1135 to 1136) dated

22.03.2011 in respect of guarantor Rajesh Aggarwal,

which all were prepared by Ranjiv Suneja (A-4) and Smt.

K.K. Johar (A-3), the date of spot verification of all said

mortgaged properties was shown to be same i.e

08.03.2011, while as per the movement register,

Ex.PW6/S-4 (D141), there was no entry of spot

verification visit of 08.03.2011.


5.2.18         PW-6 further deposes that the loan and

advances circular no. 83 dated 06.07.2009 Ex.PW6/N-4

(part of D148 page 2264 to 2288) and loan and

advances circular no. 15 dated 31.01.2011 Ex.PW6/O-4

(Part of D-148 page 2381 to 2406) relates to prescribed

standard formats for credit appraisal to be prepared

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 before sanction of loan. The credit appraisal report

Ex.PW6/N-2 (D-8 page 1 to 10) in respect of loan given

to M/s Shankar Metals was prepared by Ranjiv Suneja

(A-4) and the loan was sanctioned by Smt. K.K. Johar

(A-3). The credit appraisal note contains the inputs from

loan application, legal search, confidential report,

valuation of property etc. In the present case also,

credit appraisal was prepared and reflected the

deficiencies in the loan proposed, but despite these

deficiencies, the loan was sanctioned to M/s Shankar

Metals.


5.2.19         He further deposed that in the Loan and

Advances circular no. 134 dated 27.10.2009 Ex.PW6/P-4

(part of D-148 page 2389 to 2407), guidelines for

exercising loaning powers were given. All the guidelines

prescribed in this circular should have been followed

before sanctioning a loan. But, despite the deficiencies

as pointed out by PW6 in his above deposition, the loan

was sanctioned to M/s Shankar in violation of said

guidelines and circulars.


5.2.20         PW6 deposes further that the Loans and

Advances circular no. 58 dated 01.06.2006 Ex.PW6/M-4

(part of D-148 page 2319 to 2373) prescribes control

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 measures to be followed by the bank before and after

sanction of loan. In the case of M/s Shankar Metals,

primary security was hypothecation of stock and book

debts and collateral security was equitable mortgage of

four properties. He further states that drawing power is

released as per stock and book debt holding of the

borrower periodically which may be monthly or

quarterly and in case of first release of loan, the stock

statement of that date/current date is taken. As per

Drawing Power register page 93 (D-142) already

Ex.PW6/T-4, first stock statement as on 31.03.2011 was

received on 18.04.2011 for a sum of Rs. 3,25,97,415/-

against which the drawing power was to be allowed

keeping margin of 25% while drawing power of Rs. 4

crore was allowed which was not permissible as per

terms of sanction.


5.2.21         He further deposed that the sanction of

Drawing Power was allowed by Mrs. K.K. Johar (A-3). As

per the terms of sanction of the loans, the monthly

stock statement was to be taken from M/s. Shankar

Metals but said schedule was also not followed in the

present case for the months of December, 2011 and

January, 2012. Further, there was no stock statement


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 after 30.06.2012. As per PW6, after receipt of the stock

statement the bank officials pay visit for the spot

verification of the stock but, in the instant case,

Ex.PW6/T-4 reflects that no inspection was carried out

in the month of May, 2011, October, 2011 and April,

2012 as there are no corresponding entries of any such

visit in the movement register Ex.PW6/S-4 (D-141).


5.2.22         He further deposes that the stock statement

submitted by the party finds noting regarding the date

of the visit of the bank official on it. In the present case

though there is a noting regarding the visit on the stock

statements submitted by M/s. Shankar Metals but there

is no corresponding entry regarding it in the movement

register. Further as deposed by PW-6, the bank officials

who sanctioned the loan are also required to verify the

movement of funds to ensure that the loan amount is

utilized for the purpose for which it has been

sanctioned but in the present case despite diversion of

the loan amount the same was not reported by the

concerned bank officials.                     The diversion of the loan

amount can be seen from the fact that the payment

was not found to be made to sundry creditors as

reported by the borrower in his financial papers. As per


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 movement register, Mrs. K.K. Johar (A-3) visited the

premises of M/s Shankar Metals at Loni Shahdara and

Patparganj only in the month of March, 2011 i.e. on

20.03.2011. Except that, there was no other visit made

by her in the month of March 2011.


5.2.23         He further deposed that in chapter 2 of Book

of Instructions Ex.PW6/Q (D-147 page 2132 to 2135),

roles of concurrent auditor were specified. Further, as

per circular no. 21/2006 of inspection and audit division

dated 13.04.2006, procedure of Risk Based Internal

Audit of Bank Branches are given. Concurrent auditor is

required to check bank transactions on daily basis for

the branch allotted to him.                           In the present case,

concurrent           auditor         Shri      B.C.    Katoch   had     given

comments/deficiencies in his report given in June, 2011

with respect to the subject loan. He had also given one

comment/deficiency in his quarterly report of March,

2011. The original report of March, 2011 given by Shri

B.C. Katoch is Mark PW-6/A (D-147 page 2147 to 2156)

and       the original report of June, 2011 is Mark PW-6/B

(D-147 page 2157 to 2178) on record.


5.3.1            PW-76 Sh. Prashant Mishra, the then Chief

Manager, Punjab National Bank, Jor Bagh, Delhi

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 deposed that vide his letter dated 21.08.2014 Mark H

(D-140), he had handed over certain documents

mentioned therein Ex.PW76/A (Part of D-140) to the IO.

He further deposed that the Movement Register and

D.P. Register, which he had handed over to the IO of the

case were Ex.PW6/S4 (D-141) and Ex.PW6/F4 (D-142)

respectively. Apart from said documents, he had also

handed          over       the      documents      as   mentioned       in

Ex.PW76/A. As deposed by him further, the documents

related to reimbursement of taxi fare by accused K.K.

Johar, the then Chief Manager, were not found on

record. Vide Seizure Memo dated 14.08.2015, he had

also handed over the documents/circulars to the IO as

mentioned therein and the said memo and documents

are Ex.PW76/B (Colly.) (D-149).


5.3.2          He further deposed that vide Seizure Memo

dated 15.05.2015, the documents mentioned therein,

which are Ex.PW76/C (Colly.) (D-150), were also handed

over by him to the IO and the said documents were

related to posting/tenure of Smt. K.K. Johar in Jorbagh

Branch, PNB. The documents related to tenure and

demotion of accused Ranjiv Suenja in Jorbagh Branch,

PNB and the documents related to tenure and


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 retirement of Baldev Chand Katoch were also handed

over to the IO. He further deposed that there was no

letter on record issued by the Bank to Sh. N.S. Parihar

for conducting legal search of immovable properties

proposed in the account of M/s. Shanker Metals.


6.  Witnesses from other branches and offices of
PNB

6.1.1            PW-45 Sh. Rajnish Nangia, Manager (since

retired), Circle Office, Punjab National Bank, South Delhi

deposed that he had joined the investigation of the

present case in November, 2013 and vide his letter

dated 13.11.2013 (D-145) Ex.PW45/A (Colly.) (pages

2060 to 2104), he handed over various documents to

the CBI such as (a) Law Division, Head Office Circular

No. 1/Law/2005 dt. 17.01.2005 containing previous

guidelines on empanelment of Advocates, (b) List of

advocates on approved Panel of South Delhi Circle prior

to 06.10.2012, where the name of Shri N.S. Parihar

appeared at Sr. No. 96 of the list, (c) List of advocates on

approved Panel of South Delhi Circle, post 06.10.2012,

where the name of N.S. Parihar was dropped from

active list, (d) Copies of letters dt. 09.06.2006 and

19.06.2006, conveying approval of Sh. N.S. Parihar, as



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 approved advocate on Bank's panel w.e.f. 07.06.2006,

and his name appeared at serial no. 96, but as per

06.10 Para, his (N. S. Parihar's) name was dropped from

active list.


6.2.1.           PW-58 Sh. Arun Sharma is the Retired officer

from Punjab National Bank. He deposed that he

remained posted in Circle office, PNB, Rajender Place

from December, 2009 till September, 2014. He was

conversant with the procedure of appraisal and

sanction of CC limit. PW-58 was posted as Senior

Manager at the relevant time in the said Circle Office.

His nature of work included (i) dealing with inspection

report and fraud; (ii) Processing and communication of

the said matter to the Head office; (iii) Rectification etc.

Vide the seizure memo dated 09.12.2013 Ex.PW58/A, he

had handed over to CBI certain circulars, instructions,

guidelines of bank issued by the Head Office from time

to time. All the circulars bearing his initials at point A

were exhibited as Ex. PW58/B (Colly) [(Part of the D-48)

(page 2258 to 2373]


6.2.2            Further as per her version, on one more

occasion, he had supplied some more documents vide

another seizure memo dated 26.12.2013 Ex. PW58/C.

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 The rules and procedure as mentioned in the manual

along with audit reports were also supplied. The

document titled as 'Chapter I Objective of Inspection

and Audit' is Ex.PW58/A. He also identified his

signatures/initials              at     Point      A   on   the     following

documents:-


(i)     Audit data for a period 01.01.2011 to 31.03.2011
        already marked as Mark PW6/A [Ex.PW58/E (colly)
        (Part of D-147)].
(ii)    Audit data for the period 01.04.2011 to 30.06.2011
        already marked as Mark PW6/B [Ex.PW58/F (colly)
        (Part of D-147)].
(iii)   Audit data for the period 01.07.2011 to 30.09.2011
        Ex.PW58/G (colly) (Part of D-147).
(iv)    Annual inspection report for the period
        01.01.2011 to 31.12.2011 Ex. PW58/H (colly) [(Part
        of D- 147) (page 2179 to 2240)].
(v)     The audit data for the period 01.01.2012 to
        31.03.2012 already marked as Mark PW6/DB
        [Ex.PW58/I (colly) (Part of D-147)].
(v)     Control Risk Format of Inspection Report Ex.
        PW58/J (colly) (part of D-147).


6.2.3            With regard to requirement of Inspection

and Audit Division Circular No. 43/2010 (Ex. PW6/B4),

circular no. 30/10 dated 13.04.2010 (Ex. PW6/C4),

Circular no. 40/2008, dated 18.03.2008 and circular no.

42 dated            20.03.2009 (Ex. PW6/D4 and Ex. PW6/E4


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 respectively), MISD circular no. 3/2011 dated 10.03.2021

(Ex. PW6/G4), his (PW58) testimony is more or less on

the lines of deposition of PW6 Sh. C. P. Garg and hence,

his (PW56) version to that extent is not elaborated for

brevity sake.


6.2.4            PW-58 further deposes that besides CIBIL

report, EQUIFAX or EXPERIAL reports are also obtained

and EQUIFAX and EXPERIAL are the names of

alternative          independent              agencies   like   CIBIL.      He

deposed that this case, no other reports were

obtained/generated except the CIBIL report. He, on

being shown CIBIL report of Sanjeev Dixit dated

04.03.2011, deposed that there were three CIBIL

reports.         In the first report, PAN Card number is

mentioned, however, there is no reference of Voter ID

Card or Passport number. In the second and third

report, there are references of KYC documents like PAN

Card and Voter ID Card and that there are differences in

the PAN number and date of birth in all the three

documents.


6.2.5            He further deposed that at page no. 1118,

the CIBIL report mentioned auto loan enquiry of Rs 5

lakhs. Certain queries should have been raised with

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 regard to disbursement or rejection of the said loan

from the party but, there was no such record in this

regard. On seeing CIBIL report of M/s Shanker Metal

dated 05.11.2012 at page no. 1121 of Ex. PW6/O

(D-104), he deposed that in the present case the loan

was sanctioned on 29.03.2011 but said CIBIL report was

generated on 05.11.2012. The said report should have

been generated before sanction of loan as per rule.

Further no report was obtained of the alternate agency.


6.2.6            He further deposed that the report of

guarantor Sanjay Sharma, Ex. PW6/Q (D-105) EQUIFAX,

was taken on 28.04.2011. As per rules, the said report

should have been generated before sanctioning the

loan. Furthermore, no CIBIL report was generated in

this regard. The report Ex. PW6/R (D-105) EQUIFAX of

guarantor Indira Rani was also taken on 28.04.2011

after sanction of loan and no CIBIL report was

generated even in respect of said guarantor.


6.2.7            Rest of his deposition regarding advance

circular no. 56 dated 08.07.2000, Law Division circular

no. 9/2009 dated 27.08.2009 Ex.PW6/1U in context of

the search reports and the legal reports of the panel

lawyer N.S Parihar in respect of mortgaged properties,

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 the guidelines contained in Loan & Advance Circular

No. 129 dated 09.12.2010, Ex. PW6/J4, Loan & Advance

Circular No. 12 dated 05.02.2007, Ex. PW6/K4 page no.

2298-2305) is on same lines as deposed by PW6.


6.2.8            PW-58 further deposed that the valuation

report dated 13.05.2011 (Ex. PW6/G1 D-115) in respect

of    H.      No.      5/1234,         Vasundhara,        Ghaziabad,          was

submitted by Brigadier M.L. Nasa. In the loan account

of M/s Shanker Metal, the valuation report (Ex. PW6/G1)

was submitted on 13.05.2011 whereas, loan was

sanctioned on 29.03.2011. The branch officer should

have taken the valuation report of the all the properties

before disbursement of the loan. As per Chapter 9 of

Confidential Report, the CR should contain full and

reliable record of character business activity and credit

worthiness of all individual firms, corporate bodies who

are under any form of liability to the bank.                             As per

circular no. 58/2006 Ex. PW6/M4, incumbent while

giving loan proposal form should ensure that the

particulars          furnished          by         borrower    on    the      loan

application           form        have        been      duly   verified       and

discrepancies, if any, observed have been indicated in a

separate sheet attached to the loan proposal.                                  The


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 incumbent should keep a watch on operations in

borrower's account so that cases of diversion of funds,

if any, could be brought to the light at earliest

opportunity for taking coercive action.


6.2.9            It was further deposed by PW-58 that the

confidential report (CR) already Ex PW6/U (part of

D-106) was prepared by accused Ranjiv Suneja and K.K.

Johar on 22.03.2011. The address of Sanjay Sharma,

guarantor was shown as '414, Shakarpur, Delhi'. As per

the said CR, the property was shown to be visited by

K.K. Johar on 08.03.2011. As per record, there is no

reference to said visit to above premises by the bank

officials on given date. Further, there is no reference in

movement register regarding visit of the officials on

said date. Similarly, he deposed about confidential

report (CR) Ex PW6/S (part of D-106), Ex PW6/V (part of

D-106) dated 22.03.2011 prepared by accused Ranjiv

Suneja and K.K. Johar, saying that as per the said CR

reports, the property was shown to be visited by K.K.

Johar on 08.03.2011 but, there is no reference to even

visits on the given date in movement register.


6.2.10           He further deposed that as per CR, NEC of

the property to be mortgaged were shown to have

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 been taken on date of CR whereas, as per record, the

NECs of the above properties were submitted by N.S.

Parihar on 26.03.2011. As per record, the NEC was

obtained after the preparation of CR meaning thereby,

that the CR was not prepared as per factual position.

Further that the CR of Sh. Rajesh Aggarwal dated

22.03.2011 already Ex. PW6/W (part of D-106), was

prepared by accused Ranjiv Suneja and K.K. Johar on

22.03.2011. The address of Sh. Rajesh Aggarwal,

guarantor is shown as '5/1234, M-11, Vasundhara,

Ghaziabad, UP'. In the CR, it is clearly mentioned that

the NEC report was yet to be received, which as per

record, was submitted on 16.05.2011 [Ex. PW6/K1

(D-121)].


6.2.11           PW-58 further deposed that the Loan and

Advance circular dated already Ex. PW6/M-4 (part of

D-148) and Loan & Advance circular of exhibited as

PW6/O-4 (part of D-149) were in respect of standard

appraisal format. As per CR of Sh. Rajesh Aggarwal, the

property bearing House No. 5/1234, M-11, Vasundhara,

Ghaziabad, UP was owned by Sh. Rajesh Aggarwal

whereas, as per the valuation report [already Ex.

PW6/G-1 (D-115)], the owner of the above property was


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 Sanjeev Dixit.             In appraisal note Ex. PW6/N2 (D-8),

against column no. 3 (b), there was a query i.e. whether

the borrower was in defaulter list. Against the said

column, the answer recorded by bank officials was 'NO.

AS PER CIBIL THE PARTY AS NOT ANY CREDIT FACILITY

IN     THE        PAST        FROM         ANY     OF   THE   FINANCIAL

INSTITUTIONS' whereas, as per CIBIL report [already

Ex. PW6/O (D-104)], there was inquiry of auto loan of Rs.

5 lakh, the witness PW-58 deposed.


6.2.12           He further deposed that as per CIBIL Report

(dated 04.03.2011) of accused Sanjeev Dixit Ex. PW6/O

(D-104), the PAN Number of accused Sanjeev Dixit (A-1)

was mentioned as AITPD889M, the date of birth as

10.7.1973, the Voter ID Card as DL/04/043/171289 and

the address was mentioned as 232, Jagriti Enclave.

Another CIBIL Report dated 04.03.2011, in respect of

same very accused Sanjeev Dixit (A-1) was at page no.

1120 having different PAN number as ASDPD7032N and

different date of birth was mentioned as 01.01.1973.

The Voter ID Card and the address are, however, the

same as DL/04/043/171289 and 232, Jagriti Enclave

respectively.


6.2.13           He further deposed that the Loan and

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 Advance Circular No. 134 Ex. PW6/P4 (part of D-149)

was related to exercise of loaning power at various

levels and all the powers were to be exercised

judiciously in terms of and subject to guidelines given

in book of instructions, various operative circulars and

various schemes in operation. But, in this case, despite

several        irregularities,           loan      was   sanctioned      and

disbursed. Further, as per loans and advances circular

no. 58/2006 on pre and post disbursal follow-up, all

favourable and adverse features should be specifically

mentioned in the proposal alongwith the comments

and justification for the proposed credit facility. But,

recommending and sanctioning authority did not

mention any deficiency in the proposal note.                             This

circular also stipulates that the incumbent should keep

a watch on the operation of borrower account so that

cases of diversion funds if any, should be brought to

light at the earliest. However, no such follow-up was

done and credit facilities were used for diversion of

funds. For calculating drawing power (DP) in the

account, borrower had to submit statement of stocks

and debtors and thereafter, inspection was required to

be done about the correctness of the statement for

calculating drawing power.

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 6.2.14           Further, page no. 92 of DP register already

exhibited as Ex. PW6/T4 (D-142) was pertaining to M/s

Shankar Metals. As per said register, the first inventory

submitted by the borrower was amounting to Rs.

325.97 lakhs and maintaining a margin of 25% as per

terms of sanction, the DP should have been of Rs. 244

lakh. Whereas, the branch had released the DP as 400

lakhs. As per the DP Register Ex. PW6/T4, inventories

dated 31.5.2011, 31.10.2011 and 30.4.2012 were not

inspected and DP was released without inspection of

Inventories. For the month of December, 2011, January,

2012 and 31.7.2012 onwards, inventories were not

submitted.            On       06.11.2012,         visiting    official    had

mentioned in the register that no stock was found at

the given address. It was the duty of the Branch Official

to calculate the DP and release the same for further

operation in the account. Inventory of stock and

debtors had to be verified in rotation by the branch

officials.


6.2.15           Further,         as     deposed      by      PW-58,      stock

statement dated 30.6.2011 Ex. PW6/X2 (part of D-9),

was inspected on 06.7.2011, stock statement dated

31.7.2011 Ex. PW6/Z2 (part of D-9) was inspected on


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 14.8.2011, stock statement dated 30.9.2011 Ex. PW6/A2

(D-136) was inspected on 20.10.2011, stock statement

dated 30.11.2011 Ex. PW6/C2 (D-136) was inspected on

15.12.2011, but as per movement register Ex. PW6/S4

(D-141), there were no entries with regard to said

inspections. Further, there were no entries with regard

to inspection of stock statement dated 31.8.2011 Ex.

PW6/Z1 (D-136), stock statement dated 31.10.2011 Ex.

PW6/B2 (D-136), stock statement dated 29.02.2012 Ex.

PW6/D2 (D-136) and stock statement dated 31.3.2012

Ex.     PW6/E2          (D-136),         meaning      thereby,     that      no

inspection was carried out to verify said stock

statements.


6.2.16           He further deposed that as per page no.

1389 of stock statement dated 30.4.2012 Ex. PW6/F2

(D-136); page no. 1391 of stock statement dated

31.5.2012 Ex. PW6/G2 (D-136)and page no. 1393 of

stock statement dated 30.6.2012 Ex. PW6/H2 (D-136),

the said stock statements were not inspected. The

incumbent/managers                       and       loan   officers        were

responsible for monitoring the diversion of funds as the

loan amounts ought to be used for paying the amount

of the business transactions/for which purpose the loan


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 was granted.


6.2.17           Further, as deposed by PW-58, Chapter-II,

role of Auditor and Objectives of Concurrent Audit Ex.

PW6/O           (part       of      D-147)         provides   duties      and

responsibilities of the Concurrent Auditor. The circular

no. 21/2006 towards Risk Base Internal Audit of

Branches dated 13.4.2006 Ex. PW6/R4 (part of D-149)

explains how the various risks are assessed and rating

of the branch is confirmed. He further deposed that as

per Quarterly Audit Report dated 31.3.2011 Ex. PW58/E

(part of D-147), the only irregularity pointed out by the

Auditor in the account of M/s Shankar Metal was that

documents were not filled, left blank and EM were not

credited.


6.2.18           PW-58 further deposed that irregularity

pointed out in Audit Report dated 30.6.2011 Ex. PW58/F

(part of D-147), which was a quarterly report, was

regarding BMs visit-cum-valuation report, certifying

valuation of IP being on record, lack of photographs of

the mortgaged property on record and mortgager's

signature on letter of intent. The only irregularity

pointed out in the Audit Report dated 30.9.2011 Ex.

PW58/G (part of D-147) reads as stocks are not being

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 checked in rotation by different officials, stocks not

checked for the month of May,2011, June, 2011 and July,

2011. He further deposed that as per Annual Inspection

Report Ex. PW58/H (part of D-147), the concurrent

auditor had pointed out that risk rating was over due in

the account of M/s Shankar Metals.


6.2.19           It was further deposed by PW-58 after going

through Quarterly Audit Report for the period January,

2012 till 31.3.2012 Ex. PW58/I (Part of D-147), the

auditor had pointed out in the count of M/s Shankar

Metals that the account was running irregularity by 7.43

lakhs, sales were not being routed through the account,

sales were routed only for Rs. 596.67 lakhs against it's

projection of Rs. 3300 lakhs. The conduct of the account

was not satisfactory.


6.2.20           PW-58 further deposed that the Law Division

Circular          No.        9/2009           was        contained       various

guidelines/instructions which were necessary to be

followed while submitting the search report and

carrying out title investigation. He deposes further that

in case of mortgages created/extended to secure fresh

facilities/enhancements,                           the     non-encumbrance

certificate/search                 report            needs     to        further

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 obtained/updated.                 Original         title    deed   should       be

submitted by the mortgager for legal investigation and

in no case, advocate should give opinion on the basis of

photocopy/certified copy of the title deed. The original

title deed after legal opinion/NEC should come from the

advocate directly to the Bank and in no case, the

advocate           should          handover           the    same       to     the

mortgager/party. Certified copy of the title deed is to be

obtained from the concerned office of the Sub-

Registrar/Registrar of Insurances so as verify the

genuineness of the title deed submitted before the

Bank. The Branch Officer should also cross-check the

contents           of      the        registration          particulars       and

photographs.


6.3.1            PW-59 Sh. Vipin Kumar Arora, Retd. Head

Clerk, Punjab National Bank, Shahdara, Delhi deposed

that vide letter dated 11.06.2015, he had handed over

three cheques dated 31.03.2011, 26.09.2011 and

26.09.2011 Ex.PW59/A (Colly.) (D-160) to CBI. He further

deposed that the letter dated 19.06.2015 was written by

him in his own handwriting (at point A) and it was

signed by Sh. P.K. Jain, Manager and he (PW-59) had

worked under him. Vide said letter, six cheques were


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 handed over to the CBI officer. The said letter along

with six cheques is Ex.PW59/B (colly) (D-161). PW-59

also proved on record the Statement of Account for the

period w.e.f 01.01.2010 to 13.12.2012 of the account of

M/s. Ganesh Enterprises of proprietor Sh. Rajeev

Sharma along with supporting Certificate under Section

2A of the Bankers' Book of Evidence Act as Ex.PW 59/C

(colly) (part of D-161). PW-59 also deposed regarding

various debit and credit entries of said statement of

account.


6.4.1            PW-65, Sh. Virender Kumar Dhar @ V.K. Dhar,

is the Ex-Chief Concurrent Auditor, Punjab National

Bank, BO IBB, Barahkhamba Road, New Delhi. As per

his deposition, he remained posted at said branch for a

period of three years till he retired in Nov, 2013 as Chief

Concurrent Auditor. Further he deposed that he had

studied the file of the loan account of M/s. Shanker

Metals and given his report/observation after going

through the original record. He proved on record his

investigation report dated 29.10.2012 as Ex.PW65/A-

colly. (part of D-144). He deposed that as per his

investigation, Mrs. K. K. Johar (accused), the Chief

Manager,            Sh.       Ranjeev              Suneja   (accused),      the


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 Recommending Authority and Sh. B.C. Katoach, the Sr.

Concurrent Auditor were responsible for lapses and

short comings.


6.4.2            As per his (PW-65) version, if a person

applies for loan of Rs. 9 crores, the proposal should

have been submitted to the higher authorities above

the branch level but the subject proposal was never

sent to any higher authorities for which K.K. Johar and

accused Ranjeev Suneja were responsible. He deposed

that as per Confidential Report Ex.PW6/S (D-106), the

spot verification of M/s. Shanker Metals, Sanjeev Dixit,

Sanjay Sharma, Rajesh Aggarwal and Smt. Indra Rani

was done on 08.03.2011 but in the movement register

Ex.PW6/S-4 (D-141), there was no such entries of the

visit of 08.03.2011. As per the procedure, the NEC

report        should         have       come       before   the     date       of

Confidential Report but in the instant case, the

Confidential Report was prepared on 22.03.2011 by

accused K. K. Johar, Incumbent Incharge and Sh.

Ranjeev Suneja, Credit Investigator whereas, the Non

Encumbrance Certificate (NEC) was given by accused

N.S. Parihar, Advocate on 26.03.2011. PW65 further

deposed that the Appraisal/Sanction Note was dated


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 29.03.2011 whereas, the NEC in respect of property no.

4 (H.No. 5/1234, Vasundara, District Ghaziabad) was

dated 16.05.2011, which was done in violation of the

procedure.


6.4.3            As per his version, Ex.PW6/T-4 (D-142) is the

Drawing Power Register and it was maintained to note

the stock entries of the borrower. On the basis of the

total value of the stock, after deducting 25% margin,

the credit/loan can be given up to the remaining level of

75% of the total value. For making the entries of the

stock in the said Register, visit of the bank officials is

also essential. Whereas, there was no entry in the

aforementioned DP register of the verification date. As

per his version, entries are made firstly, when the stock

statement is received and secondly, when the same is

verified.


6.4.4            He deposed that the stock statement for the

month of March, 2011 was received on 18.04.2011, for

April, 2011 on 16.05.2011, for May, 2011 on 14.06.2011,

for June, 2011 on 08.07.2011, for July, 2011 on

12.08.2011, for August, 2011 on 09.09.2011, for

September, 2011 on 22.10.2011, for October, 2011 on

16.11.2011 and for November, 2011, it was received on

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 13.12.2011. PW-65 further deposed that as per

Movement Register Ex.PW6/S-4 (D-141), there was no

entry of the visits of the bank officials in respect of

aforementioned stock statement as shown in DP

Register. The said visit was to be conducted at the unit

of the borrower.


6.5.1            PW-71         Sh.      Sadananda     Sahoo,     is    Retd.

General Manager, Vigilance Department, HO 7, Bhikaji

Cama Place, New Delhi-110607, through whom CBI

sought to prove the prosecution sanction granted for

prosecution of accused Ranjiv Suneja. As per his version

prosecution sanction Ex.PW71/A (Colly.) (D-174) (Court

File Part-IV) was accorded by Sh. Anil Kumar Khosla, the

then DGM, Punjab National Bank, Rajender Bhawan,

Rajendra Place, New Delhi, whose signature he

identified on said document at point A. He deposed that

he had remained posted in the Vigilance Department,

Punjab National Bank as DGM (Vigilance) from 2012 till

September 2015 and vide his letter dated 29.09.2015

addressed to DIG, CBI, BS&FC, at point A, he forwarded

said prosecution sanction of accused Ranjiv Suneja to

the CBI. He proved the aforementioned letter dated

29.09.2015            alongwith             prosecution   sanction          as


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 Ex.PW71/A (Colly.) (D-174) (Court File Part-IV).


7.               Empaneled Valuer


7.1.1            PW-64 Sh. Madan Lal Nasa @ M.L. Nasa,

Government Valuer deposed that he was empaneled

valuer of PNB during the period from 2004 till 2014. He

identified his signature at Point A on letter dated

13.05.2011 addressed to Chief Manager, PNB, Jor Bagh

Branch, Ex.PW6/G-1-colly., (D-115). He further deposed

that the Valuation Report dated 13.05.2011 in respect of

residential         building         bearing        H.No.   5/1234    (M-11)

Residential          Colony,         Sector        5,   Vasundhara,    Tehsil

Ghaziabad attached with the above said letter was

issued by him and bears his signature at point A on

each page [(part of Ex.PW6/G-1-colly (D-115)]. As per

Valuation Report, the market value of the said property

was Rs.2.13 crores and the realizable value of the

property was Rs. 1.70 crores as on the date of filing of

the said report.


7.2.1            PW-78 Sh. Naveen Kamboj deposed that he

had worked as valuer for immovable property in Punjab

National Bank from 2006 till he lost his vision in June

2020. During the aforementioned period, he had made


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 valuation report in respect of one house in Shahdara

and one flat in Vivek Vihar, Delhi and one factory in

Loni, in respect of loan applied by one borrower Mr.

Dixit whose photographs were perhaps enclosed with

the valuation report. He did not remember the exact

address of the said properties due to long gap of time.

However, on account of loss of vision, PW78 was unable

to identify his reports. On account of complete loss of

vision, he could not identify any document or his

signature on any document. He deposed that in respect

of said properties, he had prepared a written report

duly signed by him and he had handed over the same

to the concerned branch.


8.      Witnesses from other Banks (other than PNB)

8.1.1            PW-11         Sh.     Indravadan       Dhawan, Retired

Manager, Canara Bank, Rajinder Nagar, Ghaziabad. He

proved on record his written reply dated 11.12.2013 Ex.

PW11/A (colly)(D-78, Page- 499 to 505) vide which, he

provided CBI with the information pertaining to current

account no. 2867201000038.                         He   deposed that said

current account no. 2867201000038 was in the name of

M/s Busicom System, which was opened on 08.04.1982

with the current account no. 89.                        As per their CBS


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 System, the said account was migrated into new

account no. 2867201000038 in the year 2008. As per his

deposition, the said account was in the name of M/s

Busicom System through its proprietor Sh. Rakesh

Khullar and not in the name of M/s Shankar Metals.


8.2.1            PW-52 Sh. Ram Lagan Singh, earlier posted

as Manager in Punjab National Bank, Scope Tower,

Laxmi Nagar, Delhi (since Retired) deposed that he had

joined PNB as Agricultural Officer on 07.01.1985. On

05.07.2011, he joined as Chief Manager, PNB, Branch

Shahadar and remained posted their till 02.06.2014.

Vide letter dated 23.12.2013 Ex.PW 52/A (D-89), he had

supplied the documents accompanying with the said

letter to CBI. The documents were (i) Original account

opening form (11 pages) Ex.PW 52/A (colly) (D-89); (ii)

KYC documents of (4 pages) Ex.PW 52/A (colly) (D-89);

and (iii) Statement of Account (21 pages) Ex.PW 52/A

(colly) (D-89), of the account of M/s. Ganesh Enterprises,

which was opened through its proprietor Sh. Rajeev

Sharma. The Statement of Account of M/s. Ganesh

Enterprises was certified by Sh. Sunil Khattar, Manager

in the said branch whose signature he identified at

point 'A' on each page and the said documents were


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 also attested by him (PW-52) at point 'B' on each page.

He had also issued a certificate under Section 2A of the

Bankers Book of Evidence Act read with Section 65B of

Indian Evidence Act bearing his signature at point A, in

respect of said documents.


8.2.2            PW-52 further deposed that as per entry

made on 31.03.2011 in the aforesaid Statement of

Account, part of Ex. PW52/A an amount of Rs. 22 lakhs

was credited in said account from M/s. Shanker Metals.

On the same day, Rs. 6 lakhs was withdrawn by Sh.

Rajeev Sharma. As per entry made on 25.04.2011, an

amount of Rs. 5 lakhs was deposited in the said account

from M/s. Shanker Metals. On the same day, Rs. 4.5

lakhs was withdrawn by Sh. Rajeev Sharma.


8.2.3            As per entry made on 19.05.2011 in the

aforesaid Statement of Account, part of Ex. PW52/A an

amount of Rs. 8,65,000 was deposited in the said

account from M/s. Shanker Metals. On the same day,

Rs. 6.5 lakhs was transferred through RTGS in favour of

Sai Trading Corporation. Further, on the same day Rs. 2

lakhs was withdrawn by Sh. Rajeev Sharma in cash. As

per entry made on 13.06.2011, an amount of Rs.15

lakhs       was deposited in the said account from M/s.

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 Shanker Metals. On the same day, Rs. 5 lakhs was

withdrawn by Sh. Rajeev Sharma. Later on 22.06.2011

and 27.06.2011, he (Rajeev Sharma) had withdrawn

further amount of Rs. 5 lakhs and Rs. 1,50,000/-

respectively.


8.3.1            PW-53 Sh. Roshan Lal, the then Manager in

Canara Bank, 177, Saini Enclave, Karkardooma, Delhi

deposed that Ex.PW 53/A (colly.) was the statement of

account pertaining to the account no. 3333261000003

of M/s. Ganesh Enterprises-proprietor Sheetal Sharma

existing in Canara Bank, Karkardooma. On 16.11.2011,

Rs. 9,88,000/- were credited from Shankar Metals in the

said      account.         On       18.11.2011,    Rs.10,18,000/-     was

transferred to Jagdamba Metals through clearing from

the said account. On 06.06.2011, an amount of Rs.

8,41,000/- was credited in the said account through

clearing. On 07.06.2011, an amount of Rs. 3,50,000/-

was transferred to the said account through Sharp

Sanitation. On 13.06.2011, an amount of Rs. 5,23,000

was transferred through clearing but he did not know

to whom the said amount was transferred as the same

was not reflected in the said entry.


8.3.2            He further deposed that Ex.PW 53/A (colly.)

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 also contained statement of A/c No. 3333201000039 of

M/s. Katara Metals -proprietor Rajeev Katara existing in

Canara Bank, Karkardooma. On 25.10.2011, an amount

of Rs. 12,50,000 was transferred in the said account

from Shanker Metals. On the same day i.e. on

25.10.2011, an amount of Rs. 12,50,000 was transferred

from the said account to Sharp Sanitation. On the same

day, an amount of Rs. 12,50,000 was cash withdrawn

from the account of Sharp Sanitation, which was

reflected from the separate statement of account of

Sharp Sanitation. On 27.04.2011, an amount of Rs.

25,75,185 was received from 232, Jagriti Enclave and on

the same day Rs. 9 lakhs were transferred to Sharp

Sanitation. On the same day, Rs. 9,50,000 was cash

withdrawn by Sh. Devender and on 29.04.2011, Rs. 7

lakhs was withdrawn in cash by Sh. Devender.


8.3.3            As deposed by PW-53, Ex.PW 53/A (colly.)

also contained statement of account of M/s. Rajdhani

Traders, proprietor Jitendra Singh, bearing A/c No.

3333201000074 existing in Canara Bank, Karkardooma.

On 27.12.2011, an amount of Rs. 9,97,700 was

transferred in the said account from Shanker Metals.

On the same day, an amount of Rs. 16,27,838 was


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 received through RTGS in the above account but he was

not able to say from whom, the said amount was

received as there was no such entry. On 27.12.2011, an

amount of Rs.3 lakhs was transferred to Sh. Nitin from

the said account. On 28.12.2011, an amount of Rs. 20

lakhs was transferred from the above account to Sanya

Enterprises. On 30.12.2011, an amount of Rs. 24,60,000

was credited in the above said account of Rajdhani

Traders from Shanker Metals. On 31.12.2011, Rs.

5,91,000 was transferred to Sanya Enterprises from the

said account. On 31.12.2011, Rs. 21,36,000 was

transferred from Sanya Enterprises to Sharp Sanitation.

On the same day, Rs. 21,35,700 was transferred from

Sharp Sanitation to Shanker Metals. On 27.05.2011, Rs.

15,63,885 was received in the above account (M/s.

Rajdhani         Traders)         from        232,       Jagriti   Enclave.      On

27.05.2011, Rs. 3,10,800 was transferred from the

above        said      account          to     Ganesh          Enterprises.      On

28.05.2011,           Rs.     2,40,685             and   Rs.    2,10,000      were

transferred to Ganesh Enterprises through clearing.


8.3.4            He further deposed that on 27.05.2011, Rs.

3,06,500         were         transferred            from      above     account

(Rajdhani Traders) vide cheque no. 318704 to Sai


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 Trading Corporation. On 28.05.2011, Rs. 4,86,200 was

transferred from the above account (M/s. Rajdhani

Traders) to Sanya Enterprises. On 31.05.2011, an

amount of Rs.50,000 and Rs. 4,15,362 were transferred

from        Sanya         Enterprises              through   clearing.      On

28.05.2011, Rs. 356000 was transferred from the above

account (M/s. Rajdhani Traders) to Diya Sanitation. On

31.05.2011, an amount of Rs.40,000 was transferred

from Diya Sanitation through clearing. PW53 also gave

Certificate u/s 2A of Bankers Book of Evidence Act read

with Section 65B of the Indian Evidence Act (Ex.PW53/B)

in respect of all the statement of accounts supplied by

him through Ex.PW53/A (Colly).


8.4.1            PW-54 Sh. Arunendra Pratap Singh @ A.P.

Singh, Chief Manager, Allahabad Bank, C-25, Sector-15,

Vasundhra, Gaziabad, U.P. deposed that he remained

posted at Vasundhara, Ghaziabad Branch of Allahabad

Bank from 2013 to 2015 as Chief Manager. During said

period, he handed over certain documents to CBI. Vide

letter dated 17.12.2013, Ex.PW54/A (D-90), he supplied

(i) Original certified account opening form of Future Tap

Sanitation of account no. 50031303100, (ii) Original

account opening form along with KYC documents of


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 account no. 50070477091 of M/s Paras Metals and (iii)

Original        account          opening           form   along   with      KYC

documents of account no. 50070133956 of M/s

Jagdamba Metals.


8.4.2            PW-54, after seeing the account opening

form of CC/current account no. 50032673386 of Future

Tap Sanitation, he deposed that the said account was

opened on 01.06.2010 in their Vasundhara, Ghaziabad

Branch in the name of Future Tap Sanitation through

Sh. Sanjeev Dixit, proprietor, R/o 232, Jagriti Enclave,

New Delhi. The CC Limit was sanctioned for an amount

of Rs.2.80 crore. Sushil Kumar Sharma was the

guarantor of the said loan. The accused Sanjeev Dixit

had offered property bearing 232, Jagriti Enclave, New

Delhi as collateral security. The CC account became NPA

in     the       year        2012         due       to    non-payment          of

amount/interest and the sanction limit was also

exceeded. After declaration of said CC account as NPA,

the bank had filed a suit before DRT and DRT found that

the title deed offered as collateral security i.e. 232,

Jagriti Enclave, New Delhi as defective and not

enforceable.


8.4.3            Further, after seeing loan account form

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 along with KYC documents Ex.PW54/B (colly) (D-90),

PW-54 deposed that the said account opening form was

duly attested/certified by Senior Manager Sh. S.K.

Divedi and he identified his signature along with official

seal at point A on each page. The account statement of

Future Tap Sanitation in respect of account no.

50032673386 Ex.PW54/C, was stated to be bearing

signature of Sh. S.K. Dwivedi at point A on each page.

He further deposed that the account no. 50070477091

was opened in the name of Paras Metals through Sh.

Rahul Mudgal vide account opening form Ex.PW54/D,

along with KYC documents, which were certified by Sh.

S.K. Dwivedi, Sr. Manager. As per PW54, the statement

of said account no. 50070477091 Ex.PW54/E, was also

certified by Sh. S.K. Dwivedi, Senior Manager.


8.4.4            He      further         deposed   that   the   account

no.50070133956 was opened in the name of Jagdamba

Metals through Sh. Sanjeev Dixit and the account

opening form Ex.PW54/F along with KYC documents

were also stated to be certified by Sh. S.K. Dwivedi, Sr.

Manager. The statement of said account Ex.PW54/G was

certified by Sh. S.K. Dwivedi, Senior Manager whose

signatures PW54 identified as he (PW54) had worked


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   with him and had seen him writing during official

  course of his duties. PW54 proved on record certificate

  under Section 2A of the Bankers' Book of Evidence Act

  read      with       Section 65B of                 Indian   Evidence      Act,

  Ex.PW54/H, bearing his signature at Point A and

  deposed that said certificate was issued by him in

  respect of all the statement of accounts mentioned

  above.


  8.4.5            PW54 deposed that as per statement of

  accounts, the following amounts were transferred from

  the account of Shanker Metals-PNB in the following

  accounts:

Number/    Owner Date        of Cheque                         Amount       Total
Name    of of      Transaction No.                             in Rs.       Amount
Account    Account

50070133956 Sanjeev              23.08.11                      21,15,000    21,15,000
,       M/s. Dixit
Jagdamba
Metals    at
Allahabad
Bank,
Vasundhara
Ghaziabad

50032673386 Sanjeev              06.07.2011          545514    15,20,000    53,29,600
Future    Tap Dixit              and                           26,38,000
Sanitation                       19.07.2011
                                                               11,71,600
                                 24.05.2011




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 50070477091 Rahul                10.09.2011                  17,98,600      38,43,600
M/s.   Paras Mudgal              23.08.2011                  20,45,000
Metals    at
Allahabad
Bank,
Vasundhara,
Ghaziabad
(paid     by
RTGS)




  8.4.6            It was further deposed by PW-54 that as per

  the bank transactions of Jagdamba Metals (account no.

  50070133956), Proprietor Sh. Sanjeev Dixit at Allahabad

  Bank, Ghaziabad, on 23.08.2011 an amount of Rs.

  21,15,000 was received from Shanker Metals and Rs. 20

  lakhs was cash withdrawn paid to Rahul on 28.08.2011.

  The transaction of Future Tap Sanitation (account no.

  50032573386)              Proprietor,          Sanjeev   Dixit    exists       in

  Allahabad          Bank,        Vasundhara,        Ghaziabad.        In     this

  account Rs. 15,20,000/- was credited from the account

  of M/s. Shanker Metals on 06.07.2011 vide clearing

  cheque no. 545514. On 08.07.2011 and 11.07.2011, Rs.

  9,50,000 and Rs. 2 lakhs were respectively withdrawn in

  cash. On 19.07.2011, Rs. 26,38,000 was credited in the

  account of M/s. Future Tap Sanitation from the account

  of M/s. Shanker Metals. On 20.07.2011 and 22.07.2011

  Rs. 9,58,000 (paid to Sh. Sanjeev Kumar) and Rs.


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 8,60,000 (paid to Sachin) were cash withdrawn. On

24.05.2011, Rs. 11,71,600 was credited in the account of

M/s. Future Tap Sanitation from the account of M/s.

Shanker Metals. On 26.05.2011, the amount Rs.

2,63,300/-, 2,64,800/-, Rs. 248500/- and Rs. 248500/-

were withdrawn through clearing.


8.4.7            PW-54 further deposed that the transaction

of M/s. Paras Metals (50070477091), Proprietor Sh.

Rahul Mudgal exists in Allahabad Bank, Vasundhara,

Ghaziabad. On 10.09.2011, Rs. 17,98,600 was credited

in the account of M/s. Paras Metal from the account of

M/s. Shanker Metals. On 12.09.2011 vide cheque no.

377712 Rs. 18,00,055 were transferred to Jagdamba

Metals through RTGS. On 23.08.2011, Rs. 20,45,000 was

credited in the account of M/s. Paras Metals from the

account of M/s. Shanker Metals. On 24.08.2011, vide

cheque no. 377705, Rs. 20 lakhs was cash withdrawn.

As per PW 54, the said transactions amount to diversion

of funds from the account of M/s. Shanker Metals.


8.5.1            PW-56, Sh. Devendra Kumar Sharma @ D.K.

Sharma is the Retd. Manager of Syndicate Bank, Mehra

Chamber, Desh Bandu Gupta Road, Dev Nagar, Delhi-05.

As per his version, during his tenure in said branch, a

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 loan account of a firm M/s. Sai Shyam Enterprises

owned by Sanjay Sharma, was transferred to Mehra

Branch from Nirman Vihar Branch, who had already

filed a recovery proceedings in respect of said loan

before DRT. As a collateral security, the property

bearing no. 25, Shyam Industrial Area, Loni, Ghaziabad

was mortgaged with the bank by the borrowers and the

bank had taken physical possession of the said property

immediately after filing the said case/application in

DRT. The said property was sold by the DRT in 2016-

2017 and only part recovery of the due amount was

made.


8.6.1            PW-62 is Sh. Mahabir Singh, Chief Manager,

Allahabad Bank, C-25, Sector-15, Allahabad Bank,

Vasundhra, Gaziabad, U.P. (since retired). He deposed

that during his tenure in said branch, he had joined the

investigation of this case and vide letter dated

12.06.2015, he handed over certain cheques (image of

clearing cheques) and details of the payments with his

certificate under Section 2A of Bankers Book of

Evidence Act read with Section 65B of Indian Evidence

Act to the IO. The image copies of the clearing cheques

were certified by him and same bears his signature at


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 point B on each image copy. PW62 proved on record

said documents as Ex.PW62/A (colly) (D-162). He had

also endorsed the table of transaction which had been

mentioned in the forwarding letter dated 12.06.2015

(part of Ex.PW62/A). He further deposed that Ex.PW54/A

i.e. statement of accounts of Future Tap Sanitation,

Paras Metals and Jagdamba Metals were issued by his

bank and the relevant entries of the said statements

had been mentioned in the aforesaid table.


8.7.1            PW-67 Sh. Man Pal Singh @ M.P. Singh, the

then Manager, Canara Bank, Karkardooma Branch,

Delhi-92. As per his version, he remained posted in the

Saini Enclave, Karkardooma Branch of Canara Bank

from 07.07.2014 till 04.04.2016 and during that period,

he had handed over certain documents to the CBI. He

proved on record the Production-cum-Seizure Memos

dated 10.06.2015 and 03.07.2015, vide which he had

handed over the documents mentioned therein to the

IO alongwith Certificate under Section 2A of Bankers

Books of Evidence Act read with Section 65-B of Indian

Evidence Act. He identified his signature and official

stamp at point A on the said memos as well as on the

annexed documents and exhibited them collectively as


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 Ex.PW67/A (Colly.) (D-158) and Ex.PW67/B (Colly.)

(D-159) respectively. Rest of his deposition is on the

lines of deposition of PW-53 and hence, not repeated

herein for brevity sake.


8.8.1            PW-70 is Sh. Sarvesh Kumar Dwivedi @ S.K.

Dwivedi (PF No.8981) S/o Late Sh. L.N. Dwivedi, Retd. Sr.

Manager, Allahabad Bank, Vasundhara, Ghaziabad, U.P.

He deposed that in the year 2012, he remained posted

for 2½ months in Allahabad Bank, Vasundhara,

Ghaziabad Branch and during said period, he had

visited CBI Office at CGO Complex in connection off

investigation of this case. Upon being shown Specimen

Signature Memo dated 18.12.2013 of N.S.Parihar @

Nripender Singh Parihar (Ex.PW14/D) (Colly.) from page

2830 to 2833, he identified his signature at Point A on

each page on the said document Ex.PW70/A (Part of

D-165). As per his version, one person had signed in his

presence at Point B on each page but he did not know

that the name of said person was Nripender Singh

Parihar.


9.               Police Witnesses

9.1.1            PW-26 to PW-39 are the police officers, who


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 are the duty officer or the investigating officer of the

FIRs lodged against Sanjeev Dixit in connection with

various frauds played by him. Through said witnesses

the prosecution seeks to prove following FIRs of

cheating and forgery lodged against accused Sanjeev

Dixit (A-1) at various police stations in Delhi and NCR:

Sr.      Name of the                  FIR no       Police      Exhibit no.
no.      witness                                   Station
1.       PW-26 ASI Fakhray 86/2013                 Preet Vihar Ex.PW25/A
         Alam and PW-30
         Inspector Nirbhay
         Kumar

2.       PW-31 SI Ram 217/2012                     Anand Vihar Ex.PW31/A
         Shankar Pandit
3.       PW-33        ASI 217/12                   Anand Vihar Ex.PW31/A
         Narender Kumar
4.       PW-34 HC Dinesh             260/13        Anand Vihar Ex.PW34/A
5.       PW-35 SI Monu 49/13                       Vivek Vihar Ex.PW35/A
         and PW-36 Sh.
         Rajbir Singh
6.       PW-37 Sh. Rajeev 260/13                   Anand Vihar Ex.PW34/A
         Kumar
7.       PW-38 Inspector 212/13 and Kundli,                    Ex.PW38/A
         Pradeep Kumar   213/13     Haryana                    and
                                                               Ex.PW38/B
8.       PW-39 Sh. Naval 03/2013                   CBI,        Ex. PW39/A
         Marwa                                     Ghaziabad



9.2.1            PW-77 Sh. Vishal, the then Inspector, CBI,

BSFC, Delhi is the IO of this case. He deposes that in the



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 year 2013, Sh. A.K. Singh, the then SP, CBI, BSFC, Delhi

had entrusted him the investigation of this case bearing

No. RC 06/2013. This case was registered on the basis

of written complaint dated 19.06.2013 [(Ex.PW6/A (D-1)]

of Sh. C.P. Garg, Chief Manager, PNB, Jorbagh, Delhi.

The complaint was regarding the cheating and forgery

committed by accused in availing cash credit facility of

Rs.4 Crore and diversion of funds. In this matter, one

firm namely M/s. Shankar Metals through its proprietor

Sanjeev Dixit had applied for cash credit facility of Rs.4

Crore in PNB, Jorbagh, Delhi.


9.2.2            PW-77           further           deposed    that     during

investigation of this case, it was revealed that accused

Sanjeev Dixit had submitted forged documents like KYC

documents, statements of accounts, balance-sheet, title

deeds of properties, which had been offered to bank as

collateral securities, with the conspiracy of other co-

accused and public servants. During investigation, he

(PW-77) also collected the questioned documents and

sent them to CFSL for expert opinion. Further that,

investigation revealed that accused public servants

namely Smt. K.K. Johar and Ranjeev Suneja and

empaneled             Advocate          under        the   conspiracy      with


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 accused Sanjeev Dixit and others had not verified the

forged documents submitted by the accused and

sanctioned           the       loan.      After      investigation,   original

chargesheet was filed in 2014 against main accused

Sanjeev Dixit. CFSL report was filed in the form of

Supplementary Chargesheet-I in 2015. Thereafter, after

completion                of         investigation,          Supplementary

Chargesheet-II was filed in 2015 against private

persons and public servants. The prosecution sanction

for accused K.K. Johar was not required as she had

been already dismissed from the service. While

prosecution            sanction         for        accused   public    servant

accused Ranjeev Suneja was taken from the bank.


9.2.3            As deposed further by PW-77, the FIR dated

11.07.2013, Ex.PW77/A (Colly.) (D-2) bears signature of

Sh. A.K. Singh, the then SP, BSFC at Point A on each

page. He identified the signature of Sh. A.K. Singh as he

had worked under him and had seen him writing and

signing during the course of his official duties and that

was the same FIR, which was handed over to him

(PW-77) for investigation.


9.2.4            PW-77 further deposed that vide Letter

dated 10.12.2013 (Ex.PW6/C) (D-3), addressed to him

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 witness, Sh. C.P. Garg, Chief Manager, PNB had handed

over the documents pertaining to bank account of M/s.

Shankar Metals, copy of DP Register and copy of

movement register and he (PW-77) had signed on

Ex.PW6/C at Point C as a token of receipt of documents.

The Account Opening Form alongwith KYC documents

of Account No. 0175002100018768 of M/s. Shankar

Metals (Ex.PW6/D) (D-5) was received from complainant

Sh. C.P. Garg, Chief Manager, PNB. He identified his

signature at Point B on Seizure Memo dated 30.07.2013

(Ex.PW6/B) (D-6) and deposed that vide said seizure

memo, total 8 files were received containing documents

regarding          loan       application,         sanction   note,     stock

statements & correspondence, mortgage papers of

property i.e. Plot No.25, Shyam Industrial Area, Loni,

Ghaziabad; mortgage papers of property i.e. 17-B,

Shriram Nagar, G.T. Road, Shahdara, Delhi; mortgage

papers of property i.e. FIE-121, Patparganj Industrial

Area, New Delhi; mortgage papers of property i.e.

C-193, 3rd Floor, Vivek Vihar, Phase-I, Delhi and cheques

& instruments.


9.2.5            He further deposed that the credit appraisal

of M/s. Shankar Metals (Ex.PW6/N2) ( D-8) was signed


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 by the bank official namely Ranjeev Suneja (accused) as

appraising authority and Ms. K.K. Johar (accused) as

sanctioning authority. The documents of property i.e.

Plot No.25, Shyam Industrial Area, Loni, Ghaziabad, UP

(Ex.PW6/A3) (D-10) were submitted by borrower to the

bank as collateral security. These documents were

received by him from the bank. Sale Deed dated

07.02.1967 (Ex.PW6/B3) (D-10) was submitted by

borrower to the bank as collateral security. Further, the

documents of property i.e. 17-B, Shriram Nagar,

Shahdara, Delhi (Ex.PW6/E3) (D-11) were submitted by

borrower to the bank as collateral security and these

documents were received by him from the bank.


9.2.6            As deposed by PW-77 further, the documents

of property i.e. C-193, 3rd Floor, Vivek Vihar, Phase-I,

Delhi (Ex.PW6/P3) (D-12) and FIE-121, Patparganj

Industrial Area, New Delhi (Ex.PW6/U3) (D-13) were

submitted by borrower to the bank as collateral security

and these documents were also received by him from

the bank. Vide letter dated 03.09.2013 (Ex.PW6/E)

(D-14), he had received one cheque bearing no. 075109

and other information regarding the transactions from

Sh. C.P. Garg. He had signed at Point B on the said letter


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 as a token of receipt of cheque/information mentioned

therein. Vide letter dated 21.10.2013 (Ex.PW6/G) (D-16),

he had received five cheques and other information

regarding the transactions from Sh. C.P. Garg and had

signed at Point B on the said letter as a token of receipt

of cheques/information mentioned therein. Vide letter

dated 25.07.2011 (already Ex.PW6/H) (D-22), he had

received statement of account and cheques from Sh.

C.P. Garg, [Ex.PW6/H1 to Ex.PW6/H48 (D-23 to D-70)].


9.2.7            PW-77          referred           to   various   documents

(already exhibited/proved through other witnesses)

from judicial record, which were collected/ seized/

received by him from different persons/entities during

the course investigation such as letter dated 01.01.2014

(D-71) from AERO, AC-59 (Vishwas Nagar) Ex. PW1/A,

letter dated 31.12.2013 (D-72) from AERO, AC-56 (Laxmi

Nagar) Ex. PW5/A, letter dated 21.02.2014 (D-73) Ex.

PW8/A, letter dated 02.01.2014 (D-74) Ex. PW2/A (colly),

letter dated 02.01.2014 (D-75) Ex. PW3/A (colly), letter

dated 01.01.2014 (D-76) Ex. PW4/A (colly), letter dated

02.01.2014 (D-77) Ex. PW9/A, letter dated 11.12.2013

(D-78) Ex. PW11/A (colly), letter dated 08.08.2013 (D-79)

Ex. PW13/A (colly). PW77 also identified his signatures


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 on Production-cum-Seizure Memo dated 21.08.2013

(D-80) Ex.PW46/A (colly), dated 04.02.2014 (D-81)

Ex.PW15/A (colly). He also identified signature of

Inspector R.K.Rishi at point 'B' on memo dated

04.02.2014 (D-82) Ex.PW16/A (colly), as he had seen him

writing and signing during the course of his official

duties.


9.2.8            Similarly, he identified his signature at point

'B' on letter dated 07.01.2014 (D-83) Ex.PW48/A; on

production-cum-seizure Memo dated 24.02.2014 (D-84),

Ex. PW-77/B (colly); letter dated 07.01.2014 (D-85) Ex.

PW48/C;             production-cum-seizure                Memo          dated

06.02.2014           (D-86)       Ex.PW51/A        (colly);   letter    dated

25.04.2014 (D-87) Ex. PW17/A (colly); letter dated

09.12.2013 (D-88) Ex. PW53/A (colly); letter                            dated

23.12.2013 (D-89) Ex. PW52/A (colly); letter dated

17.12.2013 (D-90) Ex. PW54/A (colly), He identified his

signature at Point B on the specimen signature and

handwriting of accused Sanjeev Dixit @ Sanjay Sharma,

Rahul Sharma, Arti Sharma and Rajeev Sharma (D-100)

Ex.PW40/A, Ex. PW-55/A, Ex.PW43/A and Ex. PW42/A

respectively. He deposed that he had taken the

specimen signatures of accused Sanjeev Dixit in the


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 presence of independent witness and same were taken

with the permission of the court. He also identified

various other documents already exhibited/proved

through other prosecution witnesses. 9.2.9                                 PW-77

further deposes that the specimen signature and

handwriting of accused Sanjeev Dixit @ Sanjay Sharma

and Rajeev Sharma (D-170) bears his signature at points

'A' on each page. Specimen signature of Rajeev Sharma

is Ex.PW57/A. The abovesaid specimen signatures/hand

writings are Ex. PW77/E (colly). He had also taken

specimen signature of accused Rajeev Sharma Ex.

PW57/A (colly) in the presence of independent witness.

Vide letter dated 02.03.2015 (D-171) Ex.PW77/F, which

bears his signature at point 'A', he had received the

account opening form of accused Rajeev Sharma. He

further testified that after analyzing all the documents

collected         during         investigation          and    recording          of

statement of witnesses under Section 161 Cr.P.C, he

came to conclusion that there was sufficient evidence to

prosecute           the       accused              persons    and     he       filed

chargesheet before the Court.


10.              Witnesses from Sub-Registrar Office


10.1.1           PW-13 Sh. Naveen Kumar is from the office

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 of Stamp & Registration Department, Ghaziabad, UP. He

stated that he was called by the CBI in its office

alongwith certified copy of a document (sale-deed) in

respect of 17B, Shri Ram Nagar, Shahdara, Delhi

executed by Harbansh Lal Sharma in favor of M/s Super

Machine of Proprietor Sanjay Sharma which he took to

the office of the CBI alongwith covering letter

Ex.PW13/A (colly)(D-79 page 506 to 538). Further he

deposed that Sale deed (D-10 page 243 to 280)

Ex.PW6/A3 was the same document, which was shown

to him by the IO. He further deposed, after comparing

sale deed i.e. Ex.PW13/A (genuine sale deed) and

Ex.PW6/A3             (allegedly           forged   sale   deed),       the

photographs printed on the reverse of 2 nd page of sale

deed Ex.PW6/A3 and photographs printed on the

reverse of third page of certified copy of sale deed

Ex.PW13/A (of the purchaser) were found to be of two

different persons. The photographs pasted on the 5th

page of sale deed Ex.PW6/A3 and photographs printed

on the 5th page of certified copy of sale deed Ex.PW13/A

were also of two different persons. PW-13 further

deposed that PAN No. BZYPS4132F of purchaser

mentioned in Page no.5 of sale deed Ex.PW6/A3 and

PAN No.BUKPS2303D of purchaser mentioned in page

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 no.5 of certified copy of sale deed Ex.PW13/A were also

different and that the certified copy submitted by him

with the IO was registered in his office.


10.2.1           PW-44, Sh. Chander Mohan, Registration

Clerk in the O/o Sub-Registrar-I, Ghaziabad, UP

deposed that Vide seizure memo dated 10.02.2014

(D-151), he had submitted certified copy of the deed of

property no. 25 Shyam Industrial Area, Banthala, Loni

Ghaziabad executed by Ms. Shiv Kumari Sharma D/o Lal

Chand Sharma in favour of Sh. Lal Chand Sharma S/o

B.R. Sharma. In their record, said deed was registered

as document no. 27, Bahi No. 4 Jild No. 145, page 52 to

55 dated 05.04.1965. He deposed further that sale deed

of property no. 25 Shyam Industrial Area, Banthala,

Loni Ghaziabad executed by M/s Sham Land & Finance

Co. New Delhi through its sole proprietor Sh.Lal Chand

Sharma S/o B.R. Sharma to Harvansh Lal Sharma S/o

Sh. Tirath Ram was registered as document no. 1517,

Bahi No. 1 Jild No. 1330, page 26 to 28 dated

12.04.1967, which is Ex.PW44/A colly (D-151) (Page 2541

to 2548). The certified copies of the abovementioned

properties bear the initial of Sh. Sanjay Srivastava, then

Sub-registrar at point B on each pages. The record of


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 the above property belonging to period prior to

05.04.1965 was not available in the office of Sub-

registrar, Ghaziabad.


10.2.2           PW-44 further deposed that for inspection of

the record of the property registered with the registrar,

anyone could apply for inspection after depositing

inspection fee of Rs. 5/- per year. There was an

inspection register maintained by the office for the

purpose of inspection wherein all the record of

registration were available with details of property,

name of the seller and purchaser and registration

details. Anyone could obtain certified copy of the

property documents by providing details of the

property, name of seller and purchaser, registration

details and fee of Rs. 10/- upto 1000/- words and a

stamp paper of Rs. 10/-.


10.3.1           PW-46 Sh. Budh Prakash Gautam, LDC in the

office of Sub-Registrar-IV, Seelampur, Nand Nagri

Complex deposed that vide seizure memo dated

21.08.2013 (D-80), he handed over the certified copy of

the sale deed in respect of property No. 17-B, out of

khasra no. 423, Shri Ram Nagar, G.T. Road, Shahdara,

Delhi, executed by Smt. Simla Rani in favour of Smt.

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 Indra Rani, which was exhibited as Ex.PW46/A (colly)

(D-80)(genuine sale deed). As per his version, the

certified copy was certified by Sub-Registrar Sh. B.L.

Bairwa.        He further deposed that the photograph at

point A on sale deed dated 24.09.1999, Ex.PW6/E-3

(allegedly forged sale deed) bears photograph of

female other than the photograph of female available

at point A on certified copy of sale deed Ex.PW14/C

(allegedly forged sale deed). He further deposed that

letter dated 28.12.2013 (D-152) Ex.PW46/B bore the

signature of Sh. B.L. Bairwa at point A.


10.4.1           PW-47 Sh. Manoj Kaushik, the then Sub-

Registrar-IVA, Shahdara/Seemapuri, Delhi deposed that

while he was Sub-Registrar IV, Shahdara/Seemapuri he

had handed over certain documents to IO vide his letter

dated 20.12.2013. The certified copy of said property

documents were annexed with said letter dated

20.12.2013. The letter along with certified copy of the

property document in respect of property no. 17-B, Sri

Ram Nagar, G.T. Road, Shahdara, Delhi, have been

proved by PW47 as Ex.PW47/A colly (D-153) page 2570

to 2610). He further deposed that he had certified the

six sale deeds handed over vide said letter dated


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 20.12.2013, after comparing the same with the office

copies of the Sale Deeds available in the office of Sub-

Registrar-IVA, Seemapuri.


10.5.1           PW-48 Sh. Navin Kumar Sharma, is the Sub-

Registrar VIII Geeta Colony, LM Bandh, DC Office

Complex, Shastri Nagar, New Delhi. As per his

deposition, vide letter dated 07.01.2014 [Ex. PW48/A

(D-83)], he had handed over certified copies of

Registered Deeds of the C-193, Vivek Vihar, Phase-I,

Delhi, Ex. PW48/B (colly.) (part of D-83) (pages 582 to

649), to IO Vishal. Vide another letter dated 07.01.2014,

Ex. PW48/C (D-85), he had handed over the certified

copy, Ex. PW48/D (colly.) (Part of D-85) (pages 697 to

724), of Sale Deed in respect of property no. 121FIE,

Patparganj, Industrial Area. He further deposed that as

per Ex. PW48/D, the property was owned by Nisha

Gupta (25% undivided share), Nirmal Gupta (25%

undivided share) and Krishna Devi (50% undivided

share). As per Agreement to Sell dated 29 th December,

2003        Sh. Satnam Singh (50% undivided share), Sh.

Jitender Singh Narula (25% undivided share) and Sh.

Inderjeet Singh Narula (25% undivided share) sold the

said property to Smt. Krishana Devi, Smt. Nirmal Gupta


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 and Smt. Nisha Gupta vide registration no. 9316 dated

30.12.2003.


10.5.2           He deposed that the Sale Deed Ex. PW6/U3

(D-13), shown to him in respect of property no. 121FIE,

Patparganj,           Industrial          Area,    was   registered      vide

registration no. 23451 dated 25.05.2011. But after

seeing office record, the Sale Deed dated 25.05.2011

bearing registration no. 23451 additional book no. 1

volume no. 4320 at page no. 102 to 109 (D-13) was

found to be not registered with the office of Sub-

Registrar VIII. He deposed that in fact at page no. 102

to 109 in Volume no. 4320 Book No. 1 of the office

record, produced by Sh. Pawan Chauhan, one sale deed

was registered which is dated 09.12.2009 having

registration no. 15379 and same was executed by

Archana Jain in favour of Sanjeev Dixit in respect of

property no. 232, Jagriti Enclave, Delhi-110092.


10.6.1           PW-49 Sh. Satinder Mohan is the Section

Officer, CM Office, Delhi Sachvalaya, New Delhi. He

deposed from 21.07.2015 to 31.10.2018, he was posted

as Sub-Registrar-VIII, Geeta Colony and during that

period the IO of the instant case had requested him for

information regarding property no.121, FIE, Patparganj

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 Industrial Area. In response thereof, he vide his letter

Ex.PW49/A (D-155), handed over certified copy of Sale

Deed Ex.PW49/B (part of D-155), which was available at

the given particulars in the office record. Vide said

letter, he informed that said sale deed was lying

registered          at      registration           number   15379     dated

09.12.2009 at Addl. Book number 1, Volume no. 4320,

at page no. 102 to 109, in respect of property no. 232,

Jagriti Enclave, Delhi 110 092 executed by Smt. Archana

Jain in favour of Sh. Sanjeev Dixit in respect of property

no. 232, Jagriti Enclave, Delhi 110 092.


10.6.2           He further deposed that the document

bearing registration no. 23451 in addl. Book no. 1

volume no. 4320, page no. 102 to 109 dated 25.05.2011,

was not found existing in their record. In the light of

said deposition, the 4th mortgaged property bearing no.

121, FIE, Patpartganj Industrial Area was not registered

at the given particulars and on page no. 102 to 109 of

Book no. 1 Volume no. 4320, sale deed of one another

property 232, Jagriti Enclave was lying registered at

Registration no. 23451 dated 25.05.2011.


10.7.1           PW-50 Sh. Avtar Singh, UDC, Irrigation Flood

Control Department, Shastri Nagar, Delhi 110 031

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 deposed that he remained posted in the office of Sub-

Registrar Seelam Pur from 2014 to 2016 and during

said period, he had handed over certain documents to

the CBI.          He further              deposed    that   letter dated

01.08.2015             (D-156)           Ex.PW50/A     contained         the

information regarding property no. 121 FIE, Patpatganj

Industrial Area, Delhi and the said letter was written by

Sh. Anup Kumar Verma, Sub-Registar IV, Seelampur

bearing signature of Sh. Anup Kumar Sharma at Point A

and vide another letter dated 01.08.2015 (D-157)

Ex.PW50/B written by Sh. Anup Kumar Verma, the

certified copy of lease deed of the the above property

Ex.PW50/C (colly.) (part of D-157), bearing his (PW-50's)

signature at point A and the signature of Sh. Anup

Kumar at point B, executed by the President of India in

favour of Ramji Lal Chawla vide registration number

1155, Book No. 1, Volume no. 2313, page no. 90 to 101

was supplied. As per PW-50 said deed was registered

on 04.06.1991 as per their record. He further deposed

that as per the details given in the said document

Ex.PW50/A, Volume no. 6434 did not exist in the record

of Sub-Registrar for the date 26.10.2001.




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 11.     Sanctioning Authority


11.1.1           PW-73 Sh. Anil Kumar Khosla, the then Dy.

General Manager (since retired) is the sanctioning

authority who accorded prosecution sanction in respect

of accused Ranjiv Suneja. As per his version, he was

promoted to the post of DGM in the year 2012 and

retired in 2019.              Further that, Punjab National Bank,

DGM was the competent authority to remove the

officers upto the rank of Sr. Manager and when he was

posted as DGM, Zonal Officer, Rajendra Place, New

Delhi, during the year 2015, he had received a request

from the CBI for prosecution sanction against accused

Ranjiv Suneja. He had also received supporting

documents and statements of witnesses, etc. alongwith

the said request.


11.1.2           After going through the documents and

statements of witnesses, he accorded prosecution

sanction          against         accused          Ranjiv   Suneja     being

competent authority to remove the officer. He identified

the prosecution sanction order dated 28.09.2015,

Ex.PW71/A (Colly.) (Part of D-174), in respect of accused

Ranjiv Suneja, Sr. Manager, PNB, Jorbagh Branch, Delhi,

bearing his signature at point B on each page.

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 12.     Chartered Accountants/CMA Data witnesses


12.1.1           PW-7 Sh. Sukhdev Madnani is the Chartered

Accountant, whose signatures were allegedly forged on

the audited balance sheets submitted by the borrower

with the bank. He deposed that he had been practicing

since 1989 and his membership number was 073569.

He had never done audit for M/s Shankar Metals. On

being shown the audited balance sheet of M/s Shankar

Metal as on 31.03.2008 Mark C (D-7) (Page no. 108 to

Page no. 124), the audited balance sheet as on

31.03.2009 Mark D (D-7) (Page no. 125 to Page no. 138)

and the audited balance sheet as on 31.03.2010 Mark E

(D-7) (Page no. 139 to Page no. 152), he deposed that

the the signatures as well as the stamp which were

affixed on said audit reports were not his and he had

never used the seal of that kind. Further that, he did not

know any person by the name of Sanjiv Dixit.


12.2.1           PW-12 Smt. Prem Lata Mishra is also a

Chartered Accountant. She deposed that she had been

practicing as a Chartered Accountant since 1995. In

connection with the present case, she had visited the

CBI Office, where she was shown some documents like

Audit Report, Profit & Loss Account of M/s Shankar

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 Metals Mark 'A' (Part of D-7, Page- 82 to 98) and she had

informed CBI that said reports were not prepared by

her and they did neither bear her signatures nor seal

was of her firm namely "Prem Mishra & Co." As per her

testimony,          the      signature             appearing   at      point      'A'

purported to be her's were forged signature. Similarly,

the seal projected to be of her firm was also forged one

and she did not know any person by the name of

Sanjeev Dixit @ Sanjay Sharma. As per her version, she

had given her specimen signatures Ex. PW-12/A (Page-

2810 to 2819, part of D-165) including her initials to the

IO, which she gave voluntarily.


12.3.1           PW-66 is Sh. Vijay Kumar Goel, who deposed

that he that he had done ICWA course in 1991, which

was also known as CMA. During 2014, he was working

as GM (Finance) in MVL Ltd., which was having offices in

Okhla        and      Gurugram.             Sh.      Prem   Rishi      was      the

Chairman/CMD of said company and PW-66 was

looking after all the financial matters of the said

company including preparation of Project Report, CMA

Data etc. The CMA Data is required by the bank if one

apply for any financial assistance.


12.3.2           As per the version of PW-66, in the present

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 case, he had prepared CMA Data on the basis of

information provided by the Borrower Sh. Sanjeev Dixit

and his firm M/s. Shankar Metals. The loan applied by

him was for Rs. 4 Crore in the PNB, Jor Bagh. He (PW-66)

had taken Rs. 1 Lakh as his charges from Sh. Sanjeev

Dixit for providing CMA Data. PW-66 testified that Sh.

Sanjeev Dixit had informed him that he would pay Rs. 4

Lakh to a bank official namely Ms. K.K. Johar. But, he did

not know whether Sanjeev Dixit had actually paid the

said amount or not.


12.3.3           He further deposed that in connection with

his work in MVL Ltd., he used to visit various banks. One

day, when he visited Allahabad Bank, he met there one

Mr. Gupta, who was known to him and used to provide

financial        consultancy.             He       (Mr.   Gupta)     got      him

introduced to Sh. Sanjeev Dixit and he (PW-66) also met

Ms. K.K. Johar in PNB, Regional Office, who asked him

(PW-66) that if there was any good proposal, the same

can      be     referred         to     their      bank.    Further,      during

investigation of this case, his statement under section

164 Cr.PC Ex.PW66/A (Colly.) (D173) bearing his

signature and stamp of the Ld. MM, was also recorded

before Ld. MM Magistrate at Saket Court.


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 12.4.1           PW-72 is Sh. Hardesh Kumar Jain @ H.K. Jain,

the then Dy. Secretary (since retired), Institute of

Chartered Accountant of India, Delhi. He had supplied

the information regarding verification of signatures of

Chartered           Accountants             i.e.    CA    Sukhdev      Madani

(Membership No. 073569) and CA Prem Lata Mishra

(Membership No. 092733) to CBI vide his Letter dated

07.01.2014.           He      identified           his   signature    on     the

aforementioned letter dated 07.01.2014 at Point A on

each page and proved it alongwith annexed documents

as Ex.PW72/A (Colly.) (D-164).


13. Witnesses pertaining to KYC from the office of
Electoral     Registration       Office,     BSES,
DJB/Custom/Excise/Income     Tax/Industries.

13.1.1           PW-1, Sh. I.A. Khan is the then Assistant

Electoral               Registration                 Officer,        Assembly

Constituency-59, Vishwas Nagar, UTCS Building, East

Arjun Nagar, Shahdara, Delhi. As per his version, vide

letter            dated              01.01.2014             bearing          no.

F./AERO/AC-59/2014/1503 Ex. PW-1/A (D-71), he had

sent reply to the notice sent by CBI under Section 91

CrPC. He further deposed that as per their record,

neither the Voter I-Card bearing no. DL/04/043/171289,

[Page No. 23, part of D-5 (Mark PW-1/B)] in the name of

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 Sanjeev Dixit S/o Hari Shankar Dixit R/o 232, Jagriti

Enclave, Delhi nor the                        Voter I-Card bearing no.

DL/04/044/045667 in the name of Indra Rani W/o Sh.

Yagya Dutt Sharma R/o 192/2, Gali No. 11, Bola Nath

Nagar, Delhi [(Page No. 198, part of D-7) Mark PW-1/C],

were issued by the Electoral Office and the abovesaid

number of the voter I-Cards also do not exist in the

Electoral Roll of AC-59, Vishwas Nagar, Assembly

Constituency.


13.2.1           PW-2 Sh. Sourav Bandyopadhyay is the

Divisional Business Head, BSES Yamuna Power Ltd.,

Sub-station           no.      15,      9th        Avenue,   I.P.    Extension,

Patparganj,           Delhi.       He       deposed      that       vide     letter

BM(D)JLM/2013-14/763 dated 02.01.2014 [Ex.PW2/A

colly. (page 487 to 490 D74)], he had informed CBI

about the electricity bill in respect of customer account

no. 100068412 and as per their record, the said account

was in the name of Ms. Archana Jain at 232, Jagriti

Enclave, Delhi and not in the name of Sanjeev Dixit. The

customer reference no. was 1210116661. He further

deposed that the bill Ex.PW2/B (D-7) was not issued by

their department and it was not a genuine bill.


13.3.1           PW-3 is Mrs. Amita Sharma, who deposes

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 that in the year 2014, she was posted as Zonal Revenue

Officer-IV, Yojna Vihar in the office of Delhi Jal Board

and vide letter dated 02.01.2014, D-75 (Ex.PW3/A, Colly.)

(three pages), she had replied to the notice Section 91

Cr.P.C. Vide said letter, it was informed to CBI that as per

meter diary record, the water connection bearing no.

99123 was in the name of Smt. Archana Jain, 232, Jagriti

Enclave and not in the name of Mr. Sanjeev Dixit and as

per the record, copy of bill on page 3, submitted by

Sanjeev Dixit was not genuine.


13.4.1           PW-4 Sh. Bhagat Singh, the then Inspector in

the office of Commissioner of Industries, Govt. of NCT,

Udyog Sadan, Plot No.419, (Patparganj) deposed that in

the year 2014, he was posted as Inspector in the office

of Commissioner of Industry, Patparganj and Sh. R. K.

Saini was the               Dy. Commissioner at that time. He

further deposed that vide letter dated 01.01.2014 (D-76)

(2 pages) issued under the signature of R. K. Saini, Dy.

Commissioner, it was informed that Acknowledgment -

II, Form P-II No.652 was issued to M/s Chhenna

Corporation, A-6, N.I.A Phase-II, New Delhi, on

15.03.2011 and not to M/s Shanker Metals.


13.5.1           PW-5 Sh. Lalit Mittal deposed that on

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 25.02.2014, he was posted as Assistant Electoral

Registration Officer, Assembly Constituency, 58 Laxmi

Nagar and vide letter No. ERO/AC-58/2013/1441 dated

31.12.2013 Ex. PW5/A of the office of Electoral

Registration Officer Assembly Constituency 58 Laxmi

Nagar, he had informed CBI that the Voter I card in the

name of Sanjay Sharma bearing no. BQF3437881 (Ex.

PW5/B) did not exist in their office record.


13.6.1           PW-8 Sh. Mantu Prasad is the Assistant

Manager NSDL. As per his deposition, in December

2012, NSDL was divided in two companies namely NSDL

Depository Ltd. and NSDL e-Governance Infrastructure

Ltd. He          was       transferred             to   NSDL   e-Governance

Infrastructure Ltd. which used to process PAN Cards on

behalf of Income Tax Department. Their agency had

engaged six more agencies all over India. He further

deposed that the applicant used to approach a

particular agency in his area and submit his application

form and the documents which were digitalized by the

said agency and the DATA so collected, used to be

forwarded to them and they were to collate the data

and send it to Income Tax Department which would

allocate a specific PAN number. Thereafter, on receipt of


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 information regarding allocation of PAN number, their

agency i.e. the NSDL e-Governance Infrastructure Ltd.

used to prepare PAN Card and dispatch it to the

concerned applicant.


13.6.2           PW-8 further deposed that CBI had sought

information regarding three PAN numbers from the

Income Tax Department which in turn asked NSDL e-

Governance             Infrastructure              Ltd.   to   provide      said

information to the CBI, and for said purpose, he (PW-8)

was deputed by the department to furnish the required

information.            Accordingly,               PW-8   vide   letter      no.

TIN/OPL/JG/2013-14/5359 dated 21.02.2014 Ex.PW8/A

(D-73), handed over certified copies of application

forms and supporting documents to the CBI. There

were in fact four applications against three PAN

numbers. He did not hand over certified copy of the

fourth          application             vide        acknowledgment           no.

070720300053675 (PAN No. ALTPD 3660M) as the

original could not be retrieved from the godown. He

had submitted said applications to the IO on 13th

September 2019 vide letter no. 3/TIN/OPS/AR/ 2019-

20/2796 after receiving summons from the Court. He

brought and produced the office copy of the letter as


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  well as the original application [Ex.PW8/B colly (six

 pages)].


 13.6.3           PW-8        proved          on    record   the      following

 documents:

     Exhibit                                Nature of document

Ex.PW8/C              Certified copy of acknowledgment of PAN
colly(four            application (form 49A) as well as the form 49A and
pages)                the photocopy of the voter I card of Sanjay Sharma,
                      which were submitted by him in respect of PAN
                      number BZYPS4132F

Ex.PW8/D              Certified copy of acknowledgment in respect of
colly(six             change request application for PAN number
pages).               ALTPD3660M as well as the application submitted by
                      the applicant and the photocopy of the PAN card no.
                      ALTPD3660M and of the ration card and the
                      matriculation certificate of the applicant. The same
                      were submitted in respect of change of details of
                      PAN number ALTPD3660M

Ex.PW8/E colly Certified copy of acknowledgment of PAN
(four pages).  application (form 49A) as well as the form 49A and
               the photocopy of the employer certificate submitted
               by Sanjeev Kumar Dixit. The same were submitted in
               respect of PAN number AITPD0089M.




 13.6.4           He further deposed that on comparing

 document Ex.PW6/L (part of D-7 page 197) i.e. the PAN

 card and application form in respect of PAN No.

 BZYPS4132F, with Ex.PW8/C, the photograph and

 parentage of the applicant was found different. The

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 signatures on the PAN card and application were also

different.         Further,        on       comparing     document         i.e.

photocopy of PAN card no. ALTPD3660M (page 22 part

of     D-5/already             Ex.PW6/D)           with   Ex.PW8/D,       the

photograph and parentage of said applicant was also

found to be different and also the signatures on the

PAN card and application were different.


13.7.1           PW-9 Sh. Bishamber Nath is the Assistant

Commissioner (Ward - 83), Department Trade and

Taxes, Govt. of NCT of Delhi, IP Estate, New Delhi. He

deposed that he had joined Govt. of NCT of Delhi in

1995 as Grade - II Assistant and was transferred as

VATO (Value Added Tax Officer) in January/ February

2013. A letter was received from CBI in response to

which, he had submitted his reply vide letter bearing

reference no. 6074 dated 02.01.2014 written on behalf

of Value Added Tax Department, (Ward - 83), Ex.PW9/A

(D-77) and informed that TIN No. 07511326352 in the

name of M/s Shankar Metals did not exist in the record

of their department and hence, the said TIN number

was invalid and not genuine.


13.8.1           PW-17 Ms. Priya Chaudhary, the then VAT

Inspector, Department of Trade & Taxes, Vyapar

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 Bhawan, IP Estate, New Delhi deposed that she had

joined the department of Trade and Taxes in the year

2014. She had visited the office of the CBI at CGO

Complex to submit certain papers as required by the

CBI officials in the present case. She had handed over

the letter dated 25.04.2014 sent by the L. R. Singh,

Assistant Commissioner (Vigilance), Ex. PW17/A(D-87)

alongwith TIN Numbers of firms with their complete

postal addresses details which are available on record

as Ex. PW17/B(D-87) (Colly.).


14.              Witnesses of Record


14.1.1           PW-25 Sh. Ravindra Kumar Malik, Asstt.

Ahlmad, in the Court of Sh. Dinesh Kumar, the then Ld.

ACMM, East, Karkardooma Courts, Delhi brought the

summoned record i.e. case file of case bearing FIR No.

86/2013 titled as 'State vs. Sanjeev Dixit @ Sanjay

Sharma' P.S. Preet Vihar. He deposed that the original

file brought by him contained the copy of FIR bearing

no.      86/2013          P.S.     Preet           Vihar   dated   28.02.2013

Ex.PW25/A (D-91 page 977 to 979). The said FIR was

registered against accused Sanjeev Dixit and the said

matter was listed for recording of evidence in

accordance with provisions of section 299 Cr.P.C as the

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 accused Sanjeev Dixit @ Sanjay Sharma was P.O.


14.2.1           PW-32 Sh. Mahendra Maurya, JA/Ahlmad in

the Court of Ms. Ambika Singh, the then Ld. ACMM,

Shahdara, Delhi, had brought the summoned record i.e.

entire judicial file of case of FIR No. 217/2012 P.S. Anand

Vihar titled as State Vs. Sanjeev Dixit and another. He

deposed that the said file contained the original copy of

the FIR bearing no. 217/2012. The copy of the FIR

available in the judicial file of this case is the true copy

of the FIR brought by him in the judicial file of FIR

bearing no. 217/2012. The copy of FIR is already

Ex.PW31/A. As per his version, Accused Sanjeev Dixit @

Sanjay Sharma had been declared PO but, in said case

accused Rahul Sharma was however, facing trial.


15.              Witnesses from CFSL


15.1.1           PW-57 Sh. Anil Sharma, the then Sr. Scientific

Officer, Gr. II (Documents)-cum-Astt. Chemical Examiner,

Govt. of India, CFSL, CBI, N.D. He deposed that vide CBI

letter No. 4025 RC.BD1/2013/E/0006/CBI/BS&FC/ND

dt.15.05.2014, letter No.10501RC.BD1/2013/E/0006/CBI/

BS       &       FC/ND           dated             08.12.2014   and      letter

No.1234RC.BD1/2013/E/0006/CBI/BS&FC/ND                                  dated


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 11.03.2015, the exhibits of this case were forwarded to

CFSL by CBI with details of the questioned and

specimen documents as well as the nature of

examination sought for. The witness PW57 proved the

aforementioned two letters dated 15.05.2014 and

08.12.2014 as Ex. PW57/A (colly) (D-98) and Ex. PW57/B

(Colly) (D-99) respectively.


15.1.2           He also proved on record the envelope

addressed to SP, CBI, EOU-V, New Delhi, his report

bearing no. CFSL-2014/D-726 dated 16.02.2015, the

covering letter addressed to SP, CBI, EOU-IV, New Delhi

as Ex. PW57/C(D-101), Ex. PW57/D and Ex.PW57/E (part

of D-101) respectively. He further deposed that the

documents of this case were scientifically examined and

compared with available scientific aids. After thorough

scientific examination and comparison, he prepared the

reports. In said report Ex. PW57/D, he had expressed

result of examination in para 07 (I to VIII) along with

detailed reasons in respect of the above documents.

Similarly, he proved his second report bearing no.

CFSL-2015/D-358 dated 22.05.2015 as Ex.PW57/F (part

of D-172), the covering letter, as Ex. PW57/G (D-172). In

said report Ex. PW57/F, he (PW-57) had expressed result


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 of examination in para 07 (I) along with detailed

reasons in respect of the above documents.


15.1.3           As deposed further by PW-57, he identified

the questioned documents available on record as Q1 to

Q131. Out of the said documents, the documents from

Q1 to Q105 were already exhibited by other witness.

The questioned documents from Q106 to Q131 were

exhibited as Ex.PW57/H (colly) (part of D-90 and D-88).

Similarly, he deposed that the specimen documents are

available on the judicial file. The specimen documents

are S1 to S 105 and S 96/1 to S 105/1. The documents

from S1 to S95 were already exhibited by other witness.

The specimen documents from S96 to S105 and S96/1

to S105/1 were exhibited Ex.PW57/I (colly) [part of

D-170 (page 2893 to 2902)] through PW57. PW57 also

identified documents from S86-S95, though the same

were not having the CFSL stamp. He deposed that

stamp might have been left to be affixed by the staff

due to inadvertence. He also identified the admitted

documents A1 to A8 which were exhibited as Ex.PW57/J

(colly) part of D-171).


15.2.1           PW-75 Sh. Vijay Verma, the then Sr. Scientific

Officer Grade-II (Documents)-cum-Assistant Chemical

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 Examiner, CFSL, Block-IV, CGO Complex, Delhi was

posted as Assistant Director & Scientist, CFSL, Delhi. He

deposed that the documents of this case were

forwarded by the then SP, CBI, BS & FC, New Delhi to

Director, CFSL, New Delhi vide Letter No. 255 dated

10.01.2014            Ex.      PW75/A              (colly)     (D-163)      in     RC-

BDI-1/2013/E0006.                  Vide        said          letter,   questioned

documents Q-1 to Q-113 and Specimen Handwriting

Mark S-1 to S-30 (S-1 to S-5 were purported to be of

Smt. Indira Rani; S-6 to S-15 that of Smt. Prem Lata

Mishra; S-16 to S-25 of Sh. Sukhdev Madnani; and S-26

to S-30 were purported to be of Sh. N.S. Parihar). He

deposed that the admitted signatures Mark A-1 to A-14

i.e A-1 to A-2 that of Smt. Prem Lata Mishra; A-3 & A-4

of Sh. Sukhdev Madnani; A-5 to A-14 of Smt. Indira Rani,

were also deposited.


15.2.2           He further deposed that he thoroughly and

carefully examined the documents of this case and

gave his opinion with detailed reason vide his report

bearing CFSL No. CFSL-2014/D-0063 dated 25.03.2014.

He duly proved on record the said report alongwith the

forwarding letter as Ex.PW75/B (Colly.) (D-166). Further

that, vide Letter No. 4026 dated 15.05.2014 in RC-


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 BDI-1/2013/E0006, Ex.PW75/C (Colly.) (D-167), some

additional           documents               i.e.   admittedly        genuine

signatures Mark A-15 to A-31 of accused N.S.Parihar

were also deposited and in that respect, he gave his

opinion vide his report CFSL No. CFSL-2014/D-727 dated

29.05.2014. He proved the said report alongwith

forwarding letter as Ex.PW75/D (Colly.) (D-169).


16. Witnesses Pertaining to use                              of        forged
documents/forgery of documents

16.1.1           PW-14 Smt. Indra Rani deposed that she had

never visited Punjab National Bank, Jor Bagh Branch

nor she stood as a guarantor of M/s Shankar Metal

through its proprietor Sh. Sanjeev Dixit. She did not

know Sh. Sanjeev Dixit or Sh. Sanjay Sharma. She had

visited the office of CBI in connection with the

investigation of present case. She further deposed that

the     signature           on     the      documents     Ex.PW6/Y          and

Ex.PW6/Z (D-108 page no.1138-1139), (the details of

personal assets and liabilities of said witness) at point A

on each document were not her signatures.


16.1.2           She further deposed that the particulars

mentioned in the photocopy of the voter I Card [Mark-

PW1/C (photocopy of voter I card of Indra Rani) are that


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 of her but the photograph was not her and the

signatures at point A were also not her signature and

that she had lost her voter I card in the year 2013. But,

as per the court observation the photograph on the

Voter I Card appeared to be that of the witness only. For

future reference current photograph of the witness

after clicking the same from the mobile phone, was

ordered to be is retained in the court record and

Ahlmad was directed to place said photograph just next

after the photocopy of the voter I card Mark-PW1/C.

(Both the photos were compared at the time of

arguments, but they were found to be of different

person by the court)


16.1.3           PW-14 further deposed that signatures at

point A on Ex.PW6/T2 (Part of D-8, Page No.220 to 222)

on each page were not her signatures and the

photograph pasted at point B was also not of her.

Signatures at point A on Ex.PW6/W1 (D-133, Page

No.1367 to 1369) on each page were also denied by her

to be her signature as well as the photograph pasted at

point. Similarly, the signatures on Ex.PW6/C3 (Part of

D-11, Page No.281) and document Ex.PW6/O3 (Part of

D-11, Page No.311) at point A were also denied by


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 PW-14 to be her signatures.


16.1.4           She further deposed that the Property

bearing No. 17B, Shriram Nagar, Shahdara, Delhi ad-

measuring 70-72 gaj was once owned by her and she

sold the said property in February 2013 to a lady. The

photograph printed on sale deed dated 04.10.1999 at

point A is her's and photocopy of signature appearing

at point B on each page was also her signature.

Certified copy of the sale deed was proved as

Ex.PW14/C (D-80, page no.541 to 548). PW-14 however,

categorically denied the photograph at Point A on sale

deed       Ex.PW6/E3            (D-11,       page   no.283)   to   be     her

photograph or the signature at point B on each page of

as her signature. As per her version, the photograph at

point C was perhaps of the lady from whom she had

purchased the property. She did not know whose

photograph was affixed at point A. As per her version,

the aforesaid property bearing No.17B, Shriram Nagar,

Shahdara, Delhi was purchased by her in the year 1999

and was sold in February 2003. She deposed that her

specimen signatures were obtained by the IO and same

were available on record as Ex.PW14/D (Colly) (D-165,

page no.2805-2809).


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 16.2.1           PW-15 Sh. Harish Kumar S/o Sh. Ram Singh,

aged bout 55 years R/o H No.5, Type-IV, MDU Campus,

Rohtak, Haryana-12400, was the owner of property

bearing No.17B, Shri Ram Nagar, Shahadara, Delhi. He

deposed that he had purchased said property in

auction conducted by Punjab & Sindh Bank in the year

2013. He was called by CBI at its head quarter in

connection with the present case and he was asked to

submit document relating to aforementioned property.

He further deposed that the documents which he had

submitted with the CBI were described in the

production-cum-seizure memo and that the production-

cum-seizure memo and documents annexed thereto

are collectively exhibited as Ex.PW15/A (colly) (internal

page no. 549 to 565 of D-81).


16.3.1           PW-16 Sh. Kamal Singh Arya deposed that he

was having a house at 17B, Ground and First Floor, Sh.

Ram Nagar, Shahdra, Delhi. He and his son were the

joint owners of said property, which they had

purchased in the auction of the UCO Bank, Krishna

Nagar branch and had been in possession of the said

property since 2013 till date. He deposed further that

vide production-cum-seizure memo dated 04.02.2014


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 Ex. PW16/A(D-82) (colly. Page 566 to 580), he had

supplied the chain of title documents of said property

to the IO of the case. Besides that, he also supplied

some other documents such as copy of sale certificate

given by UCO Bank, Krishna Nagar, Delhi, copy of E-

Auction bidding application, advertisement of UCO

bank regarding the sale of the said property and copy

of identity card issued by Dena Bank, to the IO.


16.4.1           PW-51         Sh.Naresh           Kumar   Gupta    is    the

businessman who used to deal in the business of coper

wire before 2018. Name of his late wife was Smt. Nisha

Gupta. He also handed over some documents to the

CBI. He deposed that the documents Ex. PW51/B (Colly)

were supplied by him to the CBI under his attestation

vide seizure memo Ex. PW51/A (D-86). As per his

version, initially his wife and two shareholders, namely,

Ms. Krishna Devi (50%) and Ms. Nirmala Devi (25%)

were the joint owners of the property no. 121, FIE,

Partparganj Industrial Area, Delhi in 2011. His wife was

having 25% share and she executed a power of attorney

in his favour and on the basis of the same, he became

the owner of 25% share of his wife.


16.4.2           He further deposed that vide Agreement to

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 Sell dated 30.12.2003, Document No. 9316, Original

Bahi No. 01, Bahi Khand No. 1100, Page 140-153

registered in the office of Sub-Registrar-08, the previous

owners, namely, Sh. Satnam Singh, Sh. Jitender Singh

and Sh. Inderjeet Singh had sold or agreed to sell said

property in the joint name of his wife Nisha Gupta, Ms.

Krishna Devi and Ms. Nirmala Devi. He further deposed

that       vide       lease        deed            dated   03.01.2011,      the

aforementioned property was let out to Future Tap

Sanitation through its Proprietor Sh. Sanjeev Dixit, who

had left the said property by the end of 2012. Upon

being shown sale deed Ex. PW6/U3 (D-13) dated

25.05.2011 with respect to property no. 121, FIE,

Partparganj Industrial Area, Delhi, he deposed that the

said document was a forged document. He deposed

that the photograph pasted on the said deed at

encircled point X is of Sh. Sanjeev Dixit but he did not

know the person whose photo was pasted at point 'Y'.

Similarly, he deposed that he did not know about the

agreement of guarantee Ex. PW6/X2 (part of D-8) dated

30.03.2011 and agreement of guarantee Ex. PW6/T2

(part of D-8) dated 30.03.2011 nor he could identify the

persons, whose photographs were pasted on them at

point 'X' and               'B'. He however, deposed that the

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 photograph pasted on account opening form Ex.

PW6/D (D-5) was that of accused Sanjiv Dixit.


16.5.1           PW-60 Sh. Sharanveer Singh deposed that he

was a businessman by profession. He used to

manufacture plastic products/moldings and his factory

was situated in Loni, Ghaziabad. He knew Sh. Sanjeev

Singh Rana as he had worked with him in his factory. As

per version of PW-60, after leaving him, Sanjeev Singh

Rana had joined Sh. Sanjay Sharma but, he (PW-60) did

not know what work he (PW-60) had been doing there.


16.5.2           On seeing the photograph of the account

holder on Ex.PW6/D (D-5) i.e. Account Opening Form of

Sh. Sanjeev Dixit of M/s. Shankar Metals, PW-60

identified it to be Sh. Sanjay Sharma, who had got

married in his neighbourhood. He further deposed that

Ex.PW6/J (part of D-7), which was the application form

for credit facility of over Rs. 2 crores, also finds attached

photograph of said Sanjay Sharma encircled at point A.

He also identified photographs of Sanjay Sharma

encircled at Point A on Ex.PW6/M (part of D-103)

(Additional           information              to   be   obtained      from

borrower/co-obligant). As per the court observation, all

the aforementioned documents Ex.PW6/D, Ex.PW6/J

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 and Ex.PW6/M were in the name of Sh. Sanjeev Dixit.


16.6.1           PW-63 Sh. Mohan Kumar Aggarwal is the

Proprietor of M/s. Aggarwal Metals. He deposed that he

had a business of bathroom fitting in the name of M/s.

Aggarwal Metals at Chawri Bazar. He used to purchase

the products (taps etc.) from Parvesh and Panju in the

year around 2010. The bank account of his firm M/s.

Aggarwal           Metals        was       situated   at   Canara     Bank,

Govindpuri, Kalkaji. Earlier an account was also there in

PNB Bank, Alaknanada. He identified his signature on

Account Opening Form Ex.PW52/A of M/s. Ganesh

Enterprises (account no. 01250021007463), Proprietor

Sh. Rajeev Sharma at point A and deposed that he had

signed said account opening form as the same was

brought to him by Parvesh saying that he wanted to

open an account in the PNB, Chawri Bazar and at his

instance, he (PW63) signed on the said form which was

blank at that time and having no photograph. I never

stood introducer of M/s. Ganesh Enterprises (proprietor

Sh. Rajeev Sharma). He further deposed that Ex.PW52/A

was having a photograph of Sontu i.e. accused Rajeev

Sharma.


16.6.2           He even had not stood introducer for Rajeev

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 Sharma @ Sontu. On seeing account opening form of

Sanya Enterprises (proprietor Sh. Sanjay Sharma)

Ex.PW53/A (colly), he deposed that the KYC documents

attached with the said account opening form i.e. PAN

card and Voter I-card were having photograph of Sh.

Parvesh. He did not know the persons whose

photographs were affixed on the account opening form

of Sai Trading Corporation (proprietor Sh. Rajeev Kumar

Manchanda) already part of Ex.PW53/A (colly) and the

account opening form of Rajdhani Traders (proprietor

Sh. Jitender Singh) part of Ex.PW53/A (colly). He further

deposed that the account opening form of Sharp

Sanitation (proprietor Sh. Sushil Kumar Sharma) part of

Ex.PW53/A (colly), was having the photograph of Vicky,

who used to accompany Parvesh and/or Panju.


16.7.1           PW-68 Sh. Romit Manchanda S/o Late Sh.

Rajinder         Kumar          Manchanda          @   R.K.   Manchanda

deposed that his father was the owner of the entire

property bearing No. C-193, Vivek Vihar, Phase-I. After

the death of his father in August 2011, the said

property was inherited by him and his mother. His

father had purchased the said property from DDA, long

years ago and he constructed a house on the same.


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 During the year 2011, there were upper ground floor,

first floor, second floor and third floor in the said house.


16.7.2           He further deposed that his parents had

given the third floor of the said property on rent to Sh.

Rajiv Sharma and at that time, his brother-in-law Sh.

Sanjiv Dixit had also accompanied him (Rajiv Sharma)

and they had approached his parents through a

property dealer of D Block, Vivek Vihar. One day, one

official Sh. Vikarm, PNB, Dwarka Branch came to their

property and that time Rajiv Sharma was not present.

To their utter shock, the said official desired to meet Sh.

Sanjiv Dixit, who was shown as owner of the said

property and then PW68 informed the bank official that

he (Sanjiv Dixit) was not the owner of the said property

and that he had manipulated the documents.


16.7.3           He further deposed that he also came to

know that Sanjiv Dixit had taken loan of Rs. 40 lakhs

from PNB Housing Society, Dwarka and Rs. 3.5 crore

from PNB, Nehru Nagar, Ghaziabad and that Sanjiv Dixit

had misused the registered sale deed of their house by

manipulating the name of his father as Raj Manchanda

whereas, actual name of his father was Rajinder Kumar

Manchanda. When he visited PNB, Dwarka, on his

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 insistence, one bank official had shown him the

documents on the basis of which loan was taken on

their property, then he (PW68) noticed that the

photograph pasted on the property documents (sale

deed) was not of his father but it was of some other

person. The purported signatures of his father were

also forged. He and his mother also submitted

complaints/letters to the said bank as well as concerned

Sub-Registrar Office. PW68 correctly identified accused

Rajiv Sharma in the court.


16.7.4           PW-68           further           deposed   that     during

investigation, he was called at CBI office for certain

document and vide Seizure Memo dated 20.01.2014, he

handed over certain documents mentioned therein to

the CBI official. The said documents were handed over

to CBI official after he and his mother attested the

same and in this regard and they put their signatures at

Point A and B on each page. The Seizure Memo

alongwith above annexed documents is Ex.PW68/A

(Colly.) (D-154). He identified a photograph stapled on

the Will, which bears his signature, to be belonging to

his father Sh. R.K. Manchanda. He further deposed

originals of some of said documents were lost and in


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 that regard, an NCR report was also lodged. He

identified his signature and that of his mother on said

complaint mentioned.


16.7.5           PW-68 further deposed that the mutation of

the aforesaid property was done in his and his mother's

name on 28.05.2012. As per perpetual lease, the

aforesaid property was allotted by DDA to his father on

02.07.1969 and as per conveyance deed, the said

property was got converted as freehold from DDA on

03.05.2001. He further deposed that he did not know

the person whose photograph was pasted at Point A on

the Sale Deed dated 13.01.2011 (already Ex.PW6/P3)

(D-12), who had been shown as 'R.K. Manchanda'. As

per his version, said sale deed is a forged document.

The second photograph pasted at Point B on the said

document is of Sh. Sanjiv Dixit and the signatures at

point X on each page of the said sale deed have been

shown to be in the name of his father but they are not

of     his     father.        He      further      deposed   that     same

manipulation has been done on Conveyance Deed

dated 03.05.2001 (Ex.PW6/Q3) (part of D-12) by putting

forged signatures of his father at Point X and the fake

photograph at Point A purportedly belonging to his


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 father on the said document. Further he deposed that

same manipulations had been done by putting forged

signatures at Point X of his father on the Perpetual

Lease dated 02.07.1969 (Ex.PW6/R3) (part of D-12).


16.8.1           PW-69 is Sh. Pravesh Kumar Sharma R/o

Village & Post Tigri, Distt. Baghpat, U.P. He deposed

that he used to work in the factory of Sh. Sanjay

Sharma at Vanthala, Ghaziabad, UP, where he worked

for around 4 years. The said factory was shifted to 121,

Patparganj, Delhi and it was later sealed by the bank.

He was being paid a salary of Rs.6000 per month by Sh.

Sanjay Sharma. Sh. Rajiv Sharma and Rahul Sharma

were the sons of his Bua and they also used to work at

the said factory of Sanjay Sharma.


16.8.2           PW-69 identified the photograph pasted at

Point 'A' on the Application Form for credit facility of

M/s. Shankar Metals (already Ex.PW6/J) to be of Sh.

Sanjay Sharma. (The said form was although in the

name of Sh. Sanjiv Dixit). He further deposed that he

did not know that Sh. Sanjay Sharma was also known by

the name of Sanjiv Dixit because, he (PW69) knew him

(Sanjay Sharma) by the name of Sanjay Sharma only.

Similarly, he deposed that the photograph pasted on

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 the Agreement of Guarantee (Ex.PW6/S2) at Point X was

of Jeetu Singh, who also used to visit at the said factory

but he did not remember his complete name. (The said

form was although in the name of Sh. Sanjay Sharma).

He deposed that he also did not know that Sh. Sanjay

Sharma was known by the name of Jeetu as he (PW69)

knew him (Jeetu Singh) by the name of Jeetu Singh only.

PW69 did not know the name of the lady whose

photograph was pasted on Agreement of Guarantee

(Ex.PW6/T2) at point B.


16.8.3           PW-69 further deposed that the PAN Card

attached with Account Opening Form of M/s. Sanya

Enterprises, Proprietor Sanjay Sharma (Ex.PW53/A)

(Colly.)      at     Page        840,       was    showing   his   (PW69)

photograph but it was having address of someone else

and the signature on the same also did not belong to

him. As per the version of PW69, the said PAN card did

not belong to him. (The PAN card was in the name of

Sanjay Sharma). He had never opened any bank

account in Canara Bank, Karkardooma Branch. PW69

testified that Sanjay Sharma had taken his photograph

on the pretext that he would get a bank account

opened in his (PW-69's) name for credit of his salary


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 amount. On Account Opening Form of M/s. Rajdhani

Traders, Proprietor Jitender Kumar Singh (already

Ex.PW53/A) (Colly.) at Page 854, PW69 identified the

photograph affixed on it to be of Jeetu Singh at Point A.

As per his version, Jitender Kumar Singh and Jeetu

Singh was one and the same person.


16.8.4           He further deposed that Account Opening

Form of M/s. Sharp Sanitation, Proprietor Sushil Kumar

Sharma (Ex.PW53/A) (Colly.) at Page 874, was having

photograph of Vicky Bhai at Point A and he knew him as

he used to visit the said factory and he knew him only

by the name of Vicky Bhai. Further, the document i.e.

additional information to extract the CIBIL (Ex.PW6/M)

was having a photograph of Sanjay Sharma (borrower

Sanjeev Dixit) at Point A and of Jeetu Singh @ Jitender

Kumar Singh at Point B. He knew the person whose

photograph was pasted at Point A as Sanjay Sharma

and the person whose photograph was at Point B as

Jeetu Singh @ Jitender Kumar Singh. The Account

Opening Form of M/s. Ganesh Enterprises (Ex.PW52/A)

(Colly.) was having photographs of Rajiv Sharma at

Point X (at Page 895) and Y (at Page 897), as per his

version.


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 16.9.1           PW-74 Sh. Sanjeev Singh Rana deposed that

in January 2012, he had joined the firm namely M/s.

Radha something at 121 Industrial Area, Patparganj,

Delhi of Sanjay Sharma, but he left the said firm in the

month of November 2012 because, he found the

activities of Sanjay Sharma suspicious as he was using

his business name just to take loan from the banks.

After seeing the Account Opening Form of M/s. Shankar

Metals Ex. PW6/D and the photograph annexed on it at

Point A, he stated that photograph was of his ex-

employer Sanjay Sharma. It was observed by the Court

that the photograph on the Account Opening Form was

purported to be of Sanjeev Dixit, who had opened his

account in Punjab National Bank, Jor Bagh Branch,

Delhi.


16.9.2           Further, on seeing Application Form for

credit facility of over Rs. 02 Crores Ex. PW6/J, he

deposed that the photograph at point A on the said

document (purported to be of Sanjeev Dixit, who had

filled up the said form to avail the credit facility), was

also of his ex-employer Sanjay Sharma. Similarly, on

seeing Sale-Deed Ex. PW6/P3, he deposed that the

photograph at Point B on the said Sale-Deed (purported


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 to be of Sanjeev Dixit, who had executed the Sale-Deed

as a purchaser), was of his ex-employer Sanjay Sharma.

Similarly,        he      identified         photograph   at     point      on

additional information for extraction and submission of

CIBIL Ex. PW6/M (purported to be of Sanjay Dixit), was

of his ex-employer Sanjay Sharma.


16.9.3           PW74 further deposed that the photograph

at point X on Guarantee Agreement Ex. PW6/S2

(purported to be of Sanjay Sharma who executed said

Agreement of Guarantee) was that of one Jitender

Kumar, who had worked with him (PW-74) at M/s. Radha

owned by Sanjay Sharma. It was further deposed by

PW-74 that during his tenure in M/s. Radha, no official

from any bank had ever visited his work place to make

inquiries about Sanjay Sharma. He further deposed that

the confidential report dated 22.03.2011 Ex. PW6/U was

false as neither any inquiries were made by any bank

officials from him regarding his ex-employer Sanjay

Sharma @ Sanjeev Dixit nor he had ever given any

statement to the effect that he (Sanjay Sharma @

Sanjay Sharma) was an honest person or that he was

bearing a good reputation in market.




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 17.     Witnesses relating to dummy bank accounts

17.1.1           PW-18 Sh. Vinod Kumar, former proprietor of

M/s Mahavir Enterprises, who was doing the business

of food grains at G-8, Industrial Area, Mahavir Road,

Delhi deposed and his firm was also registered with the

Sale Tax Department, Government of Delhi. He

dissolved said firm 10-12 years ago due to slump in the

business. M/s Mahavir Enterprises had a current bank

account with Punjab National Bank, Lawrence Road

Branch. He was the authorized signatory of said current

bank account. He further deposed that he had no

business dealings with M/s. Shankar Metals and had

never dealt with metal business. He did not know any

person by the name of Sanjiv Dixit or Sanjay Sharma.

On      being        shown          photographs           pasted      on      loan

application form Ex PW6/J (D-7 page 36), Account

opening          form       Ex.      PW6/D         (D-5   page-19,20)         and

Agreement of Guarantee Ex. PW6/S2 (D-8 page-217), he

deposed that he did not know the person whose

photographs were pasted on the said documents.


17.2.1           PW-19 Sh. Ankit Gupta, proprietor of M/s

Balaji Sanitation, who was in the business of trading of

tiles and sanitary fittings deposed that his firm was


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 registered with the sale tax department having TIN

No.07140366085. His firm was running its business

from Bhogal. He used to purchase goods for onwards

trading from B. K. Sanitary, Bhogal, Balaji Self

Corporation, Mehrauli, Shreya Sanitary EmpEmpor,

Bhogal etc. His firm had a current account earlier with

UCO Bank, Bhogal and then with J&K Bank. He was the

authorized signatory of the said bank account. He

deposed that he had no business relation with the M/s

Shankar Metals nor did he know any such firm. He even

did not know any person by the name of Sanjiv Dixit or

Sanjay Sharma. On being shown photographs pasted

on loan application form Ex PW6/J (D-7 page 36),

Account opening form Ex. PW6/D (D-5 page-19,20) and

Agreement of Guarante Ex. PW6/S2 (D-8 page-217), he

deposed that he did not know the persons whose

photographs were pasted on the documents.


17.3.1           PW-20 Sh. Radhey Shyam Gupta, Proprietor

of M/s King Sanitation, who was also in the business of

Sanitary Goods deposed that he was running a

business in the name of M/s Kings Sanitation at 3279/2,

Gauri Shankar Market, Gali-People Mahadev, Hauz

Quazi, Delhi-06. His firm was registered in the year 1999


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 with Sale Tax Department, Delhi. GST number of his

firm was 07AADPG22451Z5. Earlier his firm had Sale Tax

TIN number but he did not remember the TIN number.

His PAN number was AADPG2245G. He had current

account of his firm with Jammu and Kashmir Bank,

Chawari Bazar Branch and he was the authorized

signatory of the said account. He had never dealt with

any firm by the name of M/s Shankar Metals and did

not know any person by the name of Sanjay Sharma or

Sanjeev Dixit. On being shown photographs on Ex.

PW6/J, Ex. PW6/S2 and Ex. PW6/D, he also deposed that

he had never seen the man depicting in the photograph

nor had any business dealing with him.


17.4.1           PW-21 Sh. Sandeep Tanwar, Proprietor of

M/s. R. S. Enterprises deposed that he was running a

business of printing in the name of M/s R. S. Printer.

Earlier he was running the said business under the

name and style of M/s R. S. Enterprises from WZ-909/2,

Naraina Industrial Area. He was the proprietor of the

said firm. His said firm was shut down in the year 2004.

His firm R. S. Enterprises had bank account with Vijaya

Bank and his younger brother Sh. Kapil Tanwar was the

authorized signatory of the said bank account. He also


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 deposed that his firm never had any business with any

firm by the name of M/s Shankar Metals as he used to

deal with the business of printing only and therefore,

he had no concern with metal work. He did not know

any person by the name of Sanjay Sharma or Sanjeev

Dixit. Similarly, he deposed that he had never seen the

man in the photograph nor had any business dealing

with the person depicted in photographs on Ex. PW6/J,

Ex. PW6/S2 and Ex. PW6/D.


17.5.1           PW-22 Sh. Naresh Soni, Proprietor of M/s

Soni Sanitation also deposed on the same lines. As per

his version, he was working in the business of Sanitary

Goods and was running his business in the name of M/s

Soni Sanitation at 3293/1, Itisha Market, Gali-People

Mahadev, Hauz Quazi, Delhi-06. He was the proprietor

of the said shop. His firm was registered in the year

1999 with Sale Tax Department, Delhi. Earlier, his firm

had Sale Tax TIN number i.e, 07200221619. The sanitary

goods in which he used to deal in, were purchased by

him from Chawari Bazar, Mangolpuri etc. Delhi. His PAN

was AUIPS7282G. He had current account of his firm

with HDFC Bank, Ajmeri Gate Branch and he was the

authorized signatory in the said account. He had never


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 dealt with any firm by the name of M/s Shankar Metals

and did not know any person by the name of Sanjay

Sharma or Sanjeev Dixit. He further deposed that he

had never seen the man depicted in photographs on Ex.

PW6/J, Ex. PW6/S2 and Ex. PW6/ nor he ever had any

business dealing with said person.


17.6.1           PW-23 Sh. Raman Sharma, Partner of M/s

Rohit Sanitation deposed that he was running a

business of bathroom fittings in the name and style of

Rohit Sanitation from Pipal Mahadev, Hauz Qazi, Delhi.

Earlier his firm was a partnership firm comprising of

him and his mother however, presently it was a

proprietorship concern and he was the proprietor

thereof. His firm was registered with Sales Tax

department. He used to purchase goods from a local

market. His PAN was ASUPS4734P.                    His firm had a

current account with Oriental Bank of Commerce,

Chawari Bazar, Delhi. He was the signatory of the said

bank account. He further deposed that he had no

business relation/dealing with any firm by the name of

M/s Shankar Metals and did not know any person by

the name of Sanjeev Dixit or Sanjay Sharma. PW-23

further deposed that he did not know the man in the


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 photographs affixed on Ex. PW6/S2. However, the man

seen in photographs on Ex. PW6/D and Ex. PW6/J was

Sanjay Sharma, who was his distant relative.


17.7.1           PW-24 Sh. Ramesh Aggarwal deposed that

he was running a business of Aluminum wire in the

name and style of M/s Aggarwal Metals from Narela

Industrial Complex Delhi. He was the proprietor of said

firm. His firm was registered with Sales Tax department

having TIN number 07760108985. He used to purchase

goods from Bharat Aluminum, National Aluminum,

Pushpanjali Enterprises and used to sell goods to Cable

Manufacturers like Suraj Cable and rivets to Hawkins

Cooker, Havel etc. His PAN was AADPA0399M. His firm

had a current account with State Bank of Hyderabad,

Shalimar Bagh Gali and thereafter, he had account with

ICICI bank, Shakti Nagar, Delhi. He was the signatory of

the said bank account. He never had any business

relation/dealing with any firm by the name of M/s

Shankar Metals nor did he know any person by the

name of Sanjeev Dixit or Sanjay Sharma. He further

deposed that he did not know the man seen in

photographs pasted on Ex. PW6/S2, Ex. PW6/D and Ex.

PW6/J.


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 17.8.1           PW-27 Sh. Shubhash Gupta, Proprietor of

M/s Super Sanitary Store deposed that he was running

a business of Sanitary work in the name and style of

M/s. Super Sanitary Store from Peepal Mahadev, Hauz

Qazi, Delhi. He was the proprietor of said firm and it

was registered in the year 1999 with Sales Tax

department and it had TIN number 07690231389. He

used to purchase goods from King Sanitation, Sree

Ganesh Traders. My PAN is AAFPG4991D. His firm had a

current account with Jammu & Kashmir Bank, Chawri

Bazar, Delhi and he was the authorized signatory of the

said bank account. PW-27 further deposed that he had

no business relation/dealing with any firm by the name

of M/s Shankar Metals and did not know any person by

the name of Sanjeev Dixit or Sanjay Sharma. He also

deposed that he did not know the man seen in the

photographs pasted on Ex. PW6/S2, Ex. PW6/D and Ex.

PW6/J.


17.9.1           PW-28 Sh. Sunil Kumar Dhoot deposed that

he was running a business of Bathroom fittings in the

name and style of Dhoot Sanitation from Chawri Bazar.

His wife Saloni Dhoot was the owner and sole

proprietor of the above said firm and he was a Manager


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 in the said firm. The firm was registered with Sales Tax

department in the year 2007. The goods for said firm

used to be purchased from Chawri Bazar and Shahdara

from Rohit Sanitation and Ravindra Metals. The PAN

number of his wife was AFXPD0468D. The firm had a

current account with ICICI Bank, Anand Vihar Branch

and his wife was the authorized signatory of the said

bank account. He further deposed that he had no

business relation/dealing with any firm by the name of

M/s Shankar Metals and did not know any person by

the name of Sanjeev Dixit though he did know one man

by the name of Sanjay Sharma. PW-28 also failed to

identify the man seen in the photographs on Ex.

PW6/S2.          However,           the      man   seen   in    both       the

photographs on Ex. PW6/D at page no.19 and 20 was

Sanjay Sharma. The man seen in the photographs

pasted on Ex. PW6/J was also Sanjay Sharma, who was

probably the son-in-law of the owner of M/s Rohit

Sanitation.


17.10.1          PW-29 Smt. Saloni Dhoot, Proprietor of M/s

Dhoot Sanitation deposed that she was running a

business of bathroom fittings in the name and style of

Dhoot Sanitation from Chawri Bazar.                       Her firm was


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 registered with Sales Tax department in the year 2007.

However, the firm used to be looked after by her

husband and she was only a house wife and did not

know about the business transactions.


18.              Witnesses to specimen signatures


18.1.1           PW-40 Sh. Iqbal Singh S/o Sh. Nasib Singh is

also from Punjab National Bank, Jorbagh, Delhi. As per

his version, on 23.04.2014, he had visited Saket Court

where accused Sanjeev Dixit was produced before the

Court and his signatures were taken in his (PW-40's)

presence and he attested the same. He further deposed

that document (D-100) was containing the specimen

signature of accused Sanjeev Dixit and that of his

(PW-40's) signature at point A and said document was

exhibited as Ex. PW40/A (pages 1025 to 1054) (page

1061 to 1074).


18.2.1           PW-41 Sh. K.S. Mishra, Police Constable

(since retired), CBI, BS&FC, New Delhi deposed that on

23.04.2014, he had visited Saket Court where accused

Sanjeev Dixit was produced and with the permission

and order of the court, his signatures were taken on

document D-100 Ex. PW41/A (pages 1055 to 1059).


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 18.3.1           PW-42 is Sh. Shambhu Nath Chaudhary,

Manager in Punjab National Bank, Finance Division,

Head Office Ground floor, West Wing Plot no. 4, Sector

10, Dwarka, New Delhi. As per his version, In the year

2014, he was posted in the Jor Bagh Branch of PNB as

Assistant and on 05.12.2014 and he had been deputed

by the bank to carry the loan file of Sanjeev Dixit to CBI

office and he accordingly, carried the same to CBI. At

the direction of CBI, he also witnessed the taking of

specimen signature of Rajeev Sharma. PW42 proved

said sheet on which specimen signatures of accused

Rajeev Sharma were taken as Ex.PW42/A                  (part of

D-100)(colly) (page 1100 to 1104). He also identified

accused Rajeev Sharma in the Court.


18.4.1             PW-43 Sh. Ram Kumar Gupta, Sr. Manager

(Retired) Punjab National Bank, G.T. Road, Ghaziabad,

UP is the witness to specimen signature of one lady Arti

Sharma @Sheetal and he proved the same on record as

Ex.PW43/A (colly.).


18.5.1           PW-55, Sh. Kewal Krishan, is the then Officer,

from PNB, Jorbagh, Delhi. He simply proved on record

specimen signature and handwriting memo of accused

Sh. Rahul Sharma as Ex.PW55/A (colly) and stated that

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 the specimen signatures of said accused were taken in

his presence.


18.6.1           PW-61 is Sh. Ravi Mehta, Computer Operator,

PNB, Jorbagh, New Delhi, in whose presence the

specimen signatures of Smt. Indira Rani were taken.

PW61 identified the specimen signatures of Smt. Indira

Rani at the pages S-1 to S-5 and his own signatures at

point A on each page on Ex.PW14/D (Colly).


Statement of Accused U/s 313 CrPC

19.              After conclusion of prosecution evidence,

statement of all the accused were recorded under

Section 313 CrPC wherein, all the incriminating

evidence was put to them, the same was however,

denied by them as wrong and incorrect. All the accused

pleaded their innocence and came up with the plea that

they have been falsely implicated in this case by CBI

after the prime accused Sanjeev Dixit @ Sanjay Sharma

(A-1), absconded from judicial custody. The accused

came up with different pleas to plead their innocence in

their respective statement under Section 313 Cr.PC.

Defence of Accused N.S.Parihar U/s 313 Cr.PC.

20.              A-2 stated that he had no role in the

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 processing/sanctioning/documentation/disbursement

and follow-up of loan. There were 5 immovable

properties proposed for mortgage for which the bank

asked him to render his opinion whether there was any

charge subsisting against said properties. The accused

did not dispute having filed the NEC and the certified

copies of the sale deeds of the said properties with the

bank but he came up with the plea that being a panel

advocate for the bank, he had applied for certified

copies of title deeds in the office of concerned Sub-

Registrar and after obtaining the same he compared

the certified copy so obtained with the original title

deed provided to him by the Bank and the same were

found to be same/similar. He accordingly, submitted his

opinion about the properties that they were free from

any encumbrances. A-2 further stated that out of the 5

properties, two properties were of Ghaziabad and as

per the procedure prevalent in the office of the Sub-

Registrar, Ghaziabad, said office itself gave the report to

the effect that said two properties were free from

encumbrances and reports so obtained from the

concerned Sub-Registrar were also duly submitted with

the bank.



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 20.01                     He stated further that in view of such

reports given by the Sub-Registrar office, Ghaziabad

and the certified copies obtained from the offices of

Sub Registrar, Ghaziabad and Delhi, A-2 had no reason

to suspect the genuineness of the title documents. The

report as well as certified copies were carrying the

stamps of Sub Registrar office and there was no reason

for him to doubt the genuineness of the same. Besides

that, the index register was also inspected from the

office of concerned Sub-Registrar and even as per said

register, no charge was found to be there on any of the

mortgaged properties.


20.02                     As per statement of N.S.Parihar (A-2),

he had returned the original title deeds to the bank

after comparing the same with the certified copies

obtained from the concerned Sub-Registrar office. He

further stated that the search report submitted by him

was as per the bank's format and search was made for

the period of 13 years from the last transfer and there

is no material against him (A-2) except that his legal

search report turned out to be wrong. A-2 stated that

he cannot be blamed for the wrong reports or the

forged certified copies supplied to him by the office of


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 concerned Sub-Registrars.


Defence of Accused K. K. Johar U/s 313 Cr.PC.


21.              Accused K.K.Johar (A-3) came up with the

plea that due care and caution was taken by her both at

pre-sanction and post-sanction stage. The valuation

report from the empaneled advocate, who also verified

the possession of the owner (proposed guarantors) by

visiting the subject properties, were taken. Due

diligence of the ITR and the balance-sheets were got

done from bank approved CA J.C. Bhatia & Co.                   The

search report was submitted by the bank approved

advocate who also gave positive report on the title

document of the mortgaged properties thereby, giving

no reason to A-3 to raise any suspicion on the title

deeds or ownership of said properties.


21.01            She stated that the date of 22.3.2011 as

mentioned on the CR is the date when CR was started

to be prepared and as and when the information was

gathered from different sources, the same was entered

in the CR. Since many reports were to be procured and

processed for a loan proposal, the same could not have

be done in a single day. It was stated further that at the


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 time         of      opening             of        current   account         no.

0175002100018768 of the borrower M/s Shanker

Metals, the KYC was done by the hall incharge/PW10

B.K.Jha and the basis of same very KYC, the cash credit

account of said firm was opened. As per CIBIL report of

Sanjeev Dixit (A-1), no credit facility was availed by him

in the past while the other agencies Equifax and

Expererian were not operational at the relevant time.


21.02             A-3 stated that sites of the properties were

visited on 20.03.2011, however, in the CIR, the date of

visit was incorrectly mentioned as 08.03.2011. Further

that since the collective value of three property

mortgaged by the borrower were found to be

insufficient to cover the proposed limit, the borrower

was asked to offer one more property 5/1234 M-11

Sector 5 Vasundhara, Ghaziabad. The said 4th property

was in the name of Mr. Rajesh Aggarwal but, later on

Sanjeev Dixit (A-1) purchased said property in his name

in May 2011.


21.03                     As stated by A-3, there were no

mandatory            guidelines           for      maintaining   movement

register in the bank. Hence, if there is no entry in the

movement register it does not mean that no visit was

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 made. Accused K.K.Johar (A-3) categorically denied the

allegations regarding diversion of funds saying that all

the transactions were made through banking channels

such as NEFT, RTGS and even the cash withdrawals

were done as per rules. Most of the payments made

were in favour of sundry creditors as per the

instructions of the borrower through banking channels.

A-3 categorically denied to have received any pecuniary

gain or benefit from the borrower or any other person

in connection with the alleged transaction and she

came up with the plea that the deposition of PW-66 is

mere hearsay evidence.


Defence of Accused Ranjiv Suneja U/s 313 Cr.PC.


22.              A-4 came up with a categoric plea that the

duties regarding issuance of registered letter to the

mortgagor/3rd party as per the circular Ex. PW6/H4,

distribution of legal work among panel advocate was

not falling in his assigned areas of responsibilities. He

further pleaded that the appraisal note was prepared

by him and the branch manager Ms. K.K.Johar after

putting all the inputs taken from various sources and

same was correctly prepared by him to the best of his

knowledge, ability and experience and no deficiencies

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 were ever pointed out by the concurrent auditor.


22.01                     Ranjiv Suneja (A-4) categorically denied

that monitoring the diversion of funds was his

responsibility. A-4 stated that the report of V.K.Dhar

was biased and irregular as he overlooked and

inadequately addressed the distinct responsibilities of

the recommending authority and sanctioning authority.

Rest of the defence pleaded by A-4 is on the lines of the

plea taken by A-3.


Defence of Accused Rahul Sharma and Rajeev
Sharma U/s 313 Cr.PC.

23.              The defence put forward by the said accused

was almost similar that Sanjeev Dixit was their cousin

brother and they both were working as his employees

and their job was to look after sale and marketing in

addition to collection of payments from his (A-1's)

debtors. They also used to deposit/withdraw the money

in/from the bank accounts of Sanjeev Dixit as per his

instructions but they were never the beneficiary for any

such transaction.


23.01                     They categorically denied the forensic

reports wherein the signatures appearing on the



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 account opening form of M/s Paras Metals attributed to

Rahul        Sharma/A-5             and       M/s   Ganesh   Enterprises

attributed to Rajeev Sharma/A-6 were found to be

matching with their respective specimen/admitted

signatures, as manipulated documents. They further

alleged that investigation was not fairly done by the IO

as the drawer's signatures appearing on the cheques

through which the money was allegedly transferred by

said accused from their aforementioned alleged bank

accounts to the dummy account allegedly operated by

Sanjeev Dixit (A-1) were never sent for comparison to

forensic expert.


23.02                     They further pleaded that accused

Sanjeev Dixit (A-1) @ Sanjay Sharma had taken their

several photographs, PAN card, Voter Card etc. at the

time of their joining his firm. He had also obtained

their signature on several blank account opening forms

and blank papers on the pretext that he will get their

salary account opened in the bank and said account

shall also be used as PF Account and also for the

purpose of Life Insurance/term insurance/medical

Health Insurance. He                  (Sanjeev Dixit @ Sanjay Sharma)

however, misused the said documents and photographs


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 for opening the aforementioned bank accounts, which

he used for siphoning off the loan amount.


Defence Evidence


24.              In defence evidence, only accused Rahul

Sharma (A-5) examined two witnesses D5/W-1 and

D5/W2.           Sh. Yogender Singh D5/W-1 is the Joint

Manager from Bank of Baroda, who has been examined

to prove that except the account in the Bank of Baroda,

Shakarpur, A-5 did not have any other bank account in

his name. Sh. Nitin Sharma D5/W2 is an ex-employee of

A-1. He has been examined to prove the fact that

Sanjeev Dixit @ Sanjay Sharma (A-1) used to get the

money withdrawn from his various bank accounts

through his employees, who after withdrawing the

amount used to hand over the same to him (A-1)


Final Arguments


25.              Arguments were advanced at length by Ld.

Counsels           Sh.        Bharat          Bhushan,       Advocate            for

N.S.Parihar/A-2,             Advocate              Sh.   Dhanajay      Puri      for

K.K.Johar/A-3, Advocate Sh. Shri Singh for Ranjiv

Suneja/A-4, Advocate Sh Rajni Kant on behalf of Rahul

Sharma/A-5 and Rajeev Sharma/A-6. On behalf of CBI,

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 the arguments were addressed by Ld. Sr. Public

Prosecutor Sh. Anurag Modi. Written submissions were

also filed on behalf of CBI as well as by the respective

defence         counsels.          I    have       given   my    thoughtful

consideration to the rival contentions raised from both

the sides and also carefully perused the entire record

including the written arguments and the supporting

judgments filed on record by the parties.


Prosecution Arguments


26.              It was contended by Sh. Anurag Modi, Ld. Sr.

Public Prosecutor that by clinching and credible

evidence prosecution has been able to prove its case

against all the accused persons beyond all reasonable

doubt. It was submitted that at every stage of appraisal,

sanction and disbursement of loan, accused public

servants A-3 & A-4 had committed various acts and

omissions in complete violation of settled banking

norms, guideline and circulars and their said conduct is

clearly indicative of their dishonest intention as they

acted in concert with the other co-accused to achieve

the object of conspiracy to cheat and defraud the bank

by allowing the borrower to avail the cash facility on the

basis of series of forged and fabricated documents.

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 26.01                     It has been vehemently argued that it is

a classic case where not a single document filed by the

borrower in support of his loan proposal was genuine

as he used entire chain of forged and fabricated

documents              starting          from      the   documents        of

identification, to the documents of financial credentials

and collateral security. It was further submitted that

during the appraisal and sanctioning process various

circumstances came to fore, which were sufficient to

raise a red flag for the incumbent incharge K.K.Johar

(A-3) and the loan officer Ranjiv Suneja (A-4) which they

deliberately overlooked/ignored as they omitted to

make any further inquiries to verify the genuineness of

the documents and creditworthiness of the borrower.


26.02                     It was argued that said deliberate

omissions on their part is clearly reflective of the fact

that they were in conspiracy with the borrower and the

other co-accused and in furtherance of said conspiracy,

they cheated and defrauded the bank and they did so

by misusing their position as a public servant and

thereby, caused wrongful loss to the bank and

corresponding gain to the borrower/A-1.


26.03                     As regard the involvement of the

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 empaneled lawyer N.S.Parihar (A-2) in the alleged

conspiracy and forgery, it has been argued that the

investigation has revealed that the legal search report

filed by him was false and incorrect. The Non-

Encumbrance Certificates (NEC) and the certified copies

of the title deeds filed by him with the bank were also

forged and fabricated. One of the title deeds in respect

property bearing no.121,FIE, Patparganj Industrial Area

was found to be not even registered in the office of

concerned Sub-Registrar from where he (A-2) allegedly

obtained the certified copy of the said sale deed.


26.04                     The certified copies of the remaining 3

properties i.e. (1) Industrial plot no. 25, Shyam

Industrial Area, Village Banthla, Loni, Ghaziabad, U.P.,

(2) Plot No. 17B, Khasra No.423, Shri Ram Nagar, G T

Road, Shahdara and (3) House No. C-193, IIIrd Floor,

Vivek Vihar, Phase-I, Delhi, were also found to be forged

as in respect of 1st and 2nd property, the photograph of

the purchaser on the genuine title deeds (obtained by

the IO from the concerned Sub-Registrar office during

investigation) were found to be different from the

photographs on the certified copies of the sale deeds

filed by said accused/A-2 with the bank. It was further


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 submitted that since the certified copies filed by A-2

with the bank were similar and identical with the

original title deeds filed by the borrower/A-1 with the

bank, it is quite clear that A-1 & A-2 were in conspiracy

with each other and they knowingly filed said forged

title documents with the bank and since the public

servants A-3 and A-4 were also part of same conspiracy,

they also did not insist for filing of the certified copies

of the title deeds of all the four immovable properties

prior to sanction of loan nor did they seek opinion on

original title deeds because, there was no record

available with the bank to show that A-2 was ever

handed over the original title deeds, rather as per title

deed register Ex. PW6/L2 (D-143), the original title

deeds of the first three properties were filed on

30.03.2011 i.e after the sanction of loan.


26.05                     It was submitted that during trial

various witnesses from the office of concerned Sub-

Registrar were examined by the prosecution and they

duly established the fact that the original title deeds

filed with the bank by the borrower/A-1 are forged and

fabricated documents and as a consequence, the

certified copies filed by the empaneled advocate/A-2,


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 which are exactly similar to the original title deeds filed

by the borrower, are also forged and fabricated

documents.             Besides          that,      prosecution     has      also

examined the actual owners/erstwhile owners of said

properties, who during their depositions before the

Court, disowned the photographs and the signatures of

the purported owners of said mortgaged properties on

the title deeds filed by the borrower/A-1. Ld. Sr. PP

argued that by their clinching testimonies, it has been

sufficiently established on record that the legal search

report/NEC/certified copies of sale deeds furnished by

N.S.Parihar (A-2) with the bank were all false, forged

and fabricated documents and coupled with various

other circumstances on record, the complicity of the

A-2 in the alleged offence of conspiracy and forgery has

been duly established by the prosecution.


26.06                     It was contended that there is ample

evidence both documentary and verbal to establish the

fact that in furtherance of the criminal conspiracy

hatched with the borrower to cheat the bank, the

accused N.S.Parihar (A-2) knowing aided the borrower

Sanjeev Dixit (A-1) in sanction of the loan by furnishing

his positive legal opinion on the title documents of the


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 collateral properties which, to his knowledge were

forged and fabricated. Both the NEC and certified

copies of the title documents filed by A-2 with bank in

support of his positive legal opinion on the title

documents, were fake, forged and fabricated.


26.07                     Ld. Sr. PP further submitted that the

prosecution has also successfully established the

charges against the private persons i.e. Rahul Sharma

(A-5) and Rajeev Sharma (A-6), who were also the part of

said conspiracy from the very beginning as they not

only allowed their bank accounts opened in the name

of M/s Ganesh Enterprises and M/s Katara Metals, both

proprietorship firms of accused Rajeev Sharma and M/s

Paras Metals, proprietor Rahul Mudgil, to be used for

diversion of funds by the accused Sanjeev Dixit (A-1)

but, they also facilitated him (A-1) in forging of

documents. The trial has established on record that the

both the said accused were part of conspiracy from the

very beginning which is evident from the fact that in

2010, the accused Rajeev Sharma (A-6) had taken on

rent the property bearing no. C-193, IIIrd Floor, Vivek

Vihar,       Phase-I,         Delhi        and     in   connivance       with

borrower/A-1, he (A-6) facilitated him (A-1) in forging


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 the sale deed of the same very property by using the

details of the owner from the rent deed of said property

and later on, said property was mortgaged with the

bank for availing the subject loan. Rahul Sharma also

stood witness to the forged sale deed, Ex. PW6/P3

(D-12), which is the sale deed of C-193, IIIrd Floor, Vivek

Vihar, Phase-I, Delhi, a property mortgaged with the

bank for the subject loan.


26.08                     In      order            to   substantiate     above

arguments, Ld. Sr. PP has referred to the testimonies of

prosecution witnesses examined and the documents

proved through them. However, the details of said

arguments of the Ld. Sr. PP in the light of said

testimonies and documents shall be dealt with in the

later part of this judgment under the heading

"Discussion and Analysis of Material by the Court".


Defence Arguments for N.S.Parihar (A-2)


27.              It was submitted by the Ld. Counsel Sh.

Bharat Bhushan for A-2 that as per prosecution case,

A-2 had conspired with the borrower A-1 and the public

servants A-3 and A-4 in defrauding the bank by

facilitating him in availing the cash credit facility to the


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 tune of Rs.4 crore from the complainant bank and

under said conspiracy, A-2 furnished false legal opinion

and filed forged and fabricated certified copies of the

sale deeds of 4 immovable properties, which were

furnished as collateral security for the subject loan and

thereby, he helped and facilitated the borrower/A-1 in

defrauding and cheating the complainant bank.


27.01                     It has been however, argued that A-2

N.S.Parihar had no role in the internal processing of the

loan or in analyzing the financial standing of the

borrower or in the examination of viability of the

project proposed by the borrower. A-2 being a panel

advocate was to merely give his legal opinion about the

title of the mortgaged properties. He was handed over

the title deeds of properties which were proposed for

mortgage by the borrower/guarantors, for seeking his

(A-2's) legal opinion regarding prior encumbrances if

any, on said properties.


27.02                     Ld. Counsel argued that as per general

practice, the panel advocate would seek the certified

copies of the title deeds from the office of concerned

Sub-Registrar and verify whether the certified copies

obtained from Sub-Registrar office match with the

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 originals deposited in the Bank. On the line of said

procedure and practice, A-2 N.S.Parihar applied for the

certified copies of aforementioned sale deeds and

obtained the same from the office of the concerned

Sub-Registrars and found them all matching with the

copies of original sale deeds as provided to him by the

bank and since said certified copies were having the

stamps of the office of the respective concerned Sub

Registrar, there was no reason for A-2 to doubt the

genuineness of said documents.


27.03                     Ld. Counsel also contended that even

otherwise, mere his (A-2's) opinion could not have

caused the bank to sanction or disburse the loan to the

borrower because, the viability and suitability of any

loan proposal was required to be checked by the

incumbent bank officers by careful scrutiny and

verification of financial record, identification documents

and also by way of physical verification by visiting the

sites of the properties. Even Mr. C. P. Garg/PW-6

admitted in his cross examination that the panel

advocate                 had             no        role   in          the

processing/sanction/disbursement or follow-up of the

loan, he argued.


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 27.04                     It was vehemently contended that it is

nowhere the prosecution case that the stamps of the

concerned Sub Registrars appearing on certified copies

obtained by A-2 were different from the stamps used

by the office/s of concerned Sub Registrars. Even no

witness from Sub-Registrar offices examined in this

case, has come out with any such version in their

deposition before the court nor Ld. Sr. PP even asked

anything in this regard in their examination-in-chief.

Upon comparing and tallying the particulars of certified

copies of the sale deeds with the copies of original title

deeds submitted by the borrower/guarantor/s in the

Bank, no discrepancy or forgery was noticed by A-2.

Therefore, there was no reason for A-2 to suspect any

foul      play       either        at     the      hands   of   the       bank

officials/borrower/guarantors or at the end of office of

concerned Sub Registrar. The legal opinion(s) submitted

by A-2 were based on the materials which was made

available to him by the concerned Sub-Registrar offices

and hence, no fault can be attributed to A-2.


27.05                     It was further argued that A-2 stood

already acquitted in other cases of bank fraud i.e. RC

No. 1202/013A00/3/2013 CBI ACP Ghaziabad and FIR


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 nos. 212/13 and 213/13 PS Kundli, Sonepat, where

similar allegations were raised against him and no

appeal has been preferred against said judgments. In

view thereof, the prosecution argument that A-1 and

A-2 had close connection and connived together to

defraud various banks, is also liable to fail.


27.06            To      buttress         his      above    arguments,          Ld.

Counsel          has       placed        reliance      on    the      following

judgments:-


(a)     Jacob Mathew v. State of Punjab And Anr. (2005) 6
        SCC1.
(b)     Pandurang Dattatraya Khandekar vs. Bar Council
        of Maharashtra and ors (1984) 2 SCC 556.
(c)     CBI, Hyderabad v. K.Narayana Rao, (2012) 9 SCC
        512.
(d)     Sudhir Kumar v. CBI, Manu/DE/0890/2023.

Defence arguments on behalf of accused Public
Servants Ms. K.K.Johar (A-3) and Sh.Rajiv Sunej (A-4)

28.              As per record, the public servants K.K.Johar

(A-3) and Ranjiv Suneja (A-4) have been charged with

the offence of criminal conspiracy punishable under

Section 120-B r/w 420/467/468/471 IPC and substantive

offence of cheating under Section 420 r/w 120B and

criminal misconduct punishable under Section 13(2) r/w



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 13(1)(d) of PC Act, 1988. At the relevant time of grant of

subject loan, Smt.K.K.Johar (A-3) was working as Chief

Manager and Sh. Rajiv Suneja (A-4) as senior Manager

at Jor Bagh Branch of Punjab National Bank (lending

bank). On behalf of K.K.Johar (A-3) the arguments have

been addressed by Ld. counsel Sh. Dhananjay Puri and

Ld. Counsel Sh. Shri Singh argued on behalf of Ranjiv

Suneja (A-4). Since the allegations in the charge-sheet

against both these public servants are largely similar,

therefore, barring few points, on all other aspects,

almost similar arguments have been raised on their

behalf by their respective counsels.


28.01                     It was contended that the prosecution

has miserably failed to prove the charges against A-3

and A-4 as no cogent evidence has been adduced on

record by the prosecution to prove the element of

conspiracy on the part of said accused or to show any

iota of material indicative of any dishonest intention on

their part or to show that they derived any pecuniary

benefit from the borrower/A-1 or any other co-accused

in connection with the alleged transaction. It is argued

that both the said accused had done their duties with

utmost diligence and care and indeed, they themselves


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 are the victims of the fraud played by the borrower

Sanjeev         Dixit      (A-1),      who         used    to   fabricate        the

documents so cleverly that none of the bank officials

could get any inkling of his fraudulent intention and

same is also evident from the fact that by using same

modus operandi, said accused (A-1) had cheated a

number of other banks and many FIRs have also been

lodged against him in that regard.


28.02.                    As already noted above most of the

allegations raised against the said accused (public

servants) are similar. As per prosecution case, they both

(A-3 and A-4) had acted in blatant violation of banking

norms, guidelines and circulars both at pre-sanction

and post-sanction stage and caused a huge loss to the

complainant bank. It is alleged that the fraudulent

activities were carried out by the borrower with active

connivance of public servants, who failed to exercise

mandatory               due         diligence,            thereby,       enabling

continuation             of      illegal       credit      withdrawals          and

facilitating the criminal conspiracy. For the purpose of

clarity, the defence arguments raised on behalf of said

two accused have been noted under following heads:-


(i)     Lack of verification of KYC document of the

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        borrower.
(ii) Lack of verification of financial documents of the
       borrower.
(iii) Incorrect Confidential Reports and lack of
       verification    from the previous banker
(iv) Discrepancies in CIR reports
(v) Discrepancies in the NEC/legal search report
(vi) Sanction of loan prior to submission of Valuation
       report
(vii) Discrepancies regarding physical verification of
the collateral properties
(viii) Discrepancies regarding stock verification visits
(ix) Diversion of funds through dummy accounts

                           However, for brevity sake, elaborate

arguments             on      aforementioned       points     shall      be

discussed with rebuttal arguments of Ld. Sr. PP in the

later part of this judgment under the heading

"Discussion and Analysis of Material by the Court".


28.03                      Ld. Counsels for A-3 and A-4 have also

argued that the case of the prosecution suffers from

selective arraignment, rendering the investigation

arbitrary, incomplete and legally unsustainable. It was

argued that CBI has inexplicably and arbitrary picked

A-3 and A-4 for the prosecution, while the other

similarly placed officials have been given clean chit

most notably Sr. Concurrent officer B.C. Katoch, who

had a statutory responsibility to continuously audit,


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 verify and flag irregularities in the loan accounts. It was

argued that such pick and choose prosecution is illegal

and entitles A-3 and A-4 to acquittal. Reliance in this

regard has been placed in judgment Ashok Kumar

Gupta vs. CBI Crl. MC 194/2019 decided by Hon'ble

Delhi High Court on 14.08.2025.


28.04                       Ld. Counsels further submitted that

during the entire relevant period, Sh. B. C. Katoch had

real time oversight over KYC compliance with circulars

and audit norms and he used to prepare quarterly

concurrent audit reports but no major irregularities in

the account of M/s Shanker Metals were pointed out by

him and the minor deficiencies, which he pointed out in

the quarterly report were duly rectified and marked off.

Further, the very circular relied upon by the prosecution

regarding KYC compliance, imposes an obligation also

upon the concurrent auditor to flag any deficiency. Yet,

no KYC defect, procedural lapses or suspicion was ever

recorded in any of the audit reports filed by Sh.

B.C.Katoch. The very fact that the concurrent auditor

did not pick up on any error in the documentation

shows that the errors were do well hidden by the

borrower/A-1 that it escaped attention of even the


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 seasoned concurrent auditor.


28.05                     Even otherwise, the errors/lapses as

allegedly uncovered by the bank or CBI were so trivial

that they were either not noticed or recorded as

rectified without any further demurer. Further the

failure of the CBI to offer Sh. B.C.Katoch as a witness

during trial despite knowing his important role in the

present case, clearly shows that CBI is guilty of

withholding the best evidence from the court and for

this, an adverse inference is liable to the drawn against

CBI under Section 114(g) of Indian Evidence Act.

Reliance in this regard has been placed on the

judgment 'S.P.Bhatnagar v. State of Maharashtra

(1979) 1 SCC 535'.


28.06                     It was further argued that as per

settled preposition of law, the circumstances from

which the conclusion of guilt is drawn should be fully

proved and such circumstances, must be conclusive in

nature and there should be no gap left in the chain of

evidence. Further the proved circumstances must be

consistent with the hypothecation of the guilt of

accused and totally inconsistent with his innocence. It

was argued that CBI has alleged certain irregularities

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 on the part of said accused for ignoring certain banking

norms, circulars and guidelines and departmental

orders. But, the prosecution has failed to establish any

criminality against said accused beyond the realm of

suspicion.


28.07                     In       addition        to   above      common

arguments, one more contention was raised on behalf

of A-4 that he was not the sanctioning authority and

indeed the loan was sanctioned by his senior colleague

Smt. K.K.Johar, who at the relevant time was the Chief

Manager of Jor Bagh branch of PNB. Since both the said

accused were holding different positions in the bank,

therefore, on account of their distinct profile and

position in the branch, they were having different

official duties and obligations. But despite that, CBI has

failed to pinpoint their (A-3 and A-4) individual liabilities

in the process of sanction and disbursal of loan. Ld.

Counsel argued that almost all the allegations raised by

the CBI in the chargesheet are common to both A-3 and

A-4 and even during trial, CBI does not appear to have

come out with any breakup of their liability.


28.08                     Per contra, it was argued on behalf of

A-3 that as per banking guidelines, it was the duty of

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 loan incharge to appraise the proposal and verify all

documents submitted by the borrower. He had to

collect all the relevant required documents from the

borrower and once the loan in charge is satisfied with

the authenticity of the documents, he appraises the

loan application along with adverse and favorable

comments, if any, along with his recommendation to

sanction the loan. In this case, the loan in-charge did all

the formalities and put up the proposal for sanction.

Since, there were no adverse comments in the

proposal, the same was considered for sanction by A-3.


Arguments on behalf of Rahul Sharma (A-5) and
Rajeev Sharma (A-6)

29.              On behalf of aforementioned accused, Ld.

Counsel Sh. Rajni Kant has raised multi-fold arguments.

It was submitted by the Ld. Counsel that borrower

Sanjeev Dixit @ Sanjeev Sharma (A-1) was the cousin

brother of A-5 and A-6, and they both were working as

his employees and did not have any idea of the

fraudulent           activities        of     said   accused,    who       was

constantly indulging in defrauding various banks by

availing different loan facilities on the basis of forged

and fabricated documents.



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 29.01                      It was submitted that A-5 and A-6 are

indeed         the      victims         of     circumstances,      as     their

documents like PAN card and voter ID cards and

photographs, etc. were used by Sanjeev Dixit (A-1) for

opening fake accounts in their name, which he used for

diversion of funds, without any knowledge of said

accused.           Further that, the investigation has been

carried out in most perfunctory and shoddy manner.

Because, as per prosecution's own case, Sanjeev Dixit

had also used many other bank account purportedly

opened in the name of his many other relatives, but IO

chose to array only A-5 & A-6, while no action was taken

against any other relative of Sanjiv Dixit/ A-1. In the first

chargesheet, only Sanjeev Dixit (A-1) was charge-

sheeted by the IO and it is only after A-1 absconded

from judicial custody, IO made A-5 and A-6 as

scapegoat and charge-sheeted them by way of

supplementary charge-sheet. But during trial, the

prosecution has miserably failed to bring home their

guilt as there is no concrete evidence to establish any

element of conspiracy on their part. Evidence is

completely lacking to show that said accused had any

knowledge about the existence of any such bank

accounts in their name.

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 29.02                     Ld. Counsel further argued that the

forensic reports wherein, positive opinion regarding

questioned signatures of A-5 and A-6 on the account

opening forms have been given are manipulated

reports.         He further submitted that the purported

signatures of said accused appearing on the cheques

through which, the money was allegedly transferred

through RTGS from their said bank accounts to the

dummy accounts created/opened by Sanjeev Dixit/A-1,

were never sent by the IO for comparison with their

specimen signatures so as to establish any conspiracy

on their part.


29.03                     Ld. Counsel has further argued that

accused Sanjeev Dixit (A-1) @ Sanjay Sharma had taken

several photographs, PAN card, Voter Card etc. of A-5

and A-6 at the time of their joining his (A-1) firm and he

also obtained their signature on several blank account

opening forms and blank papers on the pretext of

opening their salary accounts but, he misused said

documents and photographs for opening fake                   bank

accounts in their names, which he (A-1) used for

siphoning off the loan funds. In this regard, Ld. counsel

has also taken us through the testimonies of various


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 prosecution and defence witnesses as well as to the

forensic reports of the handwriting experts but, we

shall be dealing with the said details in the later part of

this judgment.


Discussion and Analysis of material by the Court


30.              It is one of the fundamental principles of

criminal jurisprudence that an accused is presumed to

be innocent till he is proved to be guilty. It is equally

well settled that suspicion howsoever strong can never

take the place of proof. Thus the prosecution has to

establish all essential of charge framed to allay this

presumption of innocence. Evidence is the only way to

prove or disprove anything and oral testimony apart

from the documentary evidence are the ways through

which evidence is brought on record. In the instant

case, both oral and documentary evidence has been

adduced on record but, the prosecution case is

primarily based on documentary evidence.                 As per

record charges for the following offences have been

framed against the accused persons:


(i) Charge under section 120B r/w 419/420/467/468/471

IPC with section 13(2) r/w 13(1)(d) of Prevention of


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 Corruption Act, 1988 and substantive offence u/s 420

IPC r/w 120B IPC against all the accused persons (A-1 to

A-6).


(ii) Charge u/s 13(2) r/w 13(1)(d) of Prevention of

Corruption           Act,      1988       against    accused     Kulwinder

Kaur Johar @ K. K. Johar (A-3) and Ranjiv Suneja (A-4)

(Public Servants).


(iii) charge u/s 468 IPC r/w 120B IPC against accused

Nrapendra Singh Parihar @ N. S. Parihar (A-2). (Panel

Advocate).


31.              Since the charge of conspiracy has been

alleged against all the accused person therefore, before

referring         to      the       evidence        and   the    respective

contentions of the parties, I may first refer to the

important precedent relating to the offence of Criminal

Conspiracy. Criminal conspiracy has been defined

under Section 120 A IPC and its punishment is

prescribed under Section 120 B IPC. For the sake of

ready reference the provisions are reproduced as

under:-

            120A. Definition of criminal conspiracy. When
            two or more persons agree to do, or cause to



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             be done,-

            (1) an illegal act, or

            (2) an act which is not illegal by illegal means,
            such an agreement is designated a criminal
            conspiracy:

            Provided that no agreement except an
            agreement to commit an offence shall amount
            to a criminal conspiracy unless some act
            besides the agreement is done by one or more
            parties to such agreement in pursuance
            thereof.

            Explanation. It is immaterial whether the illegal
            act is the ultimate object of such agreement, or
            is merely incidental to that object.

            120B. Punishment of criminal conspiracy.-(1)
            Whoever is a party to a criminal conspiracy to
            commit an offence punishable with death,
            [imprisonment      for    life]  or   rigorous
            imprisonment for a term of two years or
            upwards, shall, where no express provision is
            made in this Code for the punishment of such a
            conspiracy, be punished in the same manner as
            if he had abetted such offence.

            (2) Whoever is a party to a criminal conspiracy
            other than a criminal conspiracy to commit an
            offence punishable as aforesaid shall be
            punished     with    imprisonment    of   either
            description for a term not exceeding six months,
            or with fine or with both.]"


Criminal Conspiracy

32.              Pertinently,            the       offence   of    criminal

conspiracy to commit a crime is different offence from



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 the crime that is the object of the conspiracy. Because,

the conspiracy precedes the commission of the crime

and is complete before the crime is attempted or

completed. The conspirators invariably deliberately

plan and act in secret over a period of time. It is not

necessary that each one of them must have actively

participated in the commission of the offence or was

involved in it from start to finish. What is important is

that they were involved in the conspiracy or in other

words, there is a combination by agreement, which may

be express or implied or in part implied. Reliance placed

on 'Firozuddin Basheeruddin and others vs. State of

Kerala, 2001 SCC (Crl) 1341'.


33.              Criminal conspiracy is hatched to commit an

illegal act which is an offence punishable under law. It is

not essential that the accused person must do an overt

act, and mere agreement between two or more

persons to commit an illegal act is sufficient to

constitute the offence of criminal conspiracy. It is also

not necessary that the object of the conspiracy should

have been achieved for it to be considered as an

offence. Even if the conspiracy fails on account of

abandonment or detection before commission of


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 offence, the very act of entering into an agreement by

the co-conspirators is itself an offence and punishable

under the law. However, it has to be kept in mind that

the standard of proof for the act of criminal conspiracy

is the same as that of any other criminal offence i.e.

beyond reasonable doubt. In the case of 'State (NCT of

Delhi) v. Navjot Sandhu, AIR 2005 SC 3820', it was held

that:"A few bits here and a few bits there on which the

prosecution relies cannot be held to be adequate for

connecting the accused in the offence of criminal

conspiracy".


34.              The essential ingredients of the offence of

criminal conspiracy are: (i) an agreement between two

or more persons; (ii) the agreement must relate to

doing or causing to be done either (a) an illegal act; or

(b) an act which is not illegal in itself but is done by

illegal means. It is, therefore, plain that meeting of

minds of two or more persons for doing or causing to

be done an illegal act or an act by illegal means is sine

qua non of criminal conspiracy.


35.              Here, I may also refer to the judgment of

Hon'ble Supreme Court in 'Sanjeev vs. State of Kerala

decided on 09.11.2023 in Criminal Appeal No. 1134 Of

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 2011', wherein, Hon'ble Apex Court referred to its

previous judgment in 'State through Superintendent

of Police v. Nalini & Ors.6 (3-Judge Bench)', where the

ingredients to constitute a criminal conspiracy were

summarized as follows:


i.      Conspiracy is when two or more persons agree to

        do or cause to be done an illegal act or legal act

        by illegal means.

ii.     The offence of criminal conspiracy is an exception

        to the general law, where intent alone does not

        constitute crime. It is the intention to commit a

        crime and join hands with persons having the

        same intention.

iii.    Conspiracy is hatched in private or in secrecy. It is

        rarely possible to establish a conspiracy by direct

        evidence. Usually, the existence of the conspiracy

        and its objects have to be inferred from the

        circumstances and the conduct of the accused.

iv.     Where in pursuance of the agreement, the

        conspirators commit offenses individually or

        adopt illegal means to do a legal act that has a

        nexus to the object of the conspiracy, all of them

        will be liable for such offenses even if some of


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         them have not actively participated in the

        commission of those offenses.

36.              In the case of State of Maharashtra & Ors. v.

Som Nath Thapa &Ors., (1996) 4 SCC 659', it                   was

observed that "for a person to conspire with another, he

must have knowledge of what the co-conspirators were

wanting to achieve and thereafter, having the intent to

further the illegal act takes recourse to a course of

conduct to achieve the illegal end or facilitate its

accomplishment."


37.              It has never been easy to get direct evidence

for proving an offence under Section 120-A, which

defines criminal conspiracy. Considering this fact,

Section 10 of the Indian Evidence Act comes into play.

This section can be divided into two parts; firstly where

there is reasonable ground to believe that two or more

persons have conspired to commit an offence or an

actionable wrong. Only when this condition precedent

is satisfied, the second part of the section comes into

operation i.e. anything said, done or written by any one

of such persons in reference to the common intention

after the time when such intention was first entertained

by any one of them is a relevant fact against each of the


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 persons believed to be so conspiring as well for the

purpose of proving the existence of the conspiracy.


38.              It is therefore, necessary that a prima facie

case of conspiracy has to be established for application

of Section 10. The second part of section permits the

use of evidence which otherwise could not be used

against the accused person. 'Sardar Sardul Singh

Caveeshar v. State of Maharashtra (1964) 2 SCR 378',

is an authority on this issue.


39.              The offence of criminal conspiracy has also

been dealt with in detail by the Hon'ble Apex Court in

'Kehar Singh v. State (Delhi Admn.); 17 (1988) 3 SCC

609', and it was observed as under:-

              "275. Generally, a conspiracy is hatched in
              secrecy and it may be difficult to adduce direct
              evidence of the same. The prosecution will
              often rely on evidence of acts of various
              parties to infer that they were done
              inreference to their common intention. The
              prosecution will also more often rely upon
              circumstantial evidence. The conspiracy can be
              undoubtedly proved by such evidence direct or
              circumstantial. But the court must enquire
              whether the two persons are independently
              pursuing the same end or they have come
              together in the pursuit of the unlawful object.
              The    former    does     not    render     them
              conspirators, but the latter does. It is however,
              essential that the offence of conspiracy


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               requires some kind of physical manifestation
              of agreement. The express agreement,
              however, need not be proved. Nor actual
              meeting of two persons is necessary. Nor it is
              necessary to prove the actual words of
              communication ...."

Discussion and Analysis of material qua N.S.Parihar
(A-2)
40.              The prosecution case alleged against A-2,

who at the relevant time was an empeneled lawyer for

Punjab National Bank is that, he entered into a criminal

conspiracy with the other co-accused with a common

object to defraud and cheat the complainant bank and

under said conspiracy, he induced the bank to grant the

cash credit facility to the tune of Rs. 4 Crores in favour

of the borrower by giving a false legal opinion/Non-

Encumbrance Certificates (NEC) to the bank and filing

forged and fabricated certified copies of the sale deeds

of the four immovable properties proposed to be

mortgaged by the borrower for the subject loan and by

doing so, A-2 caused wrongful loss to the lending bank

to the tune of Rs. 4 Cr and a corresponding gain to the

borrower A-1 (since PO).


40.01                     The foremost contention raised by Sh.

C. Shekhar Malhotra, Ld. Counsel for N.S.Parihar (A-2) is

that, after N.S.Parihar (A-2) was handed over the

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 registered sale deeds of the mortgaged properties by

the bank for seeking his legal opinion on the title of

said properties, he had inspected the records of the

concerned Sub-Registrar office, where said properties

were found to be duly registered exactly on the same

registration number, book number, volume number and

page number as reflected on the original sale deeds

supplied to him by the bank and therefore, there was

no occasion for N.S.Parihar (A-2) to raise any suspicion

on the genuineness of said documents. Further, on the

basis of the previous chain of documents, the title of

the mortgagors in the respective properties was found

to be clear.


40.02                     Besides that, it was further contended

that A-2 had also applied for certified copies of the sale

deed of said properties in the office of concerned Sub-

Registrars and whatever copies he had received from

there, he handed over the same to the bank. Therefore,

forgery, if any, has been committed, the same has been

committed by the borrower (A-1) in connivance with the

officials of concerned Sub-Registrar office, from where

A-2 had obtained said copies upon deposit of requisite

fees. Since N.S.Parihar (A-2) remained completely


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 unaware about said connivance of borrower with the

officials of Sub-Registrar office, no knowledge can be

attributed to A-2 regarding said documents being

forged.


40.03                     I      have         considered    the      above

submissions of the Ld. Counsel Sh. C. Shekhar Malhotra

in the light of the material on record as well as the rival

contentions raised by Ld. Sr. PP. As per prosecution

case, the borrower Sanjeev Dixit (A-1) had approached

the complainant Bank, PNB, Jorbagh Branch for the

grant of cash credit facility for his proprietorship firm

on 02.03.2011 and vide                             sanction letter dated

29.03.2011, he was granted cash credit facility of Rs. 4

Crore against hypothecation of stocks/book Debts

subject to a margin of 25%. Besides primary security of

stocks/book debts, the loan was secured by personal

guarantees and collateral security by mortgage of

following 4 immovable properties:-


(1)              1st property was in the name of the

Guarantor Sanjay Sharma, proprietor of M/s Super

Machines, r/o 17B Shri Ram Nagar, Shahdara, Delhi,

who mortgaged his immovable property admeasuring

700 sq. Yards, Plot No. 25, Shyam Industrial Area,

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 Village Banthla, Loni, Ghaziabad, U.P              (hereinafter

also referred as 1st property) by depositing the original

Sale Deed Ex. 6/A3 (D-10) executed in his favour by

Harbans Lal Sharma, registered with the office of Sub-

Registrar-IV, Ghaziabad on 04.06.2008, along with

entire previous chain of documents.


(2)              2nd property was in the name of Guarantor

Smt. Indra Rani W/o Yagya Dutt Sharma, R/o 198/2, Gali

No. 1, Bhola Nath Nagar, Delhi, who mortgaged her

built up immovable property admeasuring 65 sq. yards

situated at No. 17B, Shri Ram Nagar, GT Road,

Shahdara, Delhi, (hereinafter also referred as 2nd

property)          by depositing the Sale Deed Ex. PW6/E3

(D-11) executed in her favour by Smt. Simla Rani,

registered with the office of Sub-Registrar-IV, Delhi on

04.10.1999, with previous chain of documents.


(3)              The 3rd and 4th properties were the

properties of the borrower Sanjeev Dixit (A-1) himself,

i.e. his residential property admeasuring 341.40 sq.

meters C-193, III Floor, Vivek Vihar, Phase-I, Delhi

(hereinafter also referred as 3rd property) in respect of

which a sale deed Ex. PW6/ P3 (D-12) executed in his

favour by R.K. Manchanda, registered on 31.01.2011

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 with      the      office       of    Sub-Registrar-VIII,   Delhi,     was

deposited with the bank with previous chain of

documents and the other property was an industrial

property bearing no. 121 FIE, Patparganj Industrial

Area, Delhi, (hereinafter also referred as 4th property)

in respect of which, original sale deed Ex. PW6/U3

(D-13) executed by Ramji Lal Chawla, registered with

Sub-Registrar-VIII Delhi on 25.05.2011, was deposited

with the bank with previous chain of documents. It was

pertinent to note that 4th property was substituted at

the place of property number 5/1234, Vasundhara,

Ghaziabad, owned by one Rajesh Aggarwal, which was

initially proposed to be mortgaged with the bank.


40.04                     Ld. Sr. PP submitted that as per the

evidence adduced on record all the aforementioned

sale deeds submitted by the borrower with the bank

were found to be forged and fabricated. Out of said 4

mortgaged properties, sale deeds of 1st property and

2nd property was though registered at the same

registration number, book number, volume number and

page number as mentioned on the original sale deeds

of said two properties submitted by A-1 but, upon their

comparison with the corresponding sale deeds of said


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 two properties available in the concerned Sub-Registrar

offices, said sale deeds were found to be different.

Because, the photograph of the purchaser on said

forged sale deeds was found to be different from the

photograph of the purchaser appearing on the genuine

sale deeds available with concerned Sub-Registrar

office.       It was submitted that the photographs of

purchasers appearing on the certified copies filed by

A-2 are similar to the photographs of the respective

purchasers on the forged sale deed of said properties

filed by the borrower/A-1.


40.05                     In respect of 3rd property C-193, 3rd

floor, Vivek Vihar, Phase-I, Delhi, it was submitted that

as per the record of the concerned Sub-Registrar, the

sale deed of said property dated 31.01.2011 was

though found to be registered at the given particulars.

But, in the light of the testimony of              PW-68/Romit

Manchanda, the said registered sale deed is also a

forged document. Ld Sr. PP submitted that as per the

version of said witness Romit Manchanda/PW-68 and

the documents produced by him, the said 3rd property

belonged to his father late Sh. R.K.Manchanda and after

his death, the same was inherited by his mother by


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 virtue of his father's Will and a relinquishment deed

executed by him (Romit Manchanda) in favour of his

mother.          As per his version, the said floor of the

property was never sold out by his parents and was still

in possession of Manchanda family till the date of his

deposition before the court.                            While investigation

revealed that no sale deed in respect of the 4th

property of 121 FIE, Patparganj Industrial Area, Delhi

was registered in the office of concerned Sub-Registrar

on the given particulars and in view thereof, the

defence arguments that sale deeds of all the 4

properties were registered with office of concerned

Sub- Registrar is absolutely wrong.


40.06                     In this regard, attention of the court

has been drawn to the testimonies of PW 13, 44, 46 to

50, who are the witnesses from the concerned Sub

Registrar offices as well as other private persons

namely Romit Manchanda and Indira Rani, who were

examined as PW-68 and PW-14 respectively. The NEC

and        the       certified         copies      of     sale   deeds         of

aforementioned 4 properties filed by A-2 with the bank,

are sought to have been proved through PW-6 Sh. C.P.

Garg.


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 40.07                     In order to correctly understand the

above submission of Ld. Sr.PP, the evidence of the

concerned witnesses from the Sub-Registrar Office is

required to be carefully perused. PW-13 Naveen Kumar

has been summoned from the Sub-Registrar office IV,

Ghaziabad. As per his deposition, upon a request from

CBI, he had handed over the certified copy of the sale

deed in respect of aforementioned 1st property i.e. Plot

No. 25, Shyam Industrial Area, Village Banthla, Loni,

Ghaziabad, U.P, which is available on record as part of

Ex. PW13/A (colly) (D-79) (genuine sale deed). As per

his version, the sale deed Ex. PW6/A3 (the sale deed

filed by the borrower with the bank D-10) was the

same document, which was shown to him by the IO

during investigation and after comparing the same (Ex.

PW6/A3)          with       the      sale          deed   Ex.   PW13/A,       the

photograph of the purchaser affixed on the sale deed

Ex. PW6/A3 was found to be different from the

purchaser's photograph appearing on the document

Ex. PW13/A. I have carefully perused both the said

documents which showed that not only the purchaser's

photograph on said two documents is of different

persons but even the PAN card number of the

purchaser on said two documents are different. The

CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
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 PAN number of the purchaser on Ex. PW6/A3 is

BZYPS4132F while the PAN number of the purchaser on

Ex.PW13/A is BYKPS2303D.


40.08                     I have also carefully perused and

compared said two documents i.e the Ex. PW13/A(D-29)

(the certified copy of genuine sale deed) and                               Ex.

PW6/A3 (forged sale deed furnished by the borrower in

the bank) with the certified copy of the sale deed of said

property deposited by A-2 with the bank, which is

available on record as D-117 (part of Ex. PW6/H1) (page

128)). The careful comparison of said three documents

shows that the photograph of the purchaser on the

genuine sale deed Ex. PW13/A (D-79) is of the borrower

Sanjeev Dixit @ Sanjay Sharma (A-1). Whereas, on the

forged sale deed Ex. PW6/A3 and certified copy of said

sale deed D-117 filed by A-2 (part of Ex. PW6/H1), the

guarantor Sanjay Sharma proprietor of M/s Super

Machine is shown to be purchaser/owner. While all

other details of said three documents appear to be

same.


40.09.           Ld. Sr. PP has submitted that Sanjiv Dixit @

Sanjay Sharma was the owner of said property but, at

the      time        of      applying          the   subject   loan,       the

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 aforementioned property was already mortgaged with

some other bank against some other loan and

therefore, a forged sale deed was created with similar

details and particulars and only the photo of the owner,

who was Sanjay Sharma @ Sanjiv Dixit, was changed

with the photograph of one Jitendra Singh (since PO),

who impersonated himself as Sanjay Sharma one of the

guarantor herein. Ld PP also pointed out that said

photograph appearing on the forged sale deed Ex.

PW6/A3 has been identified to be of one Jitender @

Jeetu by PW-74 Sanjeev Singh Rana, who was also one

of the ex-employee of borrower Sanjeev Dixit (A-1).

Meaning thereby, that said person Jitendra @ Jeetu

impersonated himself as Sanjay Sharma (guarantor) at

the time of execution of the loan documents of the

subject loan.


40.10                     From           the       testimony      of       the

aforementioned witness from the Sub-Registrar office

IV, Ghaziabad, it has been clearly established on record

that the sale deed of aforementioned property

furnished by the borrower i.e Ex. PW6/A3 (D-10) as well

as the certified copy Ex.PW6/A3 (part of Ex. PW6/H1)

[D-117 from page no.1218 to 1252], filed by A-2, which


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 is the identical copy of Ex. PW6/A3 (D-10), both are

forged and fabricated documents.


40.11                     In respect of the 2nd mortgaged

property bearing no. 17-B Shriram Nagar, Shahdara,

Delhi, the prosecution has examined two witnesses,

namely, PW-46 Budh Prakash Gautam and PW-47 Manoj

Kaushik, from Sub- Registrar office IV and IV A

respectively. As per PW 46, he had handed over certified

copy of sale deed dated 04.10.1999 Ex.PW46/A (Colly.)

(D-80)        (also       exhibited           as   Ex.PW14/C)    of     the

aforementioned property to the IO vide seizure memo

dated 21.08.2013 (D-80) (also part of Ex. PW46/A). As

said witness was not coming out with complete facts,

he was cross-examined by the Ld. PP and in his cross-

examination, he came out with the version that the

photograph of the purchaser appearing at point A on

the sale deed Ex.PW6/E3, which is the sale deed

furnished by the borrower with the bank, is of some

other female i.e. other than the female in purchaser's

photograph appearing on the certified copy of sale

deed Ex. 14/C (part of Ex. PW46/A-colly).


40.12                     Perusal of the record shows that the

certified copy of the sale deed furnished by A-2 in

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 respect of said 2nd mortgaged property is available on

record as part of Ex. PW6/I-1(D-118 page no. 1253 to

1267).         Careful comparison of said document Ex.

PW6/I-1 with Ex. PW6/E3 (the sale deed deposited by

the borrower/A-1) shows that Ex. PW6/I-1 is the ditto

copy of Ex. PW6/E3. Even the photograph of purchaser

on both said two documents appears to be of same

person. However, said photograph of the purchaser

Indra Rani appearing on Ex. PW6/I-1 and Ex. PW6/E3 is

different from the purchaser's photograph appearing

on the certified copy of genuine sale deed Ex. PW14/C

(also part of Ex. PW46/A (Colly). The genuine certified

copy of the sale deed is sought to have been proved

through PW-14 and PW-46.


40.13                     PW-14 is Indra Rani, who as per

prosecution case, was the actual owner of the

aforementioned property. She identified her signature

and the photograph on the genuine sale deed Ex.

PW14/C (part of Ex. PW46/A-colly) and disowned her

purported photograph and signatures on the forged

sale deeds Ex. PW6/I-1 (filed by A-1) and Ex. PW6/E3

(certified copy filed by A-2). As per her version, she had




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 purchased the said property in the year 1999 and sold it

out in February 2003.


40.14                     As per prosecution case, the purported

signatures of the purchaser Indra Rani appearing on Ex.

PW6/E3 were got compared with her (PW14's) specimen

signature Ex. PW14/D(colly)(D-165 at page no. 2805 to

2809) and in this regard, the forensic expert furnished

his report Ex. PW75/C (D-166) wherein, the questioned

signatures of Indra Rani and her specimen signatures

were found to be of different person and said report

has been duly proved on record by PW-75, Sh. Anil

Sharma.


40.15                     It is pertinent to note that Non-

Encumbrance Certificates (NECs) in respect of 1st and 2nd

property i.e., D-116 at page no. 1210 and D118 at page

no. 1253 are both dated 26.03.2011. As per said NECs,

A-2 had verified, tallied and compared the title

documents furnished to him by the bank from the

record of the office of sub-registrar IV, Ghaziabad, UP

and Sub-Registrar IV Delhi respectively and as per the

search report annexed with his report, the inspection of

record for the period from 1999 to 24.03.2011, did not

disclose any encumbrance on the aforementioned

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 properties. As per NEC (D-116) in respect of 1st

property, the certified copy of its sale deed had been

applied by A-2 but, it was not yet received meaning

thereby,         that      it    was       submitted        with    the      bank

subsequent to filing of NEC. Whereas, as per NEC,

D-118 in respect of 2nd property, the certified copy was

already obtained and the registration particulars were

duly compared and were found to be similar.


40.16                     In respect of the 3rd property bearing

No. C-193, 3rd Floor, Vivek Vihar, Phase I, Delhi, the

prosecution has examined PW-48 Sh. Naveen Kumar

Sharma from the Sub-Registrar office VIII, Delhi and

PW-68 Sh. Romit Manchanda son of the actual owner of

said property late Sh. R.K.Manchanda. As per the

version of PW-48, vide letter dated 07.01.2014 Ex. PW

48/A, he had handed over certified copies of the 08

registered sale deeds Ex. PW48/B (colly) pertaining to

different floors i.e. two sale deeds of upper ground

floor; three sale deeds of first floor; two sale deeds of

second floor and one sale deed of third floor of said

property         no.      C-193,        Vivek      Vihar,    Phase-1       Delhi,

registered with the office of Sub-Registrar VIII, District

East. The details of said registered sale deeds, which


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 were registered at different point of time, are given in

the tabular form in the letter of Sub-Registrar Ex.

PW48/A.


40.17                     As per prosecution case, only the sale

deed of the 3rd floor bearing registration no. 1479 book

no. 1 vol no. 5213 page no. 117-127 dated 31.01.2011, is

relevant for the purpose of this case as the borrower

morgaged only the 3rd floor of the aforementioned

property          with       the      lending      bank.   However,      the

investigation revealed that the said registered sale deed

in respect of 3rd floor of said property which is part of

Ex. PW48/A (page no. 639 of D-83) purportedly executed

by R.K.Manchanda in favour of Sanjeev Dixit (A-1), is a

forged sale deed and same is evident from the

testimony of PW-68 Romit Manchanda S/o Late Sh.

R.K.Manchanda and the documents ( chain of title

documents ) provided by him.


40.18                     As per PW68, his father R.K.Manchanda

(Rajender Kumar Manchanda), was the owner of the

entire property no. C-193, Vivek Vihar, Phase-1 Delhi,

which he had purchased from L&DO vide perpetual

lease deed dated 02.07.1969 and subsequently, a

conveyance deed was registered in his father's name by

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 DDA on 03.05.2001. After the death of his (PW-68's)

father in the year 2011, (13.08.2011), the 3rd floor of said

property was inherited by his mother Mrs.Rajni

Manchanda by virtue of Will of his father (Rajender

Kumar Manchanda), which is part of Ex.PW77/B (Colly.)

(D-84). During the course of investigation of this case,

the copies of the genuine chain of title documents of

said property were seized from Mrs. Rajni Manchanda

and her son Romit Manchanda vide seizure memo Ex.

PW68/A (colly) (D-154) and Ex. PW77/B (colly)(D-84)

respectively.


40.19                     As per the testimony of PW-68 Romit

Manchanda, the 3rd floor of the aforementioned

property was never sold either by his father or his

mother and same was in their possession even till the

date of his examination in the court. He (PW-68)

deposed that in the year 2010, the 3rd floor of said

property was however, rented out to one Rajeev Sharma

(A-6) vide a registered rent deed dated 25.10.2010, part

of Ex. PW 68/A (colly) (D-154 page no. 2633 to 2635) and

at the time, when 3rd floor was let out, Rajeev Sharma

(A-6) was also accompanied with his brother-in-law




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 Sanjeev Dixit (A-1). PW-68 has correctly identified Rajeev

Sharma (A-6) in the court.


40.20                     In his examination in chief, PW-68

further deposed that one day one official Vikram from

PNB Dwarka had come to their property and he wanted

to meet Sanjeev Dixit (A-1). To his (PW-68) utter

surprise, in PNB Dwarka, Sanjeev Dixit (A-1) was shown

to be the owner of said property. Upon knowing it,

PW-68 informed said official that Sanjeev Dixit was not

the owner of said property and that he (Sanjeev Dixit)

had manipulated the documents. As per PW-68,

Sanjeev Dixit (A-1) had taken a loan of Rs.48 lakh from

PNB, Dwarka and Rs. 3 crore from PNB, Nehru Nagar,

Ghaziabad against same property by forging the sale

deed and manipulating the name of his father as Raj

Manchanda.


40.21                     PW-68 deposed that when he visited

PNB Dwarka, he was shown the documents on the basis

of which the loan was taken against their property and

at that time, PW-68 noticed that the photograph of the

erstwhile          owner/seller             pasted       on    the      property

document (Sale deed) was not of his father but of some

other        person.          Further,             the   seller's    signatures

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 purportedly shown in his father's name were also

forged. PW-68 deposed further that in that regard, he

and his mother had also filed complaints/letters to said

bank as well as to the concerned Sub-Registrar office.

He also proved on record the seizure memo Ex. PW68/A

(colly) D-154) vide which, he had handed over the copy

of the original chain of documents i.e. the copy of Will,

copy of perpetual lease deed, conveyance deed, death

certificate of his father, mutation letter, voter ID card

and passport of his father R.K.Manchanda etc. to the IO.


40.22                     The 4th property, which was mortgaged

with the bank for the subject loan is 121 FIE,

Patparganj Industrial Area, Delhi. The said property

was substituted at the place of property bearing no.

5/1234, Vasundhara, Ghaziabad, which was initially

mortgaged with the bank at the time of sanction of

loan. The property bearing no. 121 FIE, Patparganj

Industrial Area, Delhi was also claimed to be owned by

the borrower Sanjeev Dixit @ Sanjay Sharma (A-1).


40.23                     As per prosecution case, the borrower

Sanjeev Dixit (A-1) deposited the original sale deed

pertaining to said property purportedly executed in his

favour by one Ramji Lal Chawla vide registration no.

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 23451 in additional book no. 1 Vol. no. 4320 on page

no. 102 to 109 dated 25.05.2011, available on record as

Ex. PW6/U3 (D-13). However, as per the deposition of

PW-48 Sh. Naveen Kumar Sharma from the Sub-

Registrar office VIII, Delhi, no such sale deed was

registered at the given particulars as per their record.

In fact, at given page no. 102-109 vol. no. 4320 Book 1

of the office record, one sale deed dated 09.12.2009

having a different registration no. 15379, was lying

registered in respect of some other property no. 232,

Jagriti Enclave, and sale deed of said property is

available on record as Ex. PW49/B (D-155).


40.24                     Upon         careful     comparison     of    the

certified copy of the sale deed filed by N.S.Parihar (A-2)

with his NEC dated 22.06.2011 Ex. PW 6/L1 (D-122) with

Ex. PW 6/U-3 (D-13), it was found to be the identical

copy of the sale deed Ex. PW6/U3 (D-13) submitted by

the borrower with the bank in respect of said property

bearing no. 121 FIE, Patparganj Industrial Area, Delhi,

and this clearly establishes that both the NEC and the

certified copy of sale deed filed by N.S.Parihar (A-2) in

respect        of     said       4th      property   were   the    forged

documents as no such property was actually registered


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 with the office of concerned Sub-Registrar-VIII, at the

given particulars.


40.25                     As per the NEC Ex. PW6/L1, of said 4 th

property,           the       search/inspection    conducted         by

N.S.Parihar (A-2) of record maintained at the office of

concerned Sub-Registrar for the period from 26.10.2001

to 21.06.2011, did not disclose any encumbrances on

said property. The NEC further says N.S.Parihar (A-2)

had verified, tallied and compared the chain of title

documents pertaining to aforementioned property

submitted with the bank from the record of office of

Sub-Registrar VIII, Delhi. However, in the light of the

deposition of PW-48, the above contents of NEC are

absolutely false as no such sale deed of said property

was registered in the office of Sub-Registrar VIII and in

that eventuality, there arises no question of accused A-2

having verified, tallied and compared the chain of title

documents from the record of concerned Sub-Registrar.

The certification given by N.S.Parihar (A-2) in the NEC to

the effect that registration particulars, the date and

page etc as shown in the sale deed filed by                        the

borrower and the contents thereof, tallied with the

information available in the records of office of Sub-


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 Registrar are clearly false, wrong and incorrect. It is

pertinent to note that cross-examination of both the

said witness from Sub-Registrar office PW-48 and

PW-49 remained nil on behalf of all the accused

persons including N.S.Parihar (A-2) and as such, their

testimonies remained unrebutted.


40.26                     As per the defence argument, a non-

encumbrance certificate (Form 29) (D-117 page 1217) in

respect of 1st property, was issued by the office of Sub-

Registrar IV Ghaziabad itself and therefore, there was

no reason for A-2 to doubt the genuineness of either

the certificate (NEC) i.e. Form no. 29 or the certified

copy of said sale deed obtaining from Sub-Registrar

office. He further submitted that with the NEC D-117,

the fees deposit receipt was also enclosed and the

same is bearing the stamp of the Sub-Registrar office

IV, Ghaziabad. Whereas, during examination of said

witness from the Sub-Registrar office IV, Ghaziabad

(PW-13), Ld. Sr. PP failed to show him (PW-13) any of

these documents nor he (Ld. Sr. PP) asked any question

from PW-13 regarding the purported stamp of the Sub-

Registrar office appearing on said documents.




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 40.27                       It has been vehemently argued on

behalf A-2 that considering the nature of charge framed

against the A-2, prosecution was required to prove not

only that the documents i.e NECs or the certified copies

of sale deeds filed by him (A-2) with the bank, were false

and fabricated but also that, it was he (A-2) who forged

said documents and that he did it knowingly with the

dishonest intention to cheat the bank. Whereas, Ld PP

failed to ask any question from any of the witnesses

examined from Sub-Registrar office to know if the

stamps of the office of concerned Sub-Registrar or

signatures of concerned Sub-Registrar or the dealing

clerk on the certified copies were genuine or forged. It

is however, pertinent to note herein that except the 1 st

property of 25, Shyam Industrial Area, Ghaziabad, all

other three mortgaged properties are situated in Delhi

and it is only in respect of 1st property of Ghaziabad, the

Non-Encumbrance Certificate (Form 29), purportedly

issued by the concerned Sub-Register office, was filed

by A-2 with the certified copy of sale deed of said 1st

property.


40.28                      Ld Counsel for A-2 has further argued

that receipts of fee deposit issued by concerned Sub-


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 Register offices against the payment of fees for the

certified copies of the sale deeds were also filed as a

proof        that        A-2       had         obtained   said    certified

copies/reports from the office of concerned Sub-

Registrar.         But despite that, none of the witnesses

examined from the office of concerned Sub-Registrar,

were shown said receipts so as to ask them to either

admit or deny the purported stamps of their respective

office of the concerned Sub-Registrar or the signatures

of concerned Sub-Registrars or dealing clerk, appearing

on the them.


40.29                     It has been vehemently argued that in

absence of examination of said witnesses on above

important aspects, the prosecution has miserably failed

to prove that the certification of the office of concerned

Sub-Registrars on the certified copies of the sale deeds

filed by A-2 with the bank were forged or that A-2 had

any knowledge that said certified copies were forged.

But here also, I may note that, as per record, the fee

deposit receipt has been enclosed only with the

certified copy of the 3rd property C 193, 3rd floor, Vivek

Vihar, Phase-1, Delhi, while no such receipts were filed




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 in respect of the certified copies of the other sale

deeds.


40.30.           In respect of 1st property bearing no. 25,

Shyam           Industrial           Area/Estate,   Banthala,      Loni,

Ghaziabad, Ld. Counsel for A-2 has argued that upon

inspection of the record of said property in the office of

concerned Sub-Registrar, the sale deed executed by Sh.

Harbans Lal Sharma S/o Sh. Tirath Ram in favour of M/S

Super Machines through its Proprietor Sh. Sanjay

Sharma S/o Janardan Sharma, was found to be

registered as document no. 15582, Bahi No. 1 Jild

(Volume) No. 10581, page 67 to 134 dated 04.06.2008

and accordingly, the non-encumbrance certificate (Form

29), issued by Sub Registrar IV, Ghaziabad was obtained

and same was submitted with the Bank and the said

fact was duly mentioned by A-2 ANNEXURE-VA in his

Non Encumbrance Certificate (D-116) of A-2.


40.31                     Ld. Counsel further argued that            the

sale deed in respect of 3rd property bearing No. C-193,

3rd Floor, Vivek Vihar, Phase I, Delhi, executed by Sh.

R.K Manchanda S/O Late Sh. H.L. Manchanda in favour

of Sh. Sanjeev Dixit S/o Sh. Hari Shanker Dixit was

registered as document no. 1479, Book No. 1 Volume

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 No. 5213, page 117 to 127 dated 31.01.2011, and said

particulars were found matching with the Certified

Copy (D-120) obtained from the Office of concerned

Sub-Registrar. Further, the registration details were

found matching with the details in the Index Register

and therefore, no knowledge can be attributed to A-2

that the certified copy obtained by him was of a forged

sale deed.


40.32                     Ld. Counsel submitted that even the IO

in his deposition admitted that he did not investigate

into the aspect of the stamps of the offices of the

concerned Sub-Registrars on the certified copies of title

deeds submitted by A-2 with the bank. IO also admitted

that comparison of Original Title Deeds supplied by the

Bank with the Certified Copies obtained from the office

of concerned Sub-Registrar is one of the parameters for

comparison.


40.33                     As already noted above, besides the

charge of cheating and criminal conspiracy, A-2 was

also charged for the offence of forgery for the purpose

of cheating punishable under Section 468 IPC read with

120-B IPC. The charge of forgery under Section 468 IPC

was framed against said accused to the effect that he in

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 pursuance to the criminal conspiracy with co-accused

persons, submitted a false verification report to the

bank in respect of the immovable properties, which

were offered as collateral security by co-accused

Sanjeev Dixit (P.O.), which was used for the purpose of

cheating and thereby, he committed the offence under

Section 468 IPC read with 120-B IPC.


40.34                     As per the material on record, the

documents D-116 (Ex.PW6/H1, Page no. 1210 to 1215),

D-118 (part of Ex.PW6/I-1 page no. 1259 to 1267),

D-119 (part of Ex.PW6/J-1 page no. 1275 to 1284) and

D-122 (part of Ex. PW 6/L1 page no. 1338 to 1352), are

the letters/certificates, which are the NECs furnished by

A-2 with the bank, were addressed to the Chief

Manager of the lending bank, wherein A-2 gave his

legal opinion on the investigation of title of the

properties proposed for mortgage with the bank.

Alongwith these letter/certificates three documents i.e.

special report, search report and chain of title were also

enclosed. In respect of 1st property of Ghaziabad an

additional document Form 29 (D-117) purportedly

issued by the office of Sub-Register-IV, Ghaziabad was

also filed, whereby, no encumbrance report with regard


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 to said property was given under the signature and

stamp of said office. However, no such document Form

29 was filed by A-2 in respect of the other three

properties situated in Delhi.


40.35                     In the charge of forgery framed against

A-2 under Section 468 read with 120-B IPC, the

reference to false verification report issued by A-2, has

been made in respect of aforementioned 4 certificates

D-116, D-118, D-119 and D-122 furnished by A-2 with

the bank. Except D-122, all other certificates are dated

26.03.2011, while D-122 is dated 22.06.2011. As per said

reports, the title of the aforementioned properties was

found to be clear on the basis of the record of the

concerned Sub-Registrar office including the Index

Register, Form No.29 (in respect of the 1st property of

Loni, Ghaziabad) and the certified copies of the sale

deeds obtained by A-2 from the office of the concerned

Sub-Registrars.


40.36                     On meticulous examination of the

evidence adduced on record, more specifically the

testimonies of the witnesses from Sub-Registrar Offices

and that of PW-68/Romit Manchanda and PW-14 Smt.

Indra Rani, I am of the considered view that the

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 prosecution has successfully established on record that

all the sale deeds filed by the borrower/A-1 with the

bank as well as the certified copies of said sale deeds

filed by A-2 in support of his legal search report are

forged, fabricated and bogus documents.


40.37                     However, the question that comes up

for consideration is that whether the false opinion

given by A-2 in the aforementioned certificates D-116,

D-118, D-119 and D-122 or his act of filing certified

copies of bogus sale deeds, can make him liable for the

offence of forgery under Section 468 IPC. As per A-2,

his legal opinion contained in said certificates is based

on the record which was made available to him by the

office of concerned Sub-Registrar such as the index

register, Form No.29 and certified copies of said 4

properties and he had no knowledge that said

documents were forged.


40.38                     On the sale deeds of 1st and 2nd

property, the photographs of the purchasers were

found to be different though the deeds were found to

be duly registered in the same names and at same

given particulars. While in respect of 4th property, no

such sale deed as filed by the borrower/A-1 with the

CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
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 bank, was found to be registered with the Sub-Registrar

office. In respect of 3rd property, though the sale deed

filed by the borrower was found to be actually

registered with the Sub-Registrar Office in the same

names and at same given particulars but, in the light of

testimony of Romit Manchanda/PW-68 and chain of

original title documents brought by him in respect of

said property, the sale deed of said property filed by the

borrower/A-1, was also found to be a fake and forged

document as both the photographs as well as the

signatures              of        the         purported       vendor/seller

R.K.Manchanda (since deceased) were disowned by his

son Romit Manchanda. As per his (Romit Manchanda)

version, the purported signature of his father on said

sale deed has been forged and even the photograph of

the seller was not of his father but of some other

person.         Furthermore,             the       actual   ownership      and

possession of said property was still lying with the

Manchanda family.


40.39                     In the light of the fact that with a

cogent and credible evidence, the prosecution has

clinchingly proved that all the sale deeds filed with the

bank by the borrower/A-1, are forged and fabricated, it


CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
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 also gets automatically proved that the certified copies

of the sale deeds filed by A-2, which are identical copies

of the sale deeds filed by the borrower, are also bogus

and fake documents. For proving the certified copies of

sale deeds filed by A-2 with the bank as forged and

bogus, there was no requirement for the prosecution to

prove the certification of the respective Sub-Registrar

offices appearing on said certified copies to be false

and fabricated unless, the prosecution attributes said

certification to A-2, which is not the case herein. In the

backdrop of said circumstances, I am of the considered

view that failure of the prosecution to put said certified

copies of sale deeds filed by A-2 with the bank to the

witnesses examined from the Sub-Registrar office or to

ask them any question regarding said copies, is not

fatal to the prosecution case.


40.40                     In the instant case, except the sale

deed of 4th property 121, FIE Industrial Area,

Patparganj, Delhi, which was not at all registered with

the concerned Sub-Registrar, the sale deeds of all other

properties were duly registered in the office of the

concerned Sub-Registrar at the same particulars as

given in the sale deeds filed by the borrower/A-1 with


CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
Case No. 63/2019 (6669/16)                         Page no.229 Of 372
 the      bank.       However,           the        purchaser's       photograph

appearing on the sale deeds of 1st and 2nd property

were found to be not matching with the purchaser's

photographs              on      respective          sale    deeds       of     said

properties registered with the office of Sub-Registrar.

Even the purported signatures of purchaser Indra Rani

on the sale deed of the 2nd property, filed by the

borrower have been proved to be forged. The sale deed

of 3rd mortgaged property was though duly registered

and was matching with the sale deed filed by the

borrower but, the prosecution, by a cogent and credible

evidence more specifically of PW68 Romit Manchanda,

has successfully proved on record that said sale deed

was never executed by the actual owner and that it was

also a forged document.


40.41                     In     the       light     of     above      discussed

evidence, the prosecution has successfully proved that

all the sale deeds filed by the borrower/A-1 are bogus

and       forged          documents                and      as   a     necessary

consequence, the certified copies of said very sale

deeds filed by A-2 are also bogus and forged. In such a

scenario, when A-2 has not denied that he had filed said

certified copies with the bank, the onus shifts upon him


CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
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 (A-2) to show that he received said certified copies via a

proper channel or from some authorised source so as

to deny his knowledge about said documents being

fake and forged. Whereas, in this regard, A-2 has

miserably failed to lead any evidence either positive

evidence by way of examining any witness in defence or

by eliciting some material in his support from the cross-

examination            of     the      witnesses   examined   by     the

prosecution. In the cross-examination, no suggestion

was put to the witnesses from the Sub-Registrar office

to claim that the aforementioned certified copies filed

by A-2 with the bank were the copies issued by the Sub-

Registrar office nor the alleged fee receipt was put to

the concerned witness to ask him if the same was

issued from their office. The cross-examination in this

regard becomes more important when one of the sale

deed in respect of property bearing no. 121, FIE,

Industrial Area, Patpatganj, Delhi filed by the borrower

(A-1) was found to be not even registered with the

office of concerned Sub-Registrar. Nothing was asked

on behalf of A-2 even from the witness of concerned

Sub-Registrar, who deposed that no such sale deed was

registered in their office in respect of said property at



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 the given particulars. Not a suggestion was put to him

to controvert him on this point.


40.42                     The next question which now falls for

consideration before this court is, whether merely by

proving that A-2 had knowingly filed the forged certified

copies of the aforementioned sale deeds will make him

liable for the offence of forgery under Section 468 IPC

and if not, whether even in absence of any charge of

Section 471 IPC, the court can still record conviction

under said section against A-2, for knowingly using a

forged document as genuine.


40.43                      It was argued on behalf of prosecution

that even if the offence of forgery is not proven, a

conviction for the offence of Section 471 IPC can still be

obtained provided the prosecution is able to prove that

the accused used a forged document with a knowledge

that it was forged. This is stated to be so because, using

a forged document requires proving the use of the

document and knowledge that it was forged, while the

forgery requires proving the creation of the document

with an intent to cheat.




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 40.44                     Per-contra, the above argument has

been vehemently opposed by the defence counsel

appearing for A-2 by submitting that the offence under

Section 468 and 471 IPC are distinct offences as their

ingredients are completely different and therefore, in

absence of a specific charge of 471 IPC, no conviction

can be recorded by the court for said offence simply on

the basis of the evidence led for the offence of Section

468 IPC. It was argued that the benefit of Section 222

CrPC shall not be available to the prosecution for

seeking conviction for the said offence because, by

virtue of said provision of CrPC, the conviction only for

the minor offence can be recorded without the charge

of such offence being framed. Whereas, same is not the

position in the instant case because, ingredients of both

the offences are different and even the punishment

prescribed for both the said offences is same.


40.45                     As per record, three charges have been

framed against A-2 in the instant case. The 1 st charge is

of criminal conspiracy punishable under Section 120-B

read with Section 419/420/467/468/471 IPC and Section

13(1)(d) read with Section 13(2) PC Act. The 2nd charge is

for the offence of cheating punishable under Section


CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
Case No. 63/2019 (6669/16)                           Page no.233 Of 372
 420 r/w 120-B IPC. The 3 rd charge framed against A-2 is

for the offence of forgery for the purpose of cheating

punishable under Section 468 IPC read with Section

120-B IPC.


40.46                     For       correct        appreciation    of     the

aforementioned contentions raised by the parties, it is

important to first understand what constitutes the

offence of forgery for the purpose of cheating under

Section 468 IPC and the offence of using as genuine a

forged document under Section 471 IPC. Section 468

IPC reads as under:-

                 "468. Forgery for the purpose of
                 cheating.-Whoever          commits   forgery,
                 intending that the (document of electronic
                 record forged) shall be used for the purpose
                 of cheating, shall be punished with
                 imprisonment of either description for a
                 term which may extend to seven years, and
                 shall also be liable to fine."


                 Section 471 reads as under:-

                 "471. Using as genuine a forged document
                 or electronic record.- Whoever fraudulently
                 or dishonestly uses as genuine any
                 document or electronic record which he
                 knows or has reason to believe to be a
                 forged document or electronic record, shall
                 be punished in the same manner as if he
                 had forged such document or electronic
                 record."


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Case No. 63/2019 (6669/16)                                    Page no.234 Of 372
 40.47                     Forgery          has     been   defined     under

Section 463 IPC, which read as under:-
                  "463. Forgery.- Whoever makes any false
                  document or false electronic record or part
                  of a document or electronic record with
                  intent to cause damage or injury, to the
                  public or to any person, or to support any
                  claim or title, or to cause any person to part
                  with property, or to enter into any express or
                  implied contract, or with intent to commit
                  fraud or that fraud may be committed,
                  commits forgery"

40.48                     Section 464 IPC provides an answer as

to when a false document could be said to have been

made for the purpose of committing an offence of

forgery under Section 463 IPC. In the matter of Md.

Ibrahim and Ors. Vs. State of Bihar and Ors. (2009) 8

SCC 751, it was held that a person is said to have made

a false document if:-

          (i) he made or executed a document

          claiming to be someone else or authorized

          by someone else; or

          (ii) he altered or tampered a document;

          (iii)   he obtained a document by practicing

          deception or from a person not in control of

          his senses.



CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
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 40.49                     The       enunciation    laid-down    in    the

aforementioned judgment was reiterated by the

Hon'ble Apex Court in the matter of Sheila Sebastian

Vs. R. Jawharaj and Ors. Criminal Appeal Nos. 359-

360 of 2010, decided on 11.05.2018, wherein it was

categorically held that a charge of forgery of the

document cannot be imposed on a person who is not

the maker of the same. It was observed that making of

a document is different than causing it to be made and

for constituting an offence under Section 464 IPC, it is

imperative that a false document is made and the

accused person is the maker of the same, otherwise,

the accused cannot be held liable for the offence of

forgery. For the purpose of clarity, the we may refer to

the relevant paras of the judgment which are as

follows:-
           "25. Keeping in view the strict interpretation of
           penal statute i.e., referring to rule of interpretation
           wherein natural inferences are preferred, we
           observe that a charge of forgery cannot be
           imposed on a person who is not the maker of the
           same. As held in plethora of cases, making of a
           document is different than causing it to be made.
           As Explanation 2 to Section 464 further clarifies
           that, for constituting an offence under Section 464
           it is imperative that a false document is made and
           the accused person is the maker of the same,
           otherwise the accused person is not liable for the
           offence of forgery.


CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors
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            26. The definition of "false document" is a part of
           the definition of "forgery". Both must be read
           together. 'Forgery' and 'Fraud' are essentially
           matters of evidence which could be proved as a fact
           by direct evidence or by inferences drawn from
           proved facts. In the case in hand, there is no
           finding recorded by the trial Court that the
           respondents have made any false document or

part of the document/record to execute mortgage deed under the guise of that 'false document'. Hence, neither respondent no.1 nor respondent no.2 can be held as makers of the forged documents. It is the imposter who can be said to have made the false document by committing forgery. In such an event the trial court as well as appellate court misguided themselves by convicting the accused. Therefore, the High Court has rightly acquitted the accused based on the settled legal position and we find no reason to interfere with the same."

40.50 In this regard, it is also important to refer to the judgment of Hon'ble Apex Court in "Vandana vs State Of Maharashtra in Crl. Appeal no. 3977 OF 2025(Spl. Leave Petition (crl.) No 9317 OF 2025) decided on 11 September, 2025" wherein, while dealing with the correctness and legality of the judgment of the Hon'ble Bombay High Court whereby, the judgment of conviction rendered by the Trial Court for the offence of Section 420 r/w 511 and Section 468 and 471 IPC was affirmed and the sentence imposed was modified, it was observed that to attract offence of CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.237 Of 372 Section 468 IPC, the prosecution must establish that the accused made a false document within the meaning of Section 464 IPC, with intent to cheat. Likewise, Section 471 IPC requires proof that the accused used a forged document as genuine, knowing or having reason to believe it to be forged at the time of its use. 40.51 Reverting back to the case in hand, I may note here that, it is nowhere the prosecution case either during the trial or even in the charge-sheet that A-2 is the maker of the forged sale deeds of the mortgaged properties filed by the borrower (A-1) with the bank or that it was he who forged the signatures or the stamps of certification appearing on the certified copies of said sale deeds filed by him (A-2) with the bank. Simply by proving that the sale deeds filed by the borrower/A-1 with the bank were forged and fabricated, the forgery in respect of the certified copies cannot be said to have been proved against A-2. Nor it is even the case of prosecution. For this reason, I am of the considered view that the charge of U/s 468 IPC against A-2 has not been correctly framed. Indeed, the charge should have been framed for the offence U/s 471 IPC. CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.238 Of 372 40.52 Now arises the question, whether in absence of any specific charge of Section 471 IPC, a conviction can be recorded for said offence, if the court finds sufficient evidence in that regard on record. While negating this question emphatically, the defence counsel has argued that since there was no charge of Section 471 IPC framed against A-2, there was no occasion for him to lead any evidence to prove the fact that A-2 did not have any knowledge that the certified copies filed by him with the bank were bogus or forged documents. Rather, in a criminal prosecution, the burden always lies on the prosecution to prove the guilt of the accused, which the prosecution in this case has miserably failed to discharge in respect of any of the alleged offences.

40.53 At the outset, I may note here that Section 468 IPC for which the charge was framed against A-2, pre-supposes the offence of cheating and same is also evident from the language of the charge of Section 468 IPC framed in the instant case. From the language of the charge framed under Section 468 r/w Section 120B IPC framed against A-2, it is clear that said charge was framed on account of A-2 having submitted CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.239 Of 372 false verification report (Non-Encumbrance Certificate) with the bank in respect of immovable properties offered as collateral securities and using it for the purpose of cheating. Further while framing the charge of Section 420 IPC, it was duly put to A-2 that he in conspiracy with the other accused persons dishonestly and fraudulently induced the bank to credit Cash Credit Facility in favour of co-accused Sanjeev Dixit i.e. the borrower/A-1 on the basis of forged documents and thereby, he cheated the bank. Hence, A-2 was well aware of the prosecution case and cannot plead any prejudice for lack of a separate charge of Section 471 IPC. Mere lack of charge for the offence of Section 471 IPC shall not absolve him (A-2) from his liability to discharge the onus of Section 106 Indian Evidence Act , especially, when prosecution has successfully proved on record that the certified copies of sale deeds filed by him (A-2) with the bank were bogus, forged and fake documents. In the light of Section 106 Indian Evidence Act, it became the boundened duty of the A-2 to prove that he received said certified copies through proper channel or from some authorized source. Whereas, A-2 failed to even put any suggestion in this regard to the witnesses examined by the prosecution from concerned CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.240 Of 372 Sub-Registrar offices nor he called any record from the concerned Sub-Registrar to prove that he had actually applied for the certified copies in their office at any point of time or had applied for the inspection of the record.

40.54 Here, I may also refer to the recent judgment of Hon'ble Supreme Court in 'Nilesh Baburoa Gitte v. State of Maharashtra Crl. appeal no. 1471/2013 decided on 07.10.2025', wherein reiterating the age old principle that burden of proof always lies on the prosecution to prove the guilt of the accused, it also dealt with the issue as to under what circumstances, the onus shifts on accused under Section 106 of Indian Evidence Act. The Hon'ble Apex Court while referring to its previous decision in Shambhu Nath Mehra v. State of Ajmer 1956 AIR 404, observed as under :-

"43. From the above evidence, it could not said that the appellant owed an explanation for the cause of death of the deceased as nothing has been demonstrated by the prosecution to show that there was any fact about the alleged incident which was especially within the knowledge of the appellant. It is trite to recall the following memorable words of Vivian Bose, J. in Shambu Nath Mehra v. The State of Ajmer:-
"......in a criminal case the burden of proof is on the prosecution and Section 106 is certainly not intended CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.241 Of 372 to relieve it of that duty. On the contrary, it is designed to meet certain exceptional cases in which it would be impossible, or at any rate disproportionately difficult, for the prosecution to establish facts which are "especially" within the knowledge of the accused and which he could prove without difficulty or inconvenience. The word "especially" stresses that. It means facts that are pre- eminently or exceptionally within his knowledge. If the section were to be interpreted otherwise, it would lead to the very startling conclusion that in a murder case the burden lies on the accused to prove that he did not commit the murder because who could know better than he whether he did or did not."

40.55 In the instant case, when prosecution has sufficiently proved on record that both the original sale deeds of collateral securities filed by the borrower (A-1) as well as the certified copies of said very sale deeds filed by A-2, are forged and fabricated documents, it became incumbent upon A-2 to prove his lack of knowledge by proving that he had received certified copies from some authorized source as it was within his specific knowledge from where and from whom he had received said documents. It was incumbent upon him (A-2) to lead evidence in this regard and his failure to adduce any such evidence to support his plea of lack of knowledge, is liable to raise an adverse inference against him.

CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.242 Of 372 40.56 The phrase 'For the purpose of cheating', used in Section 471 IPC means that it was done knowingly with fraudulent and dishonest intention to cause wrongful loss to the bank and wrongful gain to the borrower. The legal precedent regarding the offence of Section 120-B IPC has already been discussed in the preceding paras of this judgment. As regard the offence of Section 420 IPC, the essential ingredients of the offence of cheating were noted by the Hon'ble Apex Court in the judgment 'Mariam Fasihuddin vs State By Adugodi Police Station', Crl. Appeal no. 235 to 2024, decided on 17 September, 2021, wherein it was held that in order to attract the provision of Section 420 IPC, the prosecution has to prove not only the act of cheating but it also needs to prove that the act of cheating resulted into an inducement to deliver the property resulting in a loss to the person induced. Relevant portion of the judgment reads as under :

"10. Section 420 IPC provides that whoever cheats and thereby, dishonestly induces the person deceived to deliver any property to any person, or to make, alter or destroy, the whole or any part of valuable security, or anything, which is signed or sealed, and which is capable of being converted into a valuable security, shall be liable to be CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.243 Of 372 punished for a term which may extend to seven years and shall also be liable to fine. Further, Section 415 IPC distinctly defines the term 'cheating'. The provision elucidates that an act marked by fraudulent or dishonest intentions will be categorised as 'cheating' if it is intended to induce the person so deceived to deliver any property to any person, or to consent that any person shall retain any property, causing damage or harm to that person.
11. It is thus paramount that in order to attract the provisions of Section 420 IPC, the prosecution has to not only prove that the accused has cheated someone but also that by doing so, he has dishonestly induced the person who is cheated to deliver property. There are, thus, three components of this offence, i.e. (i) the deception of any person, (ii) fraudulently or dishonestly inducing that person to deliver any property to any person, and (iii) mens rea or dishonest intention of the accused at the time of making the inducement. There is no gainsaid that for the offence of cheating, fraudulent and dishonest intention must exist from the inception when the promise or representation was made.
12. It is well known that every deceitful act is not unlawful, just as not every unlawful act is deceitful. Some acts may be termed both as unlawful as well as deceitful, and such acts alone will fall within the purview of Section 420 IPC. It must also be understood that a statement of fact is deemed 'deceitful' when it is false, and is knowingly or recklessly made with the intent that it shall be acted upon by another person, resulting in damage or loss. 'Cheating' therefore, generally involves a preceding deceitful act that dishonestly induces a person to deliver any property or any part of a valuable security, prompting the induced person to undertake the said act, which they would not have done but for the inducement."

CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.244 Of 372 40.57 For the purposes of proving dishonest intention, inducement, wrongful loss/gain, prosecution has already led ample evidence on record. In this regard, I may also refer to various discrepancies, which are clearly indicative of the fact that A-2 was the part of conspiracy from the very beginning and he had the knowledge regarding the falsity of the record/reports filed by him with the bank. The discrepancies brought on record are as follows :

1. As per the stamps appearing on the first page of D-120 (part of Ex.PW6/J-1), which is the certified copy of the sale deed in respect of property C-193, 3rd Floor, Vivek Vihar, Phase-I, Delhi, the date when the certified copy was applied and the date when it was received is shown to be 29.03.2011. Whereas, the receipt of fees payment for the certified copies enclosed with said document, the certified copy was applied on 24.03.2011 and the amount of fees deposited with Sub-Registrar office was Rs.1200/- Whereas, on the stamp appearing on the D-120, the fees paid for the certified copy is Rs.90/-. The explanation rendered by the defence that said discrepancies are merely typographical error is not convincing.

CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.245 Of 372

2. Another discrepancy pointed out is regarding description of the subject property mentioned on the very first page of the sale deed Ex. PW 6/J-1 (D-120, page No. 1276) which is the certified copy of the sale deed filed by A-2 in respect of C-193, 3 rd Floor, Vivek Vihar, Delhi. On the aforementioned page of the said document, the description of the subject property is mentioned as "D-111, IIrd Floor, Vivek Vihar, Delhi", which is not matching with the property's description given either in the sale deed filed by the borrower with the bank Ex. PW 6/P-3 or with the sale deed available with the concerned Sub-Registrar office Ex. PW 48/A, where the description of the property is given as C-193, 3rd Floor, Vivek Vihar, Delhi.

3. Furthermore, on the very same page (D-120, page 1276) of the certified copy of said property filed by N.S. Parihar(A-2), against the photograph of Sanjeev Dixit, his age is mentioned as 36 whereas, on the corresponding page of other two documents Ex. PW6/P-3 (D-12) and Ex. PW48/A page 639, the age of the purported purchaser against his photo is mentioned as 37.

CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.246 Of 372

4. The aforementioned discrepancy on the very first page of the certified copy filed by A-2 is noticeable on bare perusal of the document with naked eyes. Despite said apparent discrepancies in the documents, N.S. Parihar(A-2) did not point out said discrepancies to the bank. Instead, he filed a positive opinion on the title of the mortgaged properties offered for collateral security. Besides that, lack of any evidence from the defence side to show that said certified copies were obtained from some authorised source, lends support to the prosecution case that A-2 knowingly filed said forged documents with the bank to facilitate the sanction of loan facility in favour of the borrower. The said conduct of the A-2 itself establishes that he was part of conspiracy and he knowingly used the bogus and forged certified copies of the title deeds as genuine for inducing the bank to grant cash credit facility in favour of the borrower and thereby, he caused wrongful loss to the bank and wrongful gain to the borrower.

5. Involvement of A-2 in two more cases of bank fraud registered against Sanjeev Dixit (A-1) vide FIRs No. 212/2013 & 213/2013 of PS Kundali, Sonepat, Harayana is another peculiar factor that lends support to the CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.247 Of 372 prosecution case that A-2 was hand in glove with the borrower A-1. There were hundred of lawyers on the panel of PNB, but surprisingly, A-2 tendered legal opinion for A-1 not only in the present case but also in two more loans pertaining to aforementioned FIRs of Sonepat, Harayana. As per prosecution case, A-2 was chargesheeted in the said two FIRs on similar allegations of having filed false legal opinion with forged certified copies of the title documents of the immovable property proposed for mortgage by the borrower. Although in both said FIRs, A-2 is stated to have been already acquitted and certified copies of said judgment were also filed on record. But, I may note here that, acquittal in said cases will not help the accused because, said judgments are not binding on this court. Even otherwise, the those judgments were passed by the concerned court on basis of the evidence adduced in said cases. Perusal of the judgment dated 28.07.2023 in FIR No. 212/13, shows that in that case, the prosecution had not examined any witness from the sub registrar office. Whereas, in the instant case, prosecution has adduced ample evidence from the office of concerned Sub-Registrars to substantiate the charge of alleged offences.

CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.248 Of 372 40.58 Pertinently, in a criminal trial, the primary purpose of framing of charge is to give the accused clear, unambiguous and precise notice of the accusation against him, allowing him to prepare a proper defence. It is a fundamental part of his right to a fair trial ensuring that the accused is fully informed of the specific allegations he needs to answer during trial. It is also a trite law that the court can convict an accused for lesser part of the charge as long as the evidence supports the conviction.

40.59 Having regard to the aforementioned position of law and the evidence adduced on record, I am of the considered view that there is no bar for this court to convict said accused (A-2) even for the offence of Section 471 IPC. As already noted above, A-2 has faced trial not only for the offence of criminal conspiracy, but also for the offence of cheating and forgery. Even the charge forgery under Section 468 IPC presupposes the offence of cheating and all along the trial, it has been the prosecution case that A-2 in conspiracy with the other co-accused, dishonestly and fraudulently induced the bank to grant cash credit facility in favour of the borrower/A-1 by filing of a false CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.249 Of 372 NEC and the certified copies of the bogus and forged sale deeds in support thereof.

40.60 Considering the above case of the prosecution, no prejudice has been caused to the A-2, even if, no charge for the offence of Section 471 IPC was separately framed. Considering the charge already framed against him (A-2) and keeping in view that prosecution has successfully proved on record that the certified copies of title deeds of all the 04 mortgaged properties filed by A-2 were fake, forged and bogus documents and so was his legal opinion (NEC) based on said documents, it was incumbent upon him (A-2) to prove that he did not have the knowledge that certified copies filed by him were forged and bogus documents, especially when one of the sale deed in respect of property no. 121, FIE, Patparganj Extension, Delhi, was found to be not even registered with the office of concerned Sub-Registrar. In the light of the fact that sale deed of said property was not even registered, it was within the exclusive knowledge of A-2 as to from where he received the certified copy of title documents of said property and who had handed over the said documents to him. However, A-2 has miserably failed to CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.250 Of 372 adduce any evidence to prove said fact and in this way, he remained unsuccessful in discharging the onus of Section 106 Indian Evidence Act, which had shifted upon him after the prosecution successfully proved on record that all the sale deeds filed by A-1 were forged and fabricated documents and the certified copies filed by A-2 were matching with said forged sale deeds. 40.61 A strong reliance has been place by Ld. Counsel of A-2 on the judgment of Hon'ble Supreme Court in K. Narayan Rao (supra), to urge the point that mere wrong legal opinion rendered by empaneled lawyer can at most make him liable for gross negligence or professional misconduct, but he cannot be held liable for the offence of conspiracy, cheating or forgery, especially when there is no evidence of pecuniary benefit being derived by the empaneled advocate.

40.62 There is no dispute to the legal preposition laid down in the above referred judgment but, in the same very judgment Hon'ble Apex Court has also clarified that prosecuting authorities are free to proceed for criminal prosecution even against the empaneled advocates if there is some tangible evidence CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.251 Of 372 to link them with the other conspirators. I may note here that even this case is not the case of mere wrong legal opinion. There is sufficient material, already discussed in the preceding paras, which is indicative of a deep conspiracy and nexus between the borrower/A-1 and the empaneled lawyer/A-2.

40.63 In the light of the aforementioned discussion, I am of the considered view that with a cogent and credible evidence, prosecution has successfully proved on record that A-2 was in hand in glove with the borrower and the public servants and in furtherance of the criminal conspiracy hatched with the said co-accused, he knowingly and deliberately filed false NECs and certified copies of bogus, forged & fake title deeds as genuine with a dishonest intention to induce the complainant bank to grant credit facility in favour of the borrower/A-1 and thereby, he (A-2) caused wrongful loss to the bank and wrongful gain to the borrower. Accordingly, prosecution has been able to prove beyond reasonable doubt the charge for the offence of criminal conspiracy under Section 120 IPC r/w section 419/420/467/468/471 IPC and section 13(2) r/w 13(1) (d) of PC, Act, 2002 as well as for the CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.252 Of 372 substantive offences under Section 420/471 IPC against accused N.S. Parihar (A-2). However, the charge for the offence punishable under Section 468 IPC has remained unestablished for lack of any evidence. Discussion and analysis pertaining to K. K.Johar (A-3) and Ranjiv Suneja (A-4)

41. The chargesheet inter-alia, contains the allegations against A-3 and A-4 that during relevant time in the year 2011, when A-3 was posted as Chief Manager and A-4 was the Senior Manager/Loan Officer in PNB Jor Bagh branch, they both abused their position as public servants by entering into a criminal conspiracy with the other co-accused to cheat and defraud the bank (PNB) and in furtherance of said conspiracy, A-4 dishonestly appraised and recommended the credit limit of Rs. 4 crore in favour of applicant borrower M/s Shankar Metals and A-3 dishonestly sanctioned it and induced the lending bank to release the loan funds in favour of the borrower and they also failed to monitor the end use of said funds and allowed its diversion through dummy accounts.

42. In the charge-sheet, IO has set out numerous lapses allegedly committed by said accused CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.253 Of 372 at different stages of appraisal, sanction and loan disbursal. The lapses are said to have been committed in blatant violation of accepted banking norms, circulars and guidelines, with a dishonest intention to cause wrongful loss to the bank and wrongful gain to the borrower. The alleged lapses in the form of various acts and omissions are required to be analysed in the light of evidence adduced on record in order to ascertain if they have been sufficiently proved on record and if so, whether said lapses were willful or gross enough to impute an element of mens rea on their part so as to bring their conduct within the meaning of 'Criminal Misconduct' as defined under Section 13 (1)

(d) of PC Act. Section 13 of PC Act as it existed prior to Amendment Act 1 of year 2014, reads as under:-

"13. Criminal misconduct by a public witness.
(1) A public servant is said to commit the offence of criminal misconduct,--
              (a)    xxx xxx xxx
              (b)     xxx xxx xxx
              (c)    xxx xxx xxx
              (d)     if he,-- :-
(i) by corrupt or illegal means, obtains for himself or for any other person any valuable thing or pecuniary advantage; or
(ii) by abusing his position as a public servant, obtains for himself or for any other person any valuable thing or pecuniary advantage; or CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.254 Of 372
(iii) while holding office as a public servant, obtains for any person any valuable thing or pecuniary advantage without any public interest; or"

Section 13(2) of Prevention of Corruption Act, 1988 Act reads as under :-

"(2) Any public servant who commits criminal misconduct shall be punishable with imprisonment for a term which shall be not less than one year but which may extend to seven years and shall also be liable to fine."

43. Section 13(2) of PC Act prescribes punishment when ingredients of offence under section 13(1)(d) of the PC Act are made out against the public servant. Criminal misconduct under Section 13(1)(d) of the PC Act, may lie in any of the three categories provided in sub clause(i),(ii),(iii) of Section 13 (1) (d) of PC Act. But, it is quite clear that the said three categories of clause (d) of Section 13(1), are independent, alternative and disjunctive and if the elements of any of the three sub-clauses of Section 13(1)(d) of PC Act are met, the same would be sufficient to constitute an offence of 'criminal misconduct" within the meaning of said provision. Thus, obtaining for himself or for any other person, any valuable thing or pecuniary advantage either by corrupt or illegal means CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.255 Of 372 or by abusing his official position by a public servant, in itself would amount to criminal misconduct under Section 13(1)(d)(i) & (ii) of the PC Act. While under Section 13(1)(d)(iii) of the PC Act, if a public servant, while he holds office, obtains for any other person any valuable thing or pecuniary advantage without any public interest, it would also amount to criminal misconduct. The Division Bench of Hon'ble Delhi High Court in Runu Ghosh Vs. CBI in Crl. Appeal No. 482/2002 (DoD : 21.12.2011) was pleased to observe that :

"74. Having now settled the true interpretation of whether the offence under Section 13(1) (d) (iii) requires proof of mens rea, it would now be vital to settle what really the prosecution would have to establish to say that the public servant‟s actions or decisions, which result in a third party obtaining a pecuniary advantage or valuable thing, without public interest. The expression "public interest" is known to law; at the same time its meaning is not rigid, and takes colour from the particular statute".

IIn a later decision, LIC of India vs Consumer Education & Research Centre (1995) 5 SCC 482, it was held that:

- public authorities or those whose acts bear insignia of public element, action to public duty or obligation are enjoined to act in a manner i.e. fair, just and equitable, after taking objectively all the relevant options--
Further in Noida Entrepreneurs Association v. Noida & Ors ., (2011) 6 SCC 508, in the light of provisions of Section 13 (1) (d), The court held that:
CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.256 Of 372 The State or the public authority which holds the property for the public or which has been assigned the duty of grant of largesse, etc. acts as a trustee--
75. It would be profitable to emphasize that public servants are an entirely different class, and the level of trust reposed in them by the society is reflected in the high standards of behaviour and rectitude expected of them, both in the discharge of their duties, and otherwise.
xxxx
78. Therefore, when a public servant‟s decision exhibits complete and manifest disregard to public interest with the corresponding result of a third party obtaining pecuniary advantage or valuable thing, he is fastened with responsibility for "criminal misconduct" under Section 13(1) (d)
(iii). There is nothing reprehensible in this interpretation, because the "act" being "without public interest" is the key, the controlling expression, to this offence. If one contrasts this with "abuse" of office resulting in someone "obtaining" "pecuniary advantage or valuable thing", it is evident thatSection 13(1)(d) (ii) may or may not entail the act being without public interest. This offenceunder Section 13(1) (d) (iii) advisedly does not require proof of intent, or mens rea, because what Parliament intended was to punish public servants for acts which were without public interest. This kind of offence is similar to those intended to deal with other social evils, such as food and drug adulteration, (offences under Prevention of Food Adlteration Act, Section 13(1), Drugs & Cosmetics Act; Section 7(1) Essential Commodities Act, 1955, Section 25 Arms Act (1959), possession of explosives, air and water pollution, etc."

44. In order to invoke Clause (i) and Clause (ii) of Section 13(d) of the PC Act, the prosecution is bound to establish the dishonest intention on the part of the CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.257 Of 372 public servant. The word "Dishonestly" is defined under section 24 of the Indian Penal Code. Section 24 of Indian Penal Code stresses on the intention i.e. if a person with an intention to cause wrongful gain to one person or wrongful loss to other person then the said person is said to have done such act dishonesty. Section 23 of the IPC defines wrongful gain and wrongful loss.

45. In "C.K. Jaffer Sharief Vs. State", 2013 (1) SCC 205, it was observed that "dishonest intention is the gist of the offence under section 13(1)(d) and is in- implicit in the words used i.e. corrupt or illegal means and abuse of position as a public servant. A similar view was also expressed by Apex court in M. Narayanan Nambiar Vs. State of Kerala, AIR 1963 SC 1116 while considering the provisions of Section 5 of the 1947 Act.

46. In assessing the conduct of any public servant, his actions/omission or conduct is to be scrutinized to ascertain whether such conduct is actuated by any dishonest intention or not. The dishonest intention could be perceived directly or by way of different circumstances as put together by the prosecution in form of documentary or ocular evidence. CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.258 Of 372 The third part of Section 13(d) of the PC Act shall come into play when acts of accused A-3 & A-4 has assumed the trapping of criminal character by abuse of official position by a public servant contrary to the public interest. Let us now discuss one by one the alleged lapses, flaws and discrepancies, which said public servants A-3 and A-4 allegedly overlooked to facilitate grant of sanction of credit facility in favour of the borrower Sanjeev Dixit (A-1).

(i) Lack of proper KYC verification of the borrower

47. As per CBI's case, after finding various deviations from the bankings guidelines in appraisal, sanction and disbursal of the subject loan, the complainant bank conducted a special investigation through Chief Concurrent Auditor Sh. V. K. Dhar, who submitted his report to the Circle Office wherein he mentioned that no KYC was done in respect of the subject loan. The Ld. Counsels for A-3 & A-4 have raised an argument that the Concurrent Auditor ignored a very material fact that the borrower firm was already having a Current Account bearing no.

0175002100018768 in the Jor Bagh Branch of PNB and at the time of opening of said account, which was CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.259 Of 372 opened on 11.03.2011, the KYC of the borrower was already done and borrower firm was already given a customer ID number AG5006455. Therefore, when the Cash Credit Account of M/s Shankar Metals bearing no. 0175008700000385 was opened on 29.03.2011, no KYC was done as there was no requirement for fresh KYC of existing account holder.

47.01 In this regard, attention of this court was drawn to a document Customer Acceptance Policy Ex. PW-65/D4/1, which was shown to PW-65 during his cross-examination. It was argued that as per said document, the customer due diligence (CDD) procedure is required to be applied by the bank only at the time of giving unique customer identification code (UCIC) and in case, any KYC compliant customer of the bank desires to open another account with the same bank, there shall be no need of fresh CDD exercise. The Ld. Counsels vehemently contended that the lapses if any, happened in the verification of the KYC documents, the same occurred at the time of opening of current account, which was opened by Braj Kumar Jha (PW-10), upon whom the CBI failed to attach any culpability and instead of arraying him (PW-10) as an accused, he was CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.260 Of 372 examined as a witness to prove the discrepancies and flaws allegedly overlooked by the accused public servants at the time of grant of loan.

47.02 Ld. Counsels further argued that the allegation that there were no documents issued by the Govt. Department for identification of the borrower firm, is also apparently false especially in the light of testimony of PW-58 Arun Sharma, Circle Auditor of PNB where he admitted that photocopy of VAT certificate and District Industry Center Certificate Ex.PW10/C and Ex. PW10/D respectively, were available in the file of M/s Shanker Metals and that there was no rule in the circular/instructions to verify said document from the issuing authority and it was sufficient if the same are compared with the original documents.

47.03 Per contra, Ld. Sr. PP refuted above arguments by submitting that the KYC verification was required to be always done on the opening of any new account of the customer even if the borrower was already having existing account in the branch. It was argued that a separate account opening form was also required to be filled up for a new account. Whereas, in the instant case, there was no account opening form on CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.261 Of 372 the bank's record in respect of cash credit account of M/s Shankar Metals nor any fresh KYC was done, nor it was ensured that the KYC earlier done was conducted in accordance of the banking norms and guidelines. It was contended that the document Ex. PW65/D4/1 is just a pamphlet and it runs counter to the existing guidelines contained in the circular no. 43/2010 dated 08.06.2010 Ex. PW6/B4 (page no. 2375) (D-149) and circular no.30/2010 dated 13.04.2010 Ex. PW6/C4 (page 2262) (D-148), which were mandatorily required to be followed by the bank at the time of opening of any bank account.

47.04 Ld. Sr. PP further argued that the subject loan account was a Cash Credit Account where the borrower had approached for cash credit limit to the tune of Rs. 4 crores. Hence, the level of scrutiny required at the time of opening of such account was far higher than required at the time of opening of a current account, and the concerned bank officials, who remained involved in the process of appraisal, sanction and disbursal, cannot take refuge behind the plea that no KYC compliance was required for the existing customer.

CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.262 Of 372 47.05 I have considered the above rival submissions of the parties in the light of the material placed on record. As per charge-sheet, following KYC documents were furnished by the borrower at the time of applying cash credit limit facility with the bank:-

(i) Voter ID Card No. DL/04/043/171289 dated 11.3.2006 in the name of Shri Sanjeev Dixit (Proprietor)
(ii) Voter ID Card No. DL/04/044/045667 dated 11.8.2002 in the name of Smt. Indira Rani (Guarantor)
(iii) Voter ID Card No. BQF3437881 dated 18.2.2002 in the name of Shri Sanjay Sharma (Guarantor)
(iv) PAN Card No.ALTPD3660M in the name of Shri Sanjeev Dixit and PAN Card No. BZYPS4132F in the name of Shri Sanjay Sharma
(v) Electricity Bills dated 24.01.2011 (Consumer Account No. 100068412) and Water Bill dated 29.01.2011 (Connection No. 99123) in the name of Shri Sanjeev Dixit r/o 232, Local Road, Jagriti Enclave, Shahadara, Delhi.

(vi) Form No.P-II-000652 dt. 28.02.2011 purportedly issued by office of Commissioner of Industries, Govt. of NCT Delhi in the name of M/s Shankar Metals

(vii) TIN No. 07511326352 dated 7.5.2008 purportedly issued by Department of Trade and Taxes, Govt. of NCT Delhi in the name of M/s. Shankar Metals CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.263 Of 372 47.06 However, during investigation, when the verification of said documents was carried out by the IO from the concerned issuing departments/authorities, all the said documents were found to be fake and bogus. During trial the falsity of aforementioned documents has been duly proved by the prosecution through PW-1 to PW-5, PW- 8, 9 and

17. The testimonies of said witnesses have already been referred in the preceding paras 13.1.1. to 13.8.1, and for the brevity sake not reproduced again. As per record, cross-examination of PW-2,PW-3,PW 4 and PW-5 remained nil and nothing material was asked in the cross-examination of PW-8, 9 and 17 to discredit or challenge their version.

47.07 Admittedly, at the time of opening of subject loan account (Cash Credit account) of M/s Shanker Metal, no account opening form of said CC account no. 0175008700000385 was filled up nor any KYC was done nor anything has been found in the file of the subject loan to show that any effort was made by the A-3 and A-4 in order to know, if the KYC earlier done at the time of opening of current account of said firm, was done in accordance with the banking norms, CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.264 Of 372 circulars and guidelines. One cannot ignore the fact that the financial stakes of the bank involved at the time of opening of current account or saving account of a customer are negligible whereas, the stakes involved at the time of granting a cash credit facility to the tune of Rs. 4 crores are much higher and it certainly requires the concerned bank officials to be more vigilant and to act with utmost caution and diligence and for said purpose proper scrutiny of each and every document is required to be done to verify the correctness of the borrower's claim and credentials. The loan sanctioned by the banks is a public money and therefore, utmost care and caution is expected from those dealing with said work to protect said money from falling into the hands of fraudulent, undeserving and unscrupulous customers.

47.08 Careful perusal of the testimony of PW-10 Shri Braj Kumar Jha, who at the relevant time was posted in Jor Bagh branch of Punjab National Bank, shows that vide account opening form Ex. PW6/D (part of D-5), a current account in the name of M/s Shankar Metals was opened in said branch on 11.03.2011 and a customer ID no. AG5006455 was given to said firm M/s CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.265 Of 372 Shankar Metals. As per his testimony, he had made the KYC verification simply by comparing the photocopy of the KYC documents such as PAN card, Voter ID card, VAT certificate and certificate from District Industry Centre of the proprietorship firm M/s Shankar Metals with the originals brought by the Proprietor Sanjeev Dixit.

47.09 On a court question put to him during his cross-examination, PW10 deposed that verification of the documents submitted by the customer is required to be done from the website and not by writing to individual departments and in usual course, the documents are required to be verified but, he did not recall whether or not he had verified the documents submitted by the borrower Sanjeev Dixit (since PO) at the time of opening of said current account. From the cross-examination conducted on behalf of A- 3 and A-4, it is evident that even the defence has not disputed that as per the Circular no. 43/2010 dated 08.06.2010l Ex.PW6/B4, the field staff was required to verify the genuineness of the KYC documents, such as voter ID card, PAN card from the website of the Chief Election Department/Income Tax Department. The question to CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.266 Of 372 this effect was put to PW-10 on behalf of said accused, to which PW10 replied that he did not recall if he had verified said documents. It is nowhere the defence plea that the A-3 & A-4 ever tried to verify from PW-10, who was present in the same branch at the relevant time that if, at the time of opening of Current account of M/s Shanker Metals, proper KYC compliance was made by him in accordance with banking guidelines and rules. 47.10 An argument has been raised on behalf of A-4 that being the Sr. manager/Loan officer, A-4 was not responsible for the KYC compliance because, as per bank Chapter 9 clause (xii) of Book of Instructions of loans ExPW6/F2 circulars, it was the sole the responsibility of the incumbent incharge, who in the instant case was the Branch Manager, Smt. K.K.Johar (A-3).

47.11 I have carefully perused the relevant clause (xii) of Chapter 9 of Book of Instructions of loans ExPW6/F2 which reads as under:-

"It is of paramount importance that confidential reports on borrowers should be compiled by branches and pay offices with the utmost possible accuracy. The incumbent Incharge may depute a member of the staff to CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.267 Of 372 assist him as credit reporter', but it must be clearly understood that the responsibility for the compilation and the authenticity of details given in the report is that of the Incumbent Incharge."

47.12 In the instant case, the confidential reports (CR) in respect of the borrower and the guarantors Ex. PW6/S, PW6/T and PW6/U (D-106) as well as the Credit Appraisal Format Ex. PW6/N2 (D-8) are being signed both by the Sr. Manager/Loan Incharge, Sh. Ranjiv Suneja/A-4, who was the appraising authority as well as by Incumbent Incharge/ Chief Manager Smt. K. K. Johar/A-3. As per the aforementioned clause (xii) of ExPW6/F2, while preparing the confidential reports, the Incumbent Incharge may depute some staff to assist him for collecting the confidential data but, it was made clear that the responsibility regarding authenticity of the details shall be that of the Incumbent Incharge. Considering the fact that both the Credit Appraisal Format as well as the confidential reports were being signed by the Incumbent Incharge/Chief Manager (A-3) and also by the Appraisal Authority/Sr. Manager (A-4), the responsibility of genuineness of the data mentioned therein has to be borne by both the said CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.268 Of 372 officials. This clause nowhere implies that Loan officer who prepares the loan appraisal and recommend it for sanction, shall not be responsible for the discrepancies in KYC compliance.

47.13 In my considered view, the job of loan appraisal is not a mechanical job and a great responsibility is attached to the same and that is why, it was assigned to A-4, who, at the relevant time was one of the senior most officers in the branch holding the rank of a Sr. Manager. The misleading information furnished by borrower as well as forgery of documents could be detected if proper exercise of KYC norms are carried out by the concerned officials. In the instant case, owing to various discrepancies, the loan proposal was not worth recommendation for sanction, rather for use of multiple PAN cards and date of birth by the same person, the matter was required to be probed and reported to police. In these circumstances, the conduct of A-4 in appraising the proposal and recommending it to be fit for grant of facility without making proper verification of the documents of borrower's identification, financial credentials and collateral securities, is a clear indication of deep conspiracy. CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.269 Of 372 47.14 At serial no.2(g) of loan appraisal form Ex. PW 6/N-2 (D-8 at page 200), which was being signed by both A-3 and A-4, it was noted that borrower's profile had been verified through CIBIL and no adverse feature had been observed. But, it is very pertinent to note that CIBIL inquiry had given multiple hits in respect of the name of Sanjeev Dixit @ Sanjeev Kumar Dixit and said multiple profiles, Ex. PW6/O (D-104, page 187 to 189), were showing use of 3 different PAN numbers and dates of birth by the same customer. Furthermore, as per the borrower's claim his firm M/s Shanker metals was into business of manufacture and trading of bathroom fittings for last more than 10 years. Whereas, the CIBIL score of the borrower was shown as '-1' owing to an insufficient history of credit transactions, which was also indicative of borrower's lack of sufficient exposure to credit facilities.

47.15 But, despite aforementioned signals of potential risk owing to different PAN numbers and dates of birth depicted in CIBIL reports, no further inquries were made for checking the genuineness of borrower's credentials and the loan was recommended fit for grant of credit facility to the tune of Rs.4 crores. CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.270 Of 372 Further, the appraisal note has been signed by both the accused on 29.03.2011, whereas, as per the loan file, the CIBIL report in respect of M/s Shanker Metal is dated 05.11.2012, which again shows that no CIBIL report was generated in the name of the borrower firm at the time of sanction of loan. CIBIL report were generated only in the name of proprietor of the firm Sanjeev Dixit. Neither any CIBIL report in the name of the gaurantors nor in the name of the firm M/s Shanker Metals were generated. As is evident from record, the CIR in respect of guarantors only from Equifax were generated that too on 29.04.2011 i.e. much after the sanction of loan.

47.16 The applicability of Section 13(2) of the PC Act does not depend on the fact that the public servant should have obtained a valuable thing or a pecuniary advantage for himself. An offence under section 13 of the PC Act can be said to have been committed in terms of Sections 13(1)(d), when a public servant abuses his position and obtains for himself or for any other person any valuable thing or pecuniary advantage; or while holding office as a public servant, obtains for any person any valuable thing or pecuniary CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.271 Of 372 advantage without any public interest. Hence, it is not necessary that pecuniary advantage or a valuable thing has been procured by public servant for himself, it could be a third party. In order to bring home the charge under clause (iii) of 13(1)(d) of the PC Act, the prosecution is required to establish that public servant had acted without any public interest and no mens rea is required for bringing the conduct within the ambit of clause (iii) as held by Hon'ble High Court in Runu Ghosh (supra).

47.17 In assessing the conduct of a public servant, one of the test in judging the impugned action of a Public Servant is to see whether he had acted in total disregard to the public interest, the reference can be had to the work/industry of a public servant. When a court is seized of impugned action (s) of a public servant by exalting it to the status of a criminality, the nature and job of such a public servant is required to be understood. Banking Sector is a core service area sector servicing myriad group of persons from different sections of the society by making the requisite finance available to public at large. A banker earns money by providing services such as loan/credit facility to the CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.272 Of 372 needy persons and they also act as a custodian of the money infused in the banking system by persons from varied background.

47.18 To say that on account of deviation from banking norms, the grant of credit facility to a borrower was without public interest or there were elements of criminality, it would be incumbent upon the prosecution to bare to narrate the sequence of events, facts in the form of evidence both oral as well as documentary that credit facility was granted in utter negligent and careless manner and in total disregard to the accepting banking norms and the act of the public servant was so reckless that no prudent public servant could have performed the official act in such manner. The banking norms could be the settled banking practice or a code which suggest a particular task is to be performed in a particular manner and the variation in performance of such a task against the accepted norms would be one of the indices by which the conduct of a public servant is required to be adjudged. 47.19 Judging the conduct of a public servant for a task performed in variation to settled banking norms involves determining if the deviation was a CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.273 Of 372 bonafide error of judgment or the result of malafide intent, corruption, or gross negligence. Ultimately, a variation from norms is not automatically indicative of misconduct. The key is whether the official acted with integrity or in good faith, or with a corrupt or dishonest motive. No doubt that different guidelines are framed or had been reduced into a writing but still decision making has human imprint. The human imprint could be inspired by number of factors such as the perception of a public servant to different guidelines, different practices performed over a period of time, the target given to a bank officer/public servant to bring business to the bank by facilitating the grant of loan etc. and to ensure that his acts do not result in causing any loss to the bank.

47.20 In the instant case, what was most startling is that at the time of CIBIL inquiry, prima facie discrepancies were revealed in the CIBIL reports pertaining to borrower Sanjeev Dixit (A-1). As already noted above, upon an inquiry on the website Credit Information Bureau Limited (CIBIL), multiple files pertaining to same customer Sanjeev Dixit/ Sanjeev Kumar Dixit were opened wherein three different PAN CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.274 Of 372 numbers and different date of birth of Sanjeev Dixit/ Sanjeev Kumar Dixit were mentioned. In one file Ex. PW6/O (D-104; page 187), his date of birth was shown as 08.08.1973 and PAN card as ALTPD3660M. The said details are however, matching with the details in the additional information given by the borrower in D-103 Ex. PW6/M. But in another file (D-104 at page 188), the date of birth of Sanjeev Kumar Dixit was shown as 10.07.1973, while his PAN card was mentioned as AITPD0089M. In the third profile in the name Sanjeev Dixit on CIBIL (part of D-104, page 189), his date of birth was shown as 01.01.1973 and PAN card as ASDPD7032N. Pertinently, in all said profiles, the voter I-card of the customer as well as one of his addresses was same i.e DL/04/043/171289 and 232, Jagriti Enclave, Delhi respectively, which was a clear indication that same person had approached different banks with different forged identification details. 47.21 In view of the fact that in all the said profiles extracted from CIBIL, the Voter I card number and the address of the customer were same, it was quite evident that all said profiles were relating to the same person, who had been using different PAN card CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.275 Of 372 numbers and date of birth while dealings with different banks. Despite these apparent suspicious circumstances surfacing on record, no efforts were made by A-3 or A-4 to dig out the issue to know the reason of said discrepancies in the PAN card and date of birth details. The above discrepancies in the credentials of the same very customer in different CIBIL hits/reports were the clear red flags for A-3 & A-4 to get a fresh KYC conducted in accordance with banking norms, guidelines and circulars to rule out any possibility of fraud.

47.22 No effort was however, made to check the genuineness of the customer even from his previous banker Canara Bank, Rajinder Nagar, Ghaziabad, where A-1 was allegedly having a current account no. 2867201000038 in the name of his firm M/s Shankar Metals. As per record A-1 had filed the statement of account of said bank (D-7, page 9150), for the period w.e.f. 01.02.2010 to 31.03.2010. During trial, prosecution has duly established on record through deposition of PW11, that said statement of account filed by A-1 with the lending bank, was a forged document because, the given account number existed in the name CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.276 Of 372 of some different firm M/s Busicom, proprietor Sh. Rakesh Khullar. PW11 also filed account statement of said bank account for the period w.e.f. 01.01.2005 to 07.12.2013 showing nil transaction in said account during said period. A-3 & A-4, who being the custodian of public money were expected to act with utmost care and diligence but, to the contrary they acted with gross negligence and utter disregard to public interest and same led to huge losses to the bank and corresponding gain to the fraudulent customer.

47.23 The standard of diligence expected from A-3 & A-4 was simply of a prudent person not of any expert investigator. But unfortunately, A-3 and A-4, who were the senior officers of the bank holding positions of Chief Manager and Senior Manager failed to meet even that standard of prudence. For this blatant negligence on their part, the bank had to pay heavily and suffered a huge losses. Acts and omissions of such nature cannot be treated as mere irregularity by potraying them as non-deliberate or unintentional. In said backdrop of circumstances, the conduct of A-3 and A-4 in ignoring said palpable discrepancies in the CIBIL reports, and making no effort to dig out the issue of CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.277 Of 372 KYC documents from the concerned authorities appears to be deliberate and willful. It is rather clear indication of a deep conspiracy and dishonest intention to favour a fraudulent borrower/A-1.

(ii) Lack of verification regarding financial documents

48. As per prosecution case, A-3 and A-4 violated L&A circular no. 40 dated 18.03.2008 Ex.PW6/D4 and L&A Circular No.42 dated 20.03.2009 Ex.PW6/E4 (D-148, page no.2292 and 2293), as they failed to verify the genuineness of the audited balance sheets furnished by the borrower M/s Shanker Metals from the concerned Chartered Accountant nor did they make any verification from ICAI regarding the genuineness of the Chartered Accountants, who purportedly prepared and signed said balance sheets.

48.01 In this regard, a forceful contention has been raised by the defence that a pre-sanction due diligence was already got done through an empaneled Chartered Accountant firm Jagdish C Bhatia and Co., who submitted their report dated 04.03.2011 Mark PW6/DE under the signature of CA J.C. Bhatia wherein, the gross income and taxable income of the subject CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.278 Of 372 firm was duly verified and it was found to be correct. Furthermore, when during trial, said document Mark PW6/DE was shown to PW58 Sh. Arun Sharma, the Circle Auditor of PNB and to PW-65 Sh.V.K.Dhar, the Concurrent Auditor, they both deposed that they were never shown the said pre-sanction due diligence report. It was argued that their said version is indicative of the fact that investigation done by CBI was casual and perfunctory as the complete documents were not shown to the witnesses before examining them during the course of investigation.

48.02 It was further argued that verification of the financial documents by the empaneled charted accountant did not leave room for any doubt regarding genuineness of said documents and therefore, no need was felt by A-3 and A-4 to make any further verification from the regional office of ICAI. It was further argued that when a pre-sanction due diligence was already obtained from an empaneled agency, failure to verify the credentials of the CA from the office of ICAI can at the most be regarded as mere irregularity on the part of A-3 and A-4 but, no criminal culpability can be fixed upon them for said failure.

CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.279 Of 372 48.03 Before reaching to any conclusion on the above arguments, I may first refer to the evidence adduced in this regard by the prosecution. As per record, prosecution has examined the Chartered Accountant PW-7 Sukhdev Madnani, who purportedly signed the audited balance sheet of M/s Shankar Metal Mark C, D & E (D-7) (Page no. 108 to Page no. 152), for the year 2008, 2009 and 2010 respectively. PW-7 however, deposed that he did not know any person by the name Sanjeev Dixit nor he certified said audited balance sheets of M/s Shanker Metals. He disowned his purported signature and also the purported stamp of his company appearing on said reports. In his cross- examination, he categorically denied that said audited balance sheets were prepared by him.

48.04 Likewise, PW-12 Smt. Prem Lata Mishra, Chartered Accountant denied having signed the audit report or Form no. 3 CD or the profit loss account statement of the year 2011 of M/s Shankar Metals Mark 'A' (Part of D-7, Page- 82 to 98). She also disowned her purported signature appearing on said documents as well as the purported seal of her company Prem Mishra and Company. Nothing was asked on behalf of CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.280 Of 372 A-3 and A-4 in cross examination of PW12 and the testimony to that extent remained unchallenged. 48.05 During investigation specimen signature of both the said witnesses were taken by the IO and were sent to CFSL for their comparison with the questioned signatures appearing on audited balance sheet report, Form no. 3 CD and the profit loss account statement. However, qua the questioned signature attributed to PW-7 Sukhdev Madnani and PW12 Prem Lata Mishra, no conclusive opinion appears to have been given by the forensic expert in his report, Ex. PW75/C (D-166).

48.06 In this regard, we may also refer to the relevant part of circular no. 40 dated 18.03.2008, Ex.PW6/D4, which reads as under :-

"2. Since, the reports submitted that while dealing with the reports submitted by CAs play a vital role for making credit decisions both at the pre-sanction appraisal and post sanction follow up stages, it is imperative that the reports should be correct and based upon the facts.
As such, it is advised that while dealing with the reports submitted by CAs, the genuineness of the signatures of CAs/or firm may be verified from the Regional Office of the ICAI under whose jurisdiction the CAs/firm in question falls to avoid any serious implications for the Bank due to such CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.281 Of 372 fake reports. Further in case false documents as aforesaid have been noticed, suitable action may be initiated against the parties involved such as filing of FIR etc under intimation to concerned CAs/firm CAs."

48.07 Likewise, circular no. 42 dated 20.03.2009 Ex.PW6/E4 also casts similar obligation upon the bank to verify the signatures of the CA appearing on the financial documents from the website of the ICAI and it also says that a confirmation should also be sought from the concerned CA/firms about the genuineness of their signature appearing on the financial documents submitted by the borrower with the bank.

48.08 As per the testimony of PW-72 Sh. Hardesh Kumar Jain @ H.K. Jain, he had supplied the information regarding verification of signatures of Chartered Accountants i.e. CA Sukhdev Madani (Membership No. 073569) and CA Prem Lata Mishra (Membership No. 092733) to CBI vide his Letter dated 07.01.2014, which he proved on record as Ex.PW72/A (Colly) (D-164). In view of said record although the membership number of both the said CAs are matching with the membership numbers mentioned in the financial documents. But, in CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.282 Of 372 the light of the testimony of PW7 and PW12, prosecution has sufficiently proved on record that the said financial documents were forged as they were neither prepared nor signed by said CAs. 48.09 As is evident from the language of the circular no. 42 dated 20.03.2009 Ex.PW6/E4, the purpose was to check the genuineness of the signature of CA or CA firms from the regional office of ICAI, and to also seek confirmation from the concerned CAs about the genuineness of their signatures so as to avoid any fake reports on the financial documents, which may have serious implications on the bank. A-3 & A-4, grossly violated said circulars as no such verification was done by them.

48.10. Here, we must also understand that the role of the empaneled Jagdish C. Bhatia, was not to check the genuineness of the maker of said documents but to check the correctness of data contained therein and same is also evident from the empaneled CA's report Mark PW6/DE (at page no. 173 and 174), which says that it was prepared simply on the assessment of the papers/documents, made available to the empaneled CA firm and on that basis, it was verified CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.283 Of 372 that the gross income and taxable income of the subject firm was correct. Hence, mere said due diligence report of empaneled advocate would not absolve A-3 & A-4 from their duty casted upon them by virtue of aforementioned circulars, to verify the genuineness of concerned CA, who purportedly prepared and signed the financial documents submitted by the borrower with the bank. 48.11 Whereas, in the instant case, neither any verification was done from the website of the institute nor from the concerned CAs/Firms by whom the aforementioned financial documents were purportedly prepared and signed. In the light of said circumstances, the defence plea regarding pre-santion due diligence of financial documents is of no help because, it will not absolve the bank officials A-3 and A-4 from their obligation to verify the genuineness of said documents in accordance with aforementioned circulars Ex. PW-6/D4 and Ex. PW 6/E4. The lack of inquiries into the genuineness of said documents assumes more importance in the light of the palpable discrepancies in the CIBIL report, as already discussed in the preceding paras.

CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.284 Of 372

(iii) Incorrect Confidential Report (CR) regarding credit history/NECs and Lack of verification from the previous banker

49. It has been alleged in the chargesheet that credit history of the borrower was wrongly shown to be nil in the CR, despite the fact that as per CIBIL report of the borrower (A-1), there was a credit history of a vehicle loan of Rs. 5 lac. This argument has been strongly refuted by the defence by submitting that per the CIBIL report of accused Sanjeev Dixit dated 04.03.2011 Ex. PW6/O(D-104), the CIBIL score of Sanjeev Dixit was shown as '-1' owing to an insufficient history of credit transactions. The said report only lists a previous inquiry dated 05.02.0211 for an auto loan worth Rs. 5 lakh and thus, A-1 Sanjeev Dixit had no past credit history or conduct that could be verified or cross- checked. It was argued that a mere inquiry for vehicle loan cannot be termed as loan/liability in the account of A-1 and therefore, in the Confidential Report (CR) dated 22.03.2011 (Ex. PW6/X), it was correctly recorded that A-1 Sanjeev Dixit had 'Nil' facilities in other banks. Thus, the allegation that a false CR was prepared on this count is totally incorrect.

CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.285 Of 372 49.01 As far as the 'Nil' credit history is concerned, I agree with the defence contention that an inquiry regarding vehicle loan cannot be treated as a credit facility availed by the borrower. As per CIBIL report only an inquiry regarding vehicle loan of Rs. 5 lakh was made but the credit score was shown as '-1' owing to the insufficient history of credit available on CIBIL. But, I may note here that the prosecution has alleged the discrepancies in the CR not only regarding the credit history of the borrower but also regarding Non Encumbrance Certificate of the empaneled lawyer N.S.Parihar (A-2).

49.02 As per Confidential Reports dated 22.03.2011 Ex PW6/S (D-106), Ex PW6/T and Ex PW6/U, NECs in respect of borrower's property C-193, 3 rd floor Vivek Vihar, Shahdara, Delhi, in respect of Guarantor Sanjay Sharma's property 25, Shayam Industrial Estate, Loni, Ghaziabad and in respect of property mortgaged by 2nd borrower Indra Rani, 17, Shriram Nagar, GT Road, Shahdara, had been already received from the empanelled lawyer. Whereas, as per the record, NECs of said properties were submitted with the bank only on 26.03.2011 i.e after the date of said CRs. While the NEC CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.286 Of 372 in respect of the 4th property 5/1234, (GF & FF), M-11, Vasundhra Distt. Ghaziabad, was submitted with the bank much after the sanction of loan. As per title deed register, Ex. PW6/L2 (D-143), the original title deeds of 1st, 2nd and 3rd property, proposed for mortgage were deposited in the bank on 30.03.2011, while in respect of 4th property, the title deeds were deposited only on 18.05.2011. But there is no explanation why the concerned bank officials A-3 and A-4 had shown tearing hurry in preparing the confidential report on 22.03.2011, when by that time, neither the NEC nor even the certified copies of the aforementioned mortgaged property were filed with the bank by the empaneled lawyer.

49.03 As per CIR, 4th mortgaged property bearing no. 5/1234. M-11, Vasundhra, Distt Ghaziabad, was of the guarantor Rajesh Aggarwal. But, by the time loan was sanctioned on 29.03.2011, neither any NEC nor the certified copies of title deeds of said property were received by the bank. Although said 4th property was subsequently substituted with another property claimed to be owned by the borrower himself i.e property bearing no. 121, FIE, Patparganj Extention but, CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.287 Of 372 as on date of grant of appraisal and sanction of loan, neither NEC nor the original nor even the certified of the sale deed of said property bearing no. 5/1234. M-11, Vasundhra, Distt Ghaziabad, was available with the bank. As per record, the NEC of 5/1234. M-11, Vasundhra, Distt Ghaziabad, was submitted with the bank by A-2 on 13.05.2011 i.e much after the sanction of credit facility. As per title deed register, Ex. PW6/L2 (D-143, page 200), the title deed of said property with the bank were filed on 18.05.2011. The title deed register, Ex. PW6/L2 shows that the title deeds of the substituted property i.e. 121, FIE Industrial Area, Patparganj Shahdra, New Delhi were deposited with the bank on 18.06.2011.

49.04 The explanation furnished by the defence that CR was started to have been prepared on 22.03.2011, but the entries in the CR reports were made on different dates as and when the information was received from different agencies/sources, seems to be only an afterthought and not convincing. The other flaw regarding lack of NEC of 4th mortgaged property is sought to be explained by saying that the credit limit only to the extent of being secured by three properties CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.288 Of 372 was released by the bank till the NEC of 4th property came to be filed by the A-2, also doesn't look very convincing.

49.05 It will not be out of place to mention here that as per Law Division Circular No. 9/LAW/2009 dated 27.08.2009 Ex PW6/I4 (D-148, Page 2294), on mortgage steps and precautions, legal opinion of the empaneled lawyer should be sought only on the original title deeds submitted by the borrower and a letter should be written to the advocate to collect the original title deeds for rendering his legal opinion and in no case, the advocate should give opinion on the basis of photocopies or certified copies of title deed. Whereas, as per acknowledgment receipts issued by the bank which are available on record as Ex PW6/C3 and ExPW6/D3, as well as the title register, the original title deeds of the 1st, 2nd and 3rd immovable properties were handed over to the bank on 30.03.2011 while in respect of 4th property mentioned in CR, it was deposited with bank on 18.05.2011 i.e. after the loan was sanctioned on 29.03.2025. This clearly shows that the legal opinion of the empaneled advocate was not based on original title documents.

CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.289 Of 372 49.06 In the backdrop of said circumstances, it is not conceivable as to how NEC, with which the certified copies of title deeds of property obtained from concerned Sub-Registrar, has to be also filed by the empaneled advocate, were ready and available with bank on 22.03.2011, which is the date of aforementioned Confidential Reports (CR) or at any time before 30.03.2011. Assuming for the sake of argument that the NECs were filed with the bank prior to sanction of loan. But, in the light of the fact that title deeds of mortgaged properties were filed with the bank only on 30.03.2011 and 18.05.2011, alleged filing of NEC by A-2 on any date prior to 30.03.2011, would only mean that NEC/legal opinion were prepared by him on the basis of the photocopies of title deeds in defiance of circular Ex PW6/I4, which categorically provides that in no case, advocate will give opinion on the basis of photocopies or certified copies of title deeds. During investigation, no document was found available in the bank record regarding assignment of title deeds of subject properties proposed for mortgage to A-2 or regarding his (A-2) being handed over the title deeds of mortgaged properties or having returned the same to the bank with the certified copies of sale deeds of said CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.290 Of 372 properties, which he (A-2) claimed to have obtained from the offices of concerned Sub-Registrars. 49.07 Moreover, as already noted above, no inquiries were made from the previous banker Canara Bank, Rajinder Nagar, Ghaziabad, where borrower claimed to be having a current account in the name of his firm M/s Shankar Metals and also filed the statement of account of said bank account bearing no.2867201000038. During investigation, even said bank account statement was also found to be forged. In this regard prosecution examined PW11 Sh. Indravadan Dhawan from said bank and as per his version said account was not in the name of M/s Shankar Metals but in fact it was in the name of M/s. Busicom System through its proprietor Sh. Rakesh Khullar. Despite multiple hits of CIBIL reports (3 CIBIL reports) showing up on the bureau's site in the name of same person Sanjeev Dixit/ Sanjeev Kumar Dixit using same Voter ID and address but using three different PAN cards and three date of births, no efforts were made to check his credentials even from his previous banker.

(iv) Discrepancies in CIR reports CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.291 Of 372

50. As per CBI's case, in order to know the credit history/creditworthiness of the prospective borrower, besides the Credit Information Report (CIR) from CIBIL, the bank was required to obtain credit information of the prospective borrower and guarantor from two more agencies viz. M/s Equifax Credit Information Services Pvt. Limited and M/s Experian Credit Information Company of India (P) Ltd and in this regard, CBI has placed reliance on MISD (Management Information System Division) circular no. 03/2011 dated 10.03.2011 Ex. PW6/G4 (page 2306 to D-148) issued by PNB. 50.01 It is alleged that the public servants A-3 and A-4 have deliberately violated said circular as Credit Information Report (CIR) only of the borrower was taken from CIBIL but no CIRs in respect of guarantors were taken from CIBIL. It is further alleged that the CIR of guarantors from the Equifax was also extracted much later on 28.04.2011 whereas, the loan was sanctioned much prior on 29.03.2011. Further, no CIR was obtained from the third agency M/s Experian Credit Information Company of India (P) Ltd. 50.02 The defence argument in this regard is that the aforementioned circular Ex. PW6/G4, itself CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.292 Of 372 states that M/s Equifax Credit Information Services Pvt. Limited was yet to launch their commercial bureau, while M/s Experian Credit Information Company of India (P) Ltd was yet to launch the bureaus, and since the borrower in the instant case was a commercial entity, the information was not available regarding said firm on M/s Equifax Credit Information Services Pvt. Limited at the relevant time and the said position has been admitted even by the prosecution witness Mr.C.P.Garg (PW-6). In the backdrop of said circumstances, CIBIL report of borrower Sanjeev Dixit was sufficient to ascertain his creditworthiness. Whereas, there was no adverse remarks in the M/s EQUIFAX reports dated 28.04.2011, drawn for the guarantors Sanjay Sharma and Indra Rani Ex. PW6/Q and Ex. PW6/R respectively, as there credit history was also shown nil.

50.03 As regard the allegations that A-3 and A-4 dishonestly overlooked the suspicious nature of the CIBIL report of A-1 Sanjeev Dixit, containing multiple DOB and PAN numbers, it has been argued on behalf of A-4 that as per book of instructions-chapter IX:Confidential Reports Ex. PW6/F4 (at page 9.5 para xii), CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.293 Of 372 the responsibility for compilation and authenticity of the details in the confidential reports rests solely on the incumbent incharge i.e. upon A-3, who was the Chief Manager at the relevant time and in view thereof, A-4 cannot be held liable for the shortcomings in the CIRs of the borrower, as he was not the incumbent incharge. However, this argument has already been dealt with and rejected by this Court in the preceding paras 47.10 to 47.13.

50.04 By drawing attention to the circular no. MIS 3/11 dated 3.10.2011 Ex. PW6/G4, it has been urged on behalf of the prosecution that credit information report was required to be obtained not only with respect of borrower but also for the guarantors. Although it is true that as per said circular, no information was available regarding credit history of commercial entities with M/s Equifax Credit Information Service Pvt. Ltd. and M/s Experian Credit was yet to launch the bureaus. But, no explanation is forthcoming from A-3 and A-4 as to why CIR reports in respect of the guarantors were not generated from CIBIL. As per record, the CIR in respect of the guarantors from M/s Equifax was extracted on 28.04.2011. i.e much after the CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.294 Of 372 sanction of loan and there is no explanation why it was extracted so belatedly. Further, there is no explanation as to why the CIR even in respect of M/s Shankar Metals was generated so late. As per record, the Credit Information Report from CIBIL in respect of M/s Shankar Metals was generated on 05.11.2012 vide document Ex. PW6/P i.e much after the sanction of loan, which was sanctioned on 29.03.2011.

(v) Discrepancies in the NEC/legal search report :

51. It is alleged against A-3 and A-4 that they did not communicate with the owners of the collateral properties through registered letters in violation of Circular No. 56 dated 08.07.2000 Ex. PW6/H4 and further they dishonestly mentioned that legal search report/non-encumbrance certificate (NEC) of four collateral properties have been obtained whereas, NEC only of 03 collateral properties at Loni, Shahdra and Vivek Vihar was filed with the bank on 26.03.2011. Further, A-3 and A-4 deliberately accepted incomplete legal search reports submitted by A-2 in respect of two collateral properties of Loni and Vivek Vihar as the certified copies of the title deeds of said properties CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.295 Of 372 were not yet submitted by the empaneled lawyer/A-2 N.S.Parihar at the time of sanction of the loan. 51.01 Ld. Defence Counsels have argued that the Letter of Intent from the respective property owners, accompanied with acknowledgment letters, unequivocally demonstrate that the branch did establish communication with the owners of the collateral properties. I have carefully perused the acknowledgment of the receipt of title deeds, Ex. PW/6D3 , Ex. PW6/O3, Ex. PW6/S3 and Ex. PW6/T1, which are the letters dated 04.04.2011, written by the Manager, PNB, Jor Bagh Branch to the guarantors Sh. Sanjay Sharma (proprietor) M/s Super Machines and Ms. Indra Rani as well as to the borrower Sh. Sanjeev Dixit, vide which they were informed regarding receipt of title deeds of their respective properties offered for mortgaged with the bank. However, there is nothing on record to show that said letters were dispatched to the addresses by registered post or any other mode as no such proof of dispatch was found available in the loan file.

51.02 Although as per defence plea, initially only three immovable property were offered as CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.296 Of 372 collateral security. However, as per the Credit Appraisal Format dated 29.03.2011 (D-8) Ex. PW6/N2, which is being signed by both A-3 and A-4, four properties including the property no. 5/1234, M-11, Vasundra, District Ghaziabad, UP, were offered as collateral security. Though, the said 4th property of Vasundra, District Ghaziabad was subsequently released on 25.06.2011 after the borrower offered another substitute property 121, FIE, Patparganj Extension, Delhi but, there is no justification for not getting the legal search report / NEC in respect of said 4 th property of Vasundara, District Ghaziabad prior to sanction of loan. As per record, the NEC of said property was submitted with the bank on 18.05.2011. Hence, the defence plea that initially, only three properties were offered for mortgage, is found to be untrue and contrary to record.

51.03 Furthermore, as already noted above, there are violations of the banking norms which required the bank to seek legal opinion from the Panel Advocate only on the original title deeds whereas, as per record, the NEC in respect of first three properties was filed by the panel Lawyer prior to 26.03.2011. On CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.297 Of 372 the other hand, as per the Letter of Intent Ex. PW6/C3 and title deed register, Ex. PW6/L2 (D-143), the original title deeds of the first three properties were deposited with the bank on 30.03.2011, while that of 4th property, it was deposited on 18.05.2011. There is no iota of material to show that the panel lawyer was ever handed over the original title deeds of the collateral properties for seeking his legal opinion on the title documents. 51.04 Besides that, for reasons best known to A-3 and A-4, they failed to insist for filing of NECs and certified copies of the title deeds of all the immovable properties offered for mortgage before sanction of loan. As per record, certified copies of only two mortgage properties were received by the bank prior to sanction. As such the legal search process remained incomplete. A-3 & A-4 failed to verify the title documents at their end as by the time the loan was sanctioned on 29.03.2011, they neither had the original title deeds available with them nor they were provided certified copies of all of title deeds even by the panel lawyer A-2 prior to the date of sanction of the loan.

(vi) Sanction of loan prior to submission of Valuation report CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.298 Of 372

52. It is alleged that Valuation report of the property 5/1234, M-11, Vasundra, District Ghaziabad was submitted belatedly on 13.05.2011 i.e. after the sanction of loan, which was sanctioned on 29.03.2011. In this regard, the defence has come up with the plea that at the time of sanction, only three properties were mortgaged by the borrower and since the combined value of the said properties was found to be insufficient to maintain required security coverage, therefore, on the insistence of the bank, the 4th property 5/1234, M-11, Vasundra, District Ghaziabad was offered for mortgage which was subsequently substituted by another property of 121, FIE, Patparganj Extension, Delhi on 25.06.2011. Said argument is however, found contrary to record. As per the Confidential reports (D-106) dated 22.03.2011 as well as Credit Appraisal Format dated 29.03.2011 Ex PW6/N2, all four properties including the property no. 5/1234 (GF & FF), M-11, Vasundra, District Ghaziabad were proposed as collateral security by the borrower and the said property 5/1234 (GF & FF), M-11, Vasundra, District Ghaziabad was shown to be owned by Sh. Rajesh Aggarwal. In the circumstances, when four immovable properties were mortgaged by the borrower, there is no CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.299 Of 372 plausible reason for the bank to sanction the loan without calling the valuation report and NEC for all the 4 properties. The interest of the bank was compromised and put to risk by extending the loan facility to the borrower without first securing it through sufficient collateral securities.

52.01 An argument has been raised that no valuation report was required in respect of the property proposed for mortgaged if the same has been purchased within last one year and since the sale deed in respect of property no. 5/1234, M-11, Vasundhara, Distt. Ghaziabad, was executed on 11.05.2011, therefore, its valuation given in the sale deed itself was taken into consideration by the bank. But, pertinently, even the title deeds of said properties were not available with the bank at the time of sanction for knowing its valuation, as the sale deed itself was executed much after on 11.05.2011 and as per said deed, Sanjeev Dixit/A-1 himself is the owner of said property whereas, as per CIR, said property was owned by guarator Rajesh Aggarwal. Hence, said argument is also liable to be rejected.

CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.300 Of 372

(vii) Discrepancies regarding physical verification of the collateral properties

53. As per Credit Report, A-3 visited all four collateral properties on 08.03.2011 whereas, there are no corresponding entries regarding any such visit of A-3 in the movement register prepared at the said branch of PNB. Furthermore, as per the 'Proforma for recording the valuation of the property' available on record as D-125 to D-127, the valuation in respect of 1st, 2nd and 3rd property offered for mortgage was made on 20.3.2011, whereas as per D-128, valuation of 4th propery 5/1234, M-11, Vasundra, District Ghaziabad was done on 18.05.2011 i.e after the sanction of loan. Furthermore, as per CR and Credit Appraisal Note, only GF & FF of said property was proposed for mortgage but, as per D-128, entire propery 5/1234, M-11, Vasundra, District Ghaziabad, is shown to have been mortgaged and owner of said property was shown to be Sanjeev Dixit instead of Rajesh Aggarwal who was shown to be owning said property as per CR dated 22.03.2011.

53.01 In this regard, it was contended on behalf of A-3 & A-4 that the spot verification was CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.301 Of 372 actually conducted on 20.03.2011 and the date of 08.03.2011 as mentioned in the CR dated 22.03.2011 (Ex. PW6/U) is nothing but a clerical error. It was argued that such clerical inaccuracies cannot invalidate otherwise fully-documented and corroborated inspections. The Credit Appraisal Format dated 29.03.2011 (Ex. PW6/N2, D-8, pp. 200-209) records the spot verification, corroborating the verification of all collateral properties by the Branch Head. 53.02 It was argued that the movement register itself contains an entry of 20.03.2011 corroborating the physical verification as recorded at Ex. PW6/S4 (D-141, p. 29) and it dispels any notion that no official movement occurred for the inspection. Spot verification of the first three collateral is further corroborated by the Proformas for Recording Value of Property Assessed by the Incumbent-In-Charge A-3 i.e. Ex. PW6/01, Ex. PW6/P1, and Ex. PW6/Q1 (D-126-127). These proformas reflect on-site assessment and could not have been prepared without physical inspection. 53.03 It was argued that the fourth property (Vasundhara Property), which was offered subsequently, was also physically inspected by the CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.302 Of 372 Branch Incumbent on 18.05.2011 as demonstrated in Ex. PW6/R1 (D-128). This further confirms that the officer consistently carried out all mandatory visits. It was argued on behalf of A-4 that the responsibility for conducting spot verifications of borrower premises and collateral properties rested exclusively with the Branch Incumbent (A3).

53.04 Ld. defence counsels drew attention to the deposition of PW6, where he is stated to have himself clarified in his Cross Examination dated 18.07.2019 that, the movement register is not a conclusive or mandatory record, stating: "Movement register may or may not have details of the person who has given instructions to a concerned official to go out of the bank premises... It depends upon the person who is making entry in the movement register." It was urged that the above deposition of PW6 negates the prosecution's attempt to treat absence or inconsistency of entries as evidence of non-visit.

53.05 Ld Counsels vehemently argued that in light of these multiple independent documentary corroborations Credit Appraisal, Movement Register, property valuation proformas, and spot-verification CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.303 Of 372 records, the allegation that property inspections were not conducted is wholly unfounded. Clerical error in the date in the CR cannot override the complete chain of evidence proving that the inspections took place. 53.06 I have considered the above submissions in the light of the material on record. Let's assume for the sake of argument that date of site visit 08.03.2011 as mentioned in CR report was merely a typographical error and properties were actually inspected on 20.03.2011, which is also shown as 'date of making valuation' in 'Proforma for recording the value of property' assessed by the incumbent Incharge' dated 20.03.2011 available on record as D-125 to D-127 in respect of 1st, 2nd and 3rd property. But, then arises another vital question as to how the Incumbent Incharge was able to record the the realisable value of said properties as assessed by the approved valuer, in said documents prepared by her on 20.03.2011. Whereas, as per valuation reports of said properties prepared by the approved valuer Sh. Naveen Kamboj, which are available on record as D-112, D-113 and D-114 all dated 24.03.2011, the said three properties were visited and valued by the approved borrower on CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.304 Of 372 the same date of his report i.e on 24.03.2011. In said circumstances, the act of A-3 in recording exactly same realisable value of the properties as assessed by the approved valuer on 24.03.2011, in the aforementioned proforma dated 20.03.2011 D-125 to D-127, raises a serious doubt even on the correctness of said very documents, which the defence seeks to rely to urge that sites were actually visited on 20.03.2011 and not on 08.03.2011.

53.07 Even the claim regarding spot verification of the mortgaged property of the guarantor Sanjay Sharma on 08.03.2011 by K.K.Johar/A-3, as reflected in the CR Ex. PW6/U, has been falsified by the witness PW-74 Sanjeev Singh Rana, who categorically denied that any inquires were made from him by any bank officials regarding his ex-employer Sanjay Sharma @ Sanjeev Dixit. As per his version, he never gave the statement to the effect that Sanjay Sharma was honest or was bearing good reputation in the market. He deposed that during his tenure, no official from any bank had ever visited at his work place at 121, Industrial Area, Patpar Ganj, Delhi to make any inquiry about Sanjay Sharma. In his cross-examination, he CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.305 Of 372 denied the suggestion that he had given any such statement to the bank officials as mentioned in the report Ex. PW6/U.

(viii) Discrepancies regarding stock verification visits

54. It is alleged against said accused that they failed to carry out physical verification of the stock by visiting the business site of the borrower and calculated the drawing power simply on the basis of periodic stock statements submitted by the borrower without any actual verification of the stock. 54.01 In this regard, we may refer to the testimony of PW6 Sh. C.P. Garg, who deposes that the Loans and Advances circular no. 58 dated 01.06.2006 Ex.PW6/M-4 (part of D-148 page 2319 to 2373) prescribes control measures to be followed by the bank before and after sanction of loan. In the case of M/s Shankar Metals, primary security was hypothecation of stock and book debts and collateral security was equitable mortgage of four properties. Further that the drawing power is released as per stock and book debt holding of the borrower periodically which may be monthly or quarterly and in case of first release of loan, CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.306 Of 372 the stock statement of that date/current date is taken. As per Drawing Power register page 93 (D-142) already Ex.PW6/T-4, first stock statement as on 31.03.2011 was received on 18.04.2011 for a sum of Rs. 3,25,97,415/- against which the drawing power was to be allowed keeping margin of 25% while drawing power of Rs. 4 crore was allowed which was not permissible as per terms of sanction.

54.02 He further deposes that the sanction of Drawing Power was allowed by Mrs. K.K. Johar (A-3). As per the terms of sanction of the loans, the monthly stock statement was to be taken from M/s. Shankar Metals but said schedule also not followed in the present case for the months of December, 2011 and January, 2012. Further, there was no stock statement after 30.06.2012. As per PW6, after receipt of the stock statement the bank officials pay visit for the spot verification of the stock but, in the instant case, Ex.PW6/T-4 reflects that no inspection was carried out in the month of May, 2011, October, 2011 and April, 2012 as there are no corresponding entries of any such visit in the movement register Ex.PW6/S-4 (D-141). CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.307 Of 372 54.03 He further deposes that the stock statement submitted by the party finds noting regarding the date of the visit of the bank official on it. In the present case though there is a noting regarding the visit on the stock statements submitted by M/s. Shankar Metals but there is no corresponding entry in the movement register.

54.04 As per the stock statement, Ex. PW6/Z1 (D-136) (statement as on 31.08.2011), the stock was inspected on 09.09.2011. As per Ex. PW6/A2 (statement as on 30.09.2011), the inspection was done on 20.10.2011. As per Ex. PW6/B2 (statement as on 31.10.2011), there is no date of inspection mentioned on the same. As per Ex. PW6/C2 (statement as on 30.11.2011), the date of inspection is shown to be 15.12.2011. As per stock statements Ex. PW6/D2 (as on 29.02.2012), Ex. PW6/E2 (as on 31.03.2012), Ex. PW6/F2 (as on 30.04.2012), Ex. PW6/G2 (as on 31.05.2012) and Ex. PW6/H2 (as on 30.06.2012), no date of inspection are mentioned on the stock statement. The date of inspection of the stock are though mentioned in the DP register, but there are no corresponding entries in the movement register. The said fact has been further CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.308 Of 372 corroborated by PW58, Sh. Arun Sharma, Sr. Manager in Circle Office of PNB, who also deposed that there were no entries in the movement register regarding said stock statement meaning thereby no physical inspection was carried out to verify the said stock statements.

54.05 Ld Counsel Shri Singh, appearing for A-4 argued that the allegation relating to non- inspection of stock and absence of corresponding entries in the movement register is wholly misplaced, as stock inspection was not the duty of A-4. He submitted that the responsibility for assigning and conducting stock inspections rested exclusively with the Branch Incumbent (A3), who supervised end-use verification and inspection activities at the branch and same is evident from FMR-1 Report dated 16.01.2013 prepared by PW6 (Mark PW6/DC), which expressly identifies A3 as the officer who carried out end-use verification of the loan account, including inspection of the first stock statement on 18.04.2011 (Item 12). The report does not attribute stock-inspection duties to A-4. 54.06 Besides that, it was argued on behalf of both the said accused that failure of the borrower (A-1) CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.309 Of 372 to furnish stock statements is a matter of contractual compliance for which the bank had adequate remedies such as imposition of penal interest and therefore, mere non-submission of stock statement or delay in filing the same by the borrower cannot be converted into an allegation of misconduct or conspiracy against the concerned public servant.

54.07 It was argued that as per the bank guidelines 7-15 days time is usually available to check the stock statement and in the instant case, the stock statements were checked by the staff available in the branch on rotation basis, without any delay and such staff used to put their signature on the statement itself against the column 'inspected on' wherein the date of inspection used to be written. Further as per DP register, loan incharge (A-4) had checked the stock statement and put his signature.

54.08 Considering the fact that the stock statement, Ex. PW6/H2, Ex. PW6/G2, Ex. PW6/D2, Ex. PW6/B2, Ex. PW6/A2 as well as Ex. PW6/Z2 are carrying the signatures of Ranjiv Suneja (A-4), A-4 cannot shy away his liability regarding verification of stock by saying that it was the responsibility of the Chief CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.310 Of 372 Manager (A-3) only. There was no material found available in the bank to show that any periodic physical inspection of the stock of M/s Shankar Metals was made by accused A-3 and A-4 or by any other staff deputed on their behalf, before calculating the drawing power. The irregularities with respect to stock statement were also recorded in the annual inspection report, Ex. PW58/H (part of D-147) as well as in quarterly Audit report dated 30.06.2011, Ex. PW58/G (part of D-147) and Ex. PW58/I (part of D-147), which is the quarterly report dated 31.05.2012. These reports have been also referred in the testimony of PW58, wherein he has deposed that stocks were not being checked in rotation by different officials and the stocks were not checked for the month of May, 2011, June, 2011 and July, 2011. Even the conduct of the subject account was found to be not satisfactory. 54.09 The above flaws in the bank record again raise a serious doubt on the conduct of the accused persons. As regard the delayed filing of stock statement, the perusal of the record shows that the branch had issued follow-up letters to the borrower regarding delayed stock statements for December 2011 CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.311 Of 372 and January 2012 (Mark PW6/A3-XI; Mark PWG/A3-X2; Mark PW65/D4), demonstrating that the branch took appropriate steps to obtain compliance whenever stock statements were not submitted on time.

(ix) Diversion of funds through dummy accounts

55. Prosecution has alleged that post-

sanction, there was no monitoring of end use of the loan funds released in the borrower's account. It is alleged that A-3 and A-4 deliberately and dishonestly allowed the diversion of loan funds to bank accounts of various firms who were not in the list of creditors. Further huge cash withdrawals were allowed from the account of borrowers M/s Shankar Metals without ensuring its use for authorized purposes and the same was in gross violation of the Circular No. 58/2006, Ex. PW6/M4 (part of D-148, page 2323), which casts an obligation on the incumbent for pre and post disbursal follow-up.

55.01 This allegation has been vehemently opposed by the defence counsels who submitted that throughout the relevant period, no diversion or misuse of funds was ever reported in any of the monthly, CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.312 Of 372 quarterly, or annual audits. The independent statutory audit reviews conducted by Concurrent Auditor B. C. Katoch consistently recorded compliance, as reflected in Audit Data Forms for 2011 i.e. Ex. PW58/E; Ex. PW58/F; Ex. PW58/G; Ex. PW58/H; Ex. PW58/I (D-147). These audits were independent, periodic and comprehensive, and none of them reported any diversion of funds or irregularity in the account operations.

55.02 For better appreciation of the above rival contentions of the parties, I deem it appropriate to refer to fund flow chart given in the charge-sheet which is as under:-

A/C No. of Owner of Date of Ch. No. Amount Total firms Account / transaction in Rs. Amount wherein cash (Rs.) amount withdraw was al by diverted / cash withdrawa l Rahul 31.05.2011 279124 950000 Sharma 13.07.2011 545519 350000 1300000 (brother-
                 in-law of
                 Sanjeev
                 Dixit)
                 Sachin            27.04.20211        75116    900000



CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.313 Of 372 Mishra 06.05.2011 75123 556800 (Driver of 29.06.2011 545513 950000 Sanjeev 03.08.2011 545524 1800000 5156800 Dixit) 21.02.2012 545560 950000 Cash Sandeep 07.04.2011 75109 50000 50000 Withdrawal Jha (Associate of Sanjeev Dixit) Sanjay 10.05.2011 279114 550000 Sharma 21.12.2011 545549 550000 (Guaranto 18.01.2012 545557 950000 r of the 2050000 loan) 03.08.2011 545523 2200000 Sanjeev 30.11.2011 545546 950000 Dixit 29.05.2012 545571 1000000 4150000 (accused) A/C No. 333320100 0072 of M/s Sanjeev 13.12.2011 545547 1512000 1512000 Diya Dixit Sanitation (accused) exist in Canara Bank, Karkardum a, Delhi (paid by RTGS) A/C No. 500701339 23.08.2011 545527 2115000 2115000

56 of M/s Jagdamba Sanjeev Metalsexist Dixit in (accused) Allahabad Bank, Vasundhar a, Ghaziabad, CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.314 Of 372 UP (paid by RTGS) A/C No. 06.07.2011 545514 1520000 5329600 500326733 19.07.2011 545521 2638000 86 of M/s 24.05.2011 279121 1171600 Future Tap Sanjeev Sanitation Dixit exist in (accused) Allahabad Bank, Vasundhar a, Ghaziabad, UP (paid by RTGS) A/C No. 11.04.2012 2575000 333320100 31.05.2011 279126 1273000 0073 of M/s Sanjay 27.12.2011 545551 938045 Sanya Sharma 29.05.212 545568 2575000 Enterprises (Guaranto 31.12.2011 545555 2115065 exist in r of the 29.12.2011 545553 1522000 11520110 Canara loan) 25.11.2011 545542 522000 Bank, Karkar-

dooma,
Delhi (paid
by RTGS)
A/C      No.                        21.04.2011        75110     685000
333326100                           12.08.2011        545526   1625000
0006 of M/s      Rahul              18.01.2012        545558   1760300
Shree Balaji     Sharma             31.03.2011        75104    2031600      6913900
Enterprises      (Brother-          05.05.2011        75120     812000
exist     in     in-law of
Canara           Sanjeev
Bank,            Dixit)
Kakarduma
Delhi, (paid
by RTGS)
A/C      No.                        10.06.2011        279130   55000
333326100                           16.11.2011        545540   988000
0003 of M/s      Sheetal            06.06.2011        279128   841000


CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.315 Of 372 Ganesh Sharma Enterprises (Sister-in-

exist     in     law       of
Canara           Sanjeev
Bank,            Dixit)
Karkar-
dooma,
Delhi (paid
by RTGS)
A/C     No.                         31.03.2011        75101    2200000
012500210                           25.04.2011        75115     500000
0707463 of       Rajeev             19.05.2011        279118    865000      5065000
M/s Ganesh       Sharma             13.06.2011        545512   1500000
Enterprises      (brother-
exist     in     in-law of
PNB, Shri        Sanjeev
Ram Nagar,       Dixit)
Shahdara,
Delhi (paid
by RTGS)
A/C     No.                         21.04.2011        75111     565000
333326100                           29.11.2011        545544   1268000
0039 of M/s      Rajeev             25.10.2011        545537   1250000
Katara           Katara             02.04.2011        75108    1537115
Metals exist     (brother-          31.03.2011        75103    3265820
in Canara        in-law of          27.04.2011        75117    2575185
Bank,Karka       Sanjeev            05.05.2011        75122     809181     13120906
rdoom,           Dixit)             09.06.2011        279129    987170
Delhi (paid                         30.05.2011        279123    863435
by RTGS)
A/C     No.
500704770                           10.09.2011        545529   1798600
91 of M/s        Rahul
Paras            Mudgal                                                     3843600
Metals exist     (brother-          23.08.2011        545528   2045000
in               in-law of
Allahabad        Sanjeev
Bank,            Dixit)
Vasundhra,
Ghaziabad,
UP (paid by


CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.316 Of 372 RTGS) A/C No. 27.12.2011 545552 997700 333320100 Jitendra 30.12.2011 545554 2460000 0074 of M/s Singh who 27.05.2011 279125 1563885 5021585 Rajdhani imperson Traders ated exist in himself as Canara Sanjay Bank, Sharma Karkardoo ma, Delhi (paid by RTGS) Total 69032501 55.03 As is evident from the chart, huge money of more than Rs. 1 crore was withdrawn from the cash credit account of M/s Shankar Metals by cash withdrawals, some time in one go of Rs. 22 Lakhs, Rs. 18 Lakhs, Rs. 9 Lakhs and Rs. 9.5 Lakhs without ensuring its end use for authorized purpose. Even the name of the firms except that of M/s Katara Metals, M/s Ganesh Enterprises, M/s Future Tabs and M/s Jagdamba Metals, the name of all other firms through which the money was allegedly diverted such as M/s Rajdhani Traders, M/s Paras Metals, M/s Sanya Metals and M/s Shree Balaji, do not find mention in the list of creditors., which are part of document D-9 i.e. Ex. PW6/U2 at page 225, Ex. PW6/V2 at page 228, Ex. PW6/W2 at page 231, CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.317 Of 372 Ex. PW6/X2 at page 233, Ex. PW6/Y2 at page 238 and Ex. PW6/Z2 at page 242.

55.04 However, I agree with the defence contentions that monitoring of day-to-day utilization or diversion of the cash credit facility sanctioned to M/s Shankar Metals was the responsibility of A-3, who was the Incumbent Incharge and the same is evident from L&A Circular No. 58/2006 (Ex. PW6/M4, D-148, p. 2323), which says that the duty to track borrower operations, review account movements and detect possible diversion of funds lies exclusively with the Branch Incumbent. This position is further confirmed by PW58, who also stated in his deposition that the Incumbent should keep a watch on operations in borrower's account so that cases of diversion of funds, if any, could be brought to light at the earliest opportunity for taking coercive action.

55.05 However, before reaching to any conclusion for fixing the liability of alleged offences upon said accused A-3 and A-4, I deem it appropriate to also deal with the defence objection of prosecution being bad and biased on account of selective arraignment which is alleged to have been done on pick CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.318 Of 372 and choose basis. It has been vehemently argued that the prosecution suffers from selective arraignment, rendering the investigation arbitrary, incomplete, and legally unsustainable. The CBI has inexplicably and arbitrarily picked A-3 and A-4 for prosecution, while similarly placed officials have been held harmless most notably the Senior Concurrent Auditor, Sh. B. C. Katoch, who had statutory responsibility to continuously audit, verify, and flag irregularities in M/s Shankar Metals' loan account. It has been argued that in view of this selective, arbitrary and incomplete investigation, the prosecution case against public servant A-3 and A-4 stands fundamentally weakened.

55.06 It was argued that during the entire relevant period (2011-2012), the Senior Concurrent Auditor had real-time oversight over KYC compliance, loan documentation, monitoring of borrower operations, scrutiny of stock statements, compliance with circulars and audit norms. Four quarterly concurrent audit reports prepared during the exact period of the sanction and operation of the cash credit facility found no irregularities in the M/s Shankar Metals account. Despite his central statutory role, the CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.319 Of 372 CBI neither cited nor examined the concurrent auditor as a witness, nor arrayed him as an accused. 55.07 It was argued that the very fact that concurrent auditor didn't pick up on errors in documentation shows that the errors were well hidden by the main accused persons, so well-hidden that even seasoned concurrent auditors were unable to find fault with such documentation. Furthermore, the errors/lapses as allegedly uncovered by the Bank/CBI were so trivial that they were either not noticed or recorded as rectified without any further demur. The failure of the CBI to offer Concurrent Auditor, Sh. B.C. Katoch as a witness during trial despite knowing his role and importance to the present case makes it clear that the CBI made an attempt to suppress his testimony and therefore, an adverse inference against such conduct in terms of Section 114(g) of the Evidence Act, 1872 is liable to drawn.

55.08 I have duly considered the above submissions in the light of overall material which has come on record. However, before recording any finding in this regard, certain important aspects of this matter are required to be kept in mind. The uniqueness of this CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.320 Of 372 case is that, almost every document filed by the borrower in support of his creditworthiness for availing the loan facility was found to forged, fake and bogus. Be it a document of identification of borrower or the guarantors, financial documents relating to alleged business of the borrower firm, document of collateral securities, every single document was found to be forged and bogus.

55.09 Interestingly, at the very initial stage, when the bank was assessing the creditworthiness of borrower by extracting data pertaining to the borrower from CIBIL, there were enough indications raising a serious doubt on the credentials of the borrower making it direly necessary for the bank to do further probing in the matter. Despite that, said palpably apparent discrepancies in CIBIL reports were completely ignored by A-3 and A-4 and they went ahead with the appraisal and sanctioned the loan. 55.10 Now, what the prosecution wants to emphasis is that the said conduct of the accused public servants in ignoring the aforementioned discrepancies was not merely an irregularity or error of judgment, but it was a deliberate act/omission done in furtherance of CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.321 Of 372 the conspiracy hatched with the borrower to facilitate him to siphone off huge public money and for proving it, the prosecution is also relying upon many other lapses on the part of the said accused also at the post- sanction stage i.e. at the time of calculating the drawing power which was allegedly done without physical inspection of the stock and at the time of disbursal of the funds as it is alleged that said accused failed to monitor the end use of the funds and allowed its diversion through dummy accounts operated by the borrower and his family members. It is alleged that said lapses in the loaning process were deliberately committed so as to ensure that the object of conspiracy is swiftly achieved without any hindrance. 55.11 The impact of said post sanction flaws and lapses on the assessment of questioned conduct of said accused might not have been that grave, had there been no red flags at the outset appearing before these senior officers of the bank (A-3 & A-4), who were dealing with the subject loan proposal. But, their conduct in ignoring these glaring indication of fraud which were apparent on the face of it in the CIBIL reports of the borrower Sanjeev Dixit (A-1), and giving a CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.322 Of 372 clean chit to borrower's credentials by noting in the credit appraisal note that no adverse features were observed in borrower's profile, is bound to create a grave suspicion on their bonafides. This conduct of said accused is bound to bring their every subsequent action in relation to the subject loan under the radar of CBI during investigation and constant scrutiny of the court during trial.

55.12 As regards the defence objection relating to non arraignment of concurrent auditor Sh. B. C. Katoch is concerned, I may note that in the Audit Reports dated 30.06.2011 Ex. PW58/F, Audit Report dated 30.09.2011, Ex. PW58/G as well as Annual Inspection Report, Ex. PW58/H (D-47), he had specifically pointed out various shortcomings and flaws in relation to subject loan, which were subsequently rectified and marked off. Even otherwise, as per Chapter-I, para 2.3 of Objective of Inspection and Audit, which is available on records as Ex. PW58/D (D-47), the objective of inspection and audit is to support the bank management in identification, measurement, monitoring and mitigation of risks in the branch for maximizing development and achieving operational CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.323 Of 372 efficiencies and effectiveness. Para 2.2 of said document further says that the purpose of inspection and audit is not fault finding but fact finding, assessing level of risk and suggesting measures to mitigate risk in very high/high risk areas on priority.

55.13 The process of appraisal and sanction was within the domain of A-3 and A-4, who were under obligation to prepare the confidential reports containing full and reliable records of character, estimated means, business activities and credit worthiness of the borrower and guarantors. It is pertinent to mention here that, as per Chapter IX of Book of Instructions on Loan, Ex. PW6/F4, the confidential report data must remain in the personal custody of the Manager. In view thereof, the concurrent auditor Sh. B. C. Katoch cannot be expected to be privy to said apparent discrepancies which surfaced in the CIBIL reports, with which only A-3 and A-4 were dealing with.

55.14 Therefore, in my considered view the role of concurrent Auditor Sh. B. C. Katoch cannot be equated with the role of A-3 and A-4 especially, when the documents of appraisal and sanction were never CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.324 Of 372 signed by him nor said documents were ever placed before him for the purpose of vetting. Even otherwise, non arraignment of concurrent auditor cannot dilute the blatantly negligent actions and omissions on the part of A-3 and A-4, who were in immediate control of the entire process of appraisal, recommendation and sanction of loan. Further, the red flags in the CIBIL reports were also in the exclusive knowledge of A-3 and A-4 only because, the data relating to Credit Reports of the borrower was required to be kept confidential. 55.15 The argument as regard withholding of best evidence on account of said concurrent auditor being not cited as a witness is also bereft of merits as the prosecution case is largely based on the documentary evidence which was part of bank records. During investigation, said bank record was seized by the IO and same has been proved by the prosecution during trial by examining witnesses from the lending bank as well as from the other different banks. The complainant Sh. C. P. Garg, (PW-6), Sh. Arun Sharma, Sr. Manager Circle Office, PNB (PW-58), Sh. V. K. Dhar, the Ex-Chief Concurrent Auditor, PNB (PW-65) are some of the important witnesses through whom the relevant CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.325 Of 372 record pertaining to subject loan has been duly proved on record by the prosecution.

55.16 We cannot ignore the fact that at the time of granting/disbursing loan, a banker is required to act responsibly. Verification of identity and other credentials of the customer partakes the essential function of a banker. Consideration of any advisory opinion of the empaneled Advocate, Valuer, CA cannot substitute independent application of mind by the sanctioning authority, especially when major financial risks are involved. The public servants dealing with the appraisal and sanction of loan owe a duty to conduct proper verification of every document especially when such documents form the core basis for grant of credit facility or disbursal of loan. The failure of the bank officials accepting various documents without cross checking or verifying their genuineness certainly involves high risk of losing public money at the hands of unscrupulous customers.

55.17 In the light of the aforementioned parameters of the banking norms, the blatant attempt on the part of the defence Counsels to portray the aforementioned conduct of the accused public servants CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.326 Of 372 as mere irregularity by terming it as a normal human error cannot be accepted. Use of forged and fabricated documents for availing credit facilities are well known tricks in bank fraud cases and therefore, failure to exercise due precaution do constitute an act of abuse of official position to provide financial benefit to the individual availing said facilities and said acts in my considered view do fall within the ambit of Section 13(1)

(d)(i) and (ii).

55.18 In bank fraud cases, the courts have consistently emphasized the requirement for bank officials to exercise high standard of care, diligence and adherence to established procedures while sanctioning credit facility. It is often highlighted in various judgments of superior courts that bank officials act in a position of trust and are expected to perform their duties with the prudence of a responsible person. Failure to follow proper pre-sanction and post-sanction inquiries and due-diligence is often viewed as a serious lapse that may amount to criminal misconduct rather than mere commercial error.

55.19 In the instant case, the fraud could have been nipped in the bud had the public servants CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.327 Of 372 (A-3 and A-4) acted like a prudent person and tried to dig out the KYC issue after they noticed the discrepancies in the PAN card and date of birth details appearing in the CIBIL reports of the borrower Sanjeev Dixit (A-1). The said palpable discrepancies were the clear red flags of the potential risks for A-3 and A-4 to swing into action and to verify the genuineness of each and every document furnished by the borrower. However, failure on their part to make any such exercise is a clear departure from a prudent person's conduct and same is liable to shroud their conduct with the clouds of grave suspicion and compel us to conclude that there intentions were impregnated with malafides. 55.20 The above discrepancies in the CIBIL report were clear signals of the potential fraud, but despite that the said accused continued to flout the banking norms and guidelines at both pre and post sanction stage as no physical verification of the stock was done nor the monitoring of funds was done for ensuring the proper end use of the loan funds. The lapses committed by them at different stages of appraisal, sanction and disbursal have already been discussed in detail in the preceding paras of this CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.328 Of 372 judgment. The said conduct of A-3 and A-4 is clearly indicative of their connivance with the borrower (A-1) and the empaneled lawyer (A-2), with whom they entered into a criminal conspiracy to cheat and defraud the bank. In furtherance of the said conspiracy, A-3 and A-4 allowed the use of forged documents, allowed diversion of funds and facilitated the borrower in availing the loan facility on the basis of forged documents and in siphoning off the loan amount by diverting it through dummy accounts.

55.21 In view of the aforementioned discussion, I feel no hesitation in concluding that prosecution has successfully proved all the alleged charges framed against A-3 and A-4 beyond reasonable doubt.

Discussion pertaining to Rahul Sharma (A-5) and Rajeev Sharma (A-6)

56. As per prosecution case, the borrower Sanjeev dixit (A-1), was sanctioned a working capital loan to the tune of Rs. 4 crores and he dishonestly diverted all the funds from cash credit account of his firm M/s Shankar Metals either by cash withdrawal or by transferring the amounts in other bank accounts of CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.329 Of 372 the firm, which were either owned by A-1 himself or by his close relatives. It is alleged that Sanjeev Dixit (A-1) fraudulently credited some amount in said CC account to show some business transactions but later on, he fraudulently diverted all the amount including the loan funds of Rs. 4 lakhs. The fund flow mentioned in para no. 55.01 may be referred herein.

57. As per the charge-sheet, the case projected against A-5 and A-6 is that they are the co-conspirators who were hand in glove with the prime accused Sanjeev Dixit @ Sanjay Sharma and they facilitated him in siphoning off the loan funds by allowing it be diverted through their bank account from where it was either transferred to various dummy accounts opened and operated by the borrower in fake names or through cash withdrawal and in this way, they are alleged to have aided the borrower in cheating and defrauding the lending bank (PNB).

58. It has been alleged that in furtherance of said conspiracy, A-6 Rajeev Sharma opened two bank accounts, one in the name of M/s Ganesh Enterprises in Punjab National Bank, Scope Tower, Laxmi Nagar branch i.e. A/c No. 0125002100707463 (vide account CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.330 Of 372 opening form which is part of Ex. PW52/A (Colly.) (D-89) and another in the name of M/s Katara Metal in the Canara Bank, Karkardooma i.e. A/c No. 3333201000039 (vide account opening form which is part of Ex. PW53/A (Colly.) (D-88, page no. 865), showing himself to be the proprietor of both the said firms. In the account of M/s Katara Metals, A-6 used his name as Rajeev Katara.

59. Against accused Rahul Shama (A-5), it has been alleged that he projected himself as proprietor of M/s Paras Metals and opened a bank account in the name of said firm in Allahabad Bank, Vasundhara, Ghaziabad, U.P, i.e. A/c No. 50070477091 (vide account opening form which is part of Ex. PW54/D (Colly.) (D-90), where he (A-5) used his name as Rahul Mudgal.

60. Through aforementioned three bank accounts, A-5 and A-6 allegedly helped the borrower Sanjeev Dixit to siphon off the loan amount released in the account of M/s Shankar Metals. As per prosecution case, the loan funds released in the account of M/s Shankar Metals in PNB, Jor Bagh branch, were first transferred to the aforementioned bank accounts of said accused and from there, the money was withdrawn either through cash withdrawals or transferred through CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.331 Of 372 RTGS in the other bank accounts of Sanjeev Dixit, which he opened in fake names on the basis of forged documents. It has been alleged that most of the firms shown in the list of creditors such as M/s Future Tap Sanitation, M/s Jagdamba Metals and M/s Diya Sanitation, were owned either by Sanjeev Dixit himself or by his kith and kins and names of said two firms namely M/s Ganesh Enterprises and M/s Katara Metals also find mention in said lists of creditors filed with the bank.

61. It has been fervently argued on behalf of A-5 and A-6 that, the investigation conducted by CBI is completely lopsided because, despite the fact that A-5 and A-6 did not have any knowledge of the aforementioned accounts purportedly opened in their names, they have been arrayed as accused only because they are the relatives of Sanjeev Dixit (A-1). Ld counsel argued that it is an admitted position on record that the money from subject loan account of M/s Shanker Metals was also diverted through bank accounts of many other employees/relatives of Sanjeev Dixit (A-1), such as Parvesh Kumar Shama (PW-69), Sheetal Sharma, Arti Sharma, Sanjeev Singh Rana CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.332 Of 372 (PW-74), Sachin Sharma, Nitin Sharma (D-5/W2), Sushil Kumar Sharma and Kapil Sharma. But, inspite of the fact that they were also similarly situated, none of the said other employees have been arrayed as accused in the present case. Indeed, some of them have been examined as prosecution witnesses. Despite the fact that A-5 and A-6 were also not aware of any such bank accounts opened in their names, CBI still arrayed them (A-5 & A-6) as accused while a clean cheat was given to said other similarly situated persons.

62. It was further argued that as per prosecution's own case, Sanjeev Dixit (A-1) had opened multiple bank accounts in the name of various bogus firms. In some of the bank accounts, the purported account holders, who were his own kith and kins or employees, were impersonated and accounts were opened without their knowledge by using their photographs and documents, which he used to obtain from them on false pretext. It has been argued that using same modus operandi, the accused Sanjeev Dixit (A-1) had opened the bank accounts also in the name of M/s Ganesh Enterprises, M/s Katara Metal and M/s Paras Metals by misusing the photographs and the CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.333 Of 372 documents of the A-5 and A-6, which A-1 had taken from them on the pretext of opening their salary account.

63. Ld. Counsel Mr. Rajni Kant further raised the contention that even as per chargesheet, Sanjeev Dixit (A-1) has defrauded not only the complainant bank but he also played fraud on many other banks and in that regard, a number of FIRs have been lodged against him. Ld. Counsel has drawn attention to the testimony of PW35 and PW32, who had brought the judicial record of different FIR lodged against A-1. The Counsel argued that it is the prosecution's own case that Sanjeev Dixit (A-1) used to take properties on rent and by using the ownership details of said rented properties, he used to forge the title documents of said properties in his own name by showing some fictitious persons as vendors of said properties and later, he used said forged title deeds to secure loan from the banks. It was argued that by same modus operandi, A-1 forged the title deed also in respect of the mortgaged property, C-193 IIIrd Floor, Vivek Vihar, which was taken on rent by Rajeev Sharma (A-6), who was his cousin brother.

CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.334 Of 372

64. He argued further that Sanjeev Dixit (A-1) was using his connections with the bank officials in opening fake bank accounts in the name of his employees and relatives, which is evident from the fact that in some of such bank accounts, even the photograph of the account holder was not found present on the Account Opening Form. For instance, on the account opening form of M/s Sanya Enterprises (D-88, page 840), no photograph of the account holder was found affixed. In said account opening form, Sanjay Sharma has been shown to be the proprietor of the said firm, but his photograph was not found stapled on the account opening form. Whereas, in the account of M/s Ganesh Enterprises in Canara Bank, Karkardooma, Sheetal Sharma, the wife of Sanjeev Dixit is shown to be the proprietor, but the photograph on said account opening form (D-88, page 827), is actually that of his sister-in-law Aarti Sharma. However, as per the forensic report, the purported signature of Sheetal Sharma on the specimen signature card (D-88, page 828) of said account, were found to be that of Sanjeev Dixit (A-1). He argued that said manipulations in the bank record could not have been possible without the connivance of the bank officials of the concerned bank. CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.335 Of 372

65. I have considered the above submission in the light of the evidence adduced on record. During trial, ample material has come on record to establish that the borrower Sanjeev Dixit/A-1 was a fraudster, imposter and a professional cheater who had cheated a number of banks by using chain of forged documents for availing huge credit facilities. He had been frequently indulging in opening fake bank accounts in the name of his kith and kins on the basis of forged and fabricated documents.

66. In this regard, we may refer to the testimony of the prosecution witness PW-69, Sh. Parvesh Kumar Sharma. As per his testimony, he had worked at the factory of Sanjay Sharma (Sanjeev Dixit/A-1) at Vanthala, Ghaziabad, UP where he had worked for about 04 years. Later on, said factory was shifted to another address at 121, Patparganj, Delhi. As per his testimony, Rajeev Sharma (A-6) and Rahul Sharma (A-5) were the cousin brothers of his employer Sanjay Sharma. The said witness (PW6) was shown the application of M/s Shankar Metals for credit facility, filed with complainant bank and on said form, he identified the photograph of accused Sanjeev Dixit (A-1) CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.336 Of 372 as that of Sanjay Sharma and deposed that he was not aware that Sanjay Sharma was also known by the name Sanjeev Dixit.

67. PW69 was also shown the PAN card and voter ID card attached with the account opening form of M/s Sanya Enterprises, proprietor Sanjay Sharma, Ex. PW53/A, where he identified the photograph in the PAN card and Voter ID card as his (PW69's) photo but, with an address of someone else. He deposed that the signatures appearing on the said account opening form did not belong to him and that he never opened any such account in Canara Bank, Karkardooma branch. He further deposed that Sanjay Sharma @ Sanjeev Dixit i.e. A-1 herein had taken his photograph on the pretext that he would get a bank account opened in his name for credit of his salary amount. Here, it is pertinent to note as per the opinion of handwriting expert PW57 at Sr. No. V of his report Ex. PW57/D (D-101), the specimen signatures of the proprietor Sanjay Sharma on the specimen signature card i.e. Q-120 and Q-121 (D-88, page 841), which is part of account opening form of M/s Sanya Enterprises, proprietor Sanjay Sharma Ex. CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.337 Of 372 PW53/A, were found to be matching with the specimen handwriting of Sanjeev Dixit (A-1).

68. The said witness PW69 was also shown the agreement of guarantee Ex. PW6/S2 and the photograph of the guarantor Sanjay Sharma on said document of the subject loan at point X. After seeing the said photograph, he deposed that said photograph was of one person Jeetu Singh and he did not know that Jeetu Singh was also known as Sanjay Sharma. During his examination in chief, PW69 was also shown the account opening form of M/s Rajdhani Traders, Proprietor Jitender Kumar Singh, part of Ex. PW53/A (Colly.) (D-88, page 854) and upon being shown the photograph affixed on said document, he identified the person in the photograph as Jeetu Singh. As per his version Jitender Kumar Singh and Jeetu Singh were one and the same person. Upon being shown the photograph affixed on the account opening form of M/s Sharp Sanitation, Proprietor Sunil Kumar Sharma, part of Ex. PW53/A (Colly.) (D-88, page 874), he identified the said photograph as that of one Vicky and deposed that he knew him (Vicky) as he used to visit the factory of his employer Sanjay Sharma (Sanjeev Dixit A-1). CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.338 Of 372

69. In the light of the forensic report Ex. PW57/D, coupled with the testimony of witness PW69, it is quite evident that Sanjeev Dixit (A-1) was rampantly indulging into fraudulent activities as he had opened various bank accounts in the name of different persons on the basis of forged and fabricated documents. Further that, Sanjeev Dixit (A-1), had been collecting photographs and documents of identification and address from his employees on the pretext of opening bank accounts in their name for crediting salary in their accounts but, he misused the said photographs and documents for opening bank accounts in the name of fake persons.

70. In this regard, we may also refer to the testimony of one more witness PW63 Mohan Kumar Aggarwal, the proprietor of M/s Aggarwal Metals. As per his testimony, he was into the business of bathroom fittings in the name of M/s Aggarwal Metals, at Chawri Bazar, Delhi and he used to purchase the taps from Pravesh and Panju in the year around 2010. As per prosecution case, PW63 was the introducer in the account opening form Ex. PW52/A (Colly.) (part of D-89, page no. 896) of M/s Ganesh Enterprises, proprietor CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.339 Of 372 Rajeev Sharma i.e. the alleged bank account attributed to Rajeev Sharma (A-6). Upon being shown said document from judicial file, he (PW63) identified his signature at point A on said account opening form and deposed that said form was signed by him at the request of Parvesh who wanted to open an account in PNB, Chawri Bazar, Delhi and at the time, when the said form was signed by him (PW63), it was blank and having no photograph on the same. He deposed that he never stood as introducer for M/s Ganesh Enterprises.

71. PW-70 also identified the photograph of the account holder (Rajeev Sharma) affixed on said form as that of one Sontu, but he said that he never stood surety even for Rajeev Sharma @ Sontu. On the KYC documents i.e. PAN Card and voter ID card attached with the account opening form of M/s Sanya Enterprises (part of Ex. PW53/A (Colly.), PW63 identified the photograph in said KYC documents as that of one Parvesh. He also identified the photograph on the account opening form of M/s Sharp Sanitation (proprietor Sh. Sunil Kumar Sharma), which is again the part of Ex. PW53/A (Colly.), and he identified the person CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.340 Of 372 in said photograph as one Vicky, and deposed that he (Vicky) used to accompany Parvesh and Panju.

72. Similar is the position in respect of the bank account opened in the name of M/s Sai Trading Corporation with Canara bank, Karkardooma with the proprietor name Rajeev Kumar Manchanda. The photograph appearing on the said account opening form, part of Ex. PW53/A (Colly.) (part of D-88, page 844) is of some unknown person as no witness appears to have been examined for identification of the photograph on said document. The record however reveals that the purported signatures Q-118 and Q-119 of Sh. Rajeev Kumar on the specimen signature card, have also been attributed to Sanjeev Dixit (A-1) vide GEQD report, Ex. PW57/D (D-101) and opinion given in that regard is at Sr. No. IV, page no. 5.

73. The attention of the Court was drawn to one more such account opened by Sanjeev Dixit (A-1) in the name of M/s Ganesh Enterprises showing Sheetal Sharma as proprietor of said firm. The said account was opened in the Canara Bank, Karkardooma Branch. Ld Sr. PP submitted that as per GEQD report, Ex. PW57/D (D-101), the purported signatures of Sheetal Sharma CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.341 Of 372 Q-126 and Q-127, on the specimen signature card of said account, have been attributed to the borrower Sanjeev Dixit (A-1).

74. In this regard, we may also refer to testimony of another important witness PW74 Sanjeev Singh Rana, who had also worked for about a year in the factory of Sanjeev Dixit (A-1) in the year 2012. He also identified the photograph on the account opening form of M/s Shankar Metal, in PNB, Jor Bagh branch, Ex. PW6/D (D-5), as that of his ex employer Sanjay Sharma. PW69 deposed that he left the job of Sanjeev Dixit (A-1) as he found his activities suspicious. As per his version, Sanjeev Dixit (A-1) had been using his business name just to take loans from the different banks.

75. The fraudulent activities of the borrower (A-1) are also writ large from the fact that he filed a false list of sundry debtors where M/s Mahavir Enterprises, M/s Balaji Sanitation, M/s King Sanitation, M/s R. S. Enterprises, M/s Soni Sanitation, M/s Rohit Sanitation, M/s Aggarwal Metals, M/s Super Sanitary Stores and M/s Dhoot Sanitation were shown to be the sundry debtors of M/s Shankar Metals, the borrower firm. During trial, prosecution has examined PW18, CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.342 Of 372 PW19, PW20, PW21, PW22, PW23, PW24, PW27, PW28 and PW29, who are the partners/proprietors of said firms and they all have denied that they ever transacted any business with M/s Shankar Metals at any point of time or that they had known any person with the name Sanjeev Dixit (A-1) whose photograph they were shown from the loan documents on court record during their examination in court.

76. In the light of plethora of evidence regarding fraudulent activities, the borrower (A-1) was indulging into, the possibility of accused no. 5 and 6 also falling prey to his (A-1's) fraudulent activities cannot be ruled out especially, when there is ample material on record to show that Sanjeev Dixit (A-1) had defrauded not only the complainant bank but also many other banks, from where he availed huge credit facilities against various immovable properties not belonging to him by creating forged and fabricated title deeds of said properties and also by opening number of dummy bank accounts in the name of his employees, friends and family members.

77. PW54 Sh. Arunendra Pratap Singh, Chief Manager, Allahabad Bank, Vasundhara, Ghaziabad, is CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.343 Of 372 also an important witness in this regard. As per his testimony, Sanjeev Dixit (A-1) had opened a current account no. 50032673386 in the name of M/s Future Tab Sanitation on 01.06.2010 by showing himself to be the proprietor of the said firm and he (A-1) got sanctioned CC limit for an amount of Rs. 2.80 Crores by offering his property bearing no. 232, Jagriti Enclave, New Delhi as collateral security. However, said account was later declared NPA and after the bank filed a suit before DRT, the title deeds of the aforementioned property were found to be defective and not enforceable.

78. On the same line prosecution has also examined one more witness PW56, Devender Kumar Sharma from Syndicate Bank. As per his version, Sanjeev Dixit (A-1) @ Sanjeev Sharma had defrauded the said bank also by taking a loan against the collateral security of property bearing no. 25, Shyam Industrial Area, Loni, Ghazibad and after said loan account was declared NPA, the said property was auctioned by the DRT and dues were recovered by the bank. The testimony of the said witness is however, not of much help because, neither he brought any document in CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.344 Of 372 connection with the facts deposed by him nor he was shown any document from the judicial file by the Prosecutor to connect his testimony with the loan allegedly taken from Syndicate bank.

79. Ld. Counsel for the accused raised a contention that due to deliberate lapses, perfunctory and shoddy investigation done by CBI, who seemed uninterested in pursuing the case to its logical conclusion, the justice has become a causality in the instant case and the same is evident from the fact that despite alleging conspiracy on the part of accused Rahul Sharma on account of his having stood as a witness to the forged sale deed, Ex. PW6/P-3 (D-12) purportedly executed in favour of accused Sanjeev Dixit (A-1) in respect of 3rd mortgaged property bearing no. C-193, IIIrd Floor, Vivek Vihar, Delhi, the purported signatures of Rahul Sharma (A-5) appearing on the last page of said sale deed were never sent to CFSL for comparison with his specimen signature taken during investigation. Even the signatures of Rajeev Katara, which are alleged to be the signatures of Rajeev Sharma (A-6) on the account opening form of M/s CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.345 Of 372 Katara Metals, were never sent to CFSL for the purpose of comparison.

80. During the course of argument, Ld. Sr. PP fairly conceded to the fact that the alleged signatures of Rajeev Sharma on account opening form of M/s Katara Metals which is available at page 865 of D-88, and that of Rahul Sharma on the alleged forged sale deed of C-193, 3rd Floor, Vivek Vihar, Phase-I, Delhi, Ex. PW6/P3 (D-12), which was used by Sanjeev Dixit (A-1) for securing the subject loan were never sent CFSL for forensic examination for getting them compared with the respective specimen signatures of said accused taken during investigation, by the IO. As per charge- sheet, only the purported signature of Rahul Sharma (A-5), who allegedly impersonated himself as Rahul Mudgal in the account opening form of M/s Paras Metals, Ex. PW54/D in Allahabad bank, Vasundhara Ghaziabad branch were sent to CFSL for forensic examination. As regard the other accused Rajeev Sharma (A-6), his purported signatures on the account opening form of only M/s Ganesh Enterprises, which are part of Ex. PW 52/A (colly) page 897 of D-89, were sent for forensic examination.

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81. Ld. Sr.PP fairly conceded that purported signature of said accused Rajeev Sharma (A-6) on account opening form of M/s Katara Metals were not sent to CFSL and there is no expert opinion on the handwriting of the signatures of purported account holder of said account. In view thereof, the only evidence the prosecution is left with for proving the allegations of diversion of funds against A-6, is the expert opinion on the signatures of the account holder of the bank account in the name of M/s Ganesh Enterprises proprietor Rajeev Sharma in PNB, Scope Tower, Laxmi Nagar, Delhi, allegedly attributed to said accused Rajeev Sharma (A-6), and against A-5, it is the expert opinion on the signatures of the account holder of the bank account in the name of M/s Paras Metals, Proprietor Rahul Mudgil in Allahabad bank, Vasundhara, Ghaziabad, UP, attributed to accused Rahul Sharma (A-5).

82. Through aforementioned two bank accounts, A-1 is alleged to have diverted the loan funds released in account of his firm M/s Shanker Metals. For ready reference, the fund flow through aforementioned two CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.347 Of 372 bank accounts in the name of M/s Ganesh Enterprises and M/s Paras Metals is given as under:-

M/s Paras Metals Date Cheque Amount Date Chequ Amount No. credited e No. transferred 23.08.11 545528 20,45,000/ 24.08.11 377705 20,00,000/- Cash
- Withdra wn 10.09.11 545529 17,98,600/ 12.09.11 377712 18,00,055/- M/s
- Jagdam ba Metals M/s Ganesh Enterprises (Rajeev Sharma) Date Cheque Amount Date Che Amount No. credited que transferr No. ed 31.03.11 75101 22,00,000/- 31.03.11 6,00,000/- Cash withdrawn by Rajeev Sharma 25.04.11 75115 5,00,000/- 25.04.11 4,50,000/- Cash withdrawn by Rajeev Sharma 19.05.11 279118 8,65,000/- 19.05.11 6,50,000/- Transferred to M/s Sai Trading Corporation 13.06.11 545512 15,00,000/- 13.06.11 5,00,000/- Cash withdrawn by Rajeev Sharma 22.06.11 5,00,000/- Cash CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.348 Of 372 withdrawn by Rajeev Sharma 27.06.11 1,50,000/- Cash withdrawn by Rajeev Sharma

83. As per prosecution case, Rahul Sharma (A-5), had impersonated himself as Rahul Mudgil in the account opening form of bank account no. 50070477091 in the name of M/s Paras Metals, proprietor Rahul Mudgil, Ex. PW54/D (D-90 page no.957-959). Ld. Sr. PP submitted that during investigation, the purported signature of Rahul Mudgil on specimen signature card, Ex. PW57/H, page no. 963 (part of D-90), were sent to CFSL for forensic examination and as per GEQD report, Ex. PW57/E, Sr. No. III, page no. 4, the said signatures Q-106 to Q-109 have been attributed to Rahul Sharma (A-5), by the handwriting expert.

84. The prosecution has sought to prove the documents relating to the aforementioned account of M/s Paras Metals attributed to accused Rahul Sharma (A-5) through PW54, Arunendra Pratap Singh. As per his testimony, he had worked in Vasundhara Ghazibad CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.349 Of 372 branch of Allahabad Bank from 2013 to 2015 as Chief Manager and during that period, vide his letter dated 17.12.2023 Ex. PW54/A (D-90, page 925), he had handed over certain documents to CBI during investigation of this case, including the account opening form along with KYC documents of the aforementioned account of M/s Paras Metals. As per the account opening form of M/s Paras Metals Ex. PW54/D (D-90, page 957 to 959), the said account was opened in July, 2011, meaning thereby that, said account was not opened during his (PW-54) tenure in said branch. In view thereof, there is no direct evidence to the effect that the said account was opened by Rahul Sharma (A-5). The only evidence relied upon by the prosecution to attribute said bank account to Rahul Sharma (A-5) is the forensic report, Ex.PW57/E (D-101, page 1105), wherein, the signatures of Rahul Mudgil appearing on the specimen signature card, Ex. PW57/H (D-90) were attributed to Rahul Sharma/A-5 as the same were found to be matching with his (A-5's) specimen signature taken by the IO during the course of investigation.

85. Before reaching to any conclusion, we may again refer to the testimony of PW54, wherein he has CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.350 Of 372 deposed that as per the statement of account of said firm M/s Paras Metals, on 10.09.2011, Rs. 17,98,600/- was credited in the account of M/s Paras Metals from the account of M/s Shankar Metals. On 12.09.2011, vide cheque no. 377712, Rs. 18,00,055/- were transferred to M/s Jagdamba Metals through RTGS. He deposed further that on 23.08.2011, again an amount of Rs. 20,45,000/- was credited in the account of M/s Paras Metals from the account of M/s Shankar Metals and on the very next day i.e. on 24.08.2011, an amount of Rs. 20 Lakhs was cash withdrawn vide cheque no. 377705.

86. From the aforementioned testimony of the witness PW54, it is clear that the amount of Rs. 20 Lakhs withdrawn in cash and amount of Rs. 18,00,055/- transferred in the account of M/s Jagdamba Metals were withdrawn/transferred vide two cheques issued from the account of M/s Paras Metals, which are available on records at page nos. 2791 and 2793 of D-162, Ex. PW62/A (Colly.). The said cheques were drawn by Rahul Mudgil, the proprietor of the said firm, from the account of M/s Paras Metals in Allahabad bank, Vasundhara, Ghaziabad branch. As per record, both the said cheques were self cheques. CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.351 Of 372

87. However, despite availability of said cheques bearing the signature of the drawer, the IO did not send them to CFSL for comparing the drawer's signature on said cheques with the specimen signature of A-5. The IO got compared only the alleged signatures of A-5 on the specimen signature card, Ex. PW57/H with the specimen signatures of said accused. For reason best known to the IO, he did not find it necessary to compare the signatures appearing on the aforementioned cheques vide which the money was allegedly withdrawn/transferred by A-5 from his purported account. On account of this omission on the part of IO, the prosecution lost the opportunity to establish that it was none else but A-5 only who was operating the said account. In my considered view by doing said exercise, the prosecution could have easily falsified the defence taken by said accused that he was never aware of existence of any such account or about the transaction occurring in said account.

88. In the circumstances of the case, when said accused (A-5) has all along taken the defence that he had never opened any such account or was not even aware of existence of any such account, it was CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.352 Of 372 incumbent upon the prosecution not only to prove that the account belonged to him (A-5) or was opened by him, but also that, it was A-5 who had been operating said account. As per prosecution case, the diversion through the account of M/s Paras Metals had taken place as the money was first received in said account from the subject loan account of M/s Shankar Metals and immediately thereafter, it was diverted by A-5 by cash withdrawal and RTGS transfer vide two cheques drawn by A-5 from the account of M/s Paras Metals. By proving that the handwriting in the signatures of purported drawer of said two cheques is that of A-5, the prosecution could have easily demolished the defence plea that said account was never operated by A-5. The prosecution could have easily done so by getting the signatures of the drawer on said two cheques i.e. cheque bearing no. 377705 for Rs. 20,00,000/- used for cash withdrawal and cheque bearing no. 377712 for Rs. 18,00,055/- used for RTGS transfer in the account of M/s Jagdamba Metals, compared with the specimen handwriting of said accused (A-5).

89. But admittedly, said cheques were never sent by the IO for forensic examination of the CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.353 Of 372 signatures of drawer appearing on said cheques. Said failure on the part of IO is a major flaw in the prosecution case and it would certainly amount to withholding the best evidence from the court for which an adverse inference is liable to be drawn against the prosecution. As already noted, even the alleged signature of Rahul Sharma (A-5) appearing on a forged sale deed, Ex. PW6/P3 (D-12) used by Sanjeev Dixit (A-1) for securing the subject loan, where he (A-5) allegedly stood as a witness to the execution of the said documents, were also never sent for forensic examination.

90. Thus, the opinion of the handwriting expert is the only evidence available with the prosecution to allege that the aforementioned account was used by A-5 for diversion of funds. However, as concluded in para no. 69, the possibility of Sanjeev Dixit (A-1) having opened said account by misusing the signatures, the photograph and the identification documents of the accused A-5, cannot be ruled out especially, when A-5 was also working with A-1 as his employee during the relevant period.

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91. Similar is the position even qua A-6 Rajeev Sharma, as he is also alleged to have facilitated the borrower A-1 in diverting the funds through his two bank accounts, one in the name of M/s Ganesh Enterprises in Punjab National Bank, SCOPE Tower, Laxmi Nagar i.e. A/c No. 0125002100707463 (vide account opening form which is part of Ex. PW52/A (Colly.) (D-89) and another in the name of M/s Katara Metal in the Canara Bank, Karkardooma i.e. A/c No. 3333201000039 (vide account opening form which is part of Ex. PW53/A (Colly.) (D-88, page no. 865), showing himself to be the proprietor of both the said firms. In the account of M/s Katara Metals, A-6 allegedly used his name as Rajeev Katara.

92. But as already noted above, the alleged signature of Rajeev Sharma/A-6 on account opening form of M/s Katara Metals were never sent to CFSL for forensic examination through handwriting expert. Hence, there is nothing on record to establish that the said bank account of M/s Katara Metals actually belonged to A-6. Even from the deposition of PW53, who is the witness from the concerned bank, it appears that he had joined the concerned branch of the Canara CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.355 Of 372 Bank in June, 2011 whereas, the said account in the name of M/s Katara Metals was opened on 15.09.2010, which is the date reflected on the account opening form and the specimen signature sheet of the said account available at page no. 865 to 866 of D-88.

93. I have carefully perused the account opening form, KYC documents and the statement of accounts of the aforementioned two firms. The documents pertaining to the account of M/s Ganesh Enterprises are sought to have been proved through PW52, Ram Lagan Singh. As per his testimony, he joined PNB branch, Shahdara as Chief Manager on 05.07.2011 and remained posted there till 02.06.2014 and during said tenure, he supplied certain documents to the CBI including the original account opening form, KYC document and statement of account of said account no. 0125002100707463 in the name of M/s Ganesh Enterprises, Proprietor, Rajeev Sharma (A-6), which are available on record as Ex. PW52/A (Colly.) (part of D-89).

94. The perusal of said documents shows that there are no signatures of the account holder on the account opening form (D-89, page no. 894) and it is only the Customer Master Form which bears the CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.356 Of 372 signatures of the account holder, Rajeev Sharma (A-6) (D-89, page nos. 895 to 898). From the date appearing on said documents, it appears that the said bank account was opened on 02.01.2010 i.e. much before PW52 joined the bank.

95. PW52, in the cross examination, PW52 categorically deposed that the said account was not opened in his presence nor he could tell whether the signature on the Customer Master Form at X and X-1 and specimen signature at (Q-102 to Q-105) and at point X-2 belonged to Rajeev Sharma (A-6). He deposed further that he did not supply the withdrawal sheet or the cheque through which said amounts were allegedly withdrawn by Rajeev Sharma (A-6). He volunteered to say that the same were tagged with the vouchers which were kept separately in the bank.

96. This version of the witness clearly shows that IO did not make any effort to collect the said withdrawal receipts on the cheques through which the amounts of Rs. 22 Lakhs on 31.03.2011, Rs. 4.5 Lakhs on 25.04.2011, Rs. 5 Lakhs on 22.06.2011 and Rs. 1.5 Lakhs on 27.06.2011 were allegedly withdrawn by Rajeev Sharma (A-6). The IO also did not collect the cheque CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.357 Of 372 vide which the amount of Rs. 6.5 Lakhs was allegedly transferred through RTGS in favour of M/s Sai Trading Corporation on 19.05.2011. Hence, even in respect of A-6, the opinion of the handwriting expert, is the only evidence adduced on record to prove that the said account belonged to A-6 or that A-6 opened that account. However, there is no evidence to show that it was A-6 only who was operating said account.

97. As per record, prosecution has examined Anil Sharma, Sr. Scientific Officer, CFSL, CBI, New Delhi for proving the forensic report pertaining to the alleged handwriting of Rajeev Sharma (A-6) on the questioned documents. As per his testimony, he received the details of the questioned and specimen documents from CBI vide two letters, Ex. PW57/A (D-98) and Ex. PW57/B (D-99) and after scientific examination and comparison of said signatures, he prepared two reports. Ex. PW57/E (D-101) is the first report and Ex. PW57/F (D-172) is the second report. At the last page of the first report, PW57 concluded that "questioned signature marked Q-102 to Q-105 when compared with the specimen signatures to marked S-56 to S-65 attributed to Rajeev Sharma, it has been felt necessary to have CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.358 Of 372 admittedly genuine signatures of the person so called Rajeev Sharma of the contemporary period as that of the questioned once for further scientific examinations and any opinion".

98. It is after said request for admitted signatures of A-6 was raised by the expert, the IO, vide his (IO) letter Ex. PW77/F (part of D-171), requisitioned the original account opening form, Customer Master Form with specimen signature sheet of the account holder and KYC documents of the account no. 400000100062306 in the name of Rajeev Sharma in PNB, Scope Tower, Laxmi Nagar, Delhi. After receiving said documents from the concerned bank, IO handed over all the said documents to the handwriting expert for rendering opinion on the handwriting on the questioned signatures already sent to CFSL. The aforementioned documents of the account no. 400000100062306 in the name of Rajeev Sharma in PNB, Scope Tower, Laxmi Nagar, Delhi are available on record as Ex. PW57/J (Colly.). Perusal of the said documents shows that said account was opened on 21.05.2008.

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99. After receiving the aforementioned documents from the IO, PW57 gave the second opinion Ex. 57/F (D-172), wherein he opined that the handwriting evidence points to the writer of standard signature marked A-1 to A-8 (the alleged admitted signature of A-6 on the document Ex. PW57/J), S-56 to S-65 (specimen signature of A-6 taken by the IO), S-96/1 to S-105/1 (the signatures of A-6 appearing on the left bottom page of his specimen signature sheet, taken by the IO during investigation on 05.12.2014), attributed to Rajeev Sharma being the person responsible for writing the questioned signatures marked Q-102 to Q-105 (the questioned signatures on the account opening form of M/s Ganesh Enterprises).

100. On behalf of A-6, it has been vehemently argued that the opinion in the second report rendered by the expert on the basis of admitted signatures subsequently provided to him by the IO, cannot be relied upon because, neither the signatures A-1 to A-8 nor the signatures S-96/1 to S-105/1, are the admitted signatures of A-6 and even the prosecution has miserably failed to prove that the said signatures are his (A-6's) admitted signatures. Furthermore, the expert CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.360 Of 372 had asked for admitted signatures of the contemporary period. Whereas, the alleged admitted signatures on the account opening form of the aforementioned account in PNB, Scope Tower, Laxmi Nagar are pertaining to the year 2008. Whereas, the alleged admitted signature on the specimen signature sheet i.e. (S-96/1 to S-105/1) are pertaining to the year 2014. The questioned signatures (Q-102 to Q-105) are however, pertaining to the year 2010.

101. It has been further argued that neither in the charge-sheet nor in the deposition recorded before the Court, IO is able to tell as to how he had come to the conclusion that the account opening form dated 21.05.2008 (D-171) pertained to A-6. Admittedly, A-6 had never admitted that he ever opened any bank account with Punjab National Bank, SCOPE Tower, Laxmi Nagar, Delhi or that the account opening form of any such bank account bears his signature nor the prosecution has examined any witness from the concerned bank PNB, SCOPE Tower, Laxmi Nagar, to prove the account opening form (D-171), Ex. PW57/J (Colly.) or to prove the fact that this account in said bank was opened or operated by Rajeev Sharma (A-6) CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.361 Of 372 or that at the time of opening of said account, his signatures were taken on the said account opening form or specimen signature card.

102. Ld. Sr. PP submitted that not only the aforementioned signatures on the account opening form were sent to the expert as admitted signature but also the signatures appended by the said accused/A-6) (S-96/1 to S-105/1) on his specimen signature sheet Ex. PW57/A (Colly). It was submitted that the said signature (S-96/1 to S-105/1) have been proved by the prosecution through independent witness PW-42 Shambhu Nath Chaudhary, who correctly identified the accused in the court and also deposed that the IO had taken the specimen signatures of A-6, in his presence.

103. I have given my thoughtful consideration to the above submissions in the light of the material on record. Admittedly, no opinion in respect of handwriting of A-6 qua the signatures on account opening form of M/s Ganesh Metals of account no. 0125002100707463 had been given by the handwriting expert in his first report, Ex. PW57/E (D-101). It is only in the second report, Ex. PW57/F (D-172), the expert came up with a positive opinion on the questioned signatures CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.362 Of 372 (Q-102 to Q-105) attributing them to A-6. From the perusal of the record, it appears that the expert witness PW57 was handed over two sets of signatures as admitted signature of A-6. The first set of signatures are A-1 to A-8, which are the signatures appearing on account opening form of account no.

4200000100062306 in the name of Rajeev Sharma (A-6) in Punjab National Bank, Scope Tower, Laxmi Nagar, Delhi available on record Ex. PW57/J (Colly.) (part of D-171, page nos. 2904 to 2909). The second set of signatures are S-96/1 to S-105/1, which are the signatures of A-6 appearing on the left side of the bottom of the specimen signature sheets available on record as Ex. PW57/A (Colly.) (part of D-171, page nos. 2893 to 2902).

104. However, there is no iota of material to prove that the signatures A-1 to A-8, with which the questioned signatures of A-6 were compared, are the admitted signatures of A-6. In his deposition, IO has failed to disclose as to how he reached to the conclusion that said signatures were the admitted signatures of A-6. Furthermore, for lack of any witness being examined in this regard from the aforementioned CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.363 Of 372 branch of PNB, Scope Tower, Laxmi Nagar, Delhi, where A-6 was allegedly maintaining said account, even the fact that A-6 had any such account in said bank also remained unestablished. There is no evidence on record to show that accused A-6 had ever admitted existence of any such account in his name or having opened any such account at any point of time.

105. The second set of signatures S-96/1 to S-105/1 are appearing on the specimen signatures sheet dated 05.12.2014. The said sheet of the specimen signature was prepared by the IO during the course of investigation and hence, the said signatures of the accused A-6, which were taken from him during investigation of this case, cannot be treated as his admitted signatures. Even otherwise, said signatures being taken in the year 2014, cannot be the signatures for contemporary period as asked by the expert. It is pertinent to note that the questioned signatures Q-102 to Q-105 are pertaining to period January 2010 and with the gap of 04 years, the aforementioned signatures S-96/1 to S-105/1, which appeared to have been taken in the year 2014, cannot be said to be the signatures of contemporary period.

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106. Even otherwise, as per settled position of law, an opinion of a handwriting expert is not a conclusive proof and it requires corroboration from other strong direct or circumstantial evidence. Since it is merely an opinion and not a fact, it needs supporting evidence to become truly persuasive in the court of law. Handwriting analysis being merely a science of comparison and opinion, it is not determinant like a DNA matching. Since experts can also make mistakes and the comparison process itself isn't foolproof, recording conviction solely on the basis of opinion of a handwriting expert is always considered risky.

107. In this regard, it would be apposite to refer the recent Judgment of Hon'ble Apex Court in 'C. Kamalakkannan Vs. State of Tamil Nadu, 2025 INSC 309', wherein Hon'ble Apex Court also referred to its previous landmark judgment in 'Murari Lal Vs. State of M.P. 1980 AIR 537', where it had laid down the principles with regard to the extent to which the reliance can be placed on the evidence of a hand writing expert. In said judgment in C. Kamalakkannan (Supra), the Hon'ble Apex Court stressed that while expert opinions like handwriting analysis are relevant CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.365 Of 372 under Section 45 of Indian Evidence Act but, it cannot be relied upon without the foundational evidence being first proved in accordance with law. In said case, the postal cover, allegedly bearing the handwriting of the appellant, upon which a positive opinion was rendered by the handwriting expert, was held to be not exhibited and proved in accordance with law and hence, the conviction based on the opinion of the hand writing expert linking the appellant to said postal cover was set aside by the Hon'ble Apex Court.

108. Even in the instant case, the prosecution has miserably failed to prove that A-1 to A-8 or S-96/1 to S-105/1, are the admitted signatures of the contemporary period of A-6. Therefore, any opinion of the handwriting expert based on said signatures, which formed the foundational evidence for rendering said opinion, is liable to be rejected. As already noted above, the opinion rendered by the hand writing expert in his second report bearing no. CFSL-2015/D-358 dated 22.05.2015 as Ex.PW57/F (part of D-172), was the only evidence available with the prosecution against A-6 for proving the allegations of diversions of funds, but said evidence has also failed.

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109. The other circumstance upon which the prosecution is strongly harping upon to allege conspiracy on the part of A-6, is the presence of Sanjeev Dixit (A-1) with him (A-6) at the time when A-6 took the property bearing no. C-193, 3rd Floor, Vivek Vihar, Phase- I, Delhi on rent from Sh. R. K. Manchanda. As per prosecution case, the forged title deeds of said property were later used by A-1 with the lending bank because said property was mortgaged for the subject loan as collateral security.

110. However, in the light of the fact that the prosecution has failed to prove the allegation of diversion of funds against A-6, I am of the considered view that this single isolated circumstance regarding presence of A-1 with A-6 at the time of taking aforementioned property on rent, will not help the prosecution to built any such case of conspiracy. Even otherwise, A-1 was not only the employer of A-6, but he was also his cousin brother and considering said relation between them, their presence together at the time of taking aforementioned property on rent, cannot lead to any conclusion that they were in conspiracy with each other for the commission of alleged offences. CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.367 Of 372

111. Furthermore, the prosecution has miserably failed to adduce any iota of material to show that A-5 and A-6 ever received any pecuniary benefit from A-1 nor any money was recovered from their possession during the course of investigation. There is ample evidence on record to show that A-5 & A-6 were working as employees of A-1, who also happened to be their cousin brother and he (A-1) used to withdraw cash from his (A-1's) bank accounts through his employees. In such background of the case, mere establishing that on some occasions said accused A-5 and A-6 had withdrawn cash amounts from the account of Sanjeev Dixit, will not be sufficient to establish their complicity in this case. Though, the material on record is lacking even to prove that it were, A-5 and A-6 who had withdrawn said amounts because, except showing their names on some cash withdrawal vouchers, there is no other evidence to show that the said cash was actually withdrawn by A-5 and A-6 from the bank accounts of Sanjeev Dixit/A-1. In said background of circumstances, I feel no hesitation in holding that prosecution has miserably failed to prove the alleged charges of conspiracy, cheating or diversion of funds against the A-5 and A-6.

CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.368 Of 372 Final conclusion

112. In the backdrop of aforementioned analysis and discussion of material, conclusions drawn by the court regarding its findings on the charges framed against the accused A-2 to A-6 can be summarized as under :-

Accused N.S.Parihar (A-2)
1. The prosecution has successfully proved on record the charges for the offence of criminal conspiracy punishable under Section 120 IPC r/w 419/420/467/468/471 IPC and section 13(2) r/w Section 13(1) (d) of PC, Act, 2002 as well as for the substantive offences under Section 420 IPC r/w 120B IPC and Section 471 IPC against accused N.S.Parihar/A-2.
1.1 Accordingly, the accused N.S.Parihar (A-2) is convicted for the offence of criminal conspiracy punishable under Section 120 IPC r/w 419/420/467/468/471 IPC and section 13(2) r/w Section 13(1) (d) of PC, Act, 2002. Accused N.S.Parihar (A-2) is also convicted for the substantive offences under Section 420 IPC r/w 120B IPC and Section 471 IPC. The prosecution CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.369 Of 372 has however, failed to prove the charge for the alleged offence of forgery punishable under Section 468 IPC against said accused. He is accordingly, acquitted for the offence punishable under Section 468 IPC for lack of evidence.

Accused K. K.Johar (A-3) and Accused Ranjiv Suneja (A-4)

2. The prosecution has successfully proved on record the charges for the offence of criminal conspiracy punishable under Section 120 IPC r/w 419/420/467/468/471 IPC and section 13(2) r/w Section 13(1) (d) of PC, Act, 2002 against accused K.K.Johar/A-3 and accused Ranjiv Suneja (A-4). Besides that, the charges for the substantive offences of cheating punishable under Section 420 IPC r/w Section 120B IPC as well as for 'criminal misconduct' punishable under Section 13(2) r/w Section 13(1)(d) PC Act (as it existed prior to Amendment Act 1 of year 2014), have also been proved beyond reasonable doubt against both the said accused.

CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.370 Of 372 2.1 Accordingly, accused K.K.Johar/A-3 and Accused Ranjiv Suneja/A-4 are convicted for the offence of criminal conspiracy punishable under Section 120 IPC r/w 419/420/467/468/471 IPC and section 13(2) r/w Section 13(1) (d) of PC, Act, 2002. Said accused A-3 and A-4 are also convicted for the substantive offences of cheating punishable under Section 420 IPC r/w 120B IPC as well as for 'criminal misconduct' punishable under Section 13(2) r/w Section 13(1)

(d) PC Act (as it existed prior to Amendment Act 1 of year 2014).

Accused Rahul Sharma (A-5) and Accused Rajeev Sharma (A-6)

3. The prosecution has failed to prove the charges of any of the alleged offences against accused Rahul Sharma (A-5) and accused Rajeev Sharma (A-6).

3.1 Accordingly, accused Rahul Sharma (A-5) and Accused Rajeev Sharma (A-6) are acquitted for the alleged offences of conspiracy under Section 120 IPC r/w 419/420/467/468/471 IPC and section 13(2) r/w Section 13(1) (d) of PC, CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.371 Of 372 Act, 2002. They are also acquitted of the substantive offence under Section 420 IPC r/w 120B IPC.

113. The entire judicial record/file alongwith the judgment be send to the Successor Court.

Digitally signed by SUNENA Announced in the open court SUNENA SHARMA SHARMA Date:

on 24.12.2025 2025.12.23 08:50:10 +0530 (SUNENA SHARMA) Earlier posted as Special Judge:
CBI-20 (PC ACT): Rouse Avenue Court New Delhi Presently posted as District Judge (Commercial Court-04) South-East District : Saket Courts CBI v. Sh. Sanjeev Dixit @ Sanjay Sharma and ors Case No. 63/2019 (6669/16) Page no.372 Of 372