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Madhya Pradesh High Court

Sudhir Kumar Kad vs Central Bureau Investigation on 7 August, 2020

Author: Vivek Rusia

Bench: Vivek Rusia

         THE HIGH COURT OF MADHYA PRADESH
                   M.Cr.C. No. 22809/2020
 Sudhir Kumar Kad. V/s. Central Bureau of Investigation, Bhopal.
                            -: 1 :-

Indore, dated : 07.08.2020
           Applicant by Shri Anil K. Khare, Sr. Advocate with
Ms. Pallavi Khare, Advocate.
           Respondent by Shri Milind Phadke, Advocate.
                          ORDER

This is the first application under Section 439 Cr.P.C. by the applicant - Sudhir Kumar Kad S/o. Keval Krishna Kad, who is in custody since 24.2.2020 in Crime No.RC-0082018A0017/2018, registered by the Police Station CBI, SPE, ACB, Bhopal concerning offence punishebale under Section 13(2)/13(1)(d) of Prevention of Corruption Act and u/s. 420, 471 & 120-B of the IPC.

2. Heard the learned counsel for the parties and perused the case diary.

3. As per prosecution story, CBI, SPE, ACB, Bhopal registered the FIR on 16.1.2018 against Avnish Kaushik, the then Chief Manager, Punjab National Bank (PNB), Kanthal Branch, Ujjain; Smt. Varsha Prajapati W/o. Suresh Prajapati ; present applicant - Sudhir Kumar Kad; and other Bank employees for the offence punishable u/s. 120-B r/w. Section 420, 467, 468 & 471 of the IPC and u/s. 13(2) r/w. Section 13(1)(d) of Prevention of Corruption Act based on complaint dated 16.1.2018 lodged by Vijay Kumar Harit, Chief Manager, PNB, Asset Recovery Management, Branch Indore. As per the contents of the said FIR is that the borrower - Smt. Varsha Prajapati W/o. Suresh Prajapati and guarantor - Narendra THE HIGH COURT OF MADHYA PRADESH M.Cr.C. No. 22809/2020 Sudhir Kumar Kad. V/s. Central Bureau of Investigation, Bhopal.

Prajapati and others conspired with Avnish Kaushik, the then Chief Manager, PNB and other Bank employees of PNB including the present petitioner in furtherance of criminal conspiracy cheated the Bank in order to secure a loan of Rs.380.00 Lakhs to M/s. Urvashi Enterprises. The account was declared NPA on 3.7.2015. After completing the investigation, CBI has filed the final report against the present applicant and 16 others for the offence punishable u/s. 13(2)/13(1)(d) of Prevention of Corruption Act and u/s. 420, 471 & 120-B of the IPC.

4. The investigation revealed that on 12.5.2014 Smt. Varsha Prajapati, proprietor of the firm, submitted the loan application for a cash credit limit of Rs.380.00 Lakhs. She offered the stocks of coal hypothecation and by way of collateral credits, she offered the properties situated at Indore, Bhopal and Vidisha in the name of Narendra Prajapati, Arpan Prajapati, Smt. Hemkumari Prajapati, Smt. Rakhi Prajapati and others. Along with the loan documents, she submitted the details and documents of working capital; audit-reports of the firm for the financial years 2011-12, 2012-13 and 2013-14 (up to 31.12.2013); registration TIN certificate of the firm and VAT returns for the period from 1.4.2012 till 31.3.2014. In the investigation, it was found that M/s. Urvashi Enterprises was registered on 10.1.2014 at Commercial Tax Office, Bhopal, but Smt. Varsha Prajapati submitted forged registration certificate of the firm showing that the firm was registered on THE HIGH COURT OF MADHYA PRADESH M.Cr.C. No. 22809/2020 Sudhir Kumar Kad. V/s. Central Bureau of Investigation, Bhopal.

10.1.2012 and VAT returns for the period from 2012 to 2014 i.e. before the actual registration to secure the cash-credit limit of Rs.380.00 Lakhs for the trading of coal on 12.5.2014. The loan amount of Rs.380.00 Lakhs was sanctioned in the name of M/s. Urvashi Enterprises on 27.6.2014 and the entire loan amount was transferred from 28.6.2014 to 30.6.2014 by issuing cheques in favour of M/s. Shaurya Fuels and Minerals and others. The allegation against the present applicant and other bank employees/officers of PNB is that they did not properly verify the forged documents submitted by Smt. Varsha Prajapati and processed and approved the loan. They failed to follow the circular No. 99 dated 1.10.2011. After sanction of the loan, the amount was credited in the account of M/s. Urvashi Enterprises and within two days, the same has been disbursed to different firms. The Bank has been able to recover only Rs.60,51,000/- and thus, the amount due to the Bank is Rs.327.00 Lakhs including interest as on 15.1.2018. Therefore, as per the final report filed by the respondent - CBI in under the conspiracy, Smt. Varsha Prajapati submitted the forged documents as genuine to PNB and availed the cash- credit limit of Rs.380.00 Lakhs and in furtherance to the said conspiracy, Avnish Kaushik, the then Chief Manager, Sudhir Kumar Kad - present applicant and others by abusing their official position sanctioned, recommended and processed the loan causing wrongful loss of Rs.327.00 Lakhs to the PNB and THE HIGH COURT OF MADHYA PRADESH M.Cr.C. No. 22809/2020 Sudhir Kumar Kad. V/s. Central Bureau of Investigation, Bhopal.

corresponding wrongful gain to M/s. Urvashi Enterprises and others.

5. Shri Anil Khare, learned senior counsel appearing for the applicant, submits that the applicant was posted as Senior Manager from 2.7.2012 to 10.8.2014 at Kanthal Branch of PNB. Shri Govind Singh Lodhi, Manager, Credit verified the documents submitted by the borrower and presented before the present applicant. The present applicant believing the report given by him processed and recommended for the loan. There was no reason to doubt the report given by Govind Singh Lodhi. Thereafter, Avnish Kaushik Chief Manager had finally sanctioned the loan. The applicant is in jail since 24.2.2020. The investigation has been completed and challan is filed. There are as many as more than 50 witnesses in this case and the trial will take considerable time to conclude. No custodial interrogation is required and all the documents pertaining to this case have already been seized by the respondent-CBI. He, therefore, prays that the applicant be released on bail.

6. On the other hand, Shri Milind Phadke, learned Assistant Solicitor General appearing for the respondent, CBI, submits that as many as four FIRs have been registered against the present applicant and other Bank employees. In all the four cases, the accused have sanctioned the loan of Rs.3.5 to Rs.4.00 Crores each to M/s. Urvashi Enterprises and others on the basis of forged documents and forged stock registers.

THE HIGH COURT OF MADHYA PRADESH M.Cr.C. No. 22809/2020 Sudhir Kumar Kad. V/s. Central Bureau of Investigation, Bhopal.

The applicant and others being the senior employees of the Bank did not verify the documents and the stocks before sanctioning the loan and caused huge financial loss to the Bank. Smt. Varsha Prajapati, Narendra Prajapati and the employees of the Bank conspired each other to cause huge losses to the Bank. In one of the cases, viz. Crime No. RC- 0082018A0019/2018, the present applicant had filed M.Cr.C. No.10585/2020 before this Court. This Court vide order dated 19.3.2020 has dismissed the said application. Against the said dismissal order, the applicant approached the apex Court by filing SLP No. 10797/2020 which too has been dismissed as withdrawn. Therefore, in this case, also, the applicant is not entitled to bail and the application is liable to be rejected.

7. As per the allegations leveled in the FIR, M/s. Urvashi Enterprises was registered on 10.1.2014 in Commercial Tax Office, but Smt. Varsha Prajapati submitted the forged audit-report of the year 2011-12 up to 2013-2014 and VAT returns of the same period in order to secure the loan. It was the duty of the applicant and other Bank Managers/employees to verify the said documents before sanctioning such a huge amount of loan. Not only in this case, but in all other three FIRs also, a huge amount of loans were sanctioned to Smt. Varsha Prajapati which resulted in the registration of four FIRs. In one of the cases, this Court had rejected the bail applicant filed by the applicant and thereafter, the SLP preferred by him has been withdrawn.

THE HIGH COURT OF MADHYA PRADESH M.Cr.C. No. 22809/2020 Sudhir Kumar Kad. V/s. Central Bureau of Investigation, Bhopal.

During this Covid-19 period also, the apex Court has declined to temporarily release the accused involved in the corruption cases. Looking to the gravity of the offences, in the considered opinion of this Court, the applicant is not entitled to be released on bail.

8. Accordingly, this M.Cr.C. fails and is hereby dismissed.

( VIVEK RUSIA ) JUDGE Alok/-

Date: 2020.08.10 12:36:05 +05'30'