Bangalore District Court
Central Bureau Of vs Honnudike Shivanna Eshwar on 27 April, 2019
IN THE COURT OF THE XLVI ADDITIONAL CITY CIVIL
AND SESSIONS JUDGE AND SPECIAL JUDGE FOR
CBI CASE[S AT BENGALURU.
Dated 27th day of April, 2019.
PRESENT:
S.H.PUSHPANJALI DEVI, B.A. LL.B.,
XLVI Additional City Civil and Sessions Judge
and Special Judge for C.B.I. Cases,
Bengaluru.
SPECIAL CRIMINAL CASE No.34/2016
COMPLAINANT: Central Bureau of
Investigation,
A.C.B., Bengaluru.
(By Public Prosecutor)
-VERSUS-
ACCUSED : 1 Honnudike Shivanna Eshwar
@ H.S.Eshwar,
S/o.Late Honnudike
Gangadhariah Shivanna,
Ex. Manager,
Canara Bank,
Srirangapatna Branch,
Mandya District.
R/o.Ground Floor-2,
SLV Golden Nest Apartment,
2 Spl.CC.34/2016
No.25, HIG, KHB Colony,
1st Cross, 2nd Stage,
Basaveshwara Nagar,
Bengaluru-560 079.
2 Smt.A.R.Mamatha,
w/o. H.S.Eshwar,
R/o.Ground Floor-2,
SLV Golden Nest Apartment,
No.25, HIG, KHB Colony,
1st Cross, 2nd Stage,
Basaveshwara Nagar,
Bengaluru-560 079.
3 Smt.Rajatha B. Eshwar,
w/o. S. Giri Babu @ Girish,
R/o.House No.1328,
2nd Floor, 6th Cross,
11th Main, HAL 3rd Stage,
Jeevan Bhima Nagar,
Bengaluru-560 018.
4 G.Giri Babu @ Girish,
S/o.B.M.Srinivasa,
R/o.House No.1328,
2nd Floor, 6th Cross,
11th Main, HAL 3rd Stage,
Jeevan Bhima Nagar,
Bengaluru-560 018.
3 Spl.CC.34/2016
5 C.Umeshappa
S/o.Late M.Channa Basappa,
First Division Clerk,
O/o.Revenue Officer,
BBMP, Ambedkar Stadium,
Basaveshwara Nagar,
Bengaluru-79.
R/o.No.20, Srigandha Kaval,
Hanumantha Nagara,
Bengaluru-91.
(Accused Nos.1 to 5 By Sri.
R. Nagendra Naik)
1. Date of Commission of : During the period from
Offence 1.1.2011 to 30.6.2014
2. Date of Report of Offence : 31.12.2014
3. Date of Arrest of accused : -
Nos.1 to 5
4. Date of release of accused : 9.2.2016
Nos.1 to 5 on bail
5. Period of undergone in : -
custody
4 Spl.CC.34/2016
6. Name of the complainant : Source information.
7. Date of commencement of : 1.2.2018
Evidence
8. Date of closing of Evidence : 27.8.2018
9. Offences complained of : under Section 13 (2)
r/w.13 (1)(e) of
Prevention of
Corruption Act, 1988
and Sec.109 of IPC.
10. Opinion of the Judge : As per final order
11. CBI represented by : Public Prosecutor
(S.H.PUSHPANJALI DEVI)
XLVI Addl. City Civil and Sessions Judge
and Special Judge for CBI Cases,
Bengaluru.
5 Spl.CC.34/2016
JUDGMENT
This charge sheet is filed by the Deputy Superintendent of Police, CBI/ACB/Bengaluru against the accused Nos.1 to 5, for the offences punishable under Sections 13(2) r/w.13(1)(e) of Prevention of Corruption Act, 1988 and 109 of Indian Penal Code.
2. The brief facts stated in the charge sheet that on the basis of Source of Information received against the accused No.1, while he was functioning as a public servant in the capacity of Manager, Canara Bank, Srirangapatna, Mandya District and other places during the check period from 1.1.2011 to 30.6.2014, has amassed assets and incurred expenditure disproportionate to his known source of income at Rs.6,47,75,873/- which works out to 1757%. During investigation, the check period has taken from 1.1.2011 to 30.6.2014, since the accused No.1 was in 6 Spl.CC.34/2016 service up to 30.6.2014, on the same day he was dismissed from the Bank service.
3. The prosecution has alleged that the accused No.1 joined Canara Bank on 27.10.1978 as a Typist cum Filing Clerk at Founders Branch, Mangalore, worked in the same capacity at different branches of Canara Bank and got promotion as Scale-I Officer (JMG) from 1.4.1997 and as Scale-II Officer (MMG) from 7.10.2011. During the said period he was posted at Madanayakanahalli branch, Bengaluru Rural from 19.11.2011 to 9.6.2012 at Hassan Branch from 11.6.2012 to 31.7.2012 and at Srirangapatna branch from 6.8.2012 to 30.6.2014. During the said period, he was dismissed from Bank's service vide Office Order No. MYCO HRM F 265 674 2014 dated 30.6.2014 issued by the AGM and Disciplinary Authority, Canara Bank, HRM Section, Circle Office, Mysore. Prior to dismissal he was under
suspension from 27.8.2013 to 30.6.2014.
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4. The investigation revealed that accused No.2 Smt. A.R. Mamatha, wife of accused No.1 has studied up to PUC and an housewife dependent on her husband. Accused No.3 Smt. Rajatha B. Eshwar, the only daughter of accused No.1 and 2, a Engineer graduate in Biotechnology, during 2009, got married with her boy friend S. Giribabu, the accused No.4 at Sub-Registrar's office, Bengaluru and started living with her in-laws house at Kodihalli, Bangalore. She worked as Software Engineer in Accenture at Whitefield, Bangalore for about one and half years and left the job after delivering her first baby. She is having 3 years old daughter namely Bhoovika and 2 years old son namely Chirag. Accused No.4 Giribabu is the son-in-law of accused No.1 and 2 and husband of accused No.3 was running his own Gym in the name of Finix Fitness Studio at Jeevan Bhima Nagar, Bengaluru, prior to that he was working as a Freelance Dance Choreographer in the trade 8 Spl.CC.34/2016 name of Zaal Dance Academy and also used to visit various Gyms in Bangalore and work as Aerobic Instructor.
5. The accused No.5 C. Umeshappa is the brother- in-law of accused No.1, husband of his younger sister Smt. H.S. Kalpana was working as a First Division Clerk in the office of BBMP, Basaveshwara Nagar, Bangalore, joined as a Typist in the year 1995. The accused Nos.2 to 5 though got PAN Numbers have not filed any Income Tax Returns. The accused No.1 has filed IT returns for the Assessment years from 2011 to 2015, showing his income only from salary and meager amount from other sources.
6. It is alleged that the accused No.1 while working as a Branch Manager of Canara Bank, Srirangapatna branch has abused his official position with dishonest intention and fraudulently issued six fake Inland Letters of Credit for total amount of Rs.44,54,74,172/- in favour of Gee Pee Infotech Private Limited and Ganapathi Pavan Kumar Trading Private 9 Spl.CC.34/2016 Limited. It is also made out that those fake Inland Letters of Credit seems to be issued on the request of Padmavathi Enterprises, Vigash General Trade & Services Private Ltd., and Ryon Garments, as if they were issued from Canara Bank, Madanayakanahalli branch, where he had worked earlier and thereafter confirmed their issuance when enquired by the negotiating bank such as SBI, IFB, Kolkata.
7. Further it is made out that, the accused No.1 has dishonestly and fraudulently issued four ILCs for total amount of Rs.33,44,85,000/- in favour of M/s. Foremost Merchandise Private Limited, Mumbai on behalf of M/s. Vigash General Trade & Services Private Limited, Bangalore as if they were issued from Canara Bank, Srirangapatna Branch where he was working as its Branch Manager. It is further alleged that the accused No.1 had also received payments for the total amount of Rs.3.52 Crores from the beneficiaries of the bogus ILCs, which were credited to the accounts of his wife A.R. Mamatha and joint account of his 10 Spl.CC.34/2016 family standing in the names of himself along with accused Nos.2 and 3. The charge sheet reveals that the details of all the RTGS transfer made from Kanazh Metals Private Limited from Satish K. Pujari on 24.9.2012, 1.10.2012, 5.10.2012, 10.11.2012 and 26.12.2012. The remittances into SB account opened jointly held by accused No.3 with accused Nos.1 and 2 at Canara Bank, Basaveshwara Nagar Branch also made known by their RTGS transfer on different dates.
8. The prosecution further alleged that amount of Rs.3.52 crores received as per the details mentioned regarding by way of RTGS transfer of different amounts and utilised to create movable and immovable assets in the name of accused Nos.1 to 5, which resulted in huge cost of disproportionate to his known source of income. According to CBI, the accused acquired assets to the tune of Rs.30,98,513/- at the beginning of the check period from 1.1.2011 and to the tune of Rs.2,27,71,259/- at the end of 11 Spl.CC.34/2016 the check period on 30.6.2014. It is also alleged that he had received total income of Rs.26,71,197/- and incurred expenditure to the tune of Rs.2,81,26,624/- during the during the check period from 1.11.2011 to 30.6.2014 as described in the Statements-A, B, C & D of the charge sheet.
9. The prosecution has further alleged that accused Nos.2 to 5 have abetted the accused No.1 in acquiring the properties in their names and transferring funds held by them out of the ill-gotten money. Therefore, it is alleged that the accused No.1 being a public servant has committed Criminal Misconduct as he is in possession of assets and incurred expenditure disproportionate to his known source of income to the extent of Rs.4,51,28,173/- during the check period from 1.1.2011 to 30.6.2014, which includes assets in the name of his wife A.R. Mamatha, daughter Rajatha B. Ishwar, son-in-law S. Giri Babu and brother-in- law C. Umeshappa. The accused could not satisfactorily 12 Spl.CC.34/2016 explain for all the allegations made by the prosecution against them. Therefore, it is alleged that the accused No.1 has committed Criminal breach of trust and accused Nos.2 to 5 abetted him to amass the wealth disproportionate to his known source of income and they have committed the offences punishable under Section 13(2) read with 13(1)(e) of Prevention of Corruption Act, 1988 and Section 109 of IPC.
10. After Investigating Officer has filed charge sheet with documents, this court has taken cognizance of offences punishable under Sections 13(2) r/w. 13(1)(e) of Prevention of Corruption Act, 1988 and Section 109 of IPC. Thereafter, case registered as Special Criminal Case and summons issued to accused Nos.1 to 5. In response to the summons, accused Nos.1 to 5 were appeared through the counsel before the Court and they enlarged on bail.
13 Spl.CC.34/2016
11. Thereafter this court has heard the learned counsel for accused and learned Public Prosecutor on framing of charge. After perusal of the entire records, as sufficient materials produced before the Court to frame the charge against the Accused Nos.1 to 5, this court has proceeded further and framed the charges against them punishable under Sections 13(2) r/w 13(1)(d) of Prevention of Corruption Act, 1988 and Sec.109 of IPC. The charge is read over to the accused Nos.1 to 5 and explained it, they were pleaded not guilty and claimed to be tried. Hence, the case was posted for trial.
12. The prosecution in order to prove the alleged offences against the accused Nos.1 to 5, has examined in total 59 witnesses as PWs.1 to 59 and the documents 211 are marked. The prosecution has given up CWs.20, 36, 40, 55 to 62, 65, 69, 72.
14 Spl.CC.34/2016
13. After closure of the evidence of the prosecution witnesses, the incriminating circumstances in their evidence read over and explained to the accused under Section 313 of Cr.P.C. The accused Nos.1 to 5 have denied the entire evidence placed against them and filed their separate written statements under Section 313(5) of Cr.P.C. However, on behalf of accused No.1, list of witnesses filed and summons issued to examine the witnesses 1 to 3 through RPAD. Subsequently, summons to witnesses 2 and 3 duly served and they remained absent. Therefore, submission made on behalf of accused No.1 that he is not going to examine those witnesses. But, fresh address of witness No.1 is furnished, for which summons issued to both his addresses through RPAD, were returned with shara 'addressee not known and left'. Therefore, as submitted by learned counsel for accused Nos.1 to 5, defence evidence taken as nil.
15 Spl.CC.34/2016
14. Heard, the arguments of learned Public Prosecutor and learned Counsel for accused Nos.1 to 5 on merits.
15. The points that would arise for my consideration is:-
1) Whether the prosecution proves
beyond reasonable doubt that accused
No.1 being public servant while
discharging his duties in the capacity of Manager of Canara Bank, Srirangapatna Branch, Mandya District and other places acquired and possessed wealth in his name and in the names of his family members accused Nos.2 to 5, pecuniary resources and assets of the value of Rs.4,51,28,173.00/- disproportionate to his known source of income during the check period from 1.1.2011 to 30.6.2014, which he could not satisfactorily account and has committed the offence punishable under Section 13(2) R/w. Sec. 13(1)(e) of Prevention of Corruption Act, 1988?
16 Spl.CC.34/2016
2) Whether the prosecution proves
beyond reasonable doubts that the
accused No.2 to 5 have abetted the
commission of above offence by
intentionally aiding accused No.1 in the acquisition and possession of pecuniary resources and properties disproportionate to his known source of income by holding substantial portion in their names, and have committed offence punishable under Section 109 of IPC and Sec. 13(2) R/w Sec. 13(1)(e) of Prevention of Corruption Act, 1988,?
3) What Order?
16. After perusal of the entire records that were
placed before the court and points submitted during arguments both by the learned Public Prosecutor and learned counsel for accused Nos.1 to 5, I answer the above points as follows:-
Point-1: In the Affirmative
17 Spl.CC.34/2016 Point-2: In the Negative Point-3: As per final order for the following:-
REASONS
17. Point Nos.1 and 2 :- Though distinct and separate charges are framed against the accused Nos.1 to 5, in order to avoid overlapping of discussion, these points are taken up together for discussion.
18. The accused No.1 was a public servant during the period of alleged offence of acquiring disproportionate assets, for the period from 1.1.2011 to 30.6.2014.
Subsequently, on 30.6.2014 he was dismissed from the Bank service, therefore no Sanction obtained by Investigating Officer to prosecute against him as per Section 19(1) (C) of Prevention of Corruption Act, 1988. The learned Public Prosecutor has submitted that the Sanction is not required to prosecute against accused No.1 as he was not a public servant as on the date of taking 18 Spl.CC.34/2016 cognizance of the offence by this Court and relied on the following Rulings:-
1) State of Punjab Vs. Labh Singh in Crl.Appeal No.2168/2010 decided on December 17th, 2014.
The Hon'ble Supreme Court of India has held that to prosecute against retired public servant, Sanction u/S.19 of PC Act is not required on the date of cognizance by the Court.
2) AIR 1958 SC - 107 in the case of S.A.Venkataraman Vs. The State (And Connected Appeal) decided on 3rd December, 1957.
The Hon'ble Supreme Court of India has held that, for an offence u/S.161 of IPC, committed by a public servant, if he was expecting to be a public servant and was not a public servant when offence was committed, a previous Sanction would be unnecessary to take cognizance.
3) In Crl.Appeal No.721/2016 in the case of L.Narayana Swamy Vs. State of Karnataka and others 19 Spl.CC.34/2016 decided on 6th September of 2016, the Hon'ble Supreme Court of India made an observation as "the abuse of official power holding as on the date of taking cognizance to be taken into consideration where the public servant had abused office which he held in the check period but had ceased to hold "that office or was holding a different office, then a Sanction would not be necessary. Where the alleged misconduct is in some different capacity than the one which is held at the time of taking cognizance, there will be no necessity to take the Sanction."
19. The learned Public Prosecutor in view of the above observations has submitted that the Prevention of Corruption (Amendment) Act, 2018 came into force from 26.7.2018 is not applicable as per the Principle applied in Crl.R.P. 834/2015 decided on 8.8.2018 by the Hon'ble High Court of Karnataka.
20. Further pointed out Section 6A of Repeal Act, as the Amended Act, came into force subsequent to 20 Spl.CC.34/2016 cognizance taken against accused No.1 and it is not have retrospective effect as per discussion made in Citation reported in 1978 Crl.L.J. 842 in the case of Roshan Singh and another Vs. The State of West Bengal decided on 1.3.1978. Moreover, accused No.1 was dismissed from the service subsequent to registering the FIR against him and he was not a public servant as on the date of taking cognizance by this Court.
M.Abdul Khader and another Vs. Mysore Revenue on 22.7.1965 (equivalent Citation) AIR 1967 KAR 6, AIR 1967 MYSORE 6.
The gist of this Ruling is the law prevailing on the day of the offence of the proceedings should be continued and not by subsequent change in the law expressly or by necessary implication takes away the rights to go up in Appeal to the Tribunal. Therefore, the discussion made on Sec 6 of Central General Clauses Act, 1897 does not strictly apply to the facts of the said case.
21 Spl.CC.34/2016
21. Therefore, in view of the observation made by the Hon'ble Supreme Court of India, in the above mentioned Rulings, Sanction is not necessary to prosecute against accused No.1 as he was dismissed from the service on 30.6.2014 and not a public servant as on the date of taking cognizance of the offence.
22. It is made out from the charge sheet that, the main charge directed against accused No.1 who was being a public servant has acquired and possessed in his name and in the name of his wife, daughter, son-in-law and brother-in-law, accused Nos.2 to 5, pecuniary resources and properties disproportionate to his known source of income to the extent of Rs.4,51,28,173/-, which he could not satisfactorily account. These allegations squarely fall within the definition of Sec.13(1)(e) of the Prevention of Corruption Act, 1988. Therefore, before discussing the evidence of prosecution, it is necessary to bear in mind the ingredients of offence of Criminal Misconduct defined under 22 Spl.CC.34/2016 Sec.13(1)(e) of Prevention of Corruption Act, 1988, reads as :
A public servant is said to commit the offence of criminal misconduct,-
(e) if he or any person on his behalf, is in possession or has, at any time during the period of his office, been in possession for which the public servant cannot satisfactorily account, of pecuniary resources or property disproportionate to his known sources of income.
Explanation.- For the purposes of this section, "known sources of income" means income received from any lawful source and such receipt has been intimated in accordance with the provisions of any law, rules or orders for the time being applicable to a public servant.
23. The first part of the above Section casts a burden on the prosecution and second part on the accused No.1 as he was a public servant. The extent of burden of proof is on the prosecution in proving the existence of property and pecuniary resources in the possession of an 23 Spl.CC.34/2016 accused being public servant, the extent and nature of the burden on the part of the public servant to satisfactorily account a pecuniary resources or the property disproportionate to his known source of income.
Explanation to Section 13(1)(e), the source of income, in order to qualify as a "known source of income" for the purpose of said Section, it is essential that it should satisfy the following conditions,
(i) It should be a "lawful source of income"
and
(ii) The receipt of income from such a source should have been intimated in accordance with the provisions of any Law, Rules or Orders for the time being applicable to a public servant.
Therefore, as a natural corollary of the above conditions it follows that,
(i) Any income received from a source which is not lawful cannot be considered as known source of income under Sec.13(1)(e) of the 24 Spl.CC.34/2016 Act, if such an income was actually received by the concerned public servant.
(ii) Any income even though received from a lawful source, cannot be considered "known source of income," if the receipt of such income has not been intimated in accordance with the provisions of any law, Rules or Orders for the time being applicable to a public servant.
24. The above explanation further follows that "if a property is acquired from out of the known source of income of the accused, the income derived from such property can be added to the income of the accused. But if a particular property is acquired from out of the any unknown source of income, the income derived from such property cannot be shown as income of the accused."
25. In view of the said explanation to Sec.13(1)(e) of the Act of 1988, the prosecution is relieved of the burden of investigating into the "Source of income" of an accused 25 Spl.CC.34/2016 to a large extent, as it is stated in the explanation that "known source of income" means income received from lawful source, the receipt of which has been intimated in accordance with the provisions of any law, rules, orders for the time being applicable to the public servant.
26. It is settled Law that the terminology income in the above Section, so far as the public servant is concerned is understood as the "income attached" to his office or post commonly known as remuneration or salary or other perquisites. It is explained that the term income by itself is elastic and has a vide connotation, whatever comes in or is received, is income. However, it is incapable of being understood as meaning Receipt having no nexus to one's labour, or expertise, or property, or investment and having further a source which may or may not yield a regular revenue. That a Receipt from a windfall or gains of graft, crime or immoral secretions by persons prima facie would not be receipt from the "known source of income" of a 26 Spl.CC.34/2016 public servant as per the observation made by the Hon'ble Supreme Court in the ruling reported in AIR 2004 SC 517 in the case of State of Madhya Pradesh Vs. Awadh Kishor Gupta.
27. The prosecution has taken up the check period from 1.1.2011 to 30.6.2014, which has important bearing in deciding the guilt of accused No.1 being a public servant for the offence of Disproportionate of Assets u/S.13(1)(e) of the Prevention of Corruption Act, 1988. There is no dispute of the check period selected by the prosecution for 3½ years from 1.1.2011 to 30.6.2014 is reasonably sufficient to give a fair and comprehensive picture of the known source of income and pecuniary resources and properties in the possession of accused so as to arrive at fair decision on the issues involved in this proceedings. The details of Assets and properties held by accused No.1 at the beginning of the check period, as on 1.1.2011 are mentioned in the Statement-A as follows:
27 Spl.CC.34/2016 No. Description of the Assets Amount in Rs.
1 Site No.424 measuring 32' x 33' in 7,50,000.00
Sy.No.28/3, Saneguruvanahalli,
Yashwantpur Hobli, Bangalore (now BEML Layout, Basaveshwara Nagar, Bangalore) with house constructed thereon. The site was purchased in the year 1988 in the name of the accused No.1 H.S.Eshwar and the house was built thereon during the period from 1988 to 1995.
2 Value of articles found in the 6,47,100.00 residential premises of accused No.1 H.S.Eshwar at Flat No.FG-2, SLV Golden Nest, No.25, HIGKHB Colony, 1st Cross, 2nd Stage, Basaveshwaranagar, Bangalore-79 as per Inventory drawn on 13.01.2015 during search, in Locker No.283 of accused branch, Bangalore and as per the statement of assets and liabilities for the period ending March, 2011 submitted to Bank by the accused No.1 H.S.Eshwar.
3. Credit balance held in SB account 3,54,582.00 No.1174101020804 of accused No.5 C.Umeshappa (brother-in-law of accused) at Canara Bank, Magadi road branch, Bangalore, which was being operated by both the accused No.1 H.S. Eshwar and accused No.5 C.Umeshappa.
4. Credit balance in OD A/c 25,756.00
28 Spl.CC.34/2016 No.2373252005097 of the accused No.1 H.S.Eshwar at Canara Bank, Srirangapatna Branch.
5. Credit balance in SB account 2,01,620.00 No.2529101013174 held in the joint names of accused No.3 Smt. Rajatha B.Eshwar, accused No.1 H.S.Eshwar and accused No.2 Smt. A.R.Mamatha at Canara Bank, Basaveshwaranagar Branch, Bangalore.
6. TATA Indica DLS Car bearing 2,75,000.00 registration No.KA-01/MA-4429 in the name of accused No. 1 H.S.Eshwar in 2008.
7. 15 Shares of On-mobile Global 7,545.00 Limited purchased in the name of accused No. 1 H.S.Eshwar in 2010.
8. 14 Shares of Reliance Industries 140.00 Limited purchased in the name of accused No. 1 H.S.Eshwar in 2010.
9. 77 Shares of Reliance Power Limited 770.00 purchased in the name of accused No. 1 H.S.Eshwar in 2010.
10. Site No.127-SE measuring 30' x 40' at 8,36,000.00 Nisarga South Extension layout, Jigani Hobli, Anekal taluk, Bangalore Urban District purchased in the name of the accused No. 1 H.S.Eshwar in 2005.
Total : 30,98,513.00
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28. The prosecution has produced the above details of Assets acquired by accused No.1 in his name at the beginning of the check period, in order to enable the Court to have a fair view of the controversy seized by the Court. Therefore, it is necessary to consider the said Assets of accused No.1 are to be discussed in brief.
29. Sl.No.1 is a Site No.424 situated at Saneguruvanahalli, Yeswantpur hobly, Bengaluru purchased by accused No.1 in the year 1988, thereafter built a house during 1988 to 1995, for which amount of Rs.7,50,000/- spent by him is supported by evidence of PW19 and documents Exs.P154 and Ex.P155.
30. PW19 - S.Girish who was Sub-Registrar at Peenya SRO, Bengaluru has deposed that during the year 2015 he was entrusted the work of registration of documents pertaining to properties located at Bengaluru North Taluk. He has furnished the certified copy of the Sale 30 Spl.CC.34/2016 Deed bearing No.2462/1988-89 dtd.18.7.1988 registered in the said Office, which was executed by A.H.Renukaprasanna S/o.Huchaveerappa in favour of accused No.1 relating to the Site No.424 in Sy.No.28/3, 32 and 33 situated at Saneguruvanahalli, Yeswanthpur Hobli, Bengaluru North Taluk with Encumbrance Certificates as requested by CBI. According to the said documents the accused No.1 had purchased the said property for consideration of Rs.30,000/-, and he has paid Stamp Duty of Rs.3,900/-, Registration fee of Rs.627/- Afterwards, he has constructed first floor by borrowing loan of Rs.7.50 lakhs from the bank, subsequently on 28.5.2015 it was sold by him in favour of V.M.Machendranath and Poornima for sale consideration of Rs.62,24,000/-. Therefore the value of the said property at the beginning of check period can be taken at Rs.7.50 lakhs only, though the accused No.1 has stated the Sub Registrar value of the said property as on 01.01.2011 was around Rs.40 lakhs, in the details submitted by him to Dy.S.P., CBI/ACB, Bangalore as per 31 Spl.CC.34/2016 Ex.P.207. However, the said sale transaction is proved by prosecution by producing the documents Exs.P154 and 155, the certified copies of the Sale Deed dtd.18.7.1988 and two Encumbrance Certificates for the period from 1988 till 2015. PW19 has produced those documents with covering letter, however proves the above Site purchased by accused No.1 in the year 1988.
31. Sl.No.2 the value of Articles worth of Rs.6,47,100/- found in the residential premises of accused No.1 at Flat No.GF-2, SLV Golden Nest, Basaveshwara Nagar, Bengaluru, as per the Inventory drawn on 13.01.2015 during search made by Investigating Officer and Locker held in the name of accused No.1 at Canara Bank, Basaveshwara Nagar, Bangalore. To prove the same, prosecution has examined PWs.50 and 59 and produced documents Exs.P191 and 194.
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32. PW.50 M. Manjunath, Assistant Manager, Indian Bank, Zonal Office, Bengaluru is a witness for search conducted by Investigating Officer in the house of accused No.1 at Basaveshwara Nagar and seizure of documents from his house on 13.1.2015. He has deposed that the Investigating Officer Guruprasad took him with another witness to the house of accused No.1 at Basaveshwara Nagar and after due search seized the documents, thereafter prepared the search list with Inventory as per Ex.P191. He has identified his signatures put to the said Inventory marked as Ex.P191 (a) and (b). The IT returns of accused No.1 identified under Ex.P192 and duplicate bill issued by BSNL in the name of accused No.1 marked as Ex.P193. The Investigating Officer Guruprasad during search has seized two ladies finger rings in the locker and they were kept inside the Locker No.283 held in the name of accused No.1 as per the proceedings drawn under Ex.P194. The witness has identified his signatures marked as Ex.P194 (a) and (b).
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33. The Investigating Officer PW59 -
K.Y.Guruprasad has stated about search conducted in the house of accused No.1 and seized some documents from his house. He has identified those documents shown in the search list prepared as per Ex.P191. Though 8 documents were seized as per the search list, he has stated only 4 documents are shown in the charge sheet marked as Exs.P.14, 162, 192 and 193. Further he has also conducted inspection of Locker No.283 held by Accused No.1 in Canara Bank, Basaveshwara Nagar Branch, Bengaluru and drew proceedings under Ex.P.194 bears his signature as per Ex.P.194(c).
34. Sl.No.3, credit balance of Rs.3,54,582/- held in SB A/c.No.11741011020804 of accused No.5 C.Umeshappa, the brother in law of accused No.1. The prosecution to prove the same has produced the evidence of PW38 with supporting documents Exs.P177 to 179.
34 Spl.CC.34/2016
35. PW.38 - G. Sreenivasa Acharyulu was Manager in Canara Bank, Magadi Road Branch, Bengaluru has deposed that he was looking after Banking transaction under the overall control and supervision of Branch Head and Chief Manager viz., R. Someshwaran. He has submitted documents along with letter addressed to CBI as per Ex.P177 contains original Account Opening Form given by accused No.5, Statement of SB A/c.No.1174101020804, the certified copies of Cash received vouchers, Cash paid vouchers and Transfer vouchers. The details of nature of transaction with original vouchers submitted by him under the letter Ex.P178 and has identified 16 Pay in slips marked as Ex.P179. He has explained about the details of the account of accused No.5 opened on 10.10.2005, in which the credit balance as on 1.1.2011 was Rs.3,68,049/- and as on 30.6.2014 it was Rs.15,98,046/-.
36. However, the learned Counsel for accused No.1 has submitted that the Bank balance of accused No.5 to the 35 Spl.CC.34/2016 extent of Rs.3,54,582/- included in the Assets of accused No.1 at the beginning of check period is incorrect as the account of accused No.5 is not an joint account with accused No.1, not been operated by him and no amount deposited to the said Account. Further pointed out that the Account opening form given by accused No.5 and the individual account opened in his name, for which salary was credited from BBMP every month. The accused No.1 and his family members have borrowed some amounts from him and repaid subsequently, therefore the said amounts cannot be added as Assets of accused No.1. For the said reasons stated that the amount of Rs.3,54,582/- has to be deducted from the income of accused No.1, after deduction, the correct amount of Assets at the beginning of the check period as on 1.1.2011 will comes only at Rs.27,43,931/- and not Rs.30,98,513/-.
37. The learned Public Prosecutor has pointed out the transactions made by accused No.1 through the above 36 Spl.CC.34/2016 said SB Account of accused No.5 on different dates and transfer of some huge amounts from various persons as shown in the Statement of Account produced under Ex.P177.
38. I have perused the Statement of Account produced along with other documents under Ex.P177, which reveals that the different transactions were made for huge amount of Rs.2 lakhs, Rs.4 lakhs, Rs.9.75 lakhs, Rs.5 lakhs etc., on different dates during the check period. The amount of Rs.5 lakhs transferred from one Ajith Rao on 4.6.2012 and on 18.6.2012 Rs.13 lakhs shown in the name of said Ajith Rao who is examined as PW40. He has deposed that an agreement entered with accused No.5 to purchase an apartment of four bed rooms for Rs.30 lakhs, he has paid initially Rs.6 lakhs through Cheque for Rs.5 lakhs and Cash of Rs.1 lakh, the Cheque identified under Ex.P179. Thereafter he has paid Rs.19 lakhs through three Cheques, one Cheque for Rs.5 lakhs, one self-cheque for 37 Spl.CC.34/2016 Rs.1 lakh and another Cheque for Rs.13 lakhs. The said Cheque dtd.18.6.2012 bearing No.525545 for Rs.13 lakhs has been entered in the Statement of Account of accused No.5.
39. However, accused No.5 has not filed any Income Tax Returns and not paid any income tax for receiving the said huge amount during 2012 as could be made out from the evidence of PW56 B.A.Usha Devi. She being the Income Tax Officer Ward No.1(3)(1) at the Office of Joint CIT, HMT Bhavan, Bengaluru has deposed about the documents relating to accused No.5 produced through covering letter Ex.P171 and identified her signature as Ex.P171(b). She has further stated 7 screen shots bears her signatures, are relating to Assessment year from 2010- 11 till 2015-16. According to those documents, accused No.5 has not paid any income tax or filed IT Returns during the said period. Likewise, the above said Ajith Rao who was said to be entered into an agreement with accused No.5 to 38 Spl.CC.34/2016 purchase the flat for Rs.30 lakhs also not an Income Tax Assessee and not submitted any IT Returns.
40. Further it is made out from the above Statement of Account of accused No.5, that prior to check period, accused No.1 had withdrawn the amount of Rs.3,80,000/- through Cheque No.762607 dtd.9.1.2010 and Rs.2 lakhs withdrawn by him on 2.6.2010 through Cheque No.782221. Further, amount of Rs.25,000/- deposited on 11.1.2010, Rs.48,000/- each deposited on 21.1.2010, 27.1.2010, 10.4.2010 and Rs.45,000/- deposited on 26.4.2010. On 2.6.2010 amount of Rs.1 lakh withdrawn by K.S.Sridhara through the Cheque No.762620. The entry made in the name of said K.S.Sridhar for withdrawing the amount of Rs.3,45,000/- on 16.10.2010. Again cash of Rs.1 lakh withdrawn on 25.6.2010 through the Cheque No.782224, again the amount of Rs.1 lakh, Rs.2 lakhs withdrawn through Cheques on different dates. Apart from those withdrawals, funds also transferred to the Account of 39 Spl.CC.34/2016 accused No.5 to the extent of Rs.1,00,648/- and Rs.50,000/- through different Cheques and sum of Rs.5 lakhs withdrawn as on 28.10.2010 through Cheque shown as TD 1174401002946. However, the balance as on 21.12.2010 shown in the above mentioned account of accused No.5 was Rs.3,54,582/-, through which Account, the accused No.1 had made several transactions both prior to and during the check period. Therefore, the said amount will be considered as income of accused No.1, on the ground that the interest amount credited only towards said huge amounts, if calculated comes to Rs.3,54,582/-. Therefore, as the arguments submitted by the learned Counsel for accused No.1 is contrary to the above mentioned documents produced before the Court cannot be considered. Moreover, accused No.5 has not properly explained about his Salary and any income from other sources with supporting documents though alleged as some amounts had been borrowed and repaid by accused Nos.1 to 4 during the check period. Therefore, the amount of 40 Spl.CC.34/2016 Rs.3,54,582/- has correctly taken as Asset of accused No.1 at the beginning of check period.
41. In proof of Credit balance of Rs.25,756/- in OD A/c.No.2373252005097 of accused No.1 shown at Sl.No.4, the prosecution relied on evidence of PW8 - D.C.Mohan Kumar. He being the then Sr.Manager, Canara Bank, Srirangapatna Branch during 2015 has stated certain documents relating to accused No.1 has been produced before CBI. The Statement of Account Ex.P49 relates to the account of accused No.1 for the period from 1.1.2011 to 17.4.2015 shows as on 1.1.2011, the balance was at Rs.25,756.13.
42. Sl.No.5, the Credit balance of Rs.2,01,620/- in the SB Account No.2529101013174 held in the joint names of accused Nos.1 to 3 at Canara Bank, Basaveshwara Nagar Branch, Bengaluru. In this regard the evidence of PW25
- Smt.Vinaya Kumari, the Manager, Canara Bank, 41 Spl.CC.34/2016 Basaveshwara Nagar Branch, Bengaluru produced by prosecution, the witness has deposed about the details of Statement of said joint account produced with covering letter Ex.P163. The said Statement of Account in the names of accused Nos.1 to 3 enclosed to the letter Ex.P163 shows the credit balance of Rs.2,01,620/- as on 31.12.2010. Therefore, the same amount is to be taken into consideration as Asset of accused No.1 at the beginning of check period.
43. Sl.No.6 relates to amount of Rs.2,75,000/- spent in respect of TATA Indica DLS Car bearing No.KA01/MA-4429 in the name of accused No.1 in the year 2008.
44. PW58 C.Surendra, ARTO in the Office of Dy.Commissioner, Rajajinagar (West) is examined and he has stated about his duties and responsibilities are Registration of documents and issuance of Driving Licence.
42 Spl.CC.34/2016 He has produced the details of above said Car, its B Register Extract, Form Nos.29, 30 with covering letter and certified copies of the relevant documents identified under Ex.P202. Though the said documents will not disclose anything about value of the said Car was Rs.2,75,000/-, the said Car was purchased by accused No.1 for Rs.2,00,000/- after borrowing loan of Rs.2,85,000/- in 2007, from Canara Bank as per details submitted by him to Investigating Officer under Ex.P207. However, in absence of exact value of the Car produced before the Court as it was purchased in the year 2007 for Rs.2,00,000/-, subsequently the value of the Car assessed at Rs.2,75,000/- as on 1.1.2011 is to be taken into consideration.
45. Sl.No.7 relates to 15 Shares of On-Mobile Global Limited purchased in the name of accused No.1 during 2010 for Rs.7,545/-, Sl.No.8 - 14 Shares of Reliance Industries Ltd., purchased by accused No.1 for amount Rs.140/-, Sl.No.9 - 77 Shares of Reliance Power Limited 43 Spl.CC.34/2016 purchased in the name of accused No.1 during 2010 for Rs.770/-. In order to prove the same, prosecution has produced evidence of PWs.1 and 10 with documents Exs.P2 to 4, 7 and 84.
46. PW1 - T.V. Srinivasan, the officer of Canara Bank has deposed that he was looking after demating shares, mutual fund units and other related things of demat accounts in the Depository Participant Cell of the Canara bank, Bengaluru from 11.6.2012 to 13.4.2016. During the said period, he has produced certain documents relating to accused No.1, as sought by Dy.S.P., CBI, including documents of 15 shares of On-Mobile Global Limited with face value of Rs.10/- each. In this regard, he has identified the documents Ex.P2, Ex.P7 and Ex.P84. The Transaction Statement Ex.P2 from 1.1.2010 to 8.4.2015 shows Shares of On-Mobile Global Limited purchased in the name of accused No.1 and the Holding Statement as on 31.12.2010 under Ex.P7 shows the face value Rs.10/- with market rate 44 Spl.CC.34/2016 of Rs.91.30 and market value of Rs.1,369.50 towards the said Shares. However, the value of 15 Shares of above Company purchased in the name of accused No.1 during the year 2010 taken at Rs.7,545/- is to be considered.
47. PW1 has also further stated that 14 shares of Reliance Industries with face value of Rs.10/- each purchased by accused No.1 and identified the documents Ex.P3, in which the booking date shown on 7.4.2011 and in Ex.P7, the face value of the 14 Shares shown at Rs.10/- each with market rate of Rs.922.50 of market value at Rs.12,915/-. However, the accused No.1 has purchased those Shares in the year 2010 as per the documents for Rs.10/- each. Therefore, it comes to Rs.140/- is to be taken into consideration though subsequently the market value shown at Rs.12,915/-.
48. PW1 has also deposed regarding 77 shares of Reliance Power Limited with face value of Rs.10/- each as 45 Spl.CC.34/2016 mentioned in the letter Ex.P1 submitted to Dy.S.P., CBI/ACB/Bengaluru. The Holding Statement of Reliance Power Limited is marked as Ex.P7, shows the market rate of 77 Shares at face value at Rs.10/- each is Rs.61.70 and market value of Rs.4,750.90 is mentioned. He has also stated that all the 77 Shares were sold by accused No.1 on 17.2.2012. He has further admitted the market value of said Shares as on 31.12.2010 was Rs.12,177.55. But as per the above documents the accused No.1 has purchased 77 Shares at the rate of Rs.10/- each, therefore the value of the same to be considered at Rs.770/-, though the same has been sold by him for higher price subsequently.
49. PW10 K.R.Saji, Asst.Vice President of Bengaluru Stock Exchange (BGSE) Financials Ltd., is aware of Shares transaction of accused No.1 and has identified the letter and signature of the then CEO - C.Subrmanyam in Ex.P84 marked as Ex.P84(a). Under the said document, CEO had furnished information to CBI with regard to details 46 Spl.CC.34/2016 of different Shares of On-Mobile Global Ltd., Reliance Industries Ltd., and Reliance Power Ltd., purchased by accused No.1. The said information was given by CEO after referring the records and made out that 25 Shares of On- Mobile Global Ltd., purchased on 4.1.2010, sold 10 Shares and retained 15 Shares. Further accused No.1 had sold 30 Shares of same Company on 17.2.2012. The information further shows sale of 14 Shares of Reliance Industries Ltd., and delivery was received from the demate Account of accused No.1 on 17.2.2012.
50. He has further stated regarding information given by CEO as to 77 Shares of Reliance Power Ltd., which were sold and delivery was received from the demate account of accused No.1 on 17.2.2012. However, the information further discloses that the accused No.1 had sold 83 Shares on 7.3.2008, on 11.3.2008 sold 83 Shares, on 13.3.2008 purchased 83 Shares and on 8.4.2008, again sold 83 Shares of Reliance Power. Therefore, the value of 47 Spl.CC.34/2016 the different Shares shown at Sl.Nos.7 to 8 purchased by accused No.1 for the price of the period prior to check period is to be considered, though all the said Shares subsequently sold for higher value.
51. Sl.No.10 Site No.127-SE measuring 30 X 40 at Nisarga South Extension Layout, Anekal Taluk, Bengaluru Urban District, purchased in the name of accused No.1 in the year 2005 for Rs.8,36,000/- is proved by examining PWs.53 and 44 with document Ex.P184 and 198.
52. PW53 - V.Lakshminarayana, Managing Director of Nirman Shelters (Bengaluru) Pvt.Ltd., has furnished the documents relating to Site measuring 30 X 40 feet at Nisarga South Extension Layout, Jigani, Anekal Taluk sold to accused No.1 for Rs.8 lakhs with the covering letter Ex.P198.
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53. PW44 - Smt.Soumyalatha - Sub Registrar of Jigani, Anekal Taluk, Bengaluru Rural, has deposed about the Sale deed dtd.28.7.2012 executed by H.S.Eshwar accused No.1 in favour of Sathyendra Kumar Pandey, and E.C. produced under covering letter Ex.P184 bears her signature, marked as Ex.P184(a). According to the said Sale deed, the sale consideration paid was Rs.17 lakhs, which is not disputed by accused No.1. The purchaser has paid the said amount through four Cheques, out of which, three Cheques drawn on Axis Bank Ltd., Peenya Branch, Bengaluru for Rs.3 lakhs dtd.24.6.2012, Rs.1 lakh dtd.1.7.2012 and Rs.1,50,000/- dtd.15.7.2012 and one Cheque for Rs.11,50,000/- dtd.26.7.2012 drawn on HDFC Bank Ltd., Kasturbha Road, Bengaluru respectively. However, the said Site purchased by accused No.1 for Rs.30,000/-, subsequently he had constructed ground floor and first floor by obtaining loan of Rs.7.50 lakhs. Therefore, the value of acquisition of the said property taken at Rs.8,36,000/-.
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54. Accused No.1 has admitted all the above Assets acquired by him at the beginning of check period, except denying the Credit balance of Rs.3,54,582/- shown in the SB Account of accused No.5 taken as his income. However, he has not offered any explanation to dispute the different huge transactions made through the SB Account of accused No.5. Even the accused No.5 being a account holder, through his account many transactions made for huge amounts on different dates has not explained the details of different amounts credited to his account by accused No.1. Therefore, the doubt will certainly arose as to when the accused No.5 was working as FDA in BBMP during the check period and getting meager Salary, how he has made such huge transactions or allowed accused No.1 to use of his account for making huge transactions for huge amount. Though he is the best person to explain about all the huge transactions made through his SB Account by the accused No.1, he has not given any valid reasons while recording Statement u/S.313 Cr.P.C. The details of 50 Spl.CC.34/2016 amounts credited to his SB account, which was opened on 10.10.2005, in which, the credit balance as on 1.1.2011 shown Rs.3,68,049/-, and as on 30.6.2014, the total balance found at Rs.15,98,046/- and he has not offered any explanation for the said amount with supporting documents. Therefore, when he has not clarified about how he has got such huge amounts in his SB account, certainly it can be presumed as the Asset of accused No.1 only, for the reason that he has made transactions through the Account of accused No.5 even prior to the check period and also during the check period.
55. Therefore, after taking into consideration the oral and documentary evidence produced by prosecution, as the accused have not produced necessary material in proof of above contention, this Court is to proceed on the basis of total value of pecuniary sources found in the possession of accused No.1 as Assets at the commencement of check 51 Spl.CC.34/2016 period as on 1.1.2011 shown as per the Statement is of the value of Rs.30,98,513/-.
56. The Assets of accused No.1 at the end of the check period as on 30.6.2014 mentioned in the Statement-B as follows:
No. Description of the Assets Amount in Rs.
1. Site No.424 measuring 32' x 33' Sy. 7,50,000.00 No.28/3, Saneguruvanahalli, Yeshwantpur Hobli, Bangalore (now BEML layout, Basaveshwaranagar, Bangalore) with house constructed thereon. The site was purchased in the year 1988 in the name of the accused No.1 H.S.Eshwar and the house was built thereon during the period from 1988 to 1995.
2. Three Bed room flat bearing No.GF- 89,00,000.00 02 in the ground floor measuring 1860 sqft. in the residential apartment known as "SLV Golden Nest" situated at No.25, KHB Colony, Basaveshwaranagar, Bangalore purchased in the name of accused No.2 Smt. A.R.Mamatha w/o accused No.1 H.Eshwar in the month of May, 2013.
3. Hyundai Santro GL car bearing 4,67,613.00 registration No.KA-02/MG-6671 52 Spl.CC.34/2016 purchased by the accused No.1 H.Eshwar from M/s Trident Automobiles Pvt. Ltd. Sankey road show room, Bangalore for Rs.
467613.00 which includes sale prince of Rs.3,81,852/- Road Tax of Rs.59,432/-, Delivery Charges of Rs.6900/-, Insurance charges of Rs.6429/- and cost of accessories of Rs.3000/-.
4. Maruti ALTO K10 LXI car bearing 3,25,416.00 registration No.KA-02/MF-1193 purchased in the name of accused No.1 H.Eshwar on 18.01.2011 (inclusive of raod tax, insurance, accessories etc.)
5. Cash of Rs.5 lakhs found at the 5,00,000.00 residence of accused No.1 H.S.Eshwar and accused No2 A.R.Mamatha at No.25, GF-2, HIG, KHB Colony, 1st Cross, 2nd stage, Basaveshwara Nagar, Bangalore-79 and seized by CBI during search conducted on 16.05.2014 in RC.1(E)/2014 of CBI, BS&FC, Bangalore.
6. Value of articles found at the 7,34,300.00 residential premises of accused No.1 H.Eshwar and accused No.2 A.R.Mamatha at Flat No. GF-2. SLV Golden Nest, No.25, HIG, KHB Colony, 1st Cross, 2nd Stage, Basaveshwaranagar, Bangalore-79 as per Inventory drawn on 53 Spl.CC.34/2016 13.01.2015 during search in RC.1(E)/2014 of CBI, BS&FC, Bangalore.
7. Two Nos. of small gold rings of 3,000.00 ladies weighing about 05 grams found in Locker No.283 of accused No.1 H.Eshwar held at Canara Bank, Basaveshwaranagar branch, Bangalore and said to be purchased in 2000. The locker inspection was done on 13.01.2015.
8. FD A/c No.0693302000088 opened 25,00,000.00 at Canara Bank, Srirangapatna branch on 04.07.2013 in the name of Ms.G.Bhoovika (Minor), grand daughter of accused No.1 H.Eshwar.
9. Credit balance held in SB A/c No. 1,000.00 30302643606 of the accused No.1 H.Eshwar held at TGMC Bank Limited, Basaveshwaranagar branch, Bangalore.
10. Amount parked by accused No.1 15,98,046.00 H.Eshwar in SB account No.1174101020804 of his brother-
in-law C.Umeshappa (A-5) at
Canara Bank, Magadi road Branch,
Bangalore.
11. Credit balance in OD A/c 1,87,087.00
No.2373252005097 of accused
No.1 H.Eshwar at Canara Bank,
Srirangapatna branch.
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12. Credit balance in SB account 67,84,797.00
No.2529101013174 held in the joint names of accused persons Rajatha B. Eshwar, H.S.Eshwar and Smt. A.R.Mamatha at Canara Bank, Basaveshwar Nagar Branch, Bangalore.
13. 4 Nos. of Infrastructure Bonds of 20,000.00 Power Finance Corporation Limited purchased in the name of accused No.1 H.Eshwar in 2010.
Total 2,27,71,259.00
57. Sl.No.1 - The amount of Rs.7,50,000/- with respect to Site No.424 of Saneguruvanahalli, Bengaluru now BEML Layout, Basaveshwara Nagar, Bengaluru purchased in the name of accused No.1, thereafter house built in his name during 1988 to 1995 is remained similar to the Asset as on the beginning of check period from 1.1.2011 till the end of 30.6.2014, which is not disputed by the accused Nos.1 to 5, particularly by accused No.1. Even otherwise, the prosecution has relied on evidence of PW19 and documents Exs.P154 and 155, has been already discussed above while considering Asset of accused No.1 at 55 Spl.CC.34/2016 the beginning of the check period shown as per Sl.No.1 of Statement-A, this Court cannot considered the said amount as an Asset of accused No.1 at the end of check period. Therefore, the amount of Rs.7,50,000/- is to be deducted from the total value of Assets mentioned under this Statement.
58. Sl.No.2 - Three bed room flat bearing No.GF- 02, in the ground floor, SLV Golden Nest, KHG Colony, Basaveshwara Nagar, Bengaluru purchased in the name of accused No.2 - Smt.A.R.Mamatha w/o. of accused No.1 in the month of May-2013 for total consideration of Rs.89,00,000/-. The prosecution has relied on the evidence of PW52 with document Ex.P197.
59. PW52 - B.Munirathnam Naidu was the owner of flat No.25 located in SLV, Golden Nest, Basaveshwara Nagar, Bengaluru sold in the name of accused No.2 56 Spl.CC.34/2016 A.R.Mamatha w/o.H.S.Eshwar for Rs.55,10,000/-. He has produced the copy of the Absolute Sale Deed of the said flat with covering letter marked as Ex.P197 and his signature as Ex.P197(a). The said Sale Deed has been executed by him along with three others in favour of accused No.2. He has also furnished details of the Cheques received towards the sale consideration are said as Cheque No.459437 dtd.15.5.2013 for Rs.55,10,000/-, Cheque for Rs.25 lakhs, both were drawn on Canara Bank, Basaveshwara Nagar, Bengaluru and Cash of Rs.8,90,000/- received by him, out of which Rs.55,10,000/- was credited to the Account number of Sellers with The Karnataka Bank Ltd, Minerva Circle Branch, Bengaluru. The said total amount of Rs.89 lakhs paid by accused No.1 towards sale consideration of flat purchased in the name of accused No.2 during the check period. However, the said property can be considered as his Asset, as the accused No.2, being his wife had no source of income and the entire sale consideration of Rs.89 lakhs was paid by him.
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60. Sl.No.3 - Rs.4,67,613/- which includes sale price of Hyundai Santro GL Car, No.KA 02 MG 6671 purchased by accused No.1 from M/s.Trident Automobiles Pvt.Ltd., for Rs.3,81,852/- with payments made by him towards Road Tax of Rs.59,432/-, Delivery Charge of Rs.6,900/- Insurance Charges of Rs.6,429/- and Cost of Accessories of Rs.3,000/-. The evidence of PWs.4 and 5 produced before the court with documents Exs.P13 to 18.
61. PW4 - G.N.Narasimhan, Assistant General Manager of Trident Automobiles Pvt.Ltd., though working as General Manager, he was in-charge of Administration and Sales during the tenure of AGM in the said Company of Sankey Road Branch. He has produced the documents relating to purchase of Santro Car by accused No.1 with covering letter as per Ex.P13 and identified his signature marked as Ex.P13(a). The document Road Tax Receipt dtd.20.7.2012 for being Road Tax of Rs.59,432/- paid towards Life Time Tax marked as Ex.P14. The Debit Note, 58 Spl.CC.34/2016 Retail Invoice, Policy information given by Bharat AXA General Insurance Company Ltd., with Policy Number issued in the name of accused No.1, which was renewed through Smart Card Private Car from time to time with other documents with estimation issued by SLV Motors enclosed to the said Receipt.
62. He has further identified the covering letter signed by him as authorized signatory of the above Company, under which provided the documents relating to sale of Car No.KA 02 MG-6671 as per Ex.P15 along with Ledger Account Extract of accused No.1 with Canara Bank, vehicle repair history card, as per Ex.P16 issued by Hyundai Motor India Ltd., Cash Invoices and Credit Card Invoices, Debit Note, Retail Invoice and Ledger Account marked as Ex.P17. His signatures in the said covering letters marked as Exs.P16(a) and P17(a). He has clearly stated that the accused No.1 had purchased Santro Car worth of Rs.4,67,614/- and has paid Rs.12,614/- by Credit Card, 59 Spl.CC.34/2016 Rs.1,35,000/- was adjusted towards the price of old Indica Car exchanged for new Car and Cash of Rs.3 lakhs paid on 20.7.2012, after deduction of exchange bonus of Rs.20,000/-.
63. PW5 - V.Sudheendra worked as ARTO, in the Regional Transport Office (West), Bengaluru had produced the details of Santro Car No.KA-02/MG-6671 with a covering letter after verifying the records maintained in the Office. He has identified the covering letter and certified copies of the documents produced under Ex.P18 and his signature is marked as Ex.P18(a). Along with the said letter he has produced copies of Road Tax Receipt, Form No.14, Form No.20 submitted by accused No.1 with Form No.21 Sale Certificate issued by Trident Automobiles Pvt.Ltd., The copy of the Invoice dtd.19.7.2012 shows the value of the Santro GLX Car was Rs.3,61,274/- and Excise duty Vat at 14% shown at Rs.50,578/-, in total Rs.4,11,852.36. However, the total cost of the Santo Car 60 Spl.CC.34/2016 comes at Rs.4,57,613/- after calculating the sale price of Rs.3,81,852/-, Road Tax of Rs.59,432/-, Delivery Charges of Rs.6,900/-, Insurance Charges of Rs.6,429/- along with cost of Accessories Rs.3,000/-, though it has been shown in the charge sheet as Rs.4,67,613/-, which is not correct.
64. Sl.No.4 - Maruti Alto K-10-LXI Car bearing No.KA 02/MF 1193 purchased in the name of accused No.1 on 18.1.2011 for Rs.3,25,416/-, includes sale price of Car, Road Tax, Insurance and Accessories, has been proved by examining PWs.2 and 6 with supporting documents Exs.P9 and 19.
65. P.W.2 C.G.Pradeep Kumar, Assistant finance Manager in Garuda Autocraft Finance Ltd. has deposed that accused No.1 had purchased the Vehicle for Rs.3,31,507/- for which Company has provided free of Cost of Rs.4,990/- after deduction of the said amount, he has paid Rs.3,25,416/- towards total cost of the vehicle. He has 61 Spl.CC.34/2016 identified the covering letter signed by General Manager - Narahari as Authorized signatory of the above Company, under Ex.P8 and Ledger Account Statement of accused No.1 under Ex.P9. The said Statement of Account enclosed with Vehicle invoice, Tax paid receipt issued by RTO, Receipt and Acknowledgment issued by Garuda Autocraft Pvt.Ltd., with Request details and Insurance Policy marked as Ex.P10. Though the witness says that accused No.1 has purchased the Car for Rs.3,31,507/- as per Ex.P9, he was said to be paid Rs.3,25,416/- after deduction of Rs.4,990/- given as free of cost by the Company.
66. PW6 - S.B.Palanetra, worked as ARTO in the Office of Dy.Commissioner for Transport and Senior Regional Transport Officer, Rajajinagar (West) has identified the covering letter dtd.22.4.2015 under which copies of Register Extract of Car bearing No.KA-02/MF-1193 and other copies of the documents produced to Dy.S.P. marked as Ex.P19 and his signature marked as Ex.P19(a).
62 Spl.CC.34/2016
67. Sl.No.5 - Cash of Rs.5 lakhs seized from the residential house of accused Nos.1 and 2 at No.25, KHB Colony, II Stage, Basaveshwara Nagar, Bengaluru under search conducted in RC 1(E)/2014 of CBI, BS&FC, Bengaluru on 16.5.2014. To prove the same, the evidence of PWs.59 and 22 is placed before the Court with document Ex.P210.
68. PW59 - K.Y.Guruprasad, the Investigating Officer, who has conducted search in the house of accused Nos.1 and 2 on 13.1.2015, has seized many documents from his house and also inspected locker No.283 held by accused No.1 in the Canara Bank, Basaveshwara Nagar Branch. He has identified the documents Ex.P158, under which, five Receipts of Nirman Shelters issued in the name of accused No.1 for different amounts and Ex.P159 is the letter of Canara Bank relating to release of original Title Deeds of the property acquired by accused No.1.
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69. The Investigating Officer has further deposed about the amount of Rs.5 lakhs seized in RC 1(E)/2014 which has been deposited to the credit of Bank account No.3244834871 held in the name of Head of Branch, CBI/BS&FC, Bengaluru on 20.5.2014 as per the pay-in-slip marked as Ex.P210.
70. PW22 - Biswajith Das, Additional Superintendent of Police, CBI, Bank Securities and Fraud Cell, Bengaluru has deposed about investigation conducted in RC 1(E)/2014 registered against present accused No.1, Satish Poojary and M/s.Foremost Mercantile Ltd., and others. In the said case he has conducted search in the house of present accused No.1 and collected documents relating to property purchased by him and his wife accused No.2 along with Income Tax details and seized Cash of Rs.5 lakhs. He has also stated that the said Cash has been subsequently deposited to the above said Current Account No.32448348871 of HOB/CBI maintained in SBI, Hebbal 64 Spl.CC.34/2016 Branch, Bengaluru as could be made out from pay-in-slip Ex.P210.
71. However, the above said Cash of Rs.5 lakhs seized in R.C.1(E)/2014, subsequently deposited in the name of Head of Branch, CBI/BS&FC, Bengaluru on 20.5.2014 cannot be taken as Asset of accused No.1 in the present case as it was not in his possession subsequently during the check period and it should be deducted from total asset found at the end of check period.
72. Sl.No.6 - Rs.7,34,300/- - value of Articles found in the residential premises of accused Nos.1 and 2, flat No.GF-2 SLV Golden Nest No.25, Basaveshwara Nagar, Bengaluru, during search in RC 1(E)/2014 of CBI, BS&FC, Bengaluru as per the inventory drawn on 13.1.2015.
73. The prosecution to prove the same, has relied on the evidence of PWs.50 and 59 with documents Exs.P191 65 Spl.CC.34/2016 and 194, which has already been discussed while considering the Assets shown at Sl.No.2 of Statement-A. However, the accused No.1 has not denied the value of Articles found in the residential premises of accused Nos.1 and 2 during search as per inventory drawn on 13.1.2015 worth of Rs.7,34,300/-. The evidence of PWs.50 and 59 already discussed on Sl.No.2 of Statement A regarding value of the Articles seized from the house of accused No.1 worth at Rs.6,47,100/- is also not denied by the accused including the value of the Articles at Rs.7,34,300/- found as on the same day, that is on 13.1.2015 in the same residential house of accused Nos.1 and 2, as per the Inventory drawn by the Investigating Officer. Therefore the present value of articles found at their residence worth of Rs.7,34,300/-, is to be considered by this Court.
74. Sl.No.7 - Two small ladies gold rings worth of Rs.3,000/- found in the locker of accused No.1 at Canara 66 Spl.CC.34/2016 Bank, Basaveshwara Nagar Branch, Bengaluru found during locker inspection by Investigating Officer as on 13.1.2015.
75. It is already pointed out that the Investigating Officer PW59 and witness PW50 have already deposed about search conducted in the house of accused Nos.1 and 2 along with locker of accused No.1 kept in Canara Bank and seized golden articles, thereafter drew the proceedings under Ex.P194, in which both of them have identified their signatures marked as Ex.P194 (a) to (c). Therefore the value of the two small gold rings of ladies found in the locker of accused No.1 on 13.1.2015 said to be purchased in the year 2000 considered as worth of Rs.3,000/-.
76. Sl.No.8 - FD Account in the name of minor grand daughter of accused No.1 namely G.Bhoovika, at Canara Bank, Srirangapatna Branch on 4.7.2013 for Rs.25,00,000/-. In order to prove the same, evidence of PW.8 is relied on with documents Exs.P25 and P26.
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77. PW8 - D.C.Mohan kumar, the Senior Manager of Canara Bank, Srirangapatna Branch, has identified the covering letter signed by him marked as Ex.P.25 and his signature as Ex.P25(a). Under which, he has produced the details of the Term Deposit account No.069330200088 opened at said Branch on 4.7.2013 in the name of minor daughter of accused No.3 namely Ms. G.Bhoovika along with details of Deposits kept in the name of accused No.2. However, the documents relating to Account Opening Form for FD kept in the name of Bhoovika, the minor daughter of accused No.3 and details of said account are to be considered produced under Ex.P26. The details furnished are Term Deposit account No.693.302.88 in the name of said Bhoovika, is supported by Account opening form NF108 dtd.4.7.2013, Term Deposit Account Summary as on 13.4.2015 and Term Deposit Ledger Report from 4.7.2013 to 4.4.2015 duly certified are identified under Ex.P26. The said FD Account opened in the name of minor daughter of accused No.3 by accused No.1 for Rs.25,00,000/- is not 68 Spl.CC.34/2016 disputed. Therefore, the same amount is to be considered as Asset of accused No.1 at the end of check period.
78. Sl.No.9 Credit balance of Rs.1,000/- found in SB Account of accused No.1 held at TGMC Bank Ltd., Basaveshwara Nagar Branch, Bengaluru.
79. The Branch Manager of Tumkur Grain Merchants Co-operative Bank, Basaveshwara Nagar Branch Smt. B.C. Vasantha is examined as PW.3 and she has deposed the documents relating to SB A/c.No.30302643606 of accused No.1 maintained in the said Branch produced along with letter Ex.P11. The Statement of Account enclosed to the said letter discloses that the account was opened by accused No.1 on 12.5.2014 with initial deposit of Rs.1,000/- However, the said account was closed on 7.1.2015 by debit of Rs.50,878/- and the amount of Rs.1,000/- shown in the column of Credit as on 12.5.2014, which is to be considered as balance of accused No.1 during the end check period.
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80. Sl.No.10 - Amount of Rs.15,98,046/- deposited by accused No.1 in the SB Account of accused No.5 at Canara Bank, Magadi Road, Bengaluru. The prosecution has relied on the evidence of PWs.38 and 54 with documents Exs.P177 to 179 and 199.
81. PW.38 - G. Sreenivasa Acharyulu being Manager in Canara Bank, Magadi Road Branch, Bengaluru has deposed about documents produced under Ex.P177 to 179, which are already discussed in detail on the Assets of accused No.1 shown at Sl.No.3 in Statement-A.
82. However, he has explained the details of the SB Account No.1174101020804 opened in the name of accused No.5 on 10.10.2005, in which the credit balance shown as on 4.1.2011 was Rs.3,68,049/-, but as on 30.6.2014, it was found to the extent of Rs.15,98,046/-. The same can be made out from the Statement of Account of accused No.5 produced under the letter Ex.P177. He has also explained 70 Spl.CC.34/2016 about all the debit and credit of different amounts to his account on different dates as entered in the above Statement.
83. According to him, the major transactions took through the said Account during the period from 1.1.2011 to 30.6.2014 and pointed out the relevant entries of the Statement as follows:
Debit of Rs.2 lakhs on 6.1.2011, Credit of Rs.2 lakhs on 17.1.2011, Debit of Rs.2 lakhs on 18.1.2011, Credit of Rs.2 lakhs on 11.2.2011, Debit of Rs.2 lakhs on 12.2.2011, Debit of Rs.1,63,000/- on 30.11.2011, Credit of Rs.4 lakhs on 16.11.2011, on the same day self-Cheque debit was made for Rs.4 lakhs. Further on 4.6.2012, credit was shown for Rs.4,75,000/-, on the same day debit shown for Rs.5 lakhs. On 18.6.2012 Credit shown for Rs.9,35,617/-
and Credit of Rs.4 lakhs and Debit of Rs.13 lakhs was shown, on 19.6.2012, Credit shown for Rs.4 lakhs. Further on 20.6.2012, Debit was for Rs.5 lakhs, on the same day 71 Spl.CC.34/2016 Credit for Rs.2,50,000/-, again on 25.6.2012 Credit shown for Rs.2,15,965/- and on the same day Debit shown for Rs.
4 lakhs. On 27.7.2012 Credit shown for Rs.9,75,000/-, on the same day Debit for said amount has been entered.
Further, on 10.8.2012, Credit shown for Rs.5 lakhs, on 13.8.2012, Debit shown for Rs.5 lakhs. On 6.10.2012 Rs.70,000/- shown as debit, on 31.1.2013 Debit of Rs.1 Lakh, Credit for Rs.2 lakhs on 17.2.2013, Credit for Rs.2 lakhs as on 1.3.2013. Credit of Rs.23,500/- shown on 17.5.2013. Again on 16.7.2013, Credit was for Rs.5 lakhs and on 12.8.2013 Debit for Rs.5 lakhs and as on 12.9.2013 Credit was shown for Rs.5,15,000/-.
84. In the cross-examination though he has admitted that not personally authorized the above transactions, he himself has handed over the debit and credit vouchers pertaining to 49 transactions. Therefore, the total amount of Rs.15,98,046/- found in the above Account of accused No.5 as on 16.6.2014 is to be taken 72 Spl.CC.34/2016 into consideration, though the accused No.1 has denied that he never jointly operated the said account along with accused No.5.
85. PW.54 P. Ganesh Malya, Chief Manager of Syndicate Bank, Basaveshwara Road Branch, Bengaluru has deposed about three original paid Cheques in the name of accused No.5 produced to Investigating Officer through the letter dtd.19.12.2015 marked as Ex.P199 and his signature as Ex.P199(a). In connection with the same, he has identified the original Cheques Exs.P126 to P128 issued by Managing Director of Aircoms Solutions Pvt., Ltd., issued in the name of accused No.5, drawn on Syndicate Bank, Basaveshwara Road Branch, Bengaluru. Those Cheques are dtd.23.12.2011 and 5.4.2012 for Rs.40 lakhs each and Cheque dtd.16.4.2012 for Rs.75,000/- were issued from the A/c.No.04481250000832 of Aircoms Solutions Pvt.Ltd., and Cheques amount were also paid from the said Account.
73 Spl.CC.34/2016 86. The learned Counsel for accused Nos.1 to 5 submitted that the above credit balance shown in the account of accused No.5 as on 30.6.2014, which was said to be parked by accused No.1 in the Account of accused No.5, reflects it is a Salary savings from the date of opening of account till 30.6.2014. However, the accused No.5 has not produced any documents relating to his Salary received during the check period comes to equal to the amount of said Cheques credited to his Account issued by Aircom Solutions Pvt.Ltd. Moreover, he has not paid any Income Tax and not shown the huge amount received from the said Company to his higher authority as he was working in BBMP. Therefore, in absence of relevant documents in proof of his Salary and any income from other sources, the huge transactions entered by accused No.1 through his Account found in the above documents cannot be ignored. Because the same will indicate that the accused No.1 has made use of the account of accused No.5 for doing major transactions without informing his higher authority, though 74 Spl.CC.34/2016 he was a public servant working as Branch Manager in Canara Bank. Therefore, the amount of Rs.15,98,046/- relating to different transactions made by accused No.1 through the account of No.5 will become his Asset acquired at the end of check period.
87. Sl.No.11 - Credit balance of Rs.1,87,087/- in OD Account of accused No.1 at Canara Bank, Srirangapatna Branch. In order to prove the same, prosecution relied on the evidence of PW8 with documents Exs.P47 to 49.
88. PW8 as a Senior Manager, Canara Bank, Srirangapatna Branch during 2015 has also deposed about documents submitted to CBI with respect to different accounts of M/s.Surya Enterprises, accused No.2 and Ms.Bhoovika, minor daughter of accused No.3, maintained in the Srirangapatna Branch, during the relevant point of time. The letter with copies of documents submitted to CBI marked as Ex.P47, along with the copies of Statement of 75 Spl.CC.34/2016 OD Account No.2373252005097 held by accused No.1 with other Transaction slips of different dates and Statement of Accounts as well as Deposit Receipts also produced. Ex.P48 is the original application for advances to Employees given by accused No.1 when he was working as Clerk at Canara Bank, Rural Development Section, Rajajinagar, Bengaluru and he had also executed On Demand Promissory Notes enclosed with said application. Further he had sought for OD facility of Rs.8,200/- on 7.2.1992 and letter of Pledge given by him discloses that against the said OD facility, he had offered security of Life Insurance Policies. The certified copy of the Statement of Account of OD account of accused No.1 for the period from 1.1.2011 to 17.4.2015 produced under Ex.P49. From the said Statement the entry dtd.27.6.2014 made with respect to credit of Rs.1,87,087/- by Salary of accused No.1. Therefore, the said amount be considered as credit balance in the above said OD Account of accused No.1 at the end of check period.
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89. Sl.No.12 Credit balance of Rs.67,84,797/- held in the SB Account No.25291013174 held in the joint names of accused No.3 along with accused Nos.1 and 2 at Canara Bank, Basaveshwara Nagar Branch, Bengaluru. Prosecution to prove the same has relied on the evidence of PW25 and PW39 along with Exs.P163, 180 and 181.
90. The evidence of PW25 - Smt.Vinaya Kumari, has been already discussed above with respect to Sl.No.5 of Statement-A. She being the Manager of Basaveshwara Nagar Branch has deposed about the details of Statement of joint account held by accused No.3 with accused Nos.1 and 2 bearing No. 2529101013174. However, though the prosecution alleged that the said Account jointly held by accused Nos.1 to 3, the Statement of Account furnished along with covering letter Ex.P163 shows the names of accused Nos.3 and 1 mentioned in the column of Customer name, which pertains to joint account held by accused No.3 77 Spl.CC.34/2016 and accused No.1, but the names of accused Nos.1 and 2 mentioned as authorized joint holders.
91. PW.39 S.K. Acharya was the Senior Manager, Canara Bank, Basaveshwara Nagar Branch, Bengaluru has deposed regarding Statement of Accounts and Vouchers in respect of joint account of accused Nos.1 to 3, handed over to CBI along with covering letter as per Exs.P180 and 181. He has identified the statement of Joint Account of accused No.3 with accused Nos.1 and 2 produced as per Ex.P163, in which, the credit balance shown as on 31.12.2010 was Rs.2,01,620.22 and the credit balance as on 31.1.2014 was Rs.67,84,796.52, which includes the interest of Rs.1,41,023/- for the period from 1.8.2013 to 31.1.2014.
92. He has stated in detail about the account numbers and different amount deposited to the said joint account on different dates as per the entries shown in the Statement of Account by referring major transactions.
78 Spl.CC.34/2016 According to the Statement, on 30.3.2012, a sum of Rs.3,50,000/- transferred to the joint A/c. No.252910101317 relates to accused Nos.1 to 3. On the same day, a sum of Rs.4 lakhs shown to the debit of said account. On 25.6.2012, Cash of Rs.3 lakhs deposited to the said Account and debit of Rs.4 lakhs shown on the same day. On 26.7.2012 a sum of Rs.1,13,850/- shown as withdrawn, on 2.8.2012 debit of Rs.17,25,000/-, on 16.8.2012 debit of Rs.5 lakhs, on 13.8.2012 credit of Rs.5 lakhs and on 31.8.2012 debit of Rs.3,50,000/- has been shown. Likewise on 9.11.2012 debit of Rs.99,000/-, on 20.11.2012 debit of Rs.77,000/-, on 26.12.2012 debit of Rs.3 lakhs, on 16.1.2013 debit of Rs.1 lakh, on 27.2.2013 payment of Rs.1,79,495/-, on 2.3.2013 payment of Rs.2,17,000/-, on 13.3.2013 Rs.12 lakhs through Fund Transfer, on 25.3.2013 payments of Rs.50,000/- and Rs.3 lakhs. Further, credit of Rs.15 lakhs made on 3.4.2013, on the same day credit of Rs.14 lakhs is entered. On 15.4.2013 Rs.30 lakhs shown as Fund Transfer, on 79 Spl.CC.34/2016 16.4.2013, debit transfer of Rs.90,000/-, on 18.4.2013 Rs.25 lakhs shown as debit transfer, on 19.4.2013 Rs.5 lakhs transferred, on the same day a sum of Rs.25 lakhs shown as credit transfer. Further, on 14.5.2013 Rs.20 lakhs shown as credit transfer and on 15.5.2013 debit transfer of Rs.2,50,000/-, on the same day debit transfer of Rs.25 lakhs is entered. Further, on 17.5.2013 debit transfer of Rs.55,10,000/-, on 23.5.2013 credit transfer of Rs.13,50,000/- has been shown. Further, on 5.6.2013 credit transfer of Rs.16 lakhs, on 17.6.2013 another credit transfer of Rs.18 lakhs, on 20.6.2013 debit transfer of Rs.2,60,000/- is shown, on the same day again debit transfer of Rs.1 lakh, on 19.7.2013 a sum of Rs.30 lakhs transferred through debit, on 12.7.2013 credit transfer of Rs.30 lakhs, on 13.7.2013 another credit transfer of Rs.18 lakhs and on 16.7.2013 Rs.5 lakhs fund transferred to another account, on the same day debit transfer of Rs.25 lakhs. Likewise, on 1.8.2013 and 8.8.2013 credit of Rs.25 lakhs each made through the above account and on 80 Spl.CC.34/2016 16.8.2013 Rs.2,10,000/- made through Fund Transfer. Further on 20.8.2013 credit of Rs.10 lakhs was made, on the same another transaction of Rs.10 lakhs made through the said account.
93. PW39 has further identified 15 documents, pay in slips and Cheques of different dates, through which the huge amounts were credited to the joint account No. 252910101317 of accused No.3 with accused Nos.1 and 2. It is also made out that some of the Cheques were issued from the said account were drawn self and also in favour of different persons namely, Ajith Rao, Shivananda and Pintu. In the cross-examination he has admitted that the above joint account of debit has been blocked and he has personally verified the names of persons who were authorized the debit and credit vouchers.
94. Therefore, from the above mentioned documents, it can be made out that, the credit balance 81 Spl.CC.34/2016 shown in the joint account of accused Nos.1 to 3 as on 1.1.2011 beginning of check period was Rs.2,01,620.22 and as on 31.1.2014 end of the check period was Rs.67,84,797/- is to be taken into consideration.
95. Sl.No.13 - Four Infrastructure Bonds of Power Finance Corporation Ltd., purchased in the name of accused No.1 in 2010 for Rs.20,000/-.
96. PW1 - T.V.Srinivasan, Officer in Canara Bank, who was looking after demating of Shares and Accounts has also deposed about Infrastructure Bonds of Power Finance Corporation Ltd., purchased by accused No.1 at the face value and market value of Rs.5,000/- each for Tax saving purpose and identified Ex.P6, the Holding Statement as on 30.6.2014 shows total market value of said Shares was Rs.20,000/-.
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97. The accused No.1 though has admitted all the amounts shown as Assets at Sl.Nos.1 to 9, 11 to 13, seriously denied Sl.No.10 amount of Rs.15,98,046/- found in the SB Account of accused No.5 as on 30.6.2014, on the ground he never operated the said Account jointly with him, therefore the said amount cannot be treated as his Asset at the end of check period.
98. However, I have already discussed that how the accused No.1 has deposited huge amounts in the account of accused No.5, which cannot be taken as his income from Salary, as no details of his Salary deposited every month is produced before the Court. Moreover, the huge transactions for different amounts taken through his account cannot be considered as his income as he was not an Income Tax Assessee during the check period. Moreover, the accused No.1 had deposited huge amounts to the account of accused No.5, not only from the date of SB Account opened by him, but also deposited some amounts 83 Spl.CC.34/2016 to his account prior to beginning and during the check period. Therefore, the balance amount of Rs.15,98,046/- found in the SB A/c.No.1174101020804 of accused No.5 to be considered as Asset of accused No.1 at the end of check period.
99. Therefore, after perusal of documents relating to Income under each Head of above Statement, I found lesser amount of Rs.10,000/- while considering the Asset under Sl.No.3 from purchase of Hyundai Santro Car shown as Rs.4,67,613/- but after calculation of the amount shown in the relevant documents it comes to Rs.4,57,613/-. Likewise cash of Rs.5,00,000/- shown as Asset under Sl.No.5 as seized from the residence of accused No.1 during search conducted on 16.5.2014. However, at the cost of repetition, it is relevant to point that the Investigating Officer after seizing the said amount, it has been kept in the Account of HOD, CBI/ACB, Bengaluru in FD as could be made out in pay slip Ex.P210. Therefore, the amount of 84 Spl.CC.34/2016 Rs.5 lakhs which was not possessed by accused No.1 during the check period cannot be taken as his Asset at the end of check period. Likewise, the amount of Rs.7,50,000/- taken as Asset of accused No.1 at the beginning of check period through Site No.424, mentioned at Sl.No.1 of Statement-A, the same amount cannot be taken as his Asset at the end of check period. Therefore, the amounts Rs.7,50,000/-, Rs.10,000/- and Rs.5,00,000/-, in total Rs.12,60,000/- is to be deducted from the total value of Assets of accused No.1 shown in the charge sheet at Rs.2,27,71,259/- the end of check period, then it comes to Rs.2,15,11,259/-.
100. The Receipts and Income of accused No.1 during the check period from 1.1.2011 to 30.6.2014 shown in Statement-C as follows:
No. Description of the Assets Amount in Rs.
1. Net salary income received by 9,95,946.00 accused No.1 H.S.Eshwar from his employer Canara Bank during the 85 Spl.CC.34/2016 check period 01.01.2011 to 30.06.2014.
2. Profit on sale of site No.127-SE 8,52,000.00 measuring 30' x 40' at Nisarga South Extension layout, Jigani Hobli, Anekal Taluk, Bangalore urban District by the accused No.1 H.S.Eshwar to Sri S.K.Pandey on 28.07.2012.
3. Interest received on Term Deposit 820.00 Account No.693.301.86 of accused No.2 Smt. A.R.Mamatha w/o accused H.S.Eshwar held at Canara Bank, Srirangapatna branch, which was prematurely closed on 01.01.2013.
4. Interest received on credit balance 1,76,381.00 held in SB account No.693.101.119990 of accused No.2 Smt.A.R.Mamatha W/o accused No.1 H.S.Eshwar at Canara Bank, Srirangapatna branch during the check period.
5. Interest on credit balance held in SB 51,715.00 A/c No.1174101020804 of Sri. C.Umeshappa (brother-in-law of accused H.S.Eshwar) at Canara Bank, Magadi Road Branch, Bangalore, which was being operated by accused No.1 H.S.Eshwar also.
6. Interest received on credit balance 2,42,886.00 held in SB account No.2529101013174 jointly held by Rajatha B.Eshwar, accused 86 Spl.CC.34/2016 H.S.Eshwar and Smt. A.R.Mamatha at Canara Bank, Basaveshwara Nagar branch, Bangalore and being operated by accused No.1 H.S.Eshwar also.
7. Refund of income tax of Rs.968/- in 3,821.00 2011-12, Rs.2853/- in 2012-13 received by accused No.1 H.S.Eshwar.
8. Non-repayable withdrawal from PF 3,27,500.00 account made by the accused No.1 H.S.Eshwar on 25.06.2012.
9. Profit on Sale of 14 shares of Reliance 11,130.00 Industries Limited on 17-02-2012 by accused No.1 H.S.Eshwar.
10. Profit on sale of 77 shares of Reliance 8998.00 Power Ltd. on 17.02.2012 by accused No.1 H.S.Eshwar.
Total 26,71,197.00
101. Sl.No.1 -Net Salary income of accused No.1 as employer of Canara Bank from 1.1.2011 to 30.6.2014 - Rs.9,95,946/-. Prosecution relied on evidence of PW7 with documents Exs.P20 to 24.
102. P.W.7, V.Malarmaran, the Senior Manager of Canara Bank, HRM Section has deposed as per the 87 Spl.CC.34/2016 authorization letter given by AGM he has furnished Service particulars of accused No.1 to CBI with covering letter marked as Ex.P20 with original service particulars and personal file of accused No.1 marked as Exs.P21 to P24. He has also stated the net salary of accused No.1 calculated from January-2011 to June-2014 after giving deduction of Staff Provident Fund, Income Tax, Professional Tax, LIC Premium, Loan Recovery if any and affirmed the correctness of the Salary particulars of accused No.1.
103. The Service particulars of accused No.1 as per Ex.P21 shows that he joined Bank service on 27.10.1978. The salary particulars shown in Ex.P23 calculated for three months from January to March 2011 Gross salary at Rs.1,32,235.12 after deductions of Rs.1,01,815.91, Net salary comes at Rs.30,419.00. Gross salary from 1.4.2011 to March-2012 comes at Rs.6,52,077.83 after deductions of Rs.4,86,933.35, Net salary comes to Rs.1,65,144.00. The gross salary from April-2012 to March-2013 comes at 88 Spl.CC.34/2016 Rs.6,74,402.00 after deductions of Rs.3,71,427/-, Net Salary will be Rs.3,02,975.00. Gross salary from 1st April 2013 to March-2014 taken at Rs.5,72,637.75 after deductions of Rs.1,08,488.25 Net Salary will be Rs.4,19,150.00. Gross salary from April 2014 to June-2014 taken at Rs.98,136/- after deductions of Rs.19,878.00, net salary comes to Rs.78,258.00. Therefore, in the charge sheet Sl.No.1 of Statement-C says about Net Salary of accused No.1 received during the check period shown at Rs.9,95,946.00.
104. However, the accused No.1 has denied the said amount received towards Net Salary during the check period, and stated that he had received Net salary during the check period comes to Rs.10,82,685/-, therefore contended there is variance of Rs.86,739/-. He has produced the particulars of Net Salary received from 27.1.2011 till 27.6.2014 as follows:
89 Spl.CC.34/2016 Date Particulars Amount (Rs.) 27.1.2011 Canara Bank 2373252005097 14,629 26.2.2011 Canara Bank 2373252005097 15,790 27.4.2011 Canara Bank 2373252005097 9,909 27.5.2011 Canara Bank 2373252005097 11,256 27.6.2011 Canara Bank 2373252005097 11,256 27.7.2011 Canara Bank 2373252005097 11,256 27.8.2011 Canara Bank 2373252005097 12,294 26.9.2011 Canara Bank 2373252005097 11,814 13.10.2011 Canara Bank 2373252005097 48,831 24.10.2011 Canara Bank 2373252005097 11,564 26.11.2011 Canara Bank 2373252005097 13,956 3.12.2011 Canara Bank 2373252005097 1,195 24.12.2011 Canara Bank 2373252005097 12,812 27.1.2012 Canara Bank 2373252005097 17,238 27.2.2012 Canara Bank 2373252005097 21,230 12.3.2012 Canara Bank 2373252005097 24,095 27.3.2012 Canara Bank 2373252005097 20,560 27.4.2012 Canara Bank 2373252005097 21,885 26.5.2012 Canara Bank 2373252005097 22,176 27.6.2012 Canara Bank 2373252005097 21,918 27.7.2012 Canara Bank 2373252005097 16,642 27.8.2012 Canara Bank 2373252005097 18,099 1.9.2012 Canara Bank 2373252005097 5,277 27.9.2012 Canara Bank 2373252005097 23,619 26.10.2012 Canara Bank 2373252005097 23,709 27.11.2012 Canara Bank 2373252005097 25,343 27.12.2012 Canara Bank 2373252005097 27,548 24.1.2013 Canara Bank 2373252005097 26,168 27.2.2013 Canara Bank 2373252005097 33,446 27.3.2013 Canara Bank 2373252005097 42,420 19.4.2013 Canara Bank 2373252005097 7,000 27.4.2013 Canara Bank 2373252005097 46,123 27.5.2013 Canara Bank 2373252005097 47,099 5.6.2013 Canara Bank 2373252005097 342 90 Spl.CC.34/2016 27.6.2013 Canara Bank 2373252005097 46,749 27.7.2013 Canara Bank 2373252005097 46,750 27.8.2013 Canara Bank 2373252005097 47,950 27.9.2013 Canara Bank 2373252005097 21,577 26.10.2013 Canara Bank 2373252005097 25,855 27.11.2013 Canara Bank 2373252005097 27,228 27.12.2013 Canara Bank 2373252005097 27,228 27.1.2014 Canara Bank 2373252005097 27,228 26.2.2014 Canara Bank 2373252005097 27,819 27.3.2014 Canara Bank 2373252005097 27,543 26.4.2014 Canara Bank 2373252005097 26,312 27.5.2014 Canara Bank 2373252005097 25,973 27.6.2014 Canara Bank 2373252005097 25,973 10,82,685
105. I have perused the above particulars from the Salary Account of accused No.1 bearing No.2373252005097 marked as Ex.P49 and found the correctness of above amounts received by him towards Salary. Therefore, after going through the details of amount credited to the said Account of accused No.1, towards his Salary it comes to Rs.10,82,685/-, which is to be taken into consideration towards income from his Salary. Because, there is difference in the calculation of Salary income shown in Ex.P23, the same might have considered by the Investigating Officer and shown the Net Salary income at 91 Spl.CC.34/2016 Rs.9,95,946/-. Therefore, the above mentioned income from his Salary at Rs.10,82,685/- to be considered by this Court.
106. Sl.No.2 Profit on Sale of Site No.127-SE 1340 at Nisarga Extension Layout, Jigani hobly, Anekal Taluk, Bengaluru Urban District, sold by accused No.1 to S.K.Pandey on 28.7.2012 for Rs.8,52,000/-, but during investigation the sale consideration was found at Rs.17 lakhs. The prosecution in proof of the same relied on the evidence of PWs.21, 44 and 48 with documents Exs.P157, 184 and 188.
107. PW21 - H.M.Venkatesh, Senior Sub-Registrar of Anekal, has deposed that Site No.127-SE measuring 30 X 40 feet situated at Nisarga South Extension Layout, Anekal Taluk, Bengaluru sold for consideration of Rs.3 lakhs, by M/s.Nirman Shelters (B) Pvt.Limited in favour of accused No.1, for which he has paid Stamp Duty of Rs.27,120/- and 92 Spl.CC.34/2016 Registration fee of Rs.3,000/-. Subsequently accused No.1 has sold the said site in favour of Sathyendra Kumar Pandey for Rs.17 lakhs, though market value of the said property in the year 2012 was Rs.4,62,500/-. He has identified the certified copy of the Sale Deed executed by accused No.1 as per Ex.P157, is however proves the sale consideration of Rs.17 lakhs and not Rs.8,52,000/- as mentioned in the above statement.
108. However, the purchaser of the site namely Sathyendra Kumar Pandey also examined as PW48 and deposed about sale consideration of site purchased by him and documents relating to it produced under Ex.P188.
109. Further, the evidence of PW44 - Smt.Soumya Latha considered along with document Ex.P184, which has already been discussed on Sl.No.10 of Statement-A relates to Asset of accused No.1 shown beginning of check period, therefore, the same is not required to be discussed again.
93 Spl.CC.34/2016 Because she herself has identified the certified copy of the Sale Deed with Encumbrance Certificate enclosed with letter marked at Ex.P184 has deposed about sale consideration of Rs.17 lakhs paid by the buyer Sathyendra Kumar Pandey.
110. However, the accused No.1 has though admitted the sale consideration of Rs.17 lakhs received through different four Cheques drawn on Canara Bank, according to him, the cost of acquisition at Rs.8,36,000/- to be deducted and remaining Rs.8,64,000/- is to be taken for profit during the check period, therefore stated variance of Rs.12,000/-.
111. It is verified from the records that the sale consideration of Rs.17 lakhs received by accused No.1 while the Site No.127 - SE has been sold in fovour of S.K.Pandey in the year 2012, which is proved by prosecution with supporting documents. However, the prosecution has not explained how the amount of Rs.8,52,000/- shown as 94 Spl.CC.34/2016 profit, without deducting actual value of the said Site shown at the beginning of the check period as per Sl.No.10 of Statement-A at Rs.8,36,000/-. Therefore, the said amount is to be deducted from the total sale price of Rs.17 lakhs, then the profit comes at Rs.8,64,000/-, which is to be taken as Income of the accused No.1 during the check period.
112. Sl.No.3 Interest of Rs.820/- received on Term Deposit A/c.No.693.301.86 of accused No.2 held at Canara Bank, Srirangapatna Branch, prematurely closed on 1.1.2013. In support of the same, evidence of PW8 with document Ex.P27 is relied on by prosecution.
113. PW8 - D.C.Mohan Kumar Sr.Manager of Canara Bank, Srirangapatna Branch has identified the certified copies of Account Opening Form for FD A/c.
No.693.301.86 in the name of accused No.2, wife of accused No.1 kept for Rs.66,50,000/- deposited on 95 Spl.CC.34/2016 31.12.2012 for 15 days with supporting transaction slips, deposit receipt and TD Ledger Report - FDR marked as Ex.P27. The said Ledger Report shows amount of Rs.819.86 towards interest accrued as on 1.1.2013 on the premature of FDR kept for Rs.66,50,000/-. However, in the cross- examination though PW8 has stated he is not able to say the manner of depositing the said FD amount in the name of accused No.2, has affirmed that the said transaction was done by accused No.1. He has also stated no documents produced before the Court to show that he has been authorized to do the transaction on behalf of accused No.2. However, it is not denied that the interest amount of Rs.820/- received towards above said Term Deposit kept in the name of accused No.2 during the check period, therefore, it is taken into consideration.
114. Sl.No.4 Interest on SB A/c.No.693101119990 Rs.1,76,381/-.
96 Spl.CC.34/2016 PW8 has further deposed about interest received towards the above said Account kept in the name of accused No.2 as per Ex.P29. It is made out from the said Statement that the interest credited for the period from 1.8.2012 to 31.1.2013 at Rs.67,719/- and as on 4.7.2013 at Rs.1,08,662/-, it comes to Rs.1,76,381/- is to be considered as Income of accused No.2.
115. Sl.No.5 - Interest of Rs.51,715/- on credit balance held in SB Account bearing No.1174101020804 of accused No.5 at Canara Bank, Magadi Road Branch was being operated by accused No.1.
116. The evidence of PW38 produced with documents Exs.P177 to 179 to prove the credit of said interest amount accrued on the credit balance in the SB Account of accused No.5. This Court has already discussed the evidence of said witness with documents Exs.P177 to 179 while discussing on Sl.No.3 of Statement-A and Sl.No.10 of Statement-B 97 Spl.CC.34/2016 relating to the credit balance found in the above mentioned SB account of accused No.5, the brother in law of accused No.1. However, as already pointed out that accused No.1 has made several transactions through the said Account from 9.1.2010, which was continued during the check period also clearly establish that only on the huge transactions amount deposited by him, interest has been credited on the balance amount from 1.1.2011 to 30.6.2014. Therefore, the interest amount received to the SB Account of accused No.5 during the said period is to be considered as Receipt and Income of accused No.1 and it is relevant to mention the amounts received during said period as follows:
31.1.2011 - Rs.4,411/-, 31.7.2011 - Rs.2,345/-, 31.1.2012 - Rs.1,608/-, 31.7.2012 - Rs.1,565/-, 31.1.2013 - Rs.2,577/-, 31.7.2013 - Rs.13,552/-, 31.1.2014 - Rs.25,657/-.
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117. If all the said amounts as made out from the entries in the Statement of Account of accused No.5 produced under Ex.P177, are calculated it comes to Rs.51,715/-. Therefore, the said amount is to be taken as Receipt and Income of accused No.1 during the check period, though he has denied as it is not the joint account held by him with accused No.5.
118. Sl.No.6 - Interest of Rs.2,42,886/- on credit balance held in the SB A/c.No.2529101013174 jointly in the names of accused No.3 with accused Nos.1 and 2.
119. The evidence of PWs.25 and 39 with documents Exs.P163, 180 and 181 are relied on by the prosecution, which is already discussed above in detail while considering on Sl.No.12 of Statement-B. Both the witnesses have deposed about joint account of accused Nos.1 to 3, supported with documents Exs.P163, 180 and 181.
99 Spl.CC.34/2016
120. PW25 has identified the Statement of joint Account No.2529101013174 of accused Nos.1 to 3 produced under Ex.P163. PW39 has identified the said Statement and deposed the credit balance as on 1.1.2011 was Rs.2,01,620.22 and as on 31.1.2014 the credit balance was Rs.67,84,796.52. He has also stated about credit of interest once in six months, which has been shown in the said Statement as follows:
31.7.2011 - Interest for the period from 1.2.2011 to 31.7.2011 at Rs.43/-
31.1.2012 - Interest for the period from 1.8.2011 to 31.1.2012 at Rs.22/-
31.7.2012 - Interest for the period from 1.2.2012 to 31.7.2012 at Rs.1,723/-
31.1.2013 - Interest for the period from 1.8.2012 to 31.1.2013 at Rs.15,270/-
31.7.2013 - Interest for the period from 1.2.2013 to 31.7.2013 at Rs.84,688/-
31.1.2014 - Interest for the period from 1.8.2013 to 31.1.2014 at Rs.1,41,023/-
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121. The above said Interest amount if calculated, it comes to Rs.2,42,769/- and not Rs.2,42,886/-. Therefore, the amount of Rs.2,42,769/- is to be considered.
122. Sl.No.7 - Refund of Income Tax of Rs.968/- during 2011-12 and Rs.2,853/- during 2012-13 in total Rs.3,821/- received by accused No.1. The same is proved by prosecution through PW36 with document Ex.P172.
123. PW36 - Sudha Ranganath, Income Tax Officer in ward No.1(3)(3) in the office of Additional CIT, Range (1)(3) at HMT Bhavan, Bengaluru has deposed about details of Income Tax paid by accused No.1 after taking out print out copies of the documents available in the system produced under Ex.P172. She has stated about refund of Income Tax paid by accused No.1 at Rs.968/- and Rs.2,853/- for the period from 2011-12 and 2012-13.
101 Spl.CC.34/2016
124. It is made out from the copies of screen shots of IT Returns produced under Ex.P172 for the Assessment year 2011-12, the refund of Rs.968/- and for the Assessment year 2012-13, a sum of Rs.2,853/- refunded to accused No.1 towards excess payment of Tax. Therefore, the total of said amounts comes to Rs.3,821/- is to be taken as Receipts and Income of accused No.1 during the check period.
125. Sl.No.8 - Rs.3,27,500/- non-repayable withdrawal from PF Account made by accused No.1 on 25.6.2012.
126. The evidence of PW7 with documents Exs.P20 to 24 produced before the Court to prove the said income. PW7 has stated about Net Salary of accused No.1 during the check period after giving deduction of Staff Provident Fund, Income Tax, Professional Tax, LIC Premium and Loan recovery if any. His evidence supported by documents 102 Spl.CC.34/2016 Exs.P20 to 24. The particulars of contribution made by employees noted in the Pass Sheet of Staff Provident Fund issued as per Ex.P24, in which the entry dtd.25.6.2012 for the amount of Rs.3,27,500/- can be made out, which is to be considered by this Court.
127. Sl.No.9 - Profit on sale of 14 Shares of Reliance Industries Ltd., by accused No.1 on 17.2.2012 at Rs.11,130/-.
128. PW1 has deposed about different Shares pertaining to accused No.1 produced under Ex.P3, which contained details of Shares of different Companies purchased by him including 14 Shares of Reliance Industries Ltd., on 17.2.2012. PW1 has clearly stated that he is not able to say the rate of Shares sold by accused No.1, but in the cross-examination stated the market value of said 14 Shares was Rs.14,821.80 as on 31.12.2010. Therefore, the amount of Rs.11,130/- towards profit on 103 Spl.CC.34/2016 sale of the said Shares might have taken approximately, the same is to be considered as no other document produced before the Court.
129. Sl.No.10 - Profit on Sale of 77 Shares of Reliance Power Ltd., on 17.2.2012 by accused No.1 for Rs.8,998/-.
130. PW1 has further deposed about 77 Shares of Reliance Power Ltd., purchased by accused No.1 on 13.11.2010 and sold on 17.2.2012 as could be made out from Ex.P3. But he is not able to say the rate of said Shares sold by accused No.1, on 17.2.2012, but the market value of said Shares stated as Rs.12,177.55 as on 31.12.2010. The amount of Rs.8,998/- taken as profit on sale of said 77 Shares is to be taken into consideration as profit of accused No.1 in absence of documents before the Court.
104 Spl.CC.34/2016
131. The learned Public Prosecutor has included Sl.No.11 relating to interest of Rs.878/- received by accused No.1 from his account held with TGMC, Basaveshwara Nagar Branch, Bangalore under the Statement-C, is to be included for total amount of Receipts and Income of accused No.1 during the check period already shown at Rs.26,71,197/-.
132. In support of the same, relied on the evidence of PW3 with documents Exs.P11 and 12. PW3 B.C.Vasantha, Dy.Manager of Tumkur Grain Merchant Co- Operative Bank (TGMC), Basaveshwara Nagar Branch has deposed about certified copies of the application form given by accused No.1 to open SB Account with Statement of Accounts produced under Ex.P12. She has identified the covering letter Ex.P11, under which all the related documents produced to CBI.
105 Spl.CC.34/2016
133. However, the Statement of Account No.30302643606 pertaining to accused No.1 reveals that the credit of interest of Rs.878/- as on 7.1.2015, the said account has been closed on the same day. Therefore, as the said interest amount received subsequent to expiry of check period for the period from 16.7.2014 to 7.1.2015, cannot be taken into consideration as the Income of accused on the ground the amount of Rs.878/- was not received by accused No.1 during the check period.
134. However, the learned Counsel for accused No.1 has contended that other amounts received by him during the check period from different sources of Business Development Expenses Reimbursement, Conveyance, Incentive, Medical Expenses Reimbursement, Rental Deposit, LIC Maturity Proceeds, Interest on FD/RD, Dividend and Vehicle Insurance Claim have not been considered along with the Vehicle Loan of Rs.2,20,000/- availed by him for purchasing four wheeler in the 106 Spl.CC.34/2016 Statement-C, therefore submitted the income from the said sources to be added under said Statement.
135. The learned Public Prosecutor has submitted that income of accused No.1 from Business Development Reimbursement Expenses, Conveyance and Incentive cannot be considered as the same does not amount to an income. Further, the Medical expenses reimbursement of Rs.32,020/- though has shown in Ex.P49, as no proof placed regarding the said amount was reimbursed towards Medical expenses, it cannot be considered as income of accused No.1. However, the LIC maturity proceeds at Rs.1,37,619/- shown in Ex.P49 is not disputed to consider income of accused No.1. Further the interest on FD/RD at Rs.56,849/- is partly admitted as transaction dtd.27.4.2011 shown in Ex.P49 for Rs.3,262/- made towards refund of Income tax and other amounts shown in Exs.P27, 28, 49 and 163 are disputed. It is also denied the dividend at Rs.4,122/- as the entries made in Statement of Account 107 Spl.CC.34/2016 Ex.P49 does not tally with the said amount. Further denied with regard to profit on sale of Shares at Rs.1,167/-, Capital gain - Sale of UTI MF Units at Rs.1,272/- and Vehicle Insurance Claim of Rs.9,752/-. Therefore, the total amount of Rs.7,59,500/- alleged to be the income of accused No.1 during the check period cannot be considered on the ground as no evidence placed by him. The amount of Rs.19,75,000/- said to be borrowed from accused No.5, Rental deposit of House No.424, Basaveshwara Nagar at Rs.1 lakh and Receipts from various parties at Rs.2,86,00,000/- also denied on the same ground of no evidence placed by accused No.1 in proof of the said Income and Receipts.
136. The important point to be noted that the definition of "income" includes money received, especially on a regular basis, work or through investment including receipts, revenue, stipend, wages, turnover, yield, dividend and incomings. Therefore, the income from Conveyance, 108 Spl.CC.34/2016 Incentive, Medical Expenses Reimbursement, Rental Deposit, LIC maturity proceeds, Interest on FD/RD, Dividend and Vehicle Insurance claim to be taken as Income of accused No.1 during the check period. But the Loan of Rs.2,20,000/- availed by accused No.1 for purchasing four wheeler which was sanctioned on 5.12.2007 as per Ex.P103, cannot be considered as his Income received during the check period. However, the said Loan was repaid in monthly installments deducted from his Salary during the check period can be taken as Expenditure under Statement-D. Therefore, the remaining amounts which has been received by accused No.1 through his Account, Account of accused No.2 and Joint Account in his name with accused Nos.2 and 3 made out from their respective Accounts as follows:
a) Conveyance received by accused No.1 through Salary Account No.2373252005097 as per Ex.P49 on different dates as follows: -
Date Amount (Rs.)
1.2.2011 2,297.00
109 Spl.CC.34/2016
3.5.2011 2,298.00
1.6.2011 2,487.00
1.7.2011 2,487.45
1.10.2011 2,600.00
31.1.2011 2,618.00
4.8.2012 943.00
18.8.2012 630.00
25.9.2012 3,000.00
26.11.2012 14,180.00
22.8.2013 13,688.00
21.11.2013 4,267.00
Total 51,595.45
b) Incentives received by accused No.1 through his Salary Account No.2373252005097 on different dates as follows: -
Date Amount (Rs.)
1.1.2011 1,318.00 (Paper bill)
1.2.2011 144.00 - " -
3.5.2011 144.00 - " -
1.6.2011 144.00 - " -
1.7.2011 144.00 - " -
2.9.2011 2,705.00 - " -
1.10.2011 144.00 - " -
110 Spl.CC.34/2016
2.12.2011 144.00 - " -
2.12.2011 2,583.00 - " -
4.6.2012 12,500 (Petrol bill)
8.11.2012 200.00 (Incentive)
4.12.2012 3,600.00 - " -
23.2.2013 406.00 CASA
26.2.2013 198.00
6.3.2013 52.00
8.4.2013 211.00
26.4.2013 12,500.00 (Life Insurance
Incentive)
21.5.2013 2,100.00
22.5.2013 2,000.00
22.5.2013 140.00
3.8.2013 10,000.00 (Data Entry)
24.8.2013 1,500.00
31.10.2013 4,233.00 (Life Insurance
Incentive)
5.6.2014 1,723.00
Total 48,427.00
c) Medical Expenses received by accused No.1 through his Salary Account No.2373252005097 as per Ex.P49 : -
111 Spl.CC.34/2016 Date Amount (Rs.) 23.2.2011 32,020.00
d) Rental deposit received by accused No.1 through his Joint Account No.2529101013174 held along with accused Nos.2 and 3 as per Ex.P163 : -
Date Amount (Rs.)
10.12.2012 1,00,000.00 (Funds transfer
from Ramesh Rao)
e) LIC maturity amount received by accused No.1
through his Account No.2373252005097: -
Date Amount (Rs.)
1.1.2013 54,249.00
19.6.2014 83,370.00
Total 1,37,619.00
f) Interest on FD/RD received by accused No.1
through the Account of accused No.2 No.0693101119990 and Joint Account No.2529101013174 : -
Date Amount (Rs.)
18.3.2013 1,616.00
4.8.2013 18,610.00
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4.9.2013 18,610.00
Total 38,836.00
g) Dividend received by accused No.1 through Salary Account No.2373252005097: -
Date Amount (Rs.)
4.6.2011 112.00
31.3.2012 425.00
3.4.2012 439.10
9.5.2012 225.00
2.4.2013 425.00
2.4.2013 415.00
21.1.2014 435.00
24.1.2014 832.00
31.3.2014 425.00
31.3.2014 415.00
Total 4,148.10
h) Vehicle Insurance Claim received by accused No.1 through Salary Account No.2373252005097: -
Date Amount (Rs.)
6.6.2011 9752.00
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137. After going through the relevant documents pertaining to the income received by accused No.1 to his different accounts under Ex.P49, Ex.P29 and joint account Ex.P163, it can be said that Conveyance received at Rs.51,495/-, incentives at Rs.48,427/-, Reimbursement of Medical expenses Rs.32,020/-, Rental deposit of Rs.1,00,000/-, LIC maturity proceeds Rs.1,37,619/-, Interest towards FD/RD of Rs.38,836/-, Dividend received at Rs.4,122/-, and Vehicle insurance claim of Rs.9,752/-
is to be taken as income of accused No.1.
138. However, it is made out from the particulars produced by the accused No.1 said to be considered as Interest, made out from the entries of the respective Statement of Accounts of accused Nos.1 to 3 as follows:
a) 27.4.2011 - Rs.3,262.00 shown towards IT deduction from April Salary from the Account of accused No.1 under Ex.P49.
b) 28.2.2012 - Rs.3,238.00 - Funds transferred to Rajatha 114 Spl.CC.34/2016 B.Eshwar as per Ex.P49.
c) 18.3.2013 - Rs.1,616.00 - Short interest on VSL collected from the Account of accused No.2 as per Ex.P29.
d) 4.8.2013 - Rs.18,610.00 - Gross interest credited to the No.06933020000881 as per Ex.P163.
e) 4.9.2013 - Rs.18,610.00 - Gross interest credited to the No. 06933020000881 as per Ex.P163.
139. However, other entries pointed out by the learned Counsel dated 2.3.2013 for Rs.3,425.00, Rs.1,634.00 and 9.6.2014 for Rs.3,340/- are not found in the Statement Ex.P49 and no entry for the amount of Rs.6,391.00 made as on 2.3.2013 in the Statement of joint Account under Ex.P163. Therefore, the amounts from (c) to (e) are to be taken into consideration which comes to Rs.38,836/- and not (a) and (b) amounts not accrued towards interest of FD and RD accounts.
140. The elaborate discussion made on each head of the Assets received by accused No.1 during the check 115 Spl.CC.34/2016 period shows the difference in the Net Salary Income, Profit on Sale of Site No.127, Nisarga South Extension Layout by accused No.1 and Interest received on Credit balance held in the joint Account. Though the said difference amounts already has been mentioned on the relevant heads of Income, the same is found after calculation as follows:
1) Sl.No.1 - Net Salary Income of accused No.1 received during check period - Rs.10,82,685/-
2) Sl.No.2 - Profit on sale of Site No.127 by accused No.1 Rs.8,64,000/-
3) Sl.No.6 - Interest received on Credit balance held in the Joint Account of accused Nos.1 to 3. - Rs.2,42,769/-.
4) Income received by accused No.1 through income from Conveyance, Incentive, Medical Expenses Reimbursement, Rental Deposit, LIC maturity proceeds, Interest on FD/RD, Dividend and Vehicle Insurance claim at Rs.4,22,271/-
with other heads of Income shown in Statement-C at Sl.Nos.3, 4, 5, 7 to 10 found to be correct to be included as income of accused No.1 during the check period.
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141. However, it is important to point out that the accused No.3 Rajatha B.Eshwar, the daughter of accused No.1 was also getting income from Salary as she was working as Associate Software Engineer in Accenture from December-2011 to 10.10.2013 as could be made out from the letter Ex.P200, as follows:
Month Gross Net Pay
Earnings (Rs.) (Rs.)
Dec-2011 13,364 12,607
Jan-2012 2,381 2,351
Feb-2012 0 0
March-2012 26,567 25,375
April-2012 0 0
May-2012 0 0
June-2012 24,220 23,010
July-2012 18,771 17,833
Aug-2012 18,771 17,833
Sep-2012 28,823 26,790
Oct-2012 18,771 17,833
Nov-2012 18,971 18,033
Dec-2012 19,171 18,233
Jan-2013 18,971 18,033
Feb-2013 18,971 18,033
March-2013 53,269 51,236
April-2013 18,771 17,633
May-2013 18,771 17,633
June-2013 18,771 17,633
July-2013 18,771 17,633
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Aug-2013 18,771 17,633
Sep-2013 18,771 17,633
Oct-2013 26,393 25,890
Total 4,20,040 3,98,888
142. Therefore, the Gross salary of accused No.3 received at Rs.4,20,040/- during the check period also to be included with the income of accused No.1 received from Salary and others as mentioned above. After calculating all the receipts and income of accused No.1 mentioned under Statement C with other income as well as Salary of accused No.3 found as follows:
Sl.No. Amount (Rs.) 1 Receipts and Income received 27,69,819.00 by accused No.1 during the Check period shown from Sl.Nos.1 to 10 of Statement-C 2 Income received by accused 4,22,271.00 No.1 during the check period towards Conveyance, Incentive, Medical Expenses, Rental Deposit, LIC Maturity proceeds, Dividend, Vehicle Insurance Claim, Interest on FD/RD, and others as taken by this Court 118 Spl.CC.34/2016 3 Salary received by accused 4,20,040.00 No.3 during check period Total 36,12,130.00 Therefore, the Income and Receipts of accused Nos.1 and 3 received during the check period, comes to Rs.36,12,130/-.
143. The Statement-D relates to the Expenditure incurred by accused No.1 during the check period as follows:-
Sl. Details of Assets Amount in No. Rs. 1 Household expenses (1/3rd of gross 6,94,830.00
salary of Rs.20,84,489/- received by accused No.1, H.S.Eshwar from Canara Bank) 2 Amount transferred to 95,80,000.00 A/c.No.849620110000276 of M/s.Zaal Dance Academy (Prop:
Shri Giribabu (A-4), son-in-law of Shri H.S.Eshwar) with Bank of India, Jeevan Bhimanagar Branch, Bengaluru from the OD Account of H.S.Eshwar (A-1), SB Account of Smt.A.R.Mamata (A-2), both at Canara Bank, Srirangapatna Branch 119 Spl.CC.34/2016 and joint SB Account of A-1 to A-3 at Canara Bank, Basaveshwara Nagar Branch, Bengaluru.
3. Expenses (other than those shown 5,28,950.00 separately) from SB A/c.No.1174101020804 of Shri C.Umeshappa (A-5) held at Canara Bank, Magadi Road Branch, Bengaluru, which was being operated by the accused No.1 H.S.Eshwar also.
4. Expenses (other than those shown 24,25,695.00 separately) from Salary Account No.2373252005097 of the accused No.1 H.S.Eshwar at Canara Bank, Srirangapatna Branch.
5. Expenses (other than those shown 1,32,77,206.00 separately) from the SB A/c.No.2529101013174 jointly held by Rajatha B. Eshwar (A-3), H.S.Eshwar (A-1) and Smt. A.R.Mamata (A-2) at Canara Bank, Basaveshwara Nagar Branch, Bengaluru including Rs.1,103/-
being rent on locker held.
6. Expenses (other than those shown 2,55,000.00 separately) from SB Account No.0693101119990 of Smt.A.R.Mamatha (A-2) at Canara Bank, Srirangapatna Branch.
7. Repayment of housing loan taken 2,30,452.00 from Can Fin Homes Limited, 120 Spl.CC.34/2016 Cunningham Road, Bengaluru by accused No.1 H.S.Eshwar
8. Payment of property tax to BBMP in 11,880.00 respect of house of accused No.1 H.S.Eshwar at No.424, 6th Main, 16th Cross, Basaveshwara Nagar, BEML Layout, Bengaluru-79.
9. Premium paid to Bharti AXA General 7,134.00 Insurance Company Limited towards Hyundai Santro GL Car bearing registration No.KA-02/MG-6671 in the name of accused No.1 H.S.Eshwar for the period from 4.9.2013 to 3.9.2014
10. Premium paid on LIC Policies 1,96,823.00 bearing Nos.725874554 and 725874555 in the name of accused No.3 Smt.Rajatha B.Eshwar at LIC of India, Srirangapatna Branch.
11. Premium paid on Canara HSBC OBC 97,557.00 Life Insurance Policy No.0036229215 taken by accused No.1 H.S.Eshwar in the name of his wife Smt.A.R.Mamtha (A-2).
12. Premium paid to National Insurance 15,654.00 Company Limited towards Policies taken on Maruti ALTO K10 LXI Car bearing registration No.KA-02/MF-
1193 in the name of the accused No.1 H.S.Eshwar for the period from 20.1.2012 to 19.1.2013, 20.1.2013 to 19.1.2014 and 20.1.2014 to 19.1.2015.
121 Spl.CC.34/2016
13. Premium paid on Jeevan Suraksha 40,000.00 Policy No.614668289 in the name of the accused No.1 H.S.Eshwar.
14. Expenditure incurred on Hyundai 13,833.00 Santro GL Car bearing registration No.KA-02/MG-6671 owned by the accused No.1 H.S.Eshwar towards service/repair got done at the Sheshadripuram Service Station of M/s.Triden Automobiles Pvt.Limited.
15. Expenditure incurred towards 8,054.00 payment of telephone bills to BSNL, BGTD, Bengaluru in respect of telephone No.080-23402392 in the name of accused H.S.Eshwar during the period from 02/2012 to June,2014 including security deposit of Rs.500/-.
16. Payments made to Reliance 100.00 Communication Limited for recharging the Reliance Mobile No.9342954111.
17. Expenditure incurred towards 1,20,067.00 purchase of diesel for Santro Car bearing Regn.NoKA-02/MG-6671.
18. Interest on OD facility availed in OD 5,413.00 A/c.No.2373252005097 of accused No.1 H.S.Eshwar at Canara Bank, Srirangapatna Branch during the period from 1.1.2011 to 30.6.2014.
19. Repayment of vehicle loan availed 1,61,884.00 122 Spl.CC.34/2016 by the accused No.1 H.S.Eshwar from Canara Bank, Tavarakere Branch, Bengaluru under Account No.2373695000003.
20. Interest paid on Gold loan availed by 419.00 Smt.A.R.Mamata w/o. accused from Canara Bank, Tavarekere Branch, Bengaluru under Account No.1229842018486.
21. Interest paid on housing loan taken 2,87,159.00 for purchase of site No.424 measuring 32' X 33' in Sy.No.28/3, Saneguruvanahalli, Yeswantpur Hobli, Bengaluru (now BEML layout, Basaeshwara Nagar, Bengaluru) and construction of house thereon from Canara Bank, Housing Finance Branch, Bengaluru.
22. Payment of common maintenance 22,200.00 charges for flat No.SF-2 at SLV Golden Nest Apartment, No.25, KHB Colony, 1st Cross, 2nd Stage, Basaveshwara Nagar, Bengaluru-79.
23. Loss on sale of TATA Indica Car 1,40,000.00 No.KA-01/MA-4429 by the accused No.1 H.S.Eshwar.
24. Loss on sale of 15 Shares of 6,314.00 Onmobile Global Limited on 17.2.2012 by the accused No.1 H.S.Eshwar.
Total : 2,81,26,624.00
123 Spl.CC.34/2016
144. Sl.No.1 - For household expenses 1/3rd gross Salary at Rs.20,84,489/- received by accused No.1 from Canara Bank in total taken at Rs.6,94,830/-. To prove the same, prosecution has placed the evidence of PW7 with document Ex.P23.
145. PW7 being Senior Manager of Canara Bank has deposed about Service particulars, Personal file and Salary particulars of accused No.1 produced before CBI, as per Ex.P23. According to the particulars furnished in the said document, the total amount of gross salary received by accused No.1 during the check period with slight difference comes to Rs.20,84,488.70, out of which, prosecution has taken 1/3rd of same towards household expenses will comes to Rs.6,94,830/-.
146. However, the accused No.1 has denied the above said expenditure incurred towards household expenses during the check period and stated there is 124 Spl.CC.34/2016 variance of Rs.3,47,415/- as many of the expenditure done through the credit cards. Further alleged that the actual salary received by him was Rs.10,82,665/-, out of which 1/3rd of the same at Rs.3,60,888/- to be taken for expenditure, therefore the amount of Rs.6,94,830/- is not correct as the exact amount of expenses incurred to be taken at Rs.3,47,715/-.
147. However, the said calculation made by accused No.1 is not correct, on the ground that the amount of Rs.10,82,665/- is considered as Net salary received by him during the check period and not the Gross salary. The important aspect made out from the records that either the prosecution or the accused No.1 produced any particulars through oral or documentary evidence in proof of household expenses incurred by accused No.1 during the check period. But the withdrawals through ATM made out from the joint account of accused Nos.1 to 3 maintained under Ex.P163, comes to more than Rs.7,00,000/-, which has been 125 Spl.CC.34/2016 withdrawn on different dates during the check period. Therefore, in absence of any particular proof of household expenses, 1/3rd of total gross salary received by accused No.1 at Rs.20,84,498/- is considered during the check period, which comes to Rs.6,94,830/-
148. Sl.No.2 - Amount of Rs.95,80,000/- transferred to the Account of Zaal Dance Academy by its Proprietor accused No.4, the son in law of accused No.1, which was opened in the Bank of India, Jeevan Bheema Nagar Branch, Bengaluru. The said amount has been transferred from OD Account of accused No.1, SB Account of accused No.2 at Canara Bank, Srirangapatna Branch and joint SB Account of accused Nos.1 to 3 at Basaveshwara Nagar, Branch, Bengaluru. In order to prove the same, prosecution has produced the evidence of PW41 with supporting documents Exs.P163 and 182.
126 Spl.CC.34/2016
149. PW41 - Maya Jayagopal Chief Manager, Bank of India, Jeevan Bheemanagar Branch, Bengaluru has stated about the documents pertaining to the SB Account opened in the name of M/s. Zaal Dance Academy owned by accused No.4 as its Proprietor were produced with covering letter as per Ex.P182. The SB Account No.849620110000276 was opened by accused No.4 on 25.11.2008, with initial deposit of Rs.10,000/-. It is made out from the Statement of said account, the balance as on 18.1.2011 was Rs.1,29,690.72. However, the entries of the said Statement of Account produced only upto 5.9.2013 and closing balance shown at Rs.53,43,198.72.
150. After going through the above Statement of Account shown as from 1.1.2010 to 30.6.2014, she has stated the amount of Rs.50,000/- credited through NEFT from the joint account of accused Nos.1 to 3 on 12.12.2012, amount of Rs.30,000/- on 17.4.2013 through NEFT/H.S.Eshwar - accused No.1 - SOL - ID 02000 127 Spl.CC.34/2016 Mumbai (Maharastra), on 2.7.2013 amount of Rs.25 lakhs through RTGS/Accused No.2, - SOL - ID 02000 Mumbai (Maharastra), on 4.7.2013 amount of Rs.20 lakhs through RTGS/Accused No.2, - SOL - ID 02000 Mumbai (Maharastra), on 16.7.2013 amount of Rs.25 lakhs, through RTGS/Rajatha B.Eshwar Accused No.3 and SOL - ID 02000 Mumbai (Maharastra), on 26.8.2013 amount of Rs.50 lakhs from the account of accused No.3 RTGS/Rajatha B.Eshwar Accused No.3 and SOL - ID 02000 Mumbai (Maharastra). However, the transfer of the said amounts from the accounts of accused No.1, accused No.2 and accused No.3 through NEFT and separately by different modes, that too, from Mumbai and Maharastra, which is not explained properly by prosecution. However, if those amounts are calculated comes to Rs.95,80,000/- transferred to the above A/c.No.849620110000276 of M/s.Zaal Dance Academy, is however, not disputed by the accused Nos.1 to
5. 128 Spl.CC.34/2016
151. However, subsequently accused No.1 has raised contention and stated in his submission made under Ex.P207 as the said amount has been paid as an advance to accused No.4 who was running M/s.Zaal Dance Academy and working as Aerobic Instructor in various Gyms at Koramangala and Indirangar Bengaluru as well as he wanted to set up his own Gym and looking for Banking Finance, he has transferred Rs.45 lakhs to the above Account at Bank of India, JB Nagar, Bengaluru was to be adjusted in his future Real Estate commission, therefore the said amount will not become expenditure. However the said contention raised by accused No.1 cannot be accepted as for the first time before the Investigating Officer under Ex.P207, gave details of alleged advance of Rs.45 lakhs transferred to the Account of M/s.Zaal Dance Academy, which was not declared earlier before his higher authority. Therefore, the above mentioned different amounts transferred to the said Account by the accused No.1 comes 129 Spl.CC.34/2016 to total of Rs.95,80,000/- be considered as expenditure incurred by him during the check period.
152. Sl.No.3 - Expenses of Rs.5,28,950/- from SB Account No.1174101020804 of accused No.5 at Canara Bank, Magadi Road Branch, Bengaluru being operated by accused No.1 stated as other than Expenses those shown separately. Prosecution relied on evidence of PW38 with documents Exs.P177 to 179.
153. PW38 - Srinivasa Acharyulu, as a Second Line Manager in Canara Bank, Magadi Road Branch, Bengaluru has deposed about SB Account No.1174101020804 opened in the name of accused No.5, Account opening form, Statement of Account with related documents produced to CBI under the letter dtd.29.4.2015 marked as Ex.P177. It is made out from the related documents that the accused No.5 has opened the said Account on 10.10.2005 by initial deposit of Rs.1,000/-.
130 Spl.CC.34/2016 The withdrawals made through the said Account shown in the Statement of Account enclosed to Ex.P177 reveals the different transactions made by accused No.1, who was operating the said account and withdrawn different amounts as per the entries shown on different dates during the check period.
154. After verifying the said Statement of Account, it is made out that the relevant entries dtd.6.1.2011 for Rs.2 lakhs in the name of Karthi, on 23.6.2011 clearing of Rs.20,000/- in favour of Venkatesh, on 15.10.2011 clearing of Rs.6,992/- to LIC, on 22.6.2012 clearing of Rs.15,000/- to Suresh on 12.7.2012 Rs.1 lakh to Sunil, on 17.9.2012 Rs.6,958/- to CLG., on 6.10.2012 Rs.70,000/- to CLG, 13.11.2012 Rs.10,000/- withdrawn by Venkatesh and Rs.1 lakh on 31.1.2013 to CLG - Prakash. If all the withdrawals calculated comes to Rs.5,28,950/-.
131 Spl.CC.34/2016
155. PW38 has also identified the letter Ex.P178 under which details of the different transactions and different amount with respective original vouchers mentioned in it as per Ex.P179 contained Vouchers and Cheques dtd.18.6.2012, 20.6.2012, 27.7.2012, 10.8.2012, 15.8.2012, 1.3.2013 etc. and Cheques dtd.4.6.2012, 18.6.2012, 11.7.2012, 11.8.2013, 25.6.2012 etc. relating to the above mentioned transactions.
156. However, the accused No.1 has stated the above mentioned amounts shown as his expenses were not made by him, but those are expenses of accused No.5 towards his personal expenditure withdrawn from his account. He has also contended that he has not made any transactions or expenses through the said account of accused No.5, therefore according to him, the amount of Rs.5,28,950/- withdrawn from the account of accused No.5 cannot be considered as expenses made by him.
132 Spl.CC.34/2016
157. However, the contention raised by accused No.1 falsifies in view of the above discussed documents which clearly establish that many huge transactions were made by accused No.1 through the account of accused No.5 produced under Ex.P177, which is supported by different Vouchers and Cheques as per Ex.P178 and Ex.P179. The relevant entries from the Statement of Account of accused No.5 at No.1174101020804 produced under Ex.P177 made out as follows:
Date Amount (Rs.) 6.1.2011 - Karthi 2,00,000.00 23.6.2011 - To 20,000.00 CLG:Venkatesh 15.10.2011- To CLG:LIC 6,992.00 22.6.2012 - Suresh 15,000.00 12.7.2012 - Sunil S. 1,00,000.00 17.9.2012 - To CLG:To CLG 6,958.00 600290000 6.10.2012 - To CLG:To CLG 70,000.00 600240000 13.11.2012 - Venkatesh 10,000.00 133 Spl.CC.34/2016 31.1.2013 - To CLG:OT- 1,00,000.00 Prakash Total 5,28,950.00
Therefore, the above said amount of Rs.5,28,950/- considered as expenses of accused No.1 made through the SB Account of accused No.5.
158. Sl.No.4 - Expenses from salary A/c.No.2373252005097 of accused No.1 at Canara Bank, Srirangapatna Branch, other than those shown separately is Rs.24,25,695/-.
159. The prosecution relied on evidence of PW8 with document Ex.P49, the salary account No.2373252005097 of accused No.1, from which the Expenses can be made out from the following entries:
Date of Particulars Amount
Transaction (Rs.)
1.1.2011 Fund withdrawn 75,000.00
134 Spl.CC.34/2016
8.1.2011 Fund transfer to 4147 5,000.00
10.1.2011 Fund transfer to 1534 5,150.00
11.1.2011 Clearing to Citi Bank Card 94,126.50
12.1.2011 Clearing HSBC Card 50,277.86
18.1.2011 DD favouring M/s.Garuda 3,15,416.00
Autocraft Pvt.Ltd.
28.1.2011 Clearing HSBC Card 27,019.00
9.2.2011 Clearing Citi Bank Card 27,809.00
15.2.2011 Clearing HSBC Card 20,103.94
17.2.2011 Fund transfer to 3741 3,100.00
1.3.2011 Clearing HSBC 43,253.91
23.3.2011 Clearing PFC Infra 20,000.00
30.3.2011 Clearing to HSBC 36,042.35
8.4.2011 Clearing Citi Bank Card 43,089.00
15.4.2011 Clearing HSBC Card 52,093.55
20.4.2011 Clearing to EMM Motors 10,000.00
29.4.2011 Clearing HSBC Card 30,000.00
7.5.2011 Amount transfer 45,000.00
9.5.2011 Clearing Citi Bank Card 71,075.00
12.5.2011 Clearing HSBC Card 13,862.00
12.5.2011 Amount transfer to 10,000.00
R.Rajenda
28.5.2011 Clearing HSBC Card 3,933.25
4.6.2011 Sugna Satish 1,000.00
9.6.2011 Clearing Citi Bank Card 30,000.00
135 Spl.CC.34/2016
14.6.2011 Clearing HSBC Card 11,828.00
29.6.2011 Amount transfer 10,000.00
13.7.2011 Clearing HSBC Card 21,767.38
27.7.2011 Fund transfer to Signhope 5,000.00
systems
30.7.2011 Clearing HSBC Card 1,145.00
9.8.2011 Clearing HSBC Card 10,264.70
13.10.2011 Clearing HSBC Card 8,788.36
9.11.2011 Clearing HSBC Card 18,417.78
30.11.2011 Clearing HDFC Card 1,941.32
12.12.2011 Clearing HSBC Card 8,890.66
14.12.2011 Fund transfer to 8486 25,419.00
22.12.2011 Amount remitted to 1,130.00
Abhirudhi
22.12.2011 Amount remitted to Ravi 2,223.00
Shankar
2.1.2012 Fund transfer to 0003 25,000.00
10.1.2012 Clearing HSBC Card 16,769.00
27.1.2012 Revathi creative com. 5,000.00
10.2.2012 Clearing HSBC Card 40,762.00
18.2.2012 Fund transfer to Babu M 10,000.00
23.3.2012 Shriram Jewellers, 7,200.00
Bengaluru
5.4.2012 Clearing HSBC Card 11,750.00
13.4.2012 Fund transfer to Narasimha 10,000.00
NN
26.5.2012 Clearing HSBC Card 13,096.18
136 Spl.CC.34/2016
2.6.2012 Fund transfer to C.S.Ravi 1,090.00
Shankar
4.6.2012 Fund transfer to 8405 54,855.00
13.8.2012 NEF OW HSBC Credit Card 17,191.00
3.10.2012 Fund transfer to Sugna 50,000.00
Satish
6.10.2012 Fund transfer to Sugna 20,000.00
Satish
2.11.2012 Fund transfer to Sugna 20,000.00
Satish
28.11.2012 Fund transfer to 0007 50,000.00
26.12.2012 Fund transfer to 0007 25,000.00
8.1.2012 Fund transfer to Jagdeesh 45,000.00
Air Travel
18.1.2013 Fund transfer to 0007 50,000.00
24.1.2012 Fund transfer to 0007 50,000.00
12.2.2013 Fund transfer to 0007 63,595.00
12.2.2013 Fund transfer to 10,000.00
Chandrashekar N.
23.2.2012 Fund transfer to Country 2,206.00
Club
26.2.2013 Fund transfer to Murthy KB 25,000.00
27.2.2013 Fund transfer to Vasavaraju 5,000.00
28.2.2013 Fund transfer to 9990 50,000.00
5.3.2013 Fund transfer to LB 1,17,292.00
Publishers
4.4.2013 Fund transfer to 15,000.00
Radhesyam H.
17.5.2013 Fund transfer to 35,000.00
Dr.A.N.Padma
6.6.2013 R.D.Drawn 5,000.00
137 Spl.CC.34/2016
17.6.2013 Fund transfer to S.T.Triveni 1,00,000.00
19.6.2013 Fund transfer Damodara M. 13,300.00
6.7.2013 RD Drawn 5,000.00
6.8.2013 RD Drawn 5,000.00
13.8.2013 Fund transfer to Satish L. 1,000.00
6.9.2013 RD Drawn 5,000.00
6.11.2013 RD Drawn 5,000.00
6.11.2013 RD Drawn 5,000.00
9.11.2013 Clearing HSBC Card 28,748.00
9.11.2013 Clearing HSBC Card 31.822.00
6.12.2013 RD Drawn 5,000.00
6.1.2014 RD Drawn 5,000.00
3.2.2014 Clearing HSBC Card 1,775.00
3.2.2014 Clearing HSBC Card 12,582.00
6.2.2014 RD Drawn 5,000.00
26.2.2014 Clearing HSBC Card 3,100.00
6.3.2014 RD Drawn 5,000.00
26.3.2014 Clearing HSBC Card 7,360.00
5.4.2014 RD Drawn 5,000.00
6.5.2014 RD Drawn 5,000.00
31.5.2014 Clearing HSBC Card 12,200.00
Total 22,76,852.00
138 Spl.CC.34/2016
160. PW8 being Senior Manager of Canara Bank, Srirangapatna Branch has identified the certified copy of the Statement of Account of accused No.1 for the period from 1.1.2011 to 17.4.2015 marked under Ex.P49. However, the amounts withdrawn from the said Account towards expenses is not disputed by accused No.1. Therefore, after calculation of the above withdrawals from salary account of accused No.1, on different dates during the check period comes to Rs.22,76,852.00 is to be taken into consideration.
161. However, it is made out from Ex.P49, some more withdrawals of different amounts were not considered by prosecution. Therefore, the same are taken into consideration by this Court, made out from the Statement of said Account on different dates as follows:
Date Particulars A/c.No. Amount
(Rs.)
12.3.2011 To CLG:Citi Bank 000000312766 92,496.00
139 Spl.CC.34/2016
12.3.2011 To CLG: HSBC 000000312765 9,680.95
30.3.2011 To CLG:Bloreone 000000312712 449.00
30.3.2011 To CLG:Bloreone 000000312713 589.00
30.4.2011 To CLG:Bloreone 000000312715 722.00
30.3.2011 To CLG:Bloreone 000000312716 475.00
30.5.2011 To CLG:Bloreone 000000312718 721.00
30.5.2011 To CLG:Bloreone 000000312717 389.00
1.6.2011 To CLG:BBMP 000000312719 2,970.00
24.6.2011 Funds transfer to 1,130.00
C.S.Ravishankar
30.6.2011 To CLG:Bloreone 000000312721 562.00
30.6.2011 To CLG;Bloreone 000000312722 668.00
30.7.2011 To CLG;HSBC 000000312780 1145.00
30.7.2011 To CLG;HSBC 000000312723 493.00
9.8.2011 To CLG:HSBC 000000312781 10,264.70
9.8.2011 To CLG:Bloreone 000000312724 826.00
2.9.2011 To CLG:Bloreone 000000312725 799.00
2.9.2011 To CLG:Bloreone 000000312726 648.00
13.9.2011 To CLG:HSBC 000000312782 4,220.22
29.9.2011 To CLG:Bloreone 000000312728 521.00
29.9.2011 To CLG:Bloreone 000000312727 774.00
19.10.2011 To CLG:Bloreone 000000312729 493.00
19.10.2011 To CLG:Bloreone 000000312730 194.00
25.11.2011 To CLG:Bloreone 000000312731 826.00
25.11.2011 To CLG:Bloreone 000000312732 596.00
22.12.2011 To CLG:Bloreone 000000312734 493.00
22.12.2011 To CLG:Bloreone 000000312733 741.00
27.12.2011 To CLG:United 000000312789 6,128.00
India
17.1.2012 To CLG:Bloreone 000000312736 682.00
17.1.2012 To CLG:Bloreone 000000312737 1,101.00
18.2.2012 To CLG:Bloreone 000000312739 1,158.00
18.2.2012 To CLG:Bloreone 000000312738 527.00
7.3.2012 To CLG:HSBC 000000312793 29,946.82
16.3.2012 To CLG:Bloreone 000000312741 860.00
16.3.2012 To CLG:Bloreone 000000312740 458.00
140 Spl.CC.34/2016
17.4.2012 To CLG:Bloreone 000000312743 853.00
17.4.2012 To CLG:Bloreone 000000312742 562.00
27.4.2012 To CLG:HSBC 000000312795 52,821.80
2.5.2012 To CLG:Country 000000312796 4,999.00
club
15.5.2012 To CLG:BBMP 000000312744 2,970.00
19.5.2012 To CLG:Bloreone 000000312745 648.00
19.5.2012 To CLG:Bloreone 000000312746 1037.00
18.6.2012 To CLG:Bloreone 000000312748 493.00
18.6.2012 To CLG:Bloreone 000000312747 801.00
17.7.2012 To CLG: To CLG 000000312750 825.00
600211000
17.7.2012 To CLG: To CLG 000000312749 1,239.00
600211000
21.7.2012 To CLG: To CLG 000000111251 510.00
600211000
25.8.2012 To CLG: To CLG 000000111252 771.00
600211000
25.8.2012 To CLG:BWSSB 000000111253 441.00
22.9.2012 To CLG: To CLG 000000111254 406.00
600211000
22.9.2012 To CLG: To CLG 000000111255 870.00
600211000
25.10.2012 To CLG: To CLG 000000111257 852.00
600211000
25.10.2012 To CLG: To CLG 000000111256 424.00
600211000
9.11.2012 RTO Rajajinagar 46,694.00
16.11.2012 To CLG: To CLG 000000111258 768.00
600211000
16.11.2012 To CLG: To CLG 000000111259 59.00
600211000
16.11.2012 To CLG: To CLG 000000111260 475.00
600211000
18.12.2012 To CLG:Bloreone 000000111262 493.00
141 Spl.CC.34/2016
18.12.2012 To CLG:Bloreone 000000111263 911.00
29.1.2013 To CLG: To CLG 000000111265 604.00
600211000
2.3.2013 To CLG: To CLG 000000111266 629.00
600211000
9.3.2013 SPF Loan closure 1,32,870.00
of HS Eshwar
26.3.2013 To CLG: To CLG 000000111267 580.00
600211000
17.4.2013 To CLG: To CLG 000000111269 879.00
600211000
6.5.2013 To CLG: To CLG 000000111270 2,970.00
600211000
17.5.2013 To CLG: To CLG 000000111271 809.00
600211000
27.7.2013 To CLG:MNB - B1 000000111274 762.00
Nagarbhavi BDA
Com
18.9.2013 To 000000111275 25,100.00
CLG:Mr.Honnudike
Eshwar
3.10.2013 To 000000111276 21,612.00
CLG:Mr.Honnudike
Eshwar
3.10.2013 To 000000111277 2,200.00
CLG:Mr.Honnudike
Eshwar
7.12.2013 To 000000111282 1,216.00
CLG:Mr.Honnudike
Eshwar
7.12.2013 To 000000111283 16,690.00
CLG:Mr.Honnudike
Eshwar
28.12.2013 To 000000111284 2,275.00
CLG:Mr.Honnudike
Eshwar
28.12.2013 To 000000111285 2,780.00
142 Spl.CC.34/2016
CLG:Mr.Honnudike
Eshwar
4.2.2014 To CLG: To CLG 000000111286 9,928.00
600037000
26.2.2014 To CLG: To CLG 000000111289 1,390.00
600211000
8.5.2014 To CLG:Citi Bank 000000111296 10,144.00
Cards
9.5.2014 To CLG:HSBC 000000111297 9,640.00
23.6.2014 To CLG: To CLG 000000111299 1,438.00
600211000
5,40,182.00
162. The said amount of Rs.5,40,182/- including the amount of Rs.1,32,870/- towards SPF Loan closure of accused No.1 also to be considered along with the amount of Rs.22,76,852/- as made out from the documents. Therefore, the total expenses made out from the Salary Account of accused No.1 under Ex.P49 are calculated comes to Rs.28,17,034.00.
163. Sl.No.5 - Expenses of Rs.1,32,77,206/- from the SB A/c.No.2529101013174 jointly held by accused No.3, accused Nos.1 and 2 at Canara Bank, Basaveshwara 143 Spl.CC.34/2016 Nagar Branch, Bengaluru. Prosecution has placed evidence through PW25 with Statement of Account Ex.P163.
164. PW25 being the then Manager of the above Branch has deposed about the said joint account of accused Nos.1 to 3 and the Statement of Account produced for the period from 1.7.2007 to 14.5.2015 under the letter Ex.P163 and identified his signature Ex.P163(a). It is made out from the said statement, the withdrawals of different amounts during the period from 30.8.2011 till 6.8.2013 as follows:
Date Particulars Amount
(Rs.)
30.8.2011 Locker Rent 1,103.00
30.3.2012 Air Com.Solution Pvt.Ltd., 4,00,000.00
Chalra
25.6.2012 Closure of NRW SPF 4,19,200.00
17.7.2012 Fund transfer to Suresh 7,160.00
26.7.2012 Consolidated DD and PO 1,13,850.00
issue liquidation
2.8.2012 CLG B.N.Smaya 17,25,000.00
16.8.2012 Ajith Rao 5,00,000.00
21.8.2012 Transfer to Babu M 5,000.00
24.8.2012 Transfer to Sunil 75,000.00
30.8.2012 CLG Eureka Forbes 10,900.00
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31.8.2012 Transfer to Pintu 3,50,000.00
18.9.2012 Fund transfer to Peak System 60,750.00
Refrigeration
26.12.2012 Amount transfer 3,00,000.00
16.1.2013 Fund transfer to 1,00,000.00
M/s.Dhanlakshmi Enterprises.
30.1.2013 Fund transfer to Shidlyali 45,000.00
APPELLANT
31.1.2013 Fund transfer to Jagdis Air 46,500.00
Travel
12.2.2013 Fund transfer to Shivananda 1,00,000.00
27.2.2013 Generate IBA against account 1,79,495,00
25.3.2013 Fund transfer to Suresh 50,000.00
27.3.2013 Fund transfer to Vigas Genral 3,00,000.00
Trade
30.3.2013 Fund transfer to M/s.Surya 12,00,000.00
Enterprises
16.4.2013 Fund transfer to 9,000.00
Chandrashekar B.
18.4.2013 Fund transfer to Swarna K 25,00,000.00
18.4.2013 Fund transfer to Vigas 5,00,000.00
General Trade
15.5.2013 Srinivas Murthy 2,50,000.00
15.5.2013 D.Muniratnam Nayadu 25,00,000.00
5.6.2013 Fund transfer to H S Prasad 50,000.00
13.6.2013 Locker Rent 211.00
20.6.2013 Fund transfer to Ramesh 2,60,000.00
11.7.2013 Fund transfer to Peak System 88,200.00
Refrigeration
16.7.2013 Fund transfer to 85,000.00
H.S.Basavaraju
5.8.2013 RD drawn for Account No.781 20,000.00
6.8.2013 RD drawn for Account No.037 5,000.00
1,11,21,459.00
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165. Therefore, after calculation of above amounts, though it comes to Rs.1,11,21,459/-, it is verified from the entry dtd.15.5.2013 in the name of Srinivasmurthy shown for Rs.25,000/- is not correct, because the amount withdrawn as on that date was Rs.2,50,000/-, therefore, the same is to be added to above total amount, then it comes to Rs.1,13,46,459/-.
166. However, some of the withdrawals of amounts on different dates made out from the joint Account of accused Nos.1 to 3 are to be considered towards expenses of accused No.1, which are as follows:
Date Particulars Amount
(Rs.)
3.10.2011 Cash withdrawal 25,006.00
3.9.2012 Funds transfer to 459428 20,000.00
Velnet
5.9.2012 To CLG:LIC of 459427 25,221.00
India
4.10.2012 To CLG:To CLG 459430 7,800.00
600029000
13.11.2012 DD FVG Canara 88,000.00
HSBC LIFE
21.11.2012 To CLG: To CLG 459432 77,000.00
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600029000
20.6.2013 HSBC Life 1,00,000.00
Insurance DD
4.8.2013 TDS @ 10% 1,861.00
06933020000881
3,44,888.00
167. Therefore, both the amounts mentioned above at Rs.1,13,46,459/- + Rs.3,44,888/- are calculated, the total amount towards expenditure withdrawn from the Joint Account No.2529101013174 maintained in the names of accused Nos.1 to 3 comes to Rs.1,16,91,347/-.
168. However, the huge transactions mentioned above made by accused No.1 not only through his individual SB Accounts, but also through SB Accounts of his wife - accused No.2, daughter accused No.3, son in law accused No.4 and brother in law accused No.5 will clearly establish that the alleged business or the income derived from the business not declared by him intentionally. He has not explained as to why the alleged Real Estate business 147 Spl.CC.34/2016 run by him not informed to his higher authority. He has also not declared the income from any business, which was said to be credited to the SB Accounts of his wife and other family members. In this regard, it is relevant to point out that the SB A/c.No.0693201000392 kept in the name of Foremost Mercantile at Canara Bank, Srirangapatna Branch as per Ex.P187 shows the names of joint holders Satish Krishna Poojary and Sunil Kumar Jain. From the said account a sum of Rs.15 lakhs transferred in the name of Rajatha B. Eshwar, the accused No.3 to the Joint Account of accused Nos.1 to 3 as on 19.3.2013. On the same day, another entry of Rs.15 lakhs shown in the withdrawal column transferred in the name of accused No.3 to the same account. Again the entry dtd.15.4.2013 for a sum of Rs.30,00,000/- shown in the withdrawal column by way of Funds transfer to Rajatha B. Eshwar. Further Ex.P187 contains the Statement of Account No.0693201000396 in the name of M/s.Vigash General Trade, in which as on 1.1.2012, no balance shown, but the entry dtd.27.3.2013 148 Spl.CC.34/2016 the amount of Rs.3 lakhs shown as Funds Transferred from Rajatha B. Eshwar. The same can be made out from the Joint Account under Ex.P163 as per the entry dtd.27.3.2013. Likewise, the A/c.No.0693261005225 in the name of M/s.Surya Enterprises produced under Ex.P44 shows a sum of Rs.6,20,000/- as on 29.12.2012 shown as Funds Transferred to Mamatha A.R. accused No.2. The entry dtd.30.3.2013 as per Ex.P44(b) a sum of Rs.12 lakhs shown Funds Transfer from Rajatha B. Eshwar, accused No.3. Another Account No. of M/s.Surya Enterprises at No.0693201000307 mentioned in the letter Ex.P47, but the details of the Business transactions not produced before the Court.
169. It is important to point out that the accused No.1 in his submission of details under Ex.P207 has mentioned about some huge amounts invested as he was doing Real Estate Business and referred names of Satish Krishna Poojary, Managing Director of M/s.Foremost 149 Spl.CC.34/2016 Mercantile Pvt.Ltd, Mumbai, who was said to be wanted to buy land or flat in Bengaluru, therefore he introduced him some of his friends to establish their offices. He has also referred names of Ajay Agarwal, MD of M/s.Thayal Infrastructure Pvt.Ltd., and Kanaza Metals, Kolkatta and Bijay Agarwal, MD of M/s.Gee Pee Infotech Pvt.Ltd., Kolkatta. He has further stated about after oral talks with them, they started pouring huge credit in Real Estate Business and were credited to the above mentioned SB account maintained in the name of his wife accused No.2 and joint Account in the name of accused No.3. He has also further stated about Rs.89 lakhs received from M/s.Foremost Mercantile Pvt.Ltd., Mumbai, from Satish Krishna Poojary, on whose instigation he has registered the flat at Basaveshwara Nagar for the name sake in the name of his wife accused No.2.
170. Therefore, the above mentioned alleged huge amounts transferred both to his account under Ex.P.49 and 150 Spl.CC.34/2016 joint account Ex.P.163, cannot be taken out from the total expenditure amount of Rs.1,16,91,347/- as made out from the Salary Account of accused No.1 under Ex.P49 and from the joint account held by him with accused Nos.2 and 3 as per Ex.P163.
171. Sl.No.6 - Expenses other than those shown separately from SB A/c.No. 0693101119990 of accused No.2 held at Canara Bank, Srirangapatna Branch marked as Ex.P29, in total Rs.2,55,000/-.
172. PW8 the Sr.Manager of said Branch has deposed about the documents relating to the SB Account of accused No.2 produced under Exs.P28 and 29. In the said Statement of Account the relevant entries dtd.27.5.2013 shows withdrawal of Rs.2,50,000/- in the name of Azeez through Cheque No.470901 and on 6.6.2013 a sum of Rs.5,000/- shown towards RD DRAWDOWN for, in total comes to Rs.2,55,000/-.
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173. Though the accused No.1 has contended the variance of said amount of Rs.2,55,000/-, he has not clarified and explained how the said amount cannot be taken as expenses. Therefore, in absence of any materials, the amount of Rs.2,55,000/- is to be considered as expenses withdrawn from the above account of accused No.2.
174. Sl.No.7 - Repayment of Housing Loan taken from Can Fin Homes Ltd., by accused No.1 at Rs.2,30,452/- To prove the same, the evidence of PW20 and PW29 with documents Exs.P49, 156, 159 and 163 produced before the Court.
175. PW20 - Sanjay Patil - Officer in Can Fin Homes Ltd., Bengaluru has stated the Statement of Loan Account No.7840 of accused No.1 has been produced before CBI. Accordingly, accused No.1 was sanctioned Loan of 152 Spl.CC.34/2016 Rs.5 lakhs for purchase of Site bearing No.127, Nisarga Layout, Jigani hobly, Anekal Taluk, Bengaluru on 5.9.2005 and it was to be repaid within 10 years in monthly installments of Rs.6,200/- each. However, the accused No.1 has closed the said loan account by way of pre- closure on 5.1.2011, on which date the balance of Rs.2,30,452/- including interest was due. He has identified the said Statement of Account submitted with covering letter signed by AGM, R.Murugan marked as Ex.P156.
176. PW29 R.Murugan - AGM in the above Finance has identified the document relating to Housing Loan of accused No.1 produced under Ex.P156 bears his signature marked as Ex.P156(a). He has stated the Housing Loan of Rs.5 lakhs sanctioned to accused No.1 on 1.10.2005 and the said loan account had been closed on 31.12.2010 by way of remitting the amount of Rs.2,30,118/- as one time settlement.
153 Spl.CC.34/2016
177. However, the evidence of PWs.20 and 29 is supported by the document Statement of Account relating to Housing Loan of Rs.5 lakhs sanctioned to accused No.1 on 5.9.2005 as per the Statement of said Loan for purchase of Site bearing No.127, Nisarga Layout, Anekal taluk, Bengaluru as could be made out from Ex.P156. It is true, the said Housing Loan has been repaid by accused No.1 in monthly installments, which was deducted from his salary before commencement of check period from 1.1.2011. The relevant entry dated 5.1.2011 shows a sum of Rs.2,30,452/- credited to the said Loan Account. But in Ex.P49, the column of withdrawal shows amount of Rs.30,452/- deducted from Salary Account of accused No.1 and Rs.2 lakhs transferred on the same day from the joint SB account held in the names of accused Nos.1 to 3, produced as per Ex.P163. Both the said amounts comes to Rs.2,30,452/- which has been repaid towards Housing Loan, which was closed as on 5.1.2011 as could be made out from Ex.P156. Therefore, there cannot be any variance 154 Spl.CC.34/2016 of the said amount as pointed out in the Statement of Expenditure filed by the accused Nos.1 to 5. For the said reason, the amount of Rs.2,30,452/- is taken as expenses incurred by accused No.1 for repayment of Housing Loan borrowed by him prior to the commencement of check period.
178. Sl.No.8 - Property tax paid to BBMP in respect of house of accused No.1 shown at Rs.11,880/-, but after calculation it comes to Rs.11,944/-.
179. PW26 - N.Krishna, Assessor in the Office of Govindarajanagar Sub-Division, BBMP, Bengaluru has produced the documents pertaining to property No.25/1, HIG, KHB Colony, Basaveshwara Nagar, Bengaluru shown in the name of accused No.2 with covering letter as per Ex.P164. The Property Tax paid details reveals that Rs.6,620/- and Rs.5,324/- in total Rs.11,944/- has been paid for the Assessment year 2014-15 and 2015-16 in the 155 Spl.CC.34/2016 name of accused No.2. Therefore, the said amount of Rs.11,944/- is to be taken as expenses towards payment of Property Tax to BBMP.
180. Sl.No.9 - Premium of Rs.7,134/- paid to Bharati AXA General Insurance Company Ltd., Hyundai Santro Car No.KA 02 /MG-6671.
181. PW35 - Kiran J. working in the Office of Bharathi AXA General Insurance Company Ltd., at Doddanekundi Bengaluru as National - Head Customer Support has deposed about the details of Car Policy of accused No.1 and identified the copies of the documents produced along with covering letter as per Ex.P176 and his signature is identified as Ex.P176(a). According to the documents, the accused No.1 was the owner of Hyundai Santro Car No.KA 02 - MG 6671 and he has paid the total Premium amount of Rs.7,134/- for the period from 4.9.2013 to 3.9.2014 as made from Ex.P176. Therefore, 156 Spl.CC.34/2016 the said amount of Rs.7,134/- taken as Premium paid to the above said Car in the name of accused No.1.
182. Sl.No.10 - Premium paid on LIC Policies in the name of accused No.3 at LIC of India, Srirangapatna Branch, Rs.1,96,823/-. In order to prove the same, the evidence of PWs.31, 43, 46 and 47 with documents Exs.P168, 183 and 186 are produced before the Court.
183. PW.31 P. Srinivasa Murthy, Branch Manager, LIC of India, Srirangapatna Branch has deposed about the details of LIC policies issued in the name of Accused No.3 Rajatha B. Eshwar produced before CBI with covering letter as per Ex.P168. He has explained about the nature of policies were of single premium, one is Endowment Policy issued for Rs.48,712/- and another is Bhima Bachat issued for Rs.1,48,111/-. The said premium amount towards both policies in total Rs.1,96,823/- has been paid through 157 Spl.CC.34/2016 cheque No.521095 drawn on Canara Bank, Srirangapatna Branch.
184. PW.43 D.N. Chikkaiah, Assistant Administrative Officer at Srirangapatna Branch has deposed about attested copies of LIC policies in the name of accused No.3 Rajatha B.Eshwar to CBI Officer under the document Ex.P68, bears signature of Branch Manager Shivamurthy. He has identified the numbers of insurance policies issued by Senior Branch Manager as mentioned in the letter Dtd.13.4.2015 marked as Ex.P183. He has stated as per the records the Policy Nos.725874554 and 725874555 on the life of accused No.3 are dtd.28.3.2013, under Jeevan Sugam and Bheema Bachath Scheme. The sum assured was Rs.4,72,515/- with single premium of Rs.47,250/- and for Rs.2 lakhs, single premium of Rs.1,48,112/- respectively. Both the said premium amount paid through one Cheque from the Account of Agent A.V.Radhakrishna comes to total Rs.1,95,362/-.
158 Spl.CC.34/2016
185. PW.46 - B. Raghavendra Rao was a Manager in Canara Bank, Srirangapatna Branch has identified the certified copies of the statement of account of LIC Agent, A.V. Radhakrishna furnished before CBI as per Ex.P186 and the relevant entries identified are dtd.5.4.2013 and 8.4.2013. It is made out from the Joint Account No.2529101013174 held in the names of accused Nos.1 to 3, that on 5.4.2013 a sum of Rs.1,96,823/- transferred towards the premium of above said two policies to the account of LIC Agent Radhakrishna A.V.
186. PW47 - A.V.Radha Krishna worked as LIC Agent in Canara Bank, Srirangapatna has deposed with regard to LIC Policies issued in the name of accused No.3 Rajata B.Eshwar, for which single premium amounts in total Rs.1,96,823/- has been issued through Cheque No.521095 drawn in favour of LIC of India, Srirangapatna. He has identified the Statement of Account of his SB A/c.No.0693101004146 for the period from 1.4.2013 to 159 Spl.CC.34/2016 30.4.2013 produced along with letter Ex.P186 and the relevant entry dated 8.4.2013, on which he has withdrawn the said Cheque amount of Rs.1,96,823/-. He has further identified the Cheque issued for the said amount dtd.30.3.2013 under Ex.P186(b).
187. However, the Statement of Account No.069310110041446 of A.V.Radhakrishna produced under Ex.P186 shows, on 5.4.2013, a sum of Rs.1,96,823/- deposited through Funds Transfer from Rajatha B.Eshwar and entry dtd.8.4.2013 shows the same amount has been withdrawn in the name of LIC of India, through the Cheque No.521095, which is marked as Ex.P186(b). Therefore, the amount of Rs.1,96,823/- to be considered as expenses incurred by accused No.1 towards payment of Premium on LIC Policies in the name of accused No.3 Rajatha B.Eshwar.
188. Sl.No.11 Premium of Rs.97,557/- paid on Canara HSBC, OBC Life Insurance policy No.0036229215 160 Spl.CC.34/2016 taken by accused No.1 in the name of accused No.2 and the Prosecution has relied on evidence of PWs.34 and 42 with document Ex.P175.
189. PW34 - A.Ram Ganesh, was Head - New Business Operations and Collections Service Delivery of Canara HSBC OBC Life Insurance Co.Ltd., Gurgaon, Haryana has deposed the details of Insurance Policy No.0036229215 of accused No.1 produced under Ex.P175 and identified his signature as Ex.P175(a). He has stated the amount of Rs.88,000/- received towards first premium on 21.11.2012, thereafter it was lapsed.
190. PW42 - Manju Kiran, Asst.Vice President and Regional Head - Sales, Canara HSBC OBC Life Insurance Co.Ltd., Bengaluru has stated about the Insurance Secure Smart Plan Policy No.0036229215 issued in the name of accused No.1 furnished along with the details in the letter Ex.P175. The Policy schedule shows the name of the 161 Spl.CC.34/2016 accused No.1 as its holder and accused No.2 was life insured. He has stated that though the term of the said Policy was taken for 15 years with coverage amount of Rs.10,71,030/-, after payment of Rs.88,000/- towards first premium through DD on 21.11.2012. Therefore, though the accused No.1 has not made any payments subsequently, and the said Policy amount was lapsed due to non-payment of premium, the amount of Rs.88,000/- paid by him towards first Premium to be considered as Expenses.
191. It is true, in the charge sheet the premium amount paid on Canara HSBC OBC Life Insurance policy No.0036229215 shown as Rs.97,557/-. But the evidence of PW42 proves the premium amount of Rs.88,000/- has been paid on 21.11.2012 as per the first premium receipt enclosed to Ex.P175, the said amount of Rs.88,000/- is to be considered even though there is variance of Rs.9,557/-.
162 Spl.CC.34/2016
192. Sl.No.12 Premium of Rs.15,654/- paid to National Insurance Company Ltd., towards Policies on Maruti Alto K-10 LXI Car Registration No. KA-02 1193 in the name of accused No.1 for the period from 20.1.2012 to 19.1.2015.
193. PW51 - S.Ananthchandran, worked as Divisional Manager of National Insurance Company Ltd., has deposed in respect of policy documents relating to Maruti Alto Car K10 LXI Reg.No.KA 02 MF 1193 stood in the name of accused No.1 furnished under letter Ex.P195 and his signature marked as Ex.P195(a). He has identified the details of policy No.35101031116130562953 issued in the name of accused No.1 for the period from 20.1.2012 to 19.1.2013 marked as Ex.P195 (b). He has produced three original policies relating to the said Car, in the name of accused No.1, produced under letter dtd.5.5.2015 marked as Ex.P196. It can be made out from the Policy Details Result enclosed to the said policies , accused No.1 has paid 163 Spl.CC.34/2016 the premium of Rs.6,012/- for the period from 2012-13, Rs.5,276/- for the year 2013-14 and Rs.4,366/- for the period 2014-15, towards the said policy and no claims made between the said period. Therefore, the total amount of premium paid by accused No.1 for the above said period comes to Rs.15,654/- is to be taken as his expenditure.
194. Sl.No.13 - Premium of Rs.40,000/- paid on Jeevan Suraksha Policy No.614668289 in the name of accused No.1.
195. PW24 - K.Sandya, Asst. Administrative Officer in C.A. Branch, LIC of India, has produced information regarding Policy No.614668289 issued in the name of accused No.1 to CBI under the covering letter signed by Branch Manager with Status Report marked as Ex.P161. The original Policy with seven premium Receipts of Rs.10,000/- each of the said Policy, the Proposal Review Slip for the Policy No.61457119 for a sum of Rs.25,000/- in 164 Spl.CC.34/2016 the name of accused No.1, Premium Receipt of Policy No.616871075 in the name of accused No.3 Rajatha B.Eshwar for being paid a sum of Rs.27,183/-, Proposal Deposit Receipts in the name of accused No.3 for Rs.1,48,111/- and Rs.48,712/- towards single premium are dtd.30.3.2013, in total 11 Premium Receipts marked as Ex.P162. It is made out from the Premium Receipts relating to Policy No.614668289, the accused No.1 has paid Premium of Rs.10,000/- each from 2005 till 2013. Though the witness has stated about total premium amount of Rs.40,000/- has been paid for the period from 1.1.2011 to 30.6.2014 by the accused No.1, as he was life assured, the Premium Receipts produced along with the said Policies for the check period only to be considered. Therefore the Premium Receipts dtd.3.2.2011, 2.2.2012 and 12.2.2014 for payment of Rs.10,000/- each, in total Rs.30,000/- is to be taken, and not Rs.40,000/- as no another receipt for being premium of Rs.10,000/- paid by accused No.1 produced before the Court.
165 Spl.CC.34/2016
196. Therefore, even though PW24 has stated that Rs.40,000/- paid by accused No.1 towards the Premium policy No.614668289, as only three receipts produced before the Court for Rs.10,000/- each, the total amount of Rs.30,000/- to be taken as expenses towards payment of Premium.
197. Sl.No.14 - Expenditure of Rs.13,833/- incurred towards Service / Repair charges of Hyundai Santro Car No.KA 02 / MG 6671 owned by accused No.1 at M/s.Trident Automobiles Pvt.Ltd.,
198. PW4 - G.N.Narasimhan, Dy.General Manager of Trident Automobiles Pvt.Ltd., has deposed about the documents relating to above Santro Car purchased by accused No.1 in the month of July-2012 are produced to CBI under covering letter Ex.P13. He has identified the documents enclosed to the said letter are Road Tax receipt 166 Spl.CC.34/2016 as per Ex.P14 with Debit note retail invoice, Statements of account of Insurance Company with Estimate issued by SLV Motors. The letter dtd.15.4.2015 marked as Ex.P15, under which he has produced the documents relating to sale of said Car with Ledger Account Statement showing the details of payment made by accused No.1 in respect of the above said Hyundai Santro GL Car purchased by him from Trident Automobiles Pvt.Ltd. The entry dtd.18.7.2012 in Ledger Account shows the amount of Rs.1,35,000/- credited towards purchase of TATA Indica Car bearing No.KA 01/ MA 4429, and the same amount taken as advance for above said Santro GLS Car. He has further identified the certified copy of the Vehicle Repair History Card issued by Hyundai Motor India Ltd., produced under Ex.P16. The Cash Invoices and Credit Card Invoices enclosed to the said Repair History Card discloses different sums of Rs.9,401/-, Rs.205/-, Rs.2,043/-, Rs.1,166/-, Rs.1,123/- charged towards repairs, which comes to Rs.13,938/-, to be taken as Repair Charges paid by accused No.1, though some of 167 Spl.CC.34/2016 the charges shown towards replacement of parts of the above Car.
199. Sl.No.15 - Rs.8,054/- paid towards Telephone bills to BSNL, GGTD, Bengaluru in respect of Telephone No.080-23402392 in the name of accused No.1 for the period from February-2012 to June-2014, which includes security deposit of Rs.500/-.
200. PW11 C.Sathyakeerthi, Commercial Officer (West), BSNL, Vijayanagar, Bengaluru has deposed that the documents relating to Telephone No.23283924 provided to accused No.1 with details of payments made by him produced through the letter dtd.15.4.2015 marked as Ex.P85 and his signature marked as Ex.P85(a). He has identified the copies of the Application for connection of New Telephone given by accused No.1 with his DL, ID Card and WIEMS Data.
168 Spl.CC.34/2016
201. PW12 B.N.Mangala, Accounts Officer in the Office of TR-West, BSNL, Vijayanagar, Bengaluru has stated the details of payments made by accused No.1 towards Telephone No.23402392 Previous No.23485675 for the period from 9.12.2011 till 28.2.2015 produced under Ex.P86, she has signed as per Ex.P86(a) and identified the signature of Accounts Officer marked as Ex.P86(b). It is made out from the details of payments made by accused No.1 as follows:
Date Payment (Rs.)
19.12.2011 500.00
24.2.2012 719.00
27.3.2012 491.00
29.4.2012 267.00
15.7.2012 1,239.00
10.10.2012 609.00
4.12.2012 840.00
9.10.2013 980.00
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22.11.2013 895.00
22.1.2014 440.00
16.3.2014 490.00
27.5.2014 584.00
Total 8,054.00
202. Therefore, the payments made by accused No.1 towards the above Telephone for the period from 2.2.2012 till May-2014 including Deposit of Rs.500/- paid on 19.12.2011, considered as expenses, in total comes to Rs.8,054/-.
203. Sl.No.16 - Rs.100/- paid to Reliance Communication Ltd., for recharging the Reliance Mobile No.9342954111.
204. However, the prosecution has not produced any oral evidence in proof of the amount of Rs.100/- paid by accused No.1 towards recharge of his above Reliance Mobile 170 Spl.CC.34/2016 number 9342954111, the entry dtd.4.6.2011 in the Statement of his Account No.2373252005097 shows the amount of Rs.112/- deposited towards ECS Reliance India Limited. Therefore the said amount of Rs.112/- to be considered as expenditure for recharge of his said Reliance Mobile.
205. Sl.No.17 - Expenditure for purchasing Diesel for Santro Car KA 02/ MG -6671 - Rs.1,20,067/-.
206. PW27 Shubhankar Dutta, the Sr.Regional Manager - Retail Office of Hindustan Petroleum Corporation Ltd., is aware of the retail prices of Petrol and Diesel at Bengaluru for the period from 1.1.2011 to 30.6.2014 submitted through the covering letter marked as Ex.P165 and identified his signature Ex.P165(a). On his experience stated the average rate of Diesel during the relevant period was Rs.54.85 per litre and the average mileage of Indica Diesel Car is 15 Kms. per litre.
171 Spl.CC.34/2016
207. However, the prosecution has not produced any documents to prove the mileage of Santro Car owned by accused No.1 and the kilometers run during the relevant period. Therefore, in absence of relevant documents and also the expenditure incurred towards purchase of Diesel for said Car by accused No.1 during the check period is denied, the amount of Rs.1,20,067/- as assessed by Investigating Officer is taken towards the expenditure.
208. Sl.No.18 - Interest on OD facility availed by accused No.1 in No.2373252005097 of Canara Bank, Srirangapatna Branch, for the period from 1.1.2011 to 30.6.2014 shown at Rs.5,413/-.
209. PW8 being Sr.Manager of Canara Bank, Srirangapatna Branch has produced certified copy of the Statement of Account pertaining to Salary Account of accused No.1 for the period from 1.1.2011 to 30.6.2014 marked as Ex.P49 reveals the interest of Rs.3,600/- on OD 172 Spl.CC.34/2016 facility credited to his account on 25.4.2011. However, the balance amount of Rs.1,813/- towards interest on the same facility cannot be made out from the said Statement of Account. Therefore, the amount of Rs.3,600/- only to be considered as interest on OD facility availed by accused No.1 during the check period.
210. Sl.No.19 - Repayment of Vehicle loan by accused No.1 availed from Canara Bank, Tavarekere Branch, Bengaluru - Rs.1,61,884/-.
211. PW.14 - Ambaji T. Navale was the Manager in Canara Bank, Tavarekere, Magadi Main Road Branch has deposed about documents of vehicle loan pertaining to accused No.1 produced along with documents of Agricultural Gold Loan availed by accused No.2 under the covering letter dtd.14.9.2015 as per Ex.P98 and his signature is marked as Ex.P98(a). He has also identified the Statement of Account pertaining to vehicle loan of 173 Spl.CC.34/2016 accused No.1 bearing No.2373695000003 under Ex.P103, which shows the loan of Rs.2,20,000/- sanctioned to him for purchasing four wheeler vehicle on 5.12.2007. It is made out from the said Statement of Account, the outstanding loan due as on 1.1.2011 was Rs.1,01,366.46, the same has been mentioned as opening balance and the said loan account was closed on 9.2.2012 by way of credit of Rs.55,000/- Funds transfer from the Salary A/c.No.2373252005097 of accused No.1 as per the entry in Ex.P49 and on the same day, shown as the Loan Interest EFS by Xfer. From Casa, showing debit of Rs.60,519/-. The amount of Rs.1,61,884.46 was due, during the above period, after total collection of Rs.2,83,394.46. However, the said Statement pertaining to Vehicle Loan reveal that the entire amount of Rs.1,61,884.46 repaid by him during the relevant period from 27/01/2011 till 09/02/2012 both by Salary Credit and account maintained under Ex.P49. Therefore, though the installments of Vehicle Loan deducted from Salary of accused No.1, the amount of 174 Spl.CC.34/2016 Rs.1,61,884.46 paid during the check period from 1.1.2011 to 30.6.2014 towards Vehicle Loan by accused No.1 is to be considered as expenses.
212. Sl.No.20 - Interest paid on Gold Loan availed by accused No.2 from Canara Bank, Tavarekere Branch, Bengaluru - Rs.419/-.
213. PW14 being Manager has further deposed about Statement of Account relating to Agricultural Gold Loan availed in the name of accused No.2 sanctioned on 3.10.2011 produced under Ex.P98. The Statement of Account of said loan identified under Ex.P99 with Debit slips dtd.3.10.2011, 14.11.2011, marked as Exs.P100 to 102, discloses the amount of Rs.25,000/- and Rs.25,419/- each debited and credited to the said loan. However, the entry dtd.3.10.2011 shows funds of Rs.25,000/- Transfer to the joint account of accused Nos.1 to 3 and the amount of Rs.25,419/- shown as credit through Funds Transfer from 175 Spl.CC.34/2016 the account of accused No.1 under Ex.P49. The interest of Rs.419/- on the above Loan shown as on 14.12.2011 considered as expenses, though the Gold Loan availed in the name of accused No.2, entire balance was repaid by accused No.1 through Funds Transfer from his account, which includes interest of Rs.419/-.
214. Sl.No.21 - Interest of Rs.2,87,159/- paid on Housing Loan from Canara Bank, Housing Finance Branch, Bengaluru, taken for purchase of site No.424 at Yeswanthpur Hobli, Bengaluru, now BEML Layout, Bengaluru and construction of house.
215. PW13 - Gurpal Singh Manager in Canara Bank, Housing Finance Branch, South End Circle, Bengaluru, has identified different letters of Housing Loans sanctioned and enhanced by Circle Office to accused No.1 as per Ex.P87 to Ex.P93. The Housing Loan of Rs.1,10,000/- was initially sanctioned to accused No.1 as 176 Spl.CC.34/2016 per the Sanction letter dtd.9.5.1988 under Ex.P87, which was enhanced to Rs.40,000/- as per letter dtd.10.7.1997 under Ex.P88. He has further identified supplemental Housing loan of Rs.1,22,500/- sanctioned to him under Ex.P89, Additional Housing Loan of Rs.90,300/- sanctioned on 15.6.1999 as per Ex.P90. Thereafter, again Additional Housing Loan of Rs.2,77,500/- was sanctioned on 22.6.2001 as per Ex.P91, another Additional Housing Loan of Rs.1,77,800/- was sanctioned under Ex.P92. The amount of Rs.81,900/- was sanctioned on 24.1.2005 for repairs and renovation under Ex.P93. He has identified the documents executed by accused No.1 in respect of the said Housing Loans, in total 45 marked as Ex.P94. The Equitable Mortgage executed by accused No.1 by way of deposit of title deeds marked as Ex.P95. The Statement of Housing Loan for the period from 1.1.2011 to 11.9.2015 marked as Ex.P96.
177 Spl.CC.34/2016
216. According to him, the outstanding Housing Loan due as on 1.1.2011 was Rs.1,58,534/- plus interest, however accused No.1 was due to pay only interest of Rs.2,97,589.19 as on 30.6.2014. The said amount has been repaid by accused No.1 by way of Funds Transfer from his OD account Ex.P49 as on 1.9.2014. Therefore, the amount of Rs.2,97,672.19 taken as expenses incurred by him towards repayment of the interest on Housing Loan taken for purchasing Site No.424 at Sanegovanahally, which was subsequently changed to Basaveshwara Nagar, Bengaluru and for construction of the house.
217. The contention of accused No.1 is that the interest on Housing Loan was deducted from his salary included in the monthly installment, therefore the variance of amount of Rs.2,87,159/- shown in the charge sheet cannot be considered as expenses.
178 Spl.CC.34/2016
218. However, as per Ex.P96, the Statement of Loan Account No.2736667018405, the credit of monthly installments towards the Housing loan shown as follows:
Date Particulars Amount (Rs.)
27.1.2011 By Salary credit for Jan. 5,145.00
26.2.2011 By Salary credit for Feb. 5,145.00
26.3.2011 By Salary credit for Mar. 5,145.00
27.4.2011 By Salary credit for Apr. 5,145.00
27.5.2011 By Salary credit for May 5,145.00
27.6.2011 By Salary credit for June 5,145.00
27.7.2011 By Salary credit for July 5,145.00
27.8.2011 By Salary credit for Aug. 5,145.00
26.9.2011 By Salary credit for Sept. 5,145.00
24.10.2011 By Salary credit for Oct. 5,145.00
26.11.2011 By Salary credit for Nov. 5,145.00
24.12.2011 By Salary credit for Dec. 5,145.00
27.1.2012 By Salary credit for Jan- 5,145.00
2012
27.2.2012 By Salary credit for Feb- 5,145.00
2012
179 Spl.CC.34/2016
27.3.2012 By Salary credit for Mar- 5,145.00
2012
27.4.2012 By Salary credit for Apr- 5,145.00
2012
18.5.2012 Funds Transfer from 10.00
A/c.No.2373252005097
(Ex.P49)
19.5.2012 Loan Advance payment, 16,204.00
By Cash
26.5.2012 By Salary Credit for May- 5,145.00
2012
4.6.2012 Funds Transfer from A/c. 54,855.00
as per Ex.P49
27.6.2012 By Salary Credit for June- 5,145.00
2012
27.7.2012 By Salary Credit for July- 5,145.00
2012
27.8.2012 By Salary Credit for Aug- 5,145.00
2012
27.9.2012 By Salary Credit for Sep- 5,145.00
2012
26.10.2012 By Salary Credit for Oct- 5,145.00
2012
27.11.2012 By Salary Credit for Nov- 5,145.00
2012
27.12.2012 By Salary Credit for Dec- 5,145.00
2012
27.1.2013 By Salary Credit for Jan- 5,145.00
2013
27.2.2013 By Salary Credit for Feb- 5,145.00
2013
27.3.2013 By Salary Credit for Mar- 5,145.00
2013
27.4.2013 By Salary Credit for Apr- 5,145.00
2013
180 Spl.CC.34/2016
27.5.2013 By Salary Credit for May- 5,145.00
2013
27.6.2013 By Salary Credit for June- 5,145.00
2013
27.7.2013 By Salary Credit for July- 5,145.00
2013
27.8.2013 By Salary Credit for Aug- 5,145.00
2013
27.9.2013 By Salary Credit for Sep- 5,145.00
2013
27.10.2013 By Salary Credit for Oct- 5,145.00
2013
27.11.2013 By Salary Credit for Nov- 5,145.00
2013
27.12.2013 By Salary Credit for Dec- 5,145.00
2013
27.1.2014 By Salary Credit for Jan- 5,145.00
2014
26.2.2014 By Salary Credit for Feb- 5,145.00
2014
27.3.2014 By Salary Credit for Mar- 5,145.00
2014
26.4.2014 By Salary Credit for Apr- 5,145.00
2014
27.5.2014 By Salary Credit for May- 5,145.00
2014
27.6.2014 By Salary Credit for June- 5,145.00
2014
219. The above installments amount though
deducted from the salary account of accused No.1 shown in Ex.P96, from January-2011 till June-2014, the loan penalty interest of Rs.2,97,598.19 shown as Balance as on 181 Spl.CC.34/2016 31.8.2014. Therefore, the total amount of Rs.2,97,672.19 credited towards Loan penalty interest of Loan Account, through Funds Transfer from Salary Account of accused No.1 as per Ex.P49 to be considered as expenses, which can be made out from the entry dtd.1.9.2014 of Ex.P49, as the Funds Transfer to the above Loan Account of Ex.P96. Therefore, though the loan installments were paid through Salary credit, the interest of Rs.2,97,672.19 paid subsequent to the check period, is taken as expenses, for the reason that it has been paid towards the Housing loan sanctioned to accused No.1 on 30.1.2005. Therefore, the amount of Rs.2,97,672/- is to be considered as expenses of accused No.1 during the check period.
220. Sl.No.22 - Maintenance charges of Rs.22,200/- paid for Flat No.SF-02 at SLV Golden Nest Apartment, KHB Colony, Basaveshwara Nagar, Bengaluru.
182 Spl.CC.34/2016
221. PW18 - A. Sripathi Rao, owner of flat No.SF- 2, SLV Golden Nest, Apartment No.25, KHB Colony, Basaveshwara Nagar, Bengaluru had purchased the said flat for Rs.55,10,000/- and identified the accused No.1 as Treasurer of said SLV Gold Nest Residence Association was having flat at Ground floor. He has stated about maintenance charges of Rs.3,000/- per month paid from 2013, which was enhanced subsequently to Rs.3,500/-. He has produced Flat Expenses Book to CBI, which was seized under the seizure memo, Ex.P153 and the said book marked as Ex.P152. He has also stated about total amount of Rs.22,200/- received from accused No.1 towards the maintenance charges of flat for the period from Dec-2013 till May-2014.
222. However, the maintenance charges for the above Flat paid by the accused No.1 can be made out from the Flat Expenses Book Ex.P152, marked through PW18, who was Secretary of SLV Gold Nest Association, and he 183 Spl.CC.34/2016 has identified accused No.1 was Treasurer for the said Association, from whom total amount of Rs.22,200/- collected towards maintenance charges of the above Flat, taken as expenses during the check period.
223. Sl.No.23 - Loss on sale of TATA Indica Car No. KA 01/MA-4429 by accused No.1 - Rs.1,40,000/-.
224. PW-58 C.Surendra, Assistant Regional Transport Officer in the office of Deputy Commissioner, Rajaji Nagara (West), Bengaluru, has identified the copies of the documents relating to Car No.KA-01/MA-4429 furnished along with the letter marked as Ex.P.202 and his signature is marked as Ex.P.202(a). According to him, as per the said documents accused No.1 was the owner of said vehicle from 05-02-2008 till 14-8-2012.
225. PW4 - G.N.Narasimhan, AGM of Trident Automobiles Pvt.Ltd., has deposed regarding exchange of 184 Spl.CC.34/2016 TATA Indica Car No.KA 01/MA 4429 while purchasing Santro Car No.KA 02/MG 6671 for Rs.3,61,274/- and the amount of Rs.1,35,000/- given to old Indica Car.
226. He has admitted in the cross-examination that the Santro Car delivered on 20.7.2012, for which, the Company has provided three free services in the year 2012, therefore, denied that the accused No.1 has not paid service charges both in the year 2012 or 2013. However, he has clarified that during free service period, except labour charges, other charges for fixation of spare parts and change of fuel has to be paid to the Company.
227. According to the accused No.1, the value of new Hyundai Santro Car was Rs.4,67,613/- and he has paid Rs.3 lakhs and exchange value of old TATA Indica Car at Rs.1,67,613/- was deducted from the total value, therefore the cost of old TATA Indica Car mentioned at Rs.2,75,000/- from which, the exchange value of Rs.1,67,613/- is to be 185 Spl.CC.34/2016 deducted, then the loss of Rs.1,07,387/- to be taken towards loss on sale of TATA Indica Car. However, he has not produced any document to show the price of exchange value and the loss of Rs.1,07,387/- as contended in the written arguments.
228. It is made out from the Ex.P15 and enclosures that credit of Rs.1,35,000/- towards purchase of TATA Indica Car bearing No.KA 01 MA 4429 and the same amount taken as advance of Santro DLS Car shown in the Ledger Account of accused No.1 issued by Trident Automobiles Pvt.Ltd. Further, a sum of Rs.1,35,000/- being value of the old Indica Car has been adjusted against sale price of new Santro Car. The total value of Rs.2,76,172/- shown in the Invoice issued relating to said TATA Indica DLS Car purchased in the name of accused No.1, out of which, if the exchange price of old Car taken at Rs.1,35,000/-, which is to be deducted from the total price of the Indica Car, then the balance amount comes to 186 Spl.CC.34/2016 Rs.1,40,000/-. Therefore, the same amount be considered as loss on sale of TATA Indica Car by the accused No.1.
229. Sl.No.24 - Loss on sale of Shares of On mobile Global Limited on 17.2.2012 at Rs.6,314/-.
230. PW1 has deposed about different Shares purchased by accused No.1, out of which, particularly mentioned 15 Shares of On mobile Global Ltd., with face value of Rs.10/- each. However, he has subsequently sold 30 Shares of said Company on 17.2.2012 as shown in Ex.P2, the Transaction Statement. The market value of 15 Shares as on 31.12.2010 mentioned as Rs.1,369.50 as could be made out from Ex.P7. However, the alleged loss on sale of said 15 Shares can be made out by giving deduction of Rs.1,369.50 from the total value of said Shares shown in the column No.7 of Statement-A at 187 Spl.CC.34/2016 Rs.7,545/-, then it comes to Rs.6,176/- which is to be taken as expenses of accused No.1.
231. The learned Public Prosecutor has submitted that the property tax paid towards property No.427 BEML, Bengaluru at Rs.11,520/- and Stamp Duty Registration fee in total Rs.3,63,763/- to be included as Sl.Nos.25 and Sl.No.26 in the above Statement-D is stated in the written arguments. Therefore, the same has been taken considered as follows:
232. Sl.No.25 - Property Tax for the period from 2010-2011 to 2013-2014 was paid by accused No.1 towards property No.427, BEML, 1st Stage, Kamakshipalya, Bengaluru at Rs.11,520/- and to prove the same relied on the evidence of PW28 with document Ex.P166.
188 Spl.CC.34/2016
233. PW28 - Rangaswamy, Assistant Revenue Officer, BBMP, Rajajinagar Sub-Division has deposed about details of Property Tax paid by accused No.1 to the Residential Property No.424 BEML, Kamakshipalya, Bengaluru as per the details furnished in the letter dtd.24.11.2015 under Ex.P166. He has stated that as per the information given by concerned Officer of BBMP, Khata of the said property transferred in the name of accused No.1 in the year 2002-03. The Property Tax System details enclosed to the above letter shows the names of owners V.M.Machendra Nath and Poornima. However, the total Property Tax for the period from 2010-11 to 2013-14 was paid by the previous property owner, the accused No.1 as deposed by him. It is made out from the details furnished by him that the Property Tax of Rs.2,850/- from 2010-11 till 2012-13 and a sum of Rs.2,970/- was paid for the period 2013-14. The total of the said amounts after calculation comes to Rs.11,520/- paid by accused No.1 towards Property Tax during the check period.
189 Spl.CC.34/2016
234. Sl.No.26 is the Stamp Duty, Registration fee and other charges paid by accused No.1, in total Rs.3,63,763/- towards Apartment at SLV Golden Nest, Basaveshwara Nagar, Bengaluru. In proof of the same relied on evidence of P.W.45 with document Ex.P185.
235. PW45 - C.V.Sumana, Senior Sub-Registrar in the office of Sub-Registrar at Nagarbhavi has deposed that Registration of immovable property in the name of accused No.2 A.R.Mamatha, purchased for Rs.55,10,000/- on 15.5.2013. She has issued Encumbrance Certificate on 11.11.2015 and furnished the details of Stamp Duty of Rs.3,08,560/- paid through DD and the Registration fee of Rs.55,100/-, other charges of Rs.630/- and Rs.40/- was paid by Cash. The information regarding the same furnished by her through the letter Ex.P185 and her signature marked as Ex.P185(a). The above charges, paid towards the Apartment at Basaveshwara Nagar, Bengaluru 190 Spl.CC.34/2016 comes to Rs.3,64,330/-, is however to be considered as expenses incurred by accused No.1.
236. However, after considering all the documents it is made out by this Court that some of the expenses incurred towards payment of premium of Insurance Policies made out from the Receipts produced along with LIC Policy No.614668289 marked as Ex.P162 as follows:
237. The prosecution has produced policy No.61457119 issued in the name of accused No.1 and sum assured for Rs.25,000/- on 19.6.1985 along with other policy receipts shows the maturity date is 19.6.2014. However, this Court cannot make out any premium paid towards the said Policy, by accused No.1 as no receipt produced before the Court, therefore it cannot be considered.
191 Spl.CC.34/2016
238. However, the premium Receipts dtd.26.8.2014 issued in the name of Rajatha B.Eshwar for being collected Rs.27,183/- for revival of lapsed Policy No.616871075, issued on 3.9.2012 is to be considered towards expenses. Likewise, other two Proposal Deposit receipts for single type of deposits issued in the name of accused No.3 for Rs.1,48,111/- and Rs.48,712/- respectively are dtd.30.3.2013 also to be considered by this Court towards expenses.
239. However, the accused No.1 has denied the amount of Rs.1,32,77,206/- shown in the charge sheet as expenses withdrawn from the joint account cannot be considered, on the ground that the amount of Rs.25 lakhs transferred to the co-employee for his son's higher education and it was reimbursed on 19.4.2013, therefore it should be reduced from the expenses. Further the amount of Rs.25 lakhs + Rs.55,10,000/- transferred to Munirathnam Naidu for purchase of SLV Golden Nest 192 Spl.CC.34/2016 property which has been shown in the Statement-B at Sl.No.2 for Rs.89,00,000/-, further the balance of Rs.9 lakhs was paid by Cash at the time of agreement. Therefore, the same cannot be considered as expenditure and it should be reduced by Rs.1,05,48,850/- then there is variance of Rs.27,28,356/-.
240. The accused No.1 has also filed a separate statement of calculation stating that the following Accounts of party payments are not to be included in expenses mentioned as follows:
Gee Pee Infotech Pvt.Ltd.
Date Particulars Voucher Vou Debit Credit
Type cher
No.
9.7.2013 To Canara Bank Payment 61 30,00,000.00
2529101013174
12.7.2013 By Canara Bank Receipt 47 30,00,000.00
2529101013174
6.8.2013 By Canara Bank Receipt 58 27,00,000.00
2529101013174
30,00,000.00 57,00,000.00
193 Spl.CC.34/2016
To Closing Balance 27,00,000.00
57,00,000.00 57,00,000.00
Swarna K.
Date Particulars Voucher Vou Debit Credit
Type cher
No.
16.4.2013 To Canara Bank Payment 13 25,00,000.00
2529101013174
19.4.2013 By Canara Bank Receipt 14 25,00,000.00
2529101013174
25,00,000.00 25,00,000.00
Surya Enterprises
Date Particulars Voucher Vou Debit Credit
Type cher
No.
28.12.2012 To Canara Bank Payment 226 6,20,000.00
0693101119990
29.12.2012 By Canara Bank Receipt 99 6,20,000.00
0693101119990
30.3.2013 To Canara Bank Payment 283 12,00,000.00
2529101013174
11.6.2013 By Cash Receipt 34 8,00,000.00
10.7.2013 By Cash Receipt 46 50,000.00
10.8.2013 By Cash Receipt 59 50,000.00
194 Spl.CC.34/2016
11.9.2013 By Cash Receipt 71 50,000.00
10.10.2013 By Cash Receipt 75 50,000.00
12.11.2013 By Cash Receipt 83 50,000.00
11.12.2013 By Cash Receipt 88 50,000.00
10.1.2014 By Cash Receipt 93 50,000.00
12.2.2014 By Cash Receipt 100 50,000.00
18,20,000.00 18,20,000.00
Pintu
Date Particulars Voucher Vou Debit Credit
Type cher
No.
31.8.2012 To Canara Bank Payment 162 3,50,000.00
2529101013174
25.9.2012 By Cash Receipt 59 3,50,000.00
3,50,000.00 3,50,000.00
Ramesha
Date Particulars Voucher Vou Debit Credit
Type cher
No.
20.6.2013 To Canara Bank Payment 44 2,60,000.00
2529101013174
15.10.2013 By Cash Receipt 77 50,000.00
18.11.2013 By Cash Receipt 85 50,000.00
195 Spl.CC.34/2016
16.12.2013 By Cash Receipt 90 50,000.00
17.1.2014 By Cash Receipt 95 50,000.00
15.2.2014 By Cash Receipt 102 60,000.00
2,60,000.00 2,60,000.00
Ajith Rao
Date Particulars Voucher Vou Debit Credit
Type cher
No.
16.8.2012 To Canara Bank Payment 145 5,00,000.00
2529101013174
By Closing Balance 5,00,000.00
5,00,000.00 5,00,000.00
Aircom Solutions Pvt.Ltd.
Date Particulars Voucher Vou Debit Credit
Type cher
No.
30.3.2012 To Canara Bank Payment 335 4,00,000.00
2529101013174
By Closing Balance 4,00,000.00
4,00,000.00 4,00,000.00
241. The accused No.1 has referred the Ledger Account of Gee Pee Infotech Pvt.Ltd., for the period from 196 Spl.CC.34/2016 1.1.2011 to 1.7.2014, as per the particulars, payment of Rs.30 lakhs made debit to the A/c.No.2529101013174 on 9.7.2013. Further, receipt of the same amount entered to the credit of said account on 12.7.2013. The receipt of Rs.27 lakhs shown as credit to the said account on 6.8.2013, the closing balance of Rs.57 lakhs shown after calculation the above said two different amounts.
242. He has also stated about the Ledger Account in the name of Swarna K. for the same period taken with respect to payment of Rs.25 lakhs shown as debit on 16.4.2013 to the same account number held at Canara Bank, as on 18.4.2013. Further, the total amount of Rs.18,20,000/- shown in the credit relates to Surya Enterprises, as per the Ledger Account for the period from 1.1.2011 to 1.7.2014. The debit of Rs.6,20,000/- shown as payment as on 28.12.2012 to the A/c.No.0693101119990 at Canara Bank and another amount of Rs.12 lakhs shown as debit as on 30.3.2013 to the A/c.No.2529101013174.
197 Spl.CC.34/2016 The receipt of Rs.6,20,000/- shown as on 29.12.2012 by the A/c.No.0693101119990. Further receipt of Rs.8 lakhs as on 11.6.2013 and Rs.50,000/- each for different eight days entered as By Cash and total amount of Rs.18,20,000/- entered in both debit and credit columns.
243. Further, the Ledger Account of Pinto for the same period shown payment of Rs.3,50,000/- as debit to the A/c.No.2529101013174 and receipt of same amount shown as credit by cash as on 25.9.2012. The Ledger Account relates to Ramesha for the same period shows debit of Rs.2,60,000/- to payment as on 20.6.2013 to the A/c.No.2529101013174 and Cash of Rs.50,000/- each for four different dates and Cash of Rs.60,000/- shown as receipt from 15.10.2013 to 15.2.2014 made by cash in total Rs.2,60,000/-. The Ledger Account for the same period in the name of Ajith Rao relied with respect to payment of Rs.5 lakhs debit to the same A/c.No.2529101013174 on 16.8.2012 and the closing balance of Rs.5 lakhs shown in 198 Spl.CC.34/2016 the credit of the said account. The Ledger Account of Aircom Solutions Pvt.Ltd., for the same period shown as payment of Rs.4 lakhs to debit of the same account number and closing balance of Rs.4 lakhs shown as credit.
244. The important point is to be noted that though the accused No.1 was a public servant, he has not declared the source of income from different businesses alleged to be credited to the SB Accounts maintained in the names of his wife, daughter, son in law and brother in law. In this regard, it is relevant to point out that Income Tax Returns filed by him for the Assessment years 2011-12 till 2013-14, showing the source of income only from Salary and meager amount from other sources. The same can be made out from screen shot copies of the IT Returns produced by PW33, Joint Commissioner of Income Tax through the letter dtd.18.5.2015 marked as Ex.P172. The Screen shot copies of IT Returns for the Assessment year 2011-12 shows no address provided by him and the income from Salary 199 Spl.CC.34/2016 declared at Rs.6,59,990/-. The same amount entered in the Gross total income. The total deductions under Chapter-VI A at schedule-VI A shown Rs.1,20,000/- and Taxable total income mentioned Rs.5,39,990/-. The total TDS claimed at Rs.44,266/- and refund of Rs.968/- made to his account. The IT Returns filed by him for the Assessment year 2012-13 made out from the copies that his address provided No.424, BEML Layout, Basaveshwara Nagar, Bengaluru. The income from Salary shown at Rs.6,33,678/- which is also shown as Gross total income.
The total deductions of Rs.98,994/- shown in the relevant column mentioning Rs.5,34,680/- as Taxable total income. The Tax of Rs.38,936/- shown as payable on Total income. The Secondary and higher Education Cess shown at Rs.1,168/-. The total TDS claimed at Rs.42,957/- and Refund of Rs.2,853/- was made during the said period. The details of income for the Assessment year 2013-14 made out as same address of Basaveswar Nagar furnished for the said period. The income from Salary shown Rs.6,72,002/-, 200 Spl.CC.34/2016 under the heading of income from other sources a sum of Rs.17,250/- is shown, from Sources other than from owning Race Horses, the aggregate income shown at Rs.5,81,250/- Tax payable on total income was at Rs.46,250/- and Education Cess shown at Rs.1,388/- with Gross tax liability of Rs.47,638/-. For the Assessment year 2014-15, the Gross total income from Salary shown at Rs.5,26,638/- and income from other sources Rs.21,184/-, the Gross total income shown at Rs.5,47,822/-. The total deductions shown Rs.79,401/- and Taxable total income mentioned Rs.4,68,420/-. The tax payable on total income was at Rs.24,842/- with rebate of Rs.2,000/- and secondary higher Education Cess given at Rs.745/-. Therefore, the total Tax and Cess shown at Rs.25,587/-.
245. The above said alleged income received by accused No.1 to the SB Accounts opened in his name and in the names of accused Nos.2 to 5, cannot be taken into consideration as the said proceeds of business acquired 201 Spl.CC.34/2016 during check period not considered by Investigating Officer. Moreover, this Court cannot take into consideration the above said huge amounts said to be credited to the Accounts of accused Nos.1 to 5 either as Income or Expenditure as it was not declared by accused No.1 being a public servant.
246. However, PW30 - Rajesh Kumar Singh, Assistant General Manager (Vigilance) has deposed that when the CBI sought for Statement I-VI of accused No.1, he had communicated the same to his Controlling Officer to get the said details. However, accused No.1 has refused to furnish those details and wrote a letter to AGM, Canara Bank, HRM Section stating that rules of Bank not applicable to him as he was not in Canara Bank after his dismissal on 30.6.2014. The copy of the said letter produced through covering letter Ex.P167 and his signature marked as Ex.P167(a). In the cross-examination he has admitted there is no procedure to furnish Statement I-VI by the 202 Spl.CC.34/2016 officials who were dismissed from the Bank. He was not aware of whether accused No.1 had submitted those Statements prior to his dismissal or not.
247. Therefore, after considering all the Expenditure incurred by accused No.1, which are left out by the Investigating Officer and not brought to the notice of the Court by prosecution are taken into consideration as made out from the documents produced before the Court. After calculation of all the Expenses incurred by accused No.1, it is made out by the Court under Statement-D as follows:
Sl.No. Details of Expenses Amount (Rs.) 1 Household expenses (1/3rd of gross 6,94,830.00 salary of Rs.20,84,489/-) 2 Amount transferred to the account 95,80,000.00 of M/s.Zaal Dance Academy by its Proprietor accused No.4, with Bank of India, JB Nagar Branch, Bengaluru, from the OD Account of accused No.1, SB Account of accused No.2 and joint Account of accused Nos.1 to 3.
203 Spl.CC.34/2016 3 Expenses from SB Account of 5,28,950.00 accused No.5 held at Canara Bank, Magadi Road Branch, Bengaluru, operated by accused No.1.
4 Expenses other than shown 28,17,034.00
separately from Salary Account of
the accused No.1 at Canara Bank,
Srirangapatna Branch. as per
Ex.P49.
5 Expenses other than shown 1,16,91,347.00
separately from joint Account of the accused Nos.1 to 3 at Canara Bank, Basaveswara Nagar Branch, Bengaluru, as per Ex.P163.
6 Expenses other than shown 2,55,000.00 separately from Salary Account of the accused No.2, at Canara Bank, Srirangapatna Branch.
7 Repayment of Housing Loan taken 2,30,452.00 from Canfin Homes by accused No.1.
8 Payment of property tax to BBMP in 11,944.00 respect of house of accused No.1 H.S.Eshwar at No.424, 6th Main, 16th Cross, Basaveshwara Nagar, BEML Layout, Bengaluru-79.
9 Premium paid to Bharti AXA General 7,134.00 Insurance Company Limited towards Hyundai Santro GL Car bearing registration No.KA-02/MG-6671 in the name of accused No.1 204 Spl.CC.34/2016 H.S.Eshwar for the period from 4.9.2013 to 3.9.2014 10 Premium paid on LIC Policies 1,96,823.00 bearing Nos.725874554 and 725874555 in the name of accused No.3 Smt.Rajatha B.Eshwar at LIC of India, Srirangapatna Branch.
11 Premium paid on Canara HSBC OBC 88,000.00 Life Insurance Policy No.0036229215 taken by accused No.1 H.S.Eshwar in the name of his wife Smt.A.R.Mamtha (A-2).
12 Premium paid to National Insurance 15,654.00 Company Limited towards Policies taken on Maruti ALTO K10 LXI Car bearing registration No.KA-02/MF-
1193 in the name of the accused No.1 H.S.Eshwar for the period from 20.1.2012 to 19.1.2013, 20.1.2013 to 19.1.2014 and 20.1.2014 to 19.1.2015.
13 Premium paid on Jeevan Suraksha 30,000.00 Policy No.614668289 in the name of the accused No.1 H.S.Eshwar.
14 Expenditure incurred on Hyundai 13,938.00 Santro GL Car bearing registration No.KA-02/MG-6671 owned by the accused No.1 H.S.Eshwar towards service/repair got done at the Sheshadripuram Service Station of M/s.Trident Automobiles Pvt.Ltd.
205 Spl.CC.34/2016 15 Expenditure incurred towards 8,054.00 payment of telephone bills to BSNL, BGTD, Bengaluru in respect of telephone No.080-23402392 in the name of accused H.S.Eshwar during the period from 02/2012 to June,2014 including security deposit of Rs.500/-.
16 Payments made to Reliance 112.00 Communication Limited for recharging the Reliance Mobile No.9342954111.
17 Expenditure incurred towards 1,20,067.00 purchase of diesel for Santro Car bearing Regn.NoKA-02/MG-6671.
18 Interest on OD facility availed in OD 3,600.00 A/c.No.2373252005097 of accused No.1 H.S.Eshwar at Canara Bank, Srirangapatna Branch during the period from 1.1.2011 to 30.6.2014.
19 Repayment of vehicle loan availed 1,61,884.00 by the accused No.1 H.S.Eshwar from Canara Bank, Tavarakere Branch, Bengaluru under Account No.2373695000003.
20 Interest paid on Gold loan availed 419.00 by Smt.A.R.Mamata w/o. accused from Canara Bank, Tavarekere Branch, Bengaluru under Account No.1229842018486.
206 Spl.CC.34/2016
21 Interest paid on housing loan taken 2,97,672.00
for purchase of site No.424
measuring 32' X 33' in Sy.No.28/3,
Saneguruvanahalli, Yeswantpur
Hobli, Bengaluru (now BEML layout, Basaeshwara Nagar, Bengaluru) and construction of house thereon from Canara Bank, Housing Finance Branch, Bengaluru.
22 Payment of common maintenance 22,200.00 charges for flat No.SF-2 at SLV Golden Nest Apartment, No.25, KHB Colony, 1st Cross, 2nd Stage, Basaveshwara Nagar, Bengaluru-79.
23 Loss on sale of TATA Indica Car 1,40,000.00 No.KA-01/MA-4429 by the accused No.1 H.S.Eshwar.
24 Loss on sale of 15 Shares of 6,176.00
Onmobile Global Limited on
17.2.2012 by the accused No.1
H.S.Eshwar.
25 Property Tax paid towards property 11,520.00
No.427, BEML, Kamakshi Palya,
Bengaluru.
26 Stamp duty, Registration Fee and 3,63,763.00
other charges.
27. Premium receipts issued in the 27,183.00
name of accused No.3
dtd.26.8.2014 for revival of lapsed policy No.616871075 issued on 3.9.2012.
207 Spl.CC.34/2016 28 Two Single type of deposit receipts 1,48,111.00 issued in the name of accused No.3 48,712.00 each dtd.30.3.2013.
Total 2,75,20,579.00 After calculation of all the above mentioned expenses incurred by accused No.1 during the check period it comes to Rs.2,75,20,579.00.
248. However, the learned Counsel for accused No.1 has submitted that all the deposits credited to the accounts of accused Nos.1 and 2 and Joint Account of accused Nos.1 to 3 are to be taken into consideration by this Court as they are received from different business, though accused No.1 has not declared his business before his higher authority and not shown the Income Tax Returns filed for the Assessment years during the check period.
249. However, the said arguments of learned Counsel cannot be accepted in view of many deposits made towards 208 Spl.CC.34/2016 the accounts of accused Nos.1 to 5, which are taken as unaccounted as follows:
Un-Accounted amount of Deposits shown in the A/c.No.2373252005097 of accused No.1 under Ex.P49:
Date Particulars Amount (Rs.)
3.1.2011 Festival ADV. INST. 3,600.00
3.1.2011 Cash Deposit. 3,500.00
7.1.2011 -"- 6,500.00
7.1.2011 -"- 13,000.00
10.1.2011 -"- 49,000.00
11.1.2011 -"- 35,000.00
12.1.2011 -"- 49,000.00
14.1.2011 H S Eshwar/SWF Refund 6,000.95
18.1.2011 BY SB 1174.101.20804 2,00,000.00
18.1.2011 Cash Deposit 1,15,000.00
19.1.2011 -"- 5,000.00
22.1.2011 -"- 27,000.00
1.2.2011 -"- 6,000.00
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4.2.2011 -"- 4,000.00
8.2.2011 -"- 33,500.00
18.2.2011 -"- 22,000.00
1.3.2011 -"- 43,300.00
7.3.2011 -"- 15,000.00
8.3.2011 -"- 6,000.00
9.3.2011 -"- 75,000.00
12.3.2011 -"- 5,000.00
15.3.2011 -"- 29,000.00
18.3.2011 -"- 4,500.00
29.3.2011 -"- 10,000.00
30.3.2011 -"- 36,000.00
5.4.2011 -"- 8,000.00
5.4.2011 -"- 3,000.00
8.4.2011 -"- 6,000.00
9.4.2011 -"- 22,000.00
11.4.2011 -"- 9,500.00
15.4.2011 -"- 45,000.00
18.4.2011 -"- 15,000.00
23.4.2011 -"- 1,000.00
210 Spl.CC.34/2016
25.4.2011 -"- 3,500.00
29.4.2011 -"- 30,000.00
7.5.2011 -"- 49,900.00
9.5.2011 -"- 5,000.00
9.5.2011 -"- 70,000.00
9.5.2011 -"- 10,100.00
10.5.2011 -"- 5,000.00
12.5.2011 -"- 6,500.00
16.5.2011 -"- 7,000.00
28.5.2011 -"- 4,000.00
1.6.2011 -"- 5,000.00
8.6.2011 -"- 29,934.00
15.6.2011 -"- 20,000.00
5.7.2011 -"- 10,000.00
6.7.2011 -"- 5,000.00
16.7.2011 -"- 5,000.00
19.7.2011 -"- 20,000.00
21.7.2011 -"- 18,000.00
22.7.2011 -"- 35,000.00
29.7.2011 -"- 1,000.00
211 Spl.CC.34/2016
9.8.2011 -"- 6,000.00
14.9.2011 -"- 6,000.00
22.9.2011 -"- 5,000.00
7.10.2011 -"- 2,500.00
18.10.2011 -"- 20,000.00
29.10.2011 -"- 2,000.00
2.11.2011 -"- 8,000.00
8.11.2011 -"- 5,000.00
17.11.2011 -"- 15,000.00
23.11.2011 -"- 10,000.00
29.11.2011 -"- 500.00
30.11.2011 -"- 8,000.00
2.12.2011 -"- 1,02,000.00
8.12.2011 -"- 10,000.00
14.12.2011 -"- 15,000.00
30.12.2011 -"- 20,000.00
9.1.2012 -"- 8,000.00
14.1.2012 -"- 5,000.00
17.1.2012 -"- 9,000.00
27.1.2012 -"- 5,000.00
212 Spl.CC.34/2016
16.2.2012 -"- 13,000.00
21.2.2012 -"- 19,000.00
24.2.2012 -"- 10,000.00
7.3.2012 -"- 4,000.00
19.3.2012 -"- 20,000.00
26.3.2012 -"- 10,000.00
10.4.2012 -"- 15,353.00
19.4.2012 -"- 7,000.00
4.6.2012 -"- 18,000.00
26.6.2012 -"- 5,500.00
17.7.2012 -"- 5,000.00
14.8.2012 -"- 20,000.00
28.8.2012 -"- 10,000.00
7.9.2012 -"- 19,600.00
11.9.2012 -"- 20,000.00
17.9.2012 -"- 15,000.00
18.9.2012 -"- 3,000.00
18.9.2012 -"- 500.00
1.10.2012 -"- 30,000.00
9.10.2012 -"- 5,000.00
213 Spl.CC.34/2016
12.10.2012 -"- 15,000.00
22.10.2012 -"- 10,000.00
2.11.2012 -"- 5,000.00
6.11.2012 -"- 40,000.00
9.11.2012 -"- 7,000.00
15.11.2012 -"- 15,000.00
19.11.2012 -"- 15,000.00
28.11.2012 -"- 15,000.00
17.12.2012 -"- 15,000.00
28.12.2012 -"- 15,000.00
2.1.2013 -"- 15,000.00
8.1.2013 -"- 1,00,000.00
15.1.2013 -"- 15,000.00
16.1.2013 -"- 14,000.00
19.1.2013 -"- 1,000.00
29.1.2013 -"- 10,000.00
29.1.2013 -"- 20,000.00
09.02.2013 -"- 15,000.00
11.02.2013 -"- 15,000.00
12.02.2013 -"- 49,000.00
214 Spl.CC.34/2016
04.03.2013 -"- 20,000.00
04.03.2013 -"- 10,000.00
09.03.2013 -"- 14,100.00
09.03.2013 -"- 30,000.00
12.03.2013 -"- 15,000.00
08.04.2013 -"- 15,000.00
12.04.2013 -"- 15,000.00
16.04.2013 -"- 10,000.00
03.05.2013 -"- 30,000.00
14.05.2013 -"- 15,000.00
13.06.2013 -"- 15,000.00
01.07.2013 -"- 18,000.00
15.07.2013 -"- 15,000.00
29.07.2013 -"- 27,000.00
12.08.2013 -"- 15,000.00
16.09.2013 -"- 15,000.00
15.10.2013 -"- 15,000.00
06.11.2013 -"- 25,000.00
16.11.2013 -"- 15,000.00
16.12.2013 -"- 15,000.00
215 Spl.CC.34/2016
16.01.2014 -"- 15,000.00
13.02.2014 -"- 15,000.00
14.03.2014 -"- 15,000.00
15.04.2014 -"- 15,000.00
15.04.2014 -"- 15,000.00
15.05.2014 -"- 15,000.00
250. The amount deposited to the
A/c.No.0693101119990 maintained in the name of
accused No.2 marked as Ex.P29 shows some amounts have been remitted to the said SB Account also considered as unaccounted as not considered as Income of accused Nos.1 to 5 during the check period. The details are as follows:
(i) Rs.16.50 lakhs on 24.9.2012 by way of RTGS transfer from Kanazh Metals Private Limited.
(ii) Rs.11 lakhs on 1.10.2012 by way of RTGS transfer from Kanazh Metals Private Limited.
(iii) Rs.7 lakhs on 5.10.2012 by way of RTGS transfer from Satish K.Pujari.
(iv) Rs.14 lakhs on 10.11.2012 by way of RTGS transfer.
(v) Rs.11 lakhs on 26.12.2012 by way of RTGS transfer.
216 Spl.CC.34/2016
251. Admittedly, the accused No.2 - A.R.Mamatha W/o. of accused No.1 had no independent income from any other source as she was not working as well as not having any properties in her name, except the property mentioned above purchased by accused No.1 during the check period.
252. The remittance of above amounts to the account of accused No.2 made out from the relevant entries comes to Rs.59,50,000/-. In this regard, it is relevant to point out the evidence of PW8 being Sr.Manager of Canara Bank, Srirangapatna Branch has identified the certified copies of the FD Account opened in the name of accused No.2 for Rs.66,50,000/- deposited on 31.12.2012 with copies of Transaction Slip, Deposit Receipt, TD Ledger Report as per Ex.P27. The Savings Bank Account opened in the name of accused No.2 on 13.9.2012 also identified under Ex.P28 and statement of account of SB Account of 217 Spl.CC.34/2016 accused No.2 marked under Ex.P29 to which the above mentioned total amount of Rs.59,50,000/- has been remitted on different dates.
253. PW8 has further deposed about the Transaction Slips of different dates for different amounts debited by accused No.1 in the name of accused No.2 for Rs.9 lakhs, debit of Rs.3 lakhs by accused No.2 in the name of Satish Kumar Poojari, Rs.66,50,000/- debit by accused No.2 credited to her account, the amount of Rs.59 lakhs credited to her account, Rs.9 lakhs debit by accused No.1 in the name of accused No.2, Rs.20 lakhs credited in the name of accused No.3 by accused No.2, Rs.75 lakhs debit by accused No.3 in the name of accused No.2 and the amount of Rs.25 lakhs debit by accused No.2 in the name of Bhoovika as per the attested copies of the same marked subject to objection as Exs.P30 to P37. The attested copies of Cash Withdrawal Order Form relating to account of accused No.2 for Rs.6,20,000/- and Rs.7 lakhs identified 218 Spl.CC.34/2016 under Exs.P38 and 39. The attested copies of pay slip dtd.4.7.2013, for Rs.20 lakhs and cheque dtd.20.8.2012 for Rs.6,20,000/- issued by the Proprietor/Manager of Surya Enterprises, in the name of Accused No.2 marked subject to objection as Exs.P40 and 41.
254. PW8 has further identified original Account Opening Form for Overdraft Account in the name of Surya Enterprises with 19 copies of the related documents marked under Ex.P43. The attested copies of cheque and transaction slip dated 20.8.2012 for Rs.6,20,000/- and dated 30.3.2013 for Rs.12 lakhs respectively marked as Exs.P45 and 46. He has also identified the documents Transaction Slips, Credit Challan (RTGS) for being credit of different amounts by accused No.1 in the credit of Zaal Dance Academy, Rashabhjan. S., accused No.5 Umeshappa, Dr. A.N. Padma, H.S. Prasad, accused No.3 Rajatha.B.Eshwar marked as Exs.P50 to P80. The original cash paid cheque dated 17.6.2013 for Rs.1 lakh favouring 219 Spl.CC.34/2016 Mrs. S.T. Triveni marked as Ex.P81 and amount of Rs.61,600/- shown in the credit of HSBC debit by accused No.1 and the RTGS Slip for the said amount marked as per Exs.P81 to 83 respectively.
255. The accused No.2 has shown ignorance about remittance of the above amounts while recording Statement U/s.313 Cr.P.C. by this Court. She has categorically stated that she has not done any transaction relating to the above amounts debited by her in the names of different persons relating to huge amounts and affirmed that all the transactions were done by accused No.1 on her behalf. The same has been admitted by accused No.1, who has also categorically admitted and stated that accused No.2 did not enter into any transactions except putting her signature to the Account Opening Forms while opening various Accounts in the Bank. Therefore, the huge transactions done through the Account of accused No.2 can be considered as made by accused No.1 only, which is not disputed before the Court.
220 Spl.CC.34/2016 The accused himself has admitted that no transactions were made by accused No.2 and all the Banking transactions made by him on her behalf, clearly establish that she had no source of any income to make several huge transactions through the bank as entered in her SB account mentioned above during the check period.
256. Further, in the written Statement filed u/S.313(5) of Cr.P.C., accused No.2 has stated that she is an house wife and the accused No.1, her husband has taken charge of new Branch as a Manager has mobilized accounts of the family members to improve the Bank business. Though she has signed Account opening forms has not done any transactions in the Account as well as entire transactions done by her husband without her knowledge. Therefore, according to her, she has not abated her husband, the accused No.1 and not committed any offence as she is innocent of said alleged transactions.
221 Spl.CC.34/2016
257. However, it is made out clear from the evidence PW32, the Joint Commissioner of Income Tax, that accused No.2 has not filed any Returns for the Assessment Year 2011-12 to 2015-16 and the same informed under Ex.P169. If really, the alleged business made by accused No.1 in the name of his family members including her only to improve the Bank transactions, the same should have been informed to Income Tax Department by way of filing Returns during the above said Assessment years. But, why she has not made any efforts to file IT Returns through her husband is not explained before the Court.
258. The accused No.3 - Rajatha B.Eshwar, the daughter of accused No.1 was a Student as on the date of opening joint SB Account with her father as on 24.9.2006, mentioned in the Account Opening Form enclosed to Ex.P163. The joint SB Account No.2529101013174 opened in the names of accused No.3 with her father and mother, the accused Nos.1 and 2.
222 Spl.CC.34/2016
259. Though she was getting Salary as working as Engineer in Accenture, from the details of Salary mentioned above, deductions are made out only at Rs.21,152/-, therefore it cannot be presumed that she had huge income to keep FD of Rs.25 lakhs in the name of her minor daughter Bhoovika or invest any amount in the alleged business. However, the huge amounts remitted to her above said joint Account also considered as unaccounted made out as follows:
(i) Rs.16 lakhs on 11.1.2013 by way of RTGS transfer.
(ii) Rs.20 lakhs on 19.3.2013 by way of RTGS transfer.
(iii) Rs.15 lakhs on 19.3.2013 by way of fund transfer from Foremost Mercantile.
(iv) Rs.15 lakhs on 19.3.2013 by way of fund transfer from Foremost Mercantile.
(v) Rs.15 lakhs on 3.4.2013 by way of fund transfer from Tayal Infrastructure.
(vi) Rs.14 lakhs on 3.4.2013 by way of RTGS transfer.
(vii) Rs.30 lakhs on 15.4.2013 by way of fund transfer from Foremost Mercantile.
(viii) Rs.13.50 lakhs on 23.5.2013 by way of RTGS transfer.
(ix) Rs.16 lakhs on 5.6.2013 by way of RTGS transfer from Tayal Infrastructure Pvt.Ltd.
223 Spl.CC.34/2016
(x) Rs.18 lakhs on 17.6.2013 by way of RTGS transfer from Tayal Infrastructure Pvt.Ltd.
(xi) Rs.30 lakhs on 12.7.2013 by way of RTGS transfer from Gee Pee Infotech Pvt.Ltd.
(xii) Rs.18 lakhs on 13.7.2013 by way of RTGS transfer from Tayal Infrastructure Pvt.Ltd.
(xiii) Rs.25 lakhs on 1.8.2013 by way of RTGS transfer.
(xiv) Rs.27 lakhs on 8.8.2013 by way of RTGS transfer from Gee Pee Infotech Pvt.Ltd.
(xv) Rs.10 lakhs on 20.8.2013 by way of RTGS transfer from Divya Drishti Traders Pvt.Ltd. (xvi) Rs.10 lakhs on 20.8.2013 by way of RTGS transfer from Divya Drishti Traders Pvt.Ltd.
260. The relevant entries of different dates from 11.1.2013 as could be made from the Statement of Account pertaining to the above mentioned joint account held in the names of accused Nos.1 to 3 for the period from 1.7.2007 to 14.7.2015 shows the total amount remitted to the above mentioned SB accounts of accused No.2 and joint account of accused Nos.1 to 3 comes at Rs.2,92,50,000/-. If the both the amounts taken into consideration, it comes at Rs.3,52,00,000/-.
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261. Further, it is relevant to point out some of the withdrawals shown from the above said joint account of accused No.1 to 3 are made out as follows are on 3.10.2011 of Rs.25,006/-, 24.1.2012 of Rs.50,000/- and transfer of Rs.25,000/-, on 30.3.2012 withdrawal of Rs.4 lakhs, RTGS OW:AIRCOM Solutions Pvt.Ltd., on 25.6.2012 Rs.4,19,200/- closure of NRWSPE, on 11.7.2012 Rs.47,976/- through NEFT OW H.S.Eshwar, on 19.7.2012 Rs.1,50,000/- CASA. Cheque withdrawal, on 26.7.2012 Rs.1,13,850/- as consolidated DD/PO, on 27.7.2012 Rs.12,75,000/- to CASA Cheque withdrawal, on 2.8.2012 Rs.1,72,500/- to CLG B.N.Smaya, on 24.8.2012 Rs.75,000/- in the name of Sunil, on 27.8.2012 Rs.50,000/- funds transferred to H.S.Eshwar, on 18.9.2012 Rs.60,750/- funds transferred to Peak Systems Refrigera, on 21.11.2012 Rs.77,000/- to CLG., on 4.12.2012 Rs.50,000/- Cash withdrawal, on 26.12.2012 Rs.3 lakhs through ATM Transfer, on 10.1.2013 Rs.65,000/- - CASA Cheque withdrawal, on 16.1.2013 Rs.1 lakh funds transfer to 225 Spl.CC.34/2016 M/s.Dahanalakshmi Enterprises, on 30.1.2013 Rs.45,000/- funds transferred to SHIDLYALI A.P. STAFF, on 31.1.2013 Rs.46,500/-, NEFT OW JAGADISH, on 12.2.2013 Rs.1 lakh to Shivananda, on 27.2.2013 Rs.1,79,495/- to generate IBA, on 2.3.2013 Rs.2,17,000/- to CLG., on 9.3.2013 Rs.90,000/- Funds transfer to H.S.Eshwar, on 30.3.2013 Rs.12 lakhs funds transfer to Surya Enterprises, on 5.4.2013 Rs.1,96,823/- funds transfer to Radhakrishna A.V., on 6.4.2013 Rs.40,000/ Cash withdrawal, on 9.4.2013 Rs.4,39,088/- NEFT OW H.S.Eshwar, on 16.4.2013 Rs. 90,000/- funds transfer to Chandrashekar B., on 18.4.2013 Rs.25 lakhs and Rs.5 lakhs funds transfer to Swarna and Vigash General Trade-A respectively, on 15.5.2013 as per Ex.P163, amount of Rs.2,50,000/- (in the written argument of Public Prosecutor shown as Rs.25,000/-) shown in the name of Srinivas Murthy - through Ref/Chq.No. 000000459438, and Rs.25 lakhs B.Munirathnam Naidu - through Ref/Chq. No.000000459439, on 17.5.2013 Rs.5,51,000/- to CLG., on 5.6.2013 Rs.50,000/- NEFT OW 226 Spl.CC.34/2016 H.S.Prasad, on 17.6.2013 Rs.1 lakh funds transfer to H.S.Eshwar, on 20.6.2013 Rs.2,60,000/- funds transfer to Ramesha, on 16.7.2013 Rs.5 lakhs funds transfer to Umeshappa C. and Rs.85,000/- NEFT OW H.S.Basavaraj, on 5.8.2013 Rs.5,000/- funds transfer to Mamatha A.R. and Rs.20,000/- RD DRAWN for ACCT 069318200781 and 6.8.2013 Rs.5,000/- RD DRAWN for ACCT 0693181001037.
262. PW33 - Vimal Anand, Joint Commissioner of Income Tax (Administration and Vigilance) has deposed about IT details of accused Nos.1 and 2 for the Assessment year 2011-12 to 2014-15 sought by CBI. However, after going through the records it was made out that both of them have not filed any Income Tax Returns for the said period, therefore he has furnished the same information to the CBI with copies of the documents. The Screen Print of AST data relating to both accused Nos.1 and 2 marked as Exs.P172 to 174.
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263. However, it is further made out from the details furnished by PW32 - B.Balakrishna, the Joint Commissioner of Income Tax (Vigilance) under Ex.P.169 that accused No.3 has also not filed any Income Tax Returns for the Assessment years 2011-12 to 2015-16. The copies of Screen Shots Prints enclosed to the letter Ex.P169, shows all the columns of Returns were left blank without informing any income from business though huge amounts were credited to her joint Account mentioned above. However, she has shown ignorance about all the huge transactions done through her joint Account while recording Statement u/S.313 Cr.P.C. However, in the written filed u/s.313(5) of Cr.P.C. she has stated that the joint Account opened by her father, accused No.1 in her name and he has mobilized accounts of family members only to improve the Bank business. She has also stated that the entire transactions were done by her father without her knowledge. Though she has shown ignorance about all the transactions entered through her joint Account to which, 228 Spl.CC.34/2016 many huge amounts transferred from the Account of accused Nos.1 and 2, through different transactions and debit slips. Further she has clearly admitted the Term Deposit Account of her minor daughter Bhoovika for Rs.25,00,000/- deposited as on 4.7.2013 was kept by her father accused No.1. In this regard, it is relevant to point out from Ex.P.26 the Account opening form for FD in the name of Bhoovika G. by the accused No.3 as her guardian, for deposit of Rs.25 lakhs for 12 months. The Term Deposit Account Summary Statement as on 13.4.2015 enclosed to it shows the maturity value of the said amount at the rate of interest 9.5% and date of maturity was on 4.7.2015. The said Deposit Account No.0693302000088 kept in the Canara Bank, Srirangapatna Branch as on 4.7.2014.
264. PW37 - Y.Vanitha, Income Tax officer of Ward No.5 (1) (4) at Bengaluru was Income Tax Officer at Ward No.5(2)(2) at Unity Buildings from May-2014 has 229 Spl.CC.34/2016 deposed that the documents relating to accused No.3 produced to CBI under ExP173 and her PAN Number is AUVPA5630R. She has stated that after taking out the screen print shots of documents for the Assessment year from 2011-15 sent to his superior officer with covering letter and the accused No.2 was not having income during the said period, therefore, no tax paid by her.
265. The learned Public Prosecutor has further submitted that the accused No.1 was in the habit of accepting bribe when he was working as a public servant in the Bank and accepted huge amounts from many Companies. Therefore, argued that the allegation made with respect to ILCs issued by him for Rs.3.52 Crores, though cannot be considered as his income in present case as it is an illegal amount received by him through the accounts maintained in the name of his wife, accused No.2 as per Ex.P29 and to his joint account with wife and daughter, accused Nos.2 and 3, as per Ex.P163. In this 230 Spl.CC.34/2016 regard, relied on the evidence of PW57 - Jagadeeswaran - Divisional Manager of Canara Bank, Circle Office, Mysore, who has stated about Domestic Investigation conducted in respect of ILCs said to be issued by Srirangapatna Branch of Canara Bank, along with Senior Managers, during the said period, accused No.1 was Bank Manager at Srirangapatna Branch. After investigation he has submitted Report as per Ex.P201. According to the said Report, several irregularities found in respect of four ILCs said to be issued by Srirangapatna Branch, when accused No.1 was the Manager in the said Branch during 2013, in favour of M/s.Foremost Merchandise Pvt.Ltd, Mubmai on behalf of M/s.Vigas General Services Pvt.Ltd., Bengaluru. The details of the same stated as follows:
1) ILC ref:: 0693 ILC 13001 dtd.25.2.2013 for Rs.8,00,25,000/-
2) ILC ref:: 0693 ILC 13003 dtd.12.3.2013 for Rs.7,15,85,000/-
3) ILC ref:: 0693 ILC 13007 dtd.19.3.2013 for Rs.9,62,50,000/-
4) ILC ref:: 0693 ILC 13008 dtd.20.3.2013 for Rs.8,66,25,000/-
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266. After scrutiny of the records from Srirangapatna Branch, PW57 has found most of the ILCs were bears the signature of accused No.1 and some of the amounts were credited from the accounts of M/s.Foremost Merchandise Pvt.Ltd., and its sister concern. It is also found that the total amount of Rs.3,78,75,000/- has been transferred to the accounts of accused No.1 and his family members, the accused Nos.2 to 5.
267. The evidence of PW23 H.L. Gopinath - AGM who worked as Branch Head in Canara Bank, Jayanagara Shopping Complex Branch from July-2013 to March-2015 also placed in respect of other six LCs said to have been issued by Canara Bank, Madayanakanahalli Branch. He has deposed that he had been directed to visit Madanayakanahalli Branch for verification of Letter of Credits issued by the said Branch in favour of Clients of SBI at Kolkata. Therefore, he had visited the said branch and after verification found that no LCs were issued in favour of 232 Spl.CC.34/2016 Clients of SBI, Kolkata, which has been reported to Bengaluru Metro Circle Office, under three reports of different dates with covering letter as per Ex.P160. The Interim Investigation Report dtd.17.2.2014 enclosed to the said letter Ex.P160, is with respect to details of investigation conducted as to verify the records. After verification of records in the Branch and in the System, found the above mentioned LCs have not been issued or accepted by the Branch. Therefore, he gave information with regard to earlier correspondence not mentioning the dates of issuance or acceptance of LCs correctly with revised details as follows:
No. Date Amount in LC Applicant Beneficiar Bill ref.No. Date of our Due Date Rs. (our y (their first letter Customer) customer) conveying acceptance 3851 ILC 13081 12.6.2013 88848000 Padmavati Gee Pee 0913613IN000 15.6.2013 12.10.201 Enterprises Infotech 0644 Pvt.Ltd. Dtd.15.6.2013 3851ILC13093 19.6.2013 94831000 - Do- -Do- 0193613N0000 21.6.2013 19.10.201 655 Dtd.21.6.2013 3851LC13102 9.7.2003 99753000 Vigash - Do- 0193613N0000 11.7.2013 7.11.2201 General 723 Trade and dtd.11.7.2013 Services Pvt.Ltd.
3851ILC13129 5.8.2013 36773000 - Do- - Do- 0193613IN000 8.8.2013 5.12.2013 0736 dtd.8.8.2013 3851ILC13141 16.8.2013 69983000 -Do- -Do- 01936131N000 19.8.2013 7.12.2013 0756 dtd.198.2013 3851ILC13127 3.8.2013 55286172 Ryon Ganapathil 0913613IN000 7.8.2013 5 5.12.2013 Garments al 0735
233 Spl.CC.34/2016 Pavankum Dtd.7.8.2013 ar Trading Pvt.Ltd.
268. PW23 has stated about the Further Investigation Report dtd.8.3.3014 enclosed to the Letter Ex.P160 with reference to the earlier Report as to verified about six LCs purportedly issued by Madanayakanahalli Branch, which are already mentioned above. He has found, out of said purported six LCs, three LCs were said to have been opened on behalf of M/s.Vigash General Trade and Services Pvt.Ltd., which had Current Account for the period from April-2012 to July-2012. After discussion with one of the Director of said Company it was found that no LC transactions took between M/s.Vigash General Trade and Services Pvt.Ltd. with M/s.G.P.Infotech, Kolkata towards purchase of Mobile handset.
269. According to the evidence deposed regarding ILCs, out of remaining three LCs, two LCs have been opened on behalf of M/s.Padmavathi Enterprises and one 234 Spl.CC.34/2016 for M/s.Ryon Garments. Even after making several attempts to contact the said parties, neither the parties nor their addresses are found. However, SBI, Kolkata has forwarded the copies of the six letters reported to have been addressed by Madanayakanahalli Branch as follows:
1) Letter Ref:3851ILC13081 dtd.12.6.2013 addressed to SBI, Kolkatta.
2) Letter Ref:3851ILC13093 dtd.19.6.2013 addressed to SBI, Kolkatta.
3) Letter Ref:3851ILC13102 dtd.9.7.2013 addressed to SBI, Kolkatta.
4) Letter Ref:3851ILC13129 dtd.5.8.2013 addressed to SBI, Kolkatta.
5) Letter Ref:3851ILC13141 dtd.16.8.2013 addressed to SBI, Kolkatta.
6) Letter Ref:3851ILC13127 dtd.3.8.2013 addressed to SBI, Kolkatta.
270. After verification of documents forwarded by SBI, IF Branch, Kolkatta to Circle Office, it has been observed that one of the authorized signatories in the six LCs bear SP No.41460, allotted in the name of Somanath Chattopadhyaya, who was retired from the service of the Bank on 31.1.2013. Further, SP No.33960, indicated the above six Letters and disputed six LCs did not pertain to 235 Spl.CC.34/2016 any of the authorized signatories working in the Branch during the said period. But, after verifying Signing Power Booklet, the SP No.33960 has been allotted in the name of accused No.1. During verification with accused No.1 who was working at Madanayakanahalli Branch from 5.11.2011 to 9.6.2012 with the said Signing Power No.33960, he has denied LCs signed by him and no knowledge of M/s.Padmavti Enterprises and M/s.Ryon Garments. However, information given regarding Current Account opened by M/s.Vigash General Trade and Services Pvt.Ltd., at Madanayakanahalli Branch with the permission of accused No.1, when he was holding charge of the said Branch. Further, it was also found some inconsistencies in the purported correspondence between Madanayakanahalli Branch and SBI, Kolkatta, with respect to purported confirmation on 12.6.2013 for issuance of ILC 13081 and again confirmed on 24.6.2013.
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271. PW23 has also submitted another Investigation Report dtd.29.5.2014, along with the above-mentioned two other Reports for reference. In the said Report, it is stated that after information given by the Branch in-charge, as nobody having user ID and Password to access FCC Module, he had visited the office of DIT wing on 27.5.2014 and found details of the LC from the System issued in the name of M/s.Vigash General Trade and Services Pvt.Ltd., after debit of necessary charges from its account. The details in Report contain that the Inland LC No.3851ILC12001 opened on 3.5.2012 for amount of Rs.5,09,185/- for 90 days with 100%, for which expiry date was 31.1.2012 and date of closure was on 30.8.2012, status of which mentioned as cancelled. The Names of Maker and Checker of Opening LC mentioned Venkatarama Naik and H.S.Eshwar, the then Manager, present accused No.1. The names of Maker and Checker of Closing LC shown Vijaya Madhusudhanan and H.S.Eshwar, who was the Manager.
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272. However, the charges of Rs.1,070/- and Rs.169/- pertaining to Issuing Charges and Commitment Charges debited to the Account No.3851201000063 of M/s.Vigash General Trade and Services Pvt.Ltd., and no documents found in the Branch in respect of the above- mentioned LCs. He has also further clarified regarding n accounts maintained in the names of M/s.Padmavathi Enterprises, M/s.Vigash General Trade and M/s.Ryon Garments with the said Branch.
273. It is made out from the Ex.P160, enclosed with above mentioned three Investigation Reports along with written Statements of Officer Venkatarama Naik, single window operator Smt.Vijaya Madusudhanan at Madanayakanahally Branch during the relevant period from 2011. Both of them have admitted the Cash payment transaction of a Cheque bearing No.034526 dtd.25.5.2012 for Rs.5 lakhs to the debit of Current Account No.3851201000063 of M/s.Vigash General Trade and 238 Spl.CC.34/2016 Services Pvt.Ltd., which was authorized by Officer Venkatarama Naik himself in presence of Shashikanth, payee of the said Cheque, who had received it in person. The SWO Vijaya Madhusudhanan, after authorization of the Cheque by Supervisor, in the capacity of a Clerk she has made Cash payment to said Shashikanth.
274. According to PW23, SBI, Kolkata has claimed the amount of Rs.44,54,74,172/- under six LCs said to have been issued by the Madanayakanahalli branch. However, during investigation in the said Branch, no records found relating to said LCs, as no such LCs were issued, therefore payments were not made to SBI. He has identified the signatures of accused No.1 and another person Somanath Chattopadhyaya in the copies of six LCs sent by Central office, prior to his visit to Madanayakanahalli Branch for verification of records. It was also found that accused No.1 was the Branch Manager during the period of issuance of said LCs as mentioned in the letter Ex.P160.
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275. PW.57 C. Jagadeeswaran, was a Divisional Manager, Canara Bank, Circle Office, Mysore has conducted the domestic investigation pertaining to ILCs said to be issued by Srirangapatna Branch. He along with the then Senior Managers Dinesh S. Chikkalunkar and Sundar working in the Central Office were deputed to conduct the Domestic Investigation. When they verified the records in the Branch, accused No.1 was the Branch Manager, after conducting the investigation he has submitted the report to the DGM of Circle Office, Mysore, the certified copy of the same is marked as Ex.P209. He has further deposed that the original Report submitted has been produced in Spl.CC.1/2015, pending before XXI Addl. City Civil & Sessions Judge, Bengaluru.
276. He has stated that irregularities found during the period when accused No.1 was a Branch Manager of Sirangapatna and explained about 4 ILCs said to be issued by said Branch during 2013 are dated 25.2.2013 for 240 Spl.CC.34/2016 Rs.8,00,25,000/-, ILC dated 12.3.2013 Rs.7,15,85,000/-, ILC dated 19.3.2013 for Rs.9,62,50,000/-, ILC dated 20.3.2013 for Rs.8,62,25,000/- issued in favour of M/s. Foremost Merchandise Mumbai on behalf of M/s. Vigas General Services Pvt., Ltd., Bengaluru. He has also stated that most of the ILCs were signed by accused No.1. However, during verification of records found that some of the amounts were credited from the accounts of Foremost Mechandise Pvt., Ltd., Mumbai and its sister concern in total Rs.3,78,75,000/- was transferred to the accounts of accused No.1 and his family members.
277. The allegation made with regard to amount of Rs.3,78,07,500/- deposited to the accounts of accused No.1 and his family members to their different Bank accounts from the account of others registered in RC 1(E)/2014, pending in Spl.CC.1/2015 before XXI ACC & SJ, Bengaluru, which is registered against present accused No.1 and others namely Satish Poojary and M/s.Foremost 241 Spl.CC.34/2016 Mercantile Pvt.Ltd. The accused No.1 in the written filed u/s.313(5) Cr.P.C. has stated that he was doing Real Estate business with Ajay Agarwal, Bijay Agarwal and Satish Poojary, with whom he had transaction and prosecution has not examined them. Further stated the proceeds of the amount found in the above Accounts are of the Real Estate business. However, he has not informed the said Real Estate business done with above three persons either to his higher authority or declared in the Income Tax Returns during the relevant period.
278. However, the accused No.1 has admitted while recording Statement u/S.313 Cr.P.C. that No.0693 - ILC 13001 dtd.25.2.2013 for Rs.8,00,25,000/- issued by him, but shown ignorance about other three ILCs dtd.12.3.2013, 19.3.2013 and 20.3.2013 respectively, issued for different amounts mentioned in the Investigation Report marked as Ex.P201.
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279. The Investigating Officer has clearly stated about Account Numbers 2373252005097 and 2529101013174 relates to accused No.1 maintained with Canara Bank through which payments were made to him. He has not considered the amount of Rs.2,86,00,000/- alleged to be received from the beneficiaries. He has clarified that since the amount of Rs.3.52 Crores is not a legal source of income cannot be taken as income of accused No.1. He has further stated that accused No.2 to 5 are the beneficiaries, from their aid and encouragement the accused No.1 has amazed assets during the cheque period.
280. However, the accused No.1 in the Statement of calculation has stated that the amount of Rs.3.52 Crores alleged as refers to the amount of Rs.59,50,000/- and Rs.292.50 lakhs received towards the above said two accounts, therefore, contended the said amount received by him is not correct. He has also stated that the other amounts also to be reconsidered in respect of transaction 243 Spl.CC.34/2016 relating to Rs.7 lakhs Receipt from Satish K.Poojari, out of this, Rs.3 lakhs had been returned to the party on 21.12.2012, out of the above said account number of accused No.2. Likewise, Rs.30 lakhs Receipt from Gee Pee Infotech Pvt.Ltd. was earlier advance and had been received back. Similarly, amount of Rs.25 lakhs received from Zaal Dance Academy was relating to earlier advance, which has been received subsequently. Therefore after considering those transactions relating to Receipts to the extent of Rs.58 lakhs, it will reduce actual receipts should be considered at Rs.2.94 Crores. Further, stated that as per the charge sheet, the assets at the end of check period on 30.6.2014 shown the Bank balances/Deposits and Cash, which are, Cash of Rs.5 lakhs, Fixed Deposit of Rs.25 lakhs and OD account of Rs.67.85 lakhs, in total Rs.97.85 lakhs. However, amount of Rs.98.80 lakhs advanced to Zaal Dance Academy as loan and Rs.8 lakhs receivable from Vikas General Trade Ltd, the total amount of Rs.193.65 lakhs continued to be unutilized funds, therefore according 244 Spl.CC.34/2016 to accused No.1 the Assets acquired during the check period are purchase of SLV Golden Nest Flat for Rs.89 lakhs and Maruthi Car for Rs.3.25 lakhs.
281. PW17 C.B.Prabanna Gowda, Income Tax Officer Ward No.6(2) (3) in the Office of Joint Commissioner of Income Tax, Koramangala, Bengaluru has jurisdiction of Bengaluru 57 and 58, which contained assessees having Taxable income below Rs.20 lakhs. He has produced details of Returns pertaining to accused No.3 Rajata B Eshwar as available in AST system through Screen Print and sent to the Joint Commissioner of Income Tax. He has further stated that if the PAN Number entered, automatically it will appear with details of Returns of Income Tax along with date of filing, if only PAN Number and Assessment Year reflected then the implication is no Income Tax Returns filed by the assessees. He has identified the Screen Prints pertaining to AASPEO517A for the Assessment year from 2011 to 2016 and stated that no information of filing 245 Spl.CC.34/2016 Returns as reflection of only PAN Number and Assessment years were appeared. He has admitted in the cross- examination that no documents produced to show that the said PAN No. AASPE0517A relates to accused No.1.
282. Therefore, from the above details of Accounts and also admission made by accused No.3 in her Statement, it can be said that inspite of she was not having any huge source of income, the amount of Rs.25 lakhs kept in FD by her father accused No.1 in the name of her minor daughter. Moreover, accused No.3 also not filed any Income Tax Returns, though she has referred the investment of her family amounts by accused No.1 to improve the Bank business.
283. The accused No.4 - G.Giribabu @ Girish, the husband of accused No.3 and son in law of accused Nos.1 and 2 shown as Proprietor of M/s.Zaal Dance Academy, has also admitted while recording Statement u/S.313 Cr.P.C. by 246 Spl.CC.34/2016 the Court that the SB A/c.No.849620110000276 opened by him on 25.11.2008 in the name of M/s.Zaal Dance Academy as its Proprietor and the balance as on 1.1.2011 in the said Account was Rs.1,29,690.72 and the balance as on 5.9.2013 was Rs.53,40,198.72. In the Statement filed by him u/S.313 (5) Cr.P.C., he has stated that he is a professional Dancer and Choreographer having Dance Academy in the name and style of Zaal Dance Academy and the accused No.1 being his father in law has transferred the amounts to said Account with an intention to improve the business. However, he had no knowledge about source of income or possession of the said amount and not aware of alleged transactions mentioned in the charge sheet.
284. PW55 - Smt.Sudha Ramakrishnan Income Tax officer of Ward No.4 (2)(2) Additional CIT, Range BMTC, had jurisdiction over the business assessee with the postal jurisdiction of Agaram, HAL, Thippasandra, CV Raman Nagar of Bengaluru City has produced the 247 Spl.CC.34/2016 information relating to IT details of accused No.4 who did not file any IT Returns during the period 2015. Therefore, she has furnished the information to CBI through five screen shots for the period from 2011-12 to 2015-16 as per Ex.P170. She has denied that accused No.4 has paid the Income Tax and filed the IT Returns for the said period.
285. PW49 H.K. Suresh, Manager, Indian Bank, Zonal Office has deposed about search and seizure of documents by CBI Officer from the house of accused No.4 as per the search list Ex.P189. He has identified the documents seized from the house of accused No.4, later three LIC polices issued in the name of Rajatha B. Eshwar marked as Ex.P190.
286. I have perused the Account opened in the name of M/s.Zaal Dance Academy in Bank of India, Jeevan Bheema Nagar produced under Ex.P182. The Statement of Account from 1.1.2010 to 30.6.2014 enclosed to it shows 248 Spl.CC.34/2016 the balance as on 1.1.2010 was Rs.28,096/-. However, subsequently huge transactions were made through the said Account are made out as on 12.12.2012, a sum of Rs.50,000/- credited to the said Account shown as through NEFT - Rajatha B. Eswhar and H.S.Eshwar - SOL - ID - 02000 Mumbai (Maharastra). On 17.4.2013 a sum of Rs.50,000/- credited through NEFT - H.S.Eshwar - SOL - ID - 02000 Mumbai (Maharastra). On 2.7.2013 Rs.25,00,000/- credited through RTGS/Mamatha A.R. - SOL
- ID - 02000 Mumbai (Maharastra). On 4.7.2013 Rs.20,00,000/- credited through RTGS/Mamatha A.R. - SOL
- ID - 02000 Mumbai (Maharastra). On 16.7.2013 Rs.25,00,000/- credited through RTGS/Rajatha B.Eshwar and SOL - ID - 02000 Mumbai (Maharastra). On 26.8.2013 Rs.50,00,000/- credited through RTGS/Rajatha B.Eshwar and SOL - ID - 02000 Mumbai (Maharastra). The total credits of Rs.1,29,42,553/- shown in the said Account including the above said huge credits during the said period.
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287. However, the accused No.4 has not filed any Income Tax Returns during the Assessment years 2011-12 to 2015-16 as per the details furnished by PW32 under the letter marked as Ex.P170. The copies of Screen Shots enclosed to it relating to accused No.4 shows all the columns left blank. However, the accused No.4 has shown ignorance about huge amounts credited to the Account of Zaal Dance Academy by accused No.1 and also source of it.
288. The accused No.5 C.Umeshappa was working as FDA in BBMP and he is brother in law of accused No.1. It is made out from Ex.P105, the SB Account No.3851101000019, has been opened in his name on 30.11.2011 for deposit of Rs.9 lakhs towards Kamadhenu Deposit as per the Receipt Ex.P107. The Transaction Slip relating to it marked under Ex.P106 shows the same amount kept towards KDR. The TD Audit Trial Enquiry relating to A/c. No.3851401000007 in the name of accused No.5 relating to Kamadhenu Deposit General as per 250 Spl.CC.34/2016 Ex.P108 shows the amount of Rs.9,35,679/ as on 18.6.2012. Further, the Statement of above SB Account in his name produced under Ex.P110 shows huge Funds Transfer to his Account and withdrawn on different dates. The entry dated 2.12.2011 shows a sum of Rs.3,88,000/- as Cash Deposit and on 16.12.2011 a sum of Rs.4 lakhs withdrawn as Funds Transfer to Umeshappa C. On 26.12.2011, deposit of Rs.4 lakhs entered by CLG and on 24.3.2012 Rs.75,000/- withdrawn by way of DD favoring HSBC OBC. On 30.3.2012, a sum of Rs.3,50,000/- withdrawn shown as amount Transferred to A/c.No.252910113174, the joint Account maintained in the names of accused Nos.1 to 3. The entry dtd.11.4.2012 the deposit of Rs.4 lakhs by CLG, BLR LPC, SYND and a sum of Rs.75,000/- shown as deposit on 17.4.2012 by the similar mode. However, a sum of Rs.4,75,000/- shown as withdrawal as on 4.6.2012 through Funds Transfer to Umeshapp C. However, the total closing balance amount 251 Spl.CC.34/2016 found in the said Account as on 19.7.2012 was Rs.22,11,714/-.
289. PW15 Nadiger Girish was Manager in Canara Bank, Madanayakanahalli branch has deposed that he worked as Branch in-charge for 13 months from April 2015 to May 2016. He was working according to the guidelines of the bank when he was branch in-charge to look after smooth functioning of the transaction in the bank. He had received information from Vigilance Department of Head Office to furnish the documents relating to bank transactions of accused No.5, accordingly he had produced relevant documents with covering letter Ex.P104, his signature marked as Ex.P104(a). He has stated that under the account of Kamadhenu Deposit Receipts (KDR) given by accused No.5 for different amounts with documents marked as Exs.P105 to 109. The credit slip issued in the name of accused No.5 for Rs.1,63,000/-, transaction slip in his name for Rs.4 lakhs, cheque drawn on Canara Bank for 252 Spl.CC.34/2016 Rs.7,500/- are marked as Ex.P111 to P114. The transaction slip dated 30.3.2011 shown in the name of accused No.3 Rajatha B.Eshwar debit by accused No.5 for Rs.50,000/- marked as Ex.P115 and transaction Slip dated 4.6.2012 shown in his name in debit and credit columns for Rs.4,75,000/- as per Ex.P115 and 116 respectively. He has identified other cash receipts, credit slips for different amount in the name of accused No.5 under Exs.P117 to
125. He has identified accused No.1 who was working in the same branch from November 2011 to June 2012 as a Manager In-charge and stated that on 18.6.2012 as per Ex.P108 and amount of Rs.9,35,679/- was deposited towards Kamadhenu Deposit had been released in favour of accused No.5, held at Canara Bank, Magadi Road Branch, Bengaluru.
290. PW15 has further identified the covering letter dated 20.12.2015-Ex.P129, under which the documents relating to accused No.3 produced by him are marked as 253 Spl.CC.34/2016 Exs.P130 to P135. He has further stated that the proceeds of different amounts from the account of accused No.3 transferred to Staff OD account of accused No.1 and other cash transactions in her name made by accused No.1 marked as Exs.P136 to P151.
291. PW32 B.Balakrishna Joint Commissioner of Income Tax (Vigilance), Bengaluru has deposed that IT details of accused Nos.2 and 3 for the Assessment year 2011-12 to 2015-16 were sought by CBI but after verifying the records since both of them have not filed any Income Tax Returns for the said period, he has informed the same to CBI with the copies of information furnished by Vigilance Office with a covering letter. He has identified the covering letter and Screen Prints of AST data furnished under Ex.P169. He has also identified the details of Screen Print of AST data in respect of accused Nos.4 and 5 with covering letters as per Exs.P170 and Ex.P171. He has admitted in the cross-examination that the details of PAN Card holder 254 Spl.CC.34/2016 not mentioned in the said Screen Prints. The witness has further stated about information regarding IT Returns filed by accused No.5 furnished through the letter marked under Ex.P171. The copies of Screen Shot Prints enclosed to the said letter relating to him for the Assessment years 2011 till 2015 were in blank and he has not informed anything about huge amounts deposited to his Account or transactions done through his Account said to be by accused No.1 to his higher authority.
292. However, accused No.5 while recording Statement u/S.313 Cr.P.C. by the court, he has shown ignorance about huge deposit of amounts made to his Account as mentioned above. In the written statement filed u/S.313(5) Cr.P.C., he has stated similarly as the Accounts of family members mobilized by accused No.1 to improve the Bank business and not aware of any transactions made through his Account. He has affirmed that though he has put signatures to the Account opening Forms, the entire 255 Spl.CC.34/2016 transactions were made by accused No.1,his brother in law, without his knowledge.
293. However, the contention raised by accused No.5 regarding entire transactions made by accused No.1 through his Account has to be accepted in view of evidence of PW16 Vijaya Madhusudhanan Clerk in Canara Bank, Madanayakanahalli branch. She has deposed that when she joined the bank on 19.11.2011, accused No.1 was working as Manager, under whom she worked till June 2012, therefore identified his handwriting in Ex.P106. She has further identified her handwriting in the document Ex.P107 Deposit receipt written by her during the said period. She has further stated about the handwriting of accused No.1 in Credit Slips, Transaction Slips, Cheques, Cash Receipts, Cash withdrawal forms, Cash Deposit Receipts marked as Exs.P111 to P133, 135, 137 to 146, 148 and 150, which were filled and authorised by him. The said documents relates to the Account of accused No.5.
256 Spl.CC.34/2016 The documents identified by her under Exs.P132, 133, 135, 137 to 146 are relates to the Account of accused No.3, through which also accused No.1 has made several transactions. Further, she has admitted the contents of Transaction Slips marked as Exs.P134, 136, 147, 149 and 151 are written by her on the instructions given by accused No.1. Therefore, the evidence of this witness clearly establish that accused No.1 himself has filled and authorized all the necessary documents and made transactions through the Accounts of accused Nos.2 to 5.
294. It is made out clear from the evidence of Income Tax Officers as mentioned above that during the period from 2011-2012 till 2014-2015, the accused No.1 has filed Income Tax Returns and also paid Income Tax as well as got refund of the excess Tax amount paid by him. Further, the evidence of PWs.17, 32, 33, 36, 37, 55 and 56 with documents Exs.P169 to 174, that no Income Tax Returns filed by accused Nos.2 to 5. Further, accused No.1 257 Spl.CC.34/2016 has not shown any income from other sources except the Salary while submitting Income Tax Returns for the period from 2011 to 2015, though many huge transactions were made by him through his Salary Account and the Accounts of his wife, daughter and brother-in-law, who are made as accused Nos.2, 3 and 5. Apart from that, the huge amount of Rs.25 lakhs alleged to be an advance given to the M/s.Zaal Dance Academy by its Proprietor Giri Babu, who is son in law of accused No.1 made as accused No.4, has also not filed any Income Tax Returns during the above period and no Tax paid by him.
295. PW-59 K.Y.Guruprasad, DYSP, in the office of CBI/ACB/Bangalore after receiving the FIR has conducted investigation as per the order issued by SP u/S.17 of Prevention of Corruption Act, 1988. The FIR is marked as Ex.P.203 and his signatures as Ex.P.203(a) and (b). He has identified the cop of order issued by SP and Head of Branch, CBI dated 31-12-2014 marked as Ex.P204 and identified 258 Spl.CC.34/2016 signature of SP marked as Ex.P204(a) and his initial marked as Ex.P204(b).
296. He has received executed search warrant with 4 documents seized from the house of accused No.3 from DYSP - Ananda Krishnan marked under Ex.P189 and his signature marked as Ex.P189(c). However, out of 4 seized documents only 2 are submitted along with the charge sheet marked as Ex.P.10 and 190. Further he has obtained permission from the Court to deposit the seized cash to the current account of SP, CBI/ACB Bangalore with Vijaya Bank, Ganganagar Branch, Bengaluru and deposited the cash on 16-01-2015.
297. Further he has identified the letters given by accused No.1 dated 16-11-2015 with 36 enclosures and 20- 11-2015 are marked as Exs.P.207, 208 the covering letter of Senior Manager of Canara Bank, HRM Section, Circle Office, Mysore dated 21-12-2015 marked as Ex.P.209 and 259 Spl.CC.34/2016 copy of the letter dated 20-05-2014 by ASP, CBI/Bangalore addressed to Chief Manager, SBI, Hebbal, Bangalore with respect to deposit of Rs.5,00,000/- seized in RC-1(E)/2015 is marked as Ex.P.210. However, during investigation he has found from 01-01-2011 to 30-06-2014, the check period, the accused No.1 has acquired disproportionate assets in his name and in the name of his wife, daughter, son-in-law and brother-in-law, who are accused Nos. 2 to 5 made out at Rs.4,51,28,173/-.
298. In the cross examination he has admitted that SB account No.1174100720804 of accused No.5 is not a joint account, but denied for the said reason the same reason cannot be taken for the check period from 01-01- 2011. Further admitted that accused No.2 and 3 did not do any transactions through their accounts, except putting signatures and all the transactions on their behalf done by the accused No.1, through the cheques were signed by both of them.
260 Spl.CC.34/2016
299. The learned Counsel for accused Nos.1 to 5 has relied on the following Rulings:
1) (2015) 7 Supreme Court Cases 178 in the case of Tomaso Bruno and another Vs. State of Uttar Pradesh.
The Hon'ble Supreme Court of India has given the benefit of doubt to the accused, in the case of murder as the prosecution failed to adduce the evidence with circumstances to complete the chain pointing to the guilt of accused and set aside the order of conviction for the offence U/s 302 & 34 of IPC.
But, the facts and circumstances of the said case can not be considered in the present case as the documentary evidence produced by prosecution can not be ignored by this Court.
2) (2015) 14 Supreme Court Cases 505 in the case of Kedari Lal Vs. State of Madhya Pradesh and others.
The observation made by Hon'ble Supreme Court of India regarding expression "known sources of income" has two elements, firstly the 261 Spl.CC.34/2016 income must be received from the lawful source and secondly, receipt of such income must have been intimated in accordance with provisions of law, rules or orders applicable to public servant.
In the said case the accused has intimated the source of income, which was reflected in the income tax return, not deducted by the Trial Court and wrongly come to conclusion about the disproportionate assets by the accused. Therefore, the Hon'ble Supreme Court deducted the income which was declared before income tax authority and acquitted the accused.
In the present case since the accused No.1 has not declared the alleged income received from business which was not declared before his higher authority, therefore, any income from business or the payments said to be received from various companies to the accounts maintained in the names of his family members can not be considered in this case.
3) (2006) 1 Supreme Court Cases 420 in the case of DSP, Chennai Vs. K.Inbasagaran.
262 Spl.CC.34/2016 The principle adopted by Hon'ble Supreme Court of India that if the accused offer plausible explanation and satisfactorily explained about the whole money which has been recovered from his house not belongs to him and if satisfactorily accounted for recovery unaccounted for money, therefore the order of acquit held appears to be justified.
4) (1992) 4 Supreme Court Cases 45 in the case of M.Krishna Reddy Vs. State Deputy Superintendent of Police, Hyderabad.
The Hon'ble Supreme Court of India held that "it is not the mere acquisition of property that constitutes an offence under Sec.13(1)(e) of Prevention of Corruption Act, 1988, but it is the failure to satisfactorily accounts of such possession that makes possession objectionable as offending the law. To substantiate a charge under said Section, the prosecution must prove the ingredients
i) that the accused is a public servant
ii) the nature and extent of pecuniary resources or property which were found in his possession.
iii) It must be proved as to what were his known source of income, that is, known to the prosecution.
263 Spl.CC.34/2016
iv) It must prove, quite objectively, that such resources or property found in possession of the accused were disproportionate to his known sources of income.
If the above ingredients are satisfactorily established, the offence of criminal misconduct u/S 13(1)(e) is complete, unless the accused is able to account for such resources or property. Only after the prosecution is proved, the above required ingredients, the burden of satisfactorily accounting, for the possession of such resources or property shifts to the accused."
However, in this case, the accused has not offered any plausible explanation regarding his Income and Expenditure during the check period and not satisfactorily accounted for this huge expenditure incurred by him.
5) (1977) 1 Supreme Court Cases 816 in the case of Krishnanand Agnihotri Vs. The State of Madhya Pradesh.
The observation made by Hon'ble Supreme Court of India that the accused must be shown to be in possession of pecuniary resources or property disproportionate to his known source income and it 264 Spl.CC.34/2016 should be unable to account for such pecuniary resources or property. If these facts are shown to exist a presumption would be raised by the Court that the accused was guilty of Criminal Misconduct in the discharge of his official duty. This presumption would be a rebuttable presumption and it would be open to the accused to establish that despite the dis-portion of his pecuniary resources or property to his known income, he is not guilty of Criminal Misconduct in the discharge of his official duty.
If the assets possessed by the accused were in excess of surplus income available, but since the excess was less that 10% of the total income, held it would not be right to hold that the assets found in possession of appellant were disproportionate to his known source of income
6) (2011) 4 Supreme Court Cases 402 in the case of Ashok Tshering Bhutia Vs. State of Sikkim.
The observation made by Hon'ble Supreme Court of India that non filling of prescribed Form by Government to disclose Assets of a Government Servant, at close of every Financial year and disclosing Assets on plain paper pursuant to 265 Spl.CC.34/2016 directions by Superior Authority after lodging of FIR , held, may render liable for disciplinary proceedings under service jurisprudence, but that by itself cannot be a ground for rejection of concerned document in toto without examining contents thereof, in Criminal Proceedings under PC Act. Further held that he cannot be fastened with Criminal Liability for non- compliance since (i) 1981 Rules were not rules of Evidence but were merely service rules; and (ii) such form was never prescribed under 1981 Rules __1981 Rules cannot by any stretch of imagination be said to have effect of rendering evidence concerned inadmissible in criminal proceedings under PC Act.
300. The learned Public Prosecutor has relied on the following Rulings:-
1) W.P.No.38144/2011 decided on 12th September, 2012 in the case of Govardhan M. Vs. The State of Karnataka.
This Ruling is rendered on Amended Act of 2018 and held that it can have only prospective effect and cannot have any application to the case already in process. When the Legislature expressly has made Rules prospective in nature, the Court by way of interpretive process ignoring the legislative 266 Spl.CC.34/2016 intention cannot make it retrospective either on humanitarian consideration or on any consideration as was done by the Tribunal.
2) Crl.Appeal No.691/2015 in the case of Priyanath Misra Vs. The Additional Superintendent of Police, CBI/ACB/Chennai.
The observation made in the case regarding few omissions and duplication pointed out during the appellate stage, those omission does not help the case of appellant-accused to satisfactorily account the Asset held by him.
Therefore, on the basis of possession of Asset held by accused, who was Government Servant without proper accounting is held an offence and as no satisfactorily account the Asset held by him, the Hon'ble High Court of Madras dismissed the Criminal Appeal and confirmed the Judgment and Conviction passed by the Trial Court.
3) AIR 1967 Kant 6, AIR 1967 Mys 6 in the case of M.Abdul Khader and Anr. Vs. Mysore Revenue Appellate Tribunal.
The gist of this Ruling is the Right of preemption accrued under the old Act will not take 267 Spl.CC.34/2016 away in view of Amended Act, the remedy of an application survive under the General Principles of Construction.
301. After perusal of the Dictum of Law rendered in the above mentioned Rulings brought to the notice of the Court both by learned Public Prosecutor and learned Counsel for accused, it is significant to note that Assets disproportionate to the known source of income means:
"That the income received from any lawful source, receipt of which has been intimated in accordance with provisions of any Law, Rules of Orders for the time being applicable to a public servant." The expression "known source of income"
has referred to source known to the accused. The phrase known source of income in Sec.13(1)(e) of the Act has clearly emphasize on the word "income". The term income by itself, is classic and has a wide connotation. Whatever comes in or received is income. But, however, wide the import and connotation of the term "income", it is incapable of being understood as meaning receipt having no nexus of one's labour, or expertise, or property or investment, and being further a source which may or 268 Spl.CC.34/2016 may not yield a regular revenue. Therefore, it can be said that, though "income" in receipt in the hand of its recipient, every receipt would not partake into the character of income. For the public servant, whatever return he gets to his service, will be primary item of his income. Other income which can conceivable be income qua the public servant, will be in the regular receipt from (a) his property, or (b) his investment. A receipt from windfall, or gains of graft Crime or immoral secretions by persons prima facie would not be receipt for the known source of income of a public servant.
302. Admittedly, the accused No.1 has categorically stated that the above mentioned all huge transactions were done by him through the Bank Accounts in the name of his wife, joint Account with his daughter, Account of accused No.4 in the name of Zaal Dance Academy and the Account of accused No.5 during the check period. The said categorical admission made by him clearly establish that the accused Nos.2 to 5 have not done any transactions through their Accounts opened in the different Banks 269 Spl.CC.34/2016 respectively, except putting their signatures to the Forms while opening the Account. Therefore, the accused No.1 has to explain the deposits to his Account maintained under Ex.P49 and the Accounts in the name of his wife as per Ex.p229 and joint Account with accused Nos.2 and 3 as per Ex.P163 as wells the amounts transferred to the Accounts of his son in law, the accused No.4 and brother in law accused No.5. He has not offered any satisfactory explanation while explaining the evidence deposed by the officials and other witnesses while recording u/S.313 Cr.P.C.
303. At this stage, it is significant to note that The Central Civil Services (Conduct) Rules, 1964, under Rule 15 : Private Trade or Employment, no government servant shall, except with the previous sanction of the Government -
(a) engage directly or indirectly in any trade or business; or 270 Spl.CC.34/2016
(b) negotiate for, or undertake, any other employment, or
(c) hold an effective office or canvass for a candidate or candidates for an effective office, in anybody, whether incorporated or not, or
(d) canvass in support of any business of Insurance Agency, Commission Agency, etc. owned or managed by any member of his family, or
(e) take part except in the discharge of his official duties, in the registration, promotion or management of any Bank or other Company registered or required to be registered, under the Companies Act, 1956 or any other Law for the time being in force or any Cooperative Society for commercial purposes.
304. Further, under Rule 16 of the said Conduct Rules of 1964, with regard to Investments, Lending and Borrowing, "no Government servant shall speculate in any stock, share or any other investment. No Government servant shall make or permit any member of his family or any person acting on his behalf to make, any investment 271 Spl.CC.34/2016 which is likely to embarrass or influence him in the discharge of his official duties. Further, the Government servant shall, save in the ordinary course of business with a Bank or a Public limited Company either himself or through any member of his family or any other person acting on his behalf lend or borrow or deposit money as a principal or an agent to, or from or with, any person or firm or Private limited Company with whom he is likely to have official dealings or otherwise place himself under any pecuniary obligation to such person or firm or private limited company."
305. Therefore, it can be said that accused No.1 without disclosing his alleged Real estate business said to be running during his tenure as a public servant and without any permission from his higher authority alleged to be contacted the above said persons and made them to credit huge amounts to the Accounts of his wife and daughter. Therefore, all the said huge transactions made by him through his Account and also the Accounts of his 272 Spl.CC.34/2016 family members accused Nos.2 to 5 implies that he being public servant, acted against the law and amassed assets and pecuniary resources disproportionate to his known source of income, not only in his name, but also in the name of his family members.
306. It is made out from the charge sheet that the allegation made against accused No.1 about alleged issuance of ILCs and the amount of Rs.3.52 Crores deposited into his Account and Accounts of his family members was utilized for purchasing movables and immovable Assets in his name and also in the name of accused Nos.2 to 5 and to incur huge expenditure disproportionate to the known source of income, in support of the same oral and documentary evidence produced by the prosecution. However, this Court cannot give any findings on the alleged issuance of bogus ILCs for the total amount of Rs.33,44,85,000/- in favour of M/s.Foremost Merchantiles Pvt.Ltd., Mumbai, on behalf of M/s.Vigas 273 Spl.CC.34/2016 General trade and Services Pvt.ltd., Bengaluru as if they were issued from Canara Bank, Srirangapatna Branch where he was working as its Branch Manager and received payments for the total amount Rs.3.52 Crores from the beneficiaries which were alleged to be credited to the Accounts of accused No.2 - Smt.A.R.Mamtha wife of accused No.1 and joint Account maintained in his name along with accused No.2 along with his daughter Rajatha B.Eshwar the accused No.3. Because, in this regard the CBI has already registered a separate case in R.C.No.1/2014 of CBI, BS&FC, Bengaluru against accused No.1, Foremost Mercantiles Pvt.Ltd. Satish Poojary and Bijay Kumar Agarawal. Therefore, even if the accused No.1 has admitted issuance of ILC dtd.25.2.2013, for Rs.8,00,25,000/-, the same cannot be considered in this case for the reasons mentioned above. For the said reasons, though the prosecution has elaborately led evidence regarding alleged bogus ILCs issued by accused No.1, as a Manager at Srirangapatna Branch, the same 274 Spl.CC.34/2016 cannot be taken into consideration in the present case as a separate case in R.C.No.1/2014 of CBI, BS&FC pending before XXI Addl.City Civil and Sessions Judge and Spl.Judge for CBI Cases, Bengaluru.
307. It is true, as pointed out by the learned Counsel for accused Nos.1 to 5 that there is slight change regarding possession of assets disproportionate to the known source of income of accused No.1 made out in the charge framed as to property acquired by him exceeding his income. The said variance in the charge is however will not come to the aid of accused No.1, because though he has not amassed any wealth in his name and in the names of his family members, he has not property and satisfactorily account for the huge expenditures incurred by him, which were made out from the documents, as pointed out above, which proves the offence of Criminal Misconduct.
275 Spl.CC.34/2016
308. The learned Counsel for accused Nos.1 to 5 in the written arguments has stated the credit balance in the Account of accused No.5 as on 1.1.2011 and 30.6.2014 shown under Statements-A and B cannot be considered as Income and Receipts of accused No.1 as it belongs to accused No.5, who has opened the Account in his individual capacity and the Statement of his Account shows the Salary savings from the date of opening till 30.6.2014. However, this Court has already discussed about how the huge amounts credited to the Account of accused No.5 by the accused No.1 during the check period on which interest was accrued as well as the credit balance shown at the end of check period. Therefore, both the interest amount and credit balance found in the account of accused No.5 as on 30.6.2014 be considered as Income and Expenditure of accused No.1 as no materials placed to disprove the same. by accused No.1. Further other variation of Income and Expenditure mentioned in the written arguments cannot be taken into consideration in the absence of any corroborating 276 Spl.CC.34/2016 documents. However, the accused No.1 has further denied some of the amounts taken as Expenditure under Statement-D and filed final analysis as follows:
Particulars Amount as per Corrected Charge sheet Amount (Rs.) (Rs.) A Assets at the 30,98,513.00 27,43,931.00 beginning of check period B Assets at the end of 2,27,71,259.00 3,15,53,213.00 check period C Receipts and Income 26,71,197.00 3,41,52,721.00 during the check period D Expenditure during the 2,81,26,624.00 53,54,301.00 check period E Assets acquired during 1,96,72,746.00 2,88,9,282.00 the check period (B-A) F Likely Savings during (2,54,55,427) 2,87,98,420.00 the check period (C-D) G Disproportionate 4,51,28,173.00 10,862.00 Assets during the check period (E-F) H Percentage of 1689.44 0.03 Disproportionate Assets
309. I am not able to understand how the accused No.1 has come to above said final analysis without producing any oral or documentary evidence before the
277 Spl.CC.34/2016 Court. Therefore, in absence of any plausible explanation by accused No.1, in proof of his Income and huge Expenditure incurred by him, that too, when he was getting meager Salary as an Bank employee prior to the check period as could be made out from the Salary particulars produced before the Court. It is also made out by this Court that except the accused No.1 no other earning member in his family to maintain Expenditure shown in the above Statement. He has not produced any documents relating to any other source of Income apart from the Salary. The evidence of official witnesses and admission made by accused No.1 himself clearly establish that the transactions on behalf of accused Nos.2 to 5 were made by him without their knowledge during the check period. Therefore, after going through the entire documents placed by prosecution and calculating the Assets and Expenditure of accused No.1 incurred during the check period, I formed opinion that without any legal income he has earned pecuniary resources by way of Cash and Assets acquired 278 Spl.CC.34/2016 through illegal method and the following Assets and Expenditure incurred by him during the check period made out as follows:
1) Total Assets found in Rs.2,15,11,259.00 possession of accused No.1 as on end of Check period 30.6.2014.
2) Total Expenditure incurred Rs.2,75,20,579.00 by accused during Check period from 1.1.2011 to 30.6.2014.
3) Total of Columns 1 and 2 Rs.4,90,31,838.00
4) Total income of accused Rs.36,12,130.00 No.1 received from Salary, Incentives,Interest,Dividend, LIC maturity value, etc. and income of accused No.3 received from Salary during the check period from 1.1.2011 to 30.6.2014.
5) Value of Disproportionate Rs.4,90,31,838.00 Assets found in possession of accused No.1 and (Four Crores Ninety lakhs Expenditure incurred by him thirty one thousand eight at the end of check period, hundred and thirty eight) which has not been satisfactorily accounted
6) Percentage 1357.42% 279 Spl.CC.34/2016
310. However, the prosecution has not produced any oral or documentary evidence in corroboration of abetment by accused Nos.2 to 5, from their aid only accused No.1 has amassed the Assets and has incurred huge expenditure Disproportionate to his known source of Income during the check period. The admissions made by Bank Officials clearly establish that the accused Nos.2 to 5 never made any transactions through their respective Accounts opened in different Banks during the check period. Therefore, in order to prove the alleged abetment, the prosecution has to prove the ingredients of abetment defined u/S.107 of IPC, reads as follows:-
"A person abets the doing of a thing, who instigates any person to do that thing: or Engages with one or more other person or persons in any conspiracy for the doing of that thing, if an act or illegal omission takes place in pursuance of that conspiracy, and in order to the doing of that thing; or Intentionally aids, by any act or illegal omission, the doing of that thing."
280 Spl.CC.34/2016 Explanation 1. - A person who, by willful misrepresentation, or by willful concealment of a material fact which he is bound to disclose, voluntarily causes or procures, or attempts to cause or procure, a thing to be done, is said to instigate the doing of that thing.
Explanation 2.- Whoever, either prior to or at the time of the commission of an act, does anything in order to facilitate the commission of that act, and thereby facilitate the commission thereof, is said to aid the doing of that act.
The Abettor defined under Sec 108 IPC reads as follows:-
"A person abets an offence, who abets either the commission of an offence, or the commission of an act which would be an offence, if committed by a person capable by law of committing an offence with the same intention or knowledge as that of the abettor."
Explanation 1. - The abetment of the illegal omission of an act may amount to an offence 281 Spl.CC.34/2016 although the abettor may not himself be bound to do that act.
Explanation 2. - To constitute the offence of abetment it is not necessary that the act abetted should be committed, or that the effect requisite to constitute the offence should be caused.
311. It is true, the learned Public Prosecutor has stated that the accused Nos.2 to 5 are not illiterate persons and they abetted accused No.1 to amass the wealth by way of crediting huge amounts to their Accounts, which amounts nothing but encouraging him to acquire huge Assets and Expenditure during the check period.
312. The prosecution has made allegations of Abetment by accused Nos.2 to 5 on accused No.1 without any corroborating materials as required under law. Therefore, at this juncture it is relevant to make out the meaning of word Abet and Abetment as per Section 3(1) of General Clause Act is to countenance, assist, to give 282 Spl.CC.34/2016 aid. It includes knowledge for wrongful purpose of the perpetrator, counsel and encouragement of Crime. A person is said to abet the doing of a thing when he instigates any person to do that thing, or engages with or more other persons for the doing of a thing or intentionally aids, by any act or illegal omission the doing of that thing. Abetting the commission of offence involves either to use of force physical or moral, joined with that of actual perpetrator in producing it. It is already pointed out the definition of Abetment u/Ss.107 and 108 of IPC, that a person abets offence or Abets for commission of offence or commission of act, which would be offence. The word "instigate" in the literal sense means to incite, set or urge on, stir up, goad, foment, stimulate, provoke etc.
313. The word 'Abet' means and includes instigation, advocating, arousing, assisting, backing, contributing, co-operating with, encouraging, inciting, facilitating, goarding, nourishing, promoting, serving, 283 Spl.CC.34/2016 stimulating, aiding, supporting to maintain or patronize and to seton.
314. Further, it is important to point out that the prosecution in proof of the allegation of abetment by accused Nos.2 to 5 has failed to establish main ingredients of the offence Abetment as defined u/S.107 made punishable u/S.109 of IPC reads as follows:
(i) Instigation to a person to commit an offence.
(ii) Engaging in conspiracy to commit the offence.
(iii) Intentionally aiding, by any act or omission to commit an offence.
(iv) The existence of mens rea is a condition precedent for the commission of the offence.
315. It is true, as per the documents produced by prosecution, the Accounts opened in the names of accused No.2, joint Account of accused Nos.1 to 3, in the name of Zaal Dance Academy by its Proprietor accused No.4 and accused No.5 shows huge amounts have been credited into 284 Spl.CC.34/2016 their Accounts during the check period, which has been elaborately discussed above are not satisfactorily accounted by the accused No.1. It is made out from the above mentioned documents that some huge amounts have been deposited from the different Companies, which is not properly explained by accused No.1, who was admittedly operated the SB Accounts opened in the names of accused Nos.2 to 5. At the cost of repetition, it is relevant to point out that accused No.1 has himself personally made huge transactions by using different SB Accounts opened in the names of accused Nos.2 to 5 and admitted before the Court while recording Statement u/S.313 Cr.P.C., which cannot be ignored. However, the prosecution has failed to prove how the accused Nos.2 to 5 abetted accused No.1 to amass the pecuniary resources disproportionate to his known source of income, which is certainly lacking before the Court. When the prosecution has made serious allegation of abetment against accused Nos.2 to 5 on accused No.1, who has possessed pecuniary resources, Assets and incurred huge 285 Spl.CC.34/2016 Expenditure during the check period, it has to prove the same with corroborating, supporting and reliable materials. Therefore, in absence any corroborating materials in proof of the alleged abetment by accused Nos.2 to 5 on accused No.1, it can be said that mere consent or acquiescence is not abetment. Similarly, mere knowledge whether prior or subsequent is also not Abetment. Hence, I come to conclusion the prosecution has failed to prove the Abetment alleged against accused Nos.2 to 5 on accused No.1 to acquire Assets and incur Expenditure as mentioned above.
316. For all the above discussed reasons and after considering the Assets and Expenditure of accused No.1 during the check period, in detail, I come to conclusion that though the accused No.1 has not acquired huge immovable properties either in his name or in the names of his family members, accused Nos.2 to 5, the pecuniary resources received by him during the check period in the form of money, cash, finances, funds, monetary resources and 286 Spl.CC.34/2016 anything of material value of usefulness owned both personally and received to the SB accounts of accused Nos.2 to 5, who are none other than his wife, daughter, son in law and brother in law, will certainly establish the Disproportionate Assets acquired by him during the check period.
317. Therefore, I am of the opinion that prosecution has proved beyond reasonable doubt that accused No.1 has acquired Assets of Rs.2,15,11,259.00 and Expenditure of Rs.2,75,20,579.00, during the check period, which is Disproportionate Assets and pecuniary resources of the value of Rs.4,90,31,838.00, for which he could not satisfactorily account and committed Criminal Misconduct punishable u/S.13(2) r/w.13(1)(e) of Prevention of Corruption Act, 1988.
318. However, the prosecution has failed to prove beyond reasonable doubt that accused Nos.2 to 5 have 287 Spl.CC.34/2016 abetted accused No.1 to amass assets and pecuniary resources in total Rs,4,90,31,838.00 and they have committed the offence punishable u/S.109 of IPC. Hence, I answer point No.1 in Affirmative and point No.2 in Negative. Therefore, I proceed to pass the following:-
: ORDER :
Acting under Section 235(2) of Code of Criminal Procedure 1973, accused No.1 - Honnudike Shivanna Eshwar @ H.S.Eshwar is hereby convicted for the offence punishable under Section 13(2) r/w. Section 13(1)(e) of Prevention of Corruption Act, 1988.
Acting under Section 235(1) of Code of Criminal Procedure 1973 accused No.2 -
Smt.A.R.Mamatha, accused No.3 -
Smt.Rajatha B.Eshwar, accused No.4 - G.Giri Babu @ Girish and accused No.5 -
288 Spl.CC.34/2016 C.Umeshappa are hereby acquitted for the offences punishable under Section 109 of Indian Penal Code r/w. Sec 13(2) r/w. Section 13(1) (e) of Prevention of Corruption Act, 1988.
The bail bonds executed by accused No.1 and surety shall stands cancelled.
The bail bonds executed by accused Nos.2 to 5 under Section 437(A) of Cr.P.C. shall be in force, till the completion of appeal period. (Dictated to Judgment Writer, transcribed and computerized by him, additional paragraphs inserted directly on the Computer, corrected, signed and then pronounced by me in the open court today on 27th day of April, 2019.) (S.H.PUSHPANJALI DEVI) XLVI Addl. City Civil and Sessions Judge and Special Judge for C.B.I. Cases, Bengaluru.
289 Spl.CC.34/2016 Heard regarding sentence.
Heard accused No.1, learned Counsel for accused No.1 and learned Public Prosecutor on sentence.
Accused No.1 submitted that he is suffering from Sugar, has been operated for L4 - 5 Discectomy in May- 2004, now having recurring problem at "L4 -5 and L5-SI with Disc extrusion and both L5, SI nerve root compression"
needs immediate operation. He is getting pain of right shoulder and suffered heart attack in the year 2017, therefore Doctor advised him to take medical treatment regularly. At present, he has no work and no source of income after dismissal from the Bank service, now he is doing LIC agency and getting only meager income for livelihood. He has to visit for medical check up every week and taking medicines regularly. Therefore, prays to show leniency.
290 Spl.CC.34/2016 Learned Counsel for accused No.1 submitted that he is aged about 62 years and his condition is very pathetic. Therefore, prays to take lenient view while awarding sentence.
Learned Public Prosecutor submitted that the offence already proved against accused No.1 who has amassed Assets Disproportionate to his known source of income and committed Criminal Misconduct. Therefore, prays to award sentence as per the Act-1 of 2014, which is applicable to the case to impose the sentence.
This Court has already come to conclusion and convicted the accused No.1 under Sec.13(2) r/w.13(1)(e) of Prevention of Corruption Act, 1988 for acquiring Disproportionate Assets and Expenditure incurred during the check period. The evidence placed by prosecution shows at the commencement of check period as on 291 Spl.CC.34/2016 1.1.2011, he was in possession of Assets worth of Rs.30,98,513/- and acquired Assets in the form of pecuniary resources worth of Rs.2,15,11,259/- and Expenditure incurred at Rs.2,75,20,579/- at the end of check period on 30.6.2014.
Therefore, the Assets acquired have to be viewed along with the Expenditures, at the end of check period, for which no satisfactory Account given by him. While deciding the quantum of sentence the Court is to consider the manner in which the those Assets have been acquired by him.
The Prevention of Corruption Act, provides for stringent punishment for the proved offence under the Act. Section 13(2) of the said Act substituted by Act-1 of 2014, with effect from 16.1.2014 lays down that, "Any public servant who commits Criminal Misconduct shall be punishable not less than four 292 Spl.CC.34/2016 years, which may extend to ten years and shall also be liable to fine."
The Act has a purpose to serve. The main intention of legislature to eradicate corruption by providing for deterrent punishment, it is the duty of the Court to effectuate the purpose of the Act.
Accused No.1 was a Branch Manager occupied higher position in the Bank, therefore if persons holding higher positions indulge in corruption, not only below get encouraged to indulge in corruption, but also the person holding higher position will not be in a position to exact honesty from them or to take action against delinquent officials.
Therefore, the background of these factual and legal position and having regard to the magnitude of the disproportionate Assets acquired by the accused No.1 to the extent of Rs.4,90,31,838/- at 1357.42%, there is no scope for any leniency or sympathy in this case.
293 Spl.CC.34/2016 The accused No.1 has sought for leniency on the medical grounds and produced medical certificates, from which, it is made out that he is taking treatment since 2014. The documents reveal that he is suffering from spinal canal disc, right frozen shoulder, chest pain, sugar and recently his random blood sugar raised as per as per the result of Biochemistry.
However, on the health ground of accused No.1, this Court cannot take lenient view when he has acquired pecuniary resources by adopting illegal method of corruption, which is a serious offence have impact on the entire Society. Only the Courts of law shall curtail this type of serious offence of corruption by awarding appropriate sentence. If any lenient view taken and no proper and appropriate sentence is awarded for the offender, then the public will loose the faith in the Courts. Because the Corruption by public servants now a days has become 294 Spl.CC.34/2016 gigantic problem and the efficiency in Public Service would improve only when the public servant does his duty truthfully and honestly.
However, the punishment for Criminal Misconduct by a public servant u/S.13 of Prevention of Corruption (Amendment) Act, 2018 is not applicable to the present case as the check period commenced from 1.1.2011 till 30.6.2014. Under the said Amended Act of 2018, Any public servant who commits Criminal Misconduct, shall be punishable with imprisonment for a term shall not be less than four years, which may extend to ten years and shall also liable for fine.
However, as pointed out earlier for the present case, Act-1 of 2014, which came into force on 16.1.2014 to be taken into consideration, under which the sentence provided for the offence Criminal Misconduct u/S.13(2) 295 Spl.CC.34/2016 r/w.13(1) (e) of Prevention of Corruption Act, 1988, any public servant who found in possession of pecuniary resources or property disproportionate to his known source of income, punishable for a term which shall not be less than four years, but which may extend to seven years and shall also liable to fine.
Therefore, taking into the gravity of the offence and the facts and circumstances along with health condition of the Accused No.1, I am of the view that though the case calls for stringent punishment, the law itself having provided maximum punishment of seven years, in my opinion, if accused No.1 is awarded sentence to the extent of five years with reasonable fine, it will meet the ends of justice. Hence, I proceed to pass the following:
: ORDER :
For the offence u/S.13(2) r/w.13(1)(e) of Prevention of Corruption Act, 1988, Accused No.1 Honnudike Shivanna Eshwar @ H.S.Eshwar, S/o.Late Honnudike
296 Spl.CC.34/2016 Gangadharaiah Shivanna, is hereby sentenced to undergo Simple Imprisonment for five years and to pay fine of Rs.50,00,000/- (Rupees Fifty Lakhs).
In default to pay the fine amount, he shall further undergo simple imprisonment of one year.
It is ordered that necessary direction to be issued to the concerned Banks to remit the proceeds of the Fixed Deposits and the Cash Balance standing in the name of accused No.1 in the Bank Accounts and the proceeds shall be appropriated and adjusted towards the fine amounts.
All the Assets including immovable properties registered in the name of accused No.1 shall be attached for the amount of Disproportionate Assets worth of Rs.4,90,31,838/-.
297 Spl.CC.34/2016 Supply free copy of the judgment to the Accused No.1, immediately.
(Dictated to Judgment Writer, transcribed and computerized by him, additional paragraphs inserted directly on the Computer, corrected, signed and then pronounced by me in the open court today on 27th day of April, 2019.) (S.H.PUSHPANJALI DEVI) XLVI Addl. City Civil and Sessions Judge and Special Judge for C.B.I. Cases, Bengaluru.
ANNEXURE
1. List of witnesses examined for the prosecution :-
P.W.1 Sri. T.V.Srinivasan C.W.1
P.W.2 Sri.C.G.Pradeep Kumar C.W.2
P.W.3 Sri.B.C.Vasantha C.W.5
P.W.4 Sri.G.N.Narasimhan C.W.6
P.W.5 Sri.V.Sudheendra C.W.7
P.W.6 Sri.S.B.Palanethra C.W.8
P.W.7 Sri.V.Malarmaran C.W.9
P.W.8 Sri.D.C.Mohankumar C.W.10
P.W.9 Sri.G.S.Shiva C.W.11
P.W.10 Sri.K.R.Saji C.W.12
P.W.11 Sri.C.Sathyakeerthi C.W.13
P.W.12 Smt.B.N.Mangala C.W.15
P.W.13 Sri.Gurpal Singh C.W.16
298 Spl.CC.34/2016
P.W.14 Sri.Ambaji.T.Navale C.W.17
P.W.15 Sri.Nandiger Girish C.W.21
P.W.16 Smt. Vijaya Madhusudhan C.W.22
P.W.17 Sri.C.B.Prabhanna Gowda C.W.23
P.W.18 Sri.A.Sripathi Rao C.W.25
P.W.19 Sri.S.S.Girish C.W.37
P.W.20 Sri.Sanjay Patil C.W.38
P.W.21 Sri.H.M.Venkatesh C.W.39
P.W.22 Sri.Biswajit Das C.W.41
P.W.23 Sri.H.L.Gopinath C.W.42
P.W.24 Smt. K.Sandhiya C.W.43
P.W.25 Smt. Vinaya Kumari C.W.44
P.W.26 Sri.N.Krishnan C.W.45
P.W.27 Sri.Subhankar Dutta C.W.47
P.W.28 Sri.Rangaswamy C.W.48
P.W.29 Sri.R. Murugan C.W.49
P.W.30 Sri.Rajesh K. Singh C.W.50
P.W.31 Sri.P.Srinivasa Murthy C.W.51
P.W.32 Sri.B.Balakrishna C.W.52
P.W.33 Sri.Vimal Anand C.W.53
P.W.34 Sri.A.Ram Ganesh C.W.54
P.W.35 Sri.J. Kiran C.W.4
P.W.36 Smt. Sudha Ranganath C.W.18
P.W.37 Smt.Y. Vanitha C.W.24
P.W.38 Sri. G. Sreenivasa Acharyalu C.W.27 P.W.39 Sri.S.K. Acharya C.W.28 P.W.40 Sri.Ajith R. Rao C.W.19 P.W.41 Smt Maya Jayagopal C.W.29 P.W.42 Sri.Manju Kiran C.W.30 P.W.43 Sri.D.N. Chikkaiah C.W.31 P.W.44 Smt. Soumya Latha C.W.32 P.W.45 Smt. Sumana C.W.33 P.W.46 Sri.B. Raghavendra Rao C.W.34 P.W.47 Sri.A.V. Radha Krishna C.W.35 P.W.48 Sri.Sathyendra Kumar Pandey C.W.46 P.W.49 Sri.H.K. Suresh C.W.56 P.W.50 Sri.M. Manjunath C.W.58 299 Spl.CC.34/2016 P.W.51 Sri.S. Ananth Chandran C.W.3 P.W.52 Sri.B. Munirathnam Naidu C.W.14 P.W.53 Sri.V. Laxminarayana C.W.26 P.W.54 Sri.P. Ganesh Mallya C.W.63 P.W.55 Smt. Sudha Ramakrishnan C.W.67 P.W.56 Smt. B.A. Usha Devi C.W.68 P.W.57 Jagadeeswaran C.W.64 P.W.58 Sri.C. Surendra C.W.66 P.W.59 Sri.K.Y. Guru Prasad C.W.73
2. List of witnesses examined for the accused :-
- Nil -
3. List of documents exhibited for the prosecution :-
Ex.P-1 Covering letter with three certified copies of Transaction Statement of Demat A/c of accused No.1 Ex.P-1(a) Signature of Senior Manager Ex.P-2 to P- Three certified copies of Transaction Statement
4 of Demat Account of accused No.1 Ex.P-5 Covering letter of Senior Manager dated 11.4.2015.
Ex.P-5(a) Signature of Senior Manager Ex.P-6 Holding statement of Power Finance Corporation Ex.P-6(a) Signature of Senior Manager Ex.P-7 Holding statement of Onmobile Global Limited, Reliance Industries Ltd and Reliance Power Limited 300 Spl.CC.34/2016 Ex.P-7(a) Signature of Senior Manager Ex.P-8 Covering letter dtd. 16.4.2015 issued by Narahari, Authorized Signatory Ex.P-8(a) Signature of Narahari Ex.P-9 Ledger Extract of Statement of A/c of accused No.1 Ex.P-10 3 sheets of vehicle invoice, tax paid receipt issued by RTO, receipt issued by Garuda Autocraft Private Limited, acknowledgement issued by Garuda Craft Limited, request details with insurance policy.
Ex.P-11 Covering letter dated 13.4.2015 Ex.P-11(a) Signature of Manager Ex.P-12 Certified copy of application form to open SB account of accused No.1, Statement of account, Certificates u/S.2A of Banker's Book Evidence Act and u/S.65B(4) of Evidence Act. Ex.P-13 Covering letter dated 15.4.2015 Ex.P-13(a) Signature of P.W.4 Ex.P-14 Road tax receipt, letter of Director of Hyundai company, customer copy of private car, debit note, retail invoice, Statement of Account of insurance company and estimate issued by SLV Motors.
Ex.P-15 Covering letter with ledger account Ex.P-15(a) Signature of P.W.4 Ex.P-16 Certified copy of documents relating to vehicle repair history card issued by Hyundai Motor India Limited.
Ex.P-17 Debit note, retail invoice and ledger account of 301 Spl.CC.34/2016 A-1 along with letter dated 24.11.2015 Ex.P-17(a) Signature of P.W.4 Ex.P-18 Covering letter with certified copy of 11 documents relating to details of Santro Car No.KA-02/MG-6671 Ex.P-18(a) Signature of P.W.5 Ex.P.19 Letter dated 22.4.2015 sent to Dy.S.P. with copies of documents pertaining to Car No.KA- 02/MF-1193 Ex.P-19(a) Signature of P.W.6 Ex.P.20 Covering letter dated 27.7.2015 Ex.P-20(a) Signature of AGM Ex.P-21 Original service particulars containing six pages Ex.P-22 Personal file of A-1 containing 70 pages Ex.P-23 Certified copy of salary particulars of accused No.1 issued by Bank with Certificates of u/S.2A of Banker's Book Evidence Act and u/S.65B(4) of Evidence Act.
Ex.P-24 Certified copy of particulars of pass sheets of staff provident fund of accused No.1 as on 31.3.2011 with Certificates u/S.2A of Banker's Book Evidence Act and u/S.65B(4) of Evidence Act Ex.P-25 Letter dated 2.5.2015 Ex.P-25(a) Signature of P.W.8 Ex.P-26 Term deposit a/c of Bhoovika.G, minor guardian rep. by accused No.3 for Rs.25 lakhs deposited on 4.7.2013, copy of a/c opening form, account summary statement, ledger sheet along with Certificates u/S.2A of Banker's 302 Spl.CC.34/2016 Book Evidence Act and u/S.65B(4) of Evidence Act.
Ex.P-27 Certified copy of account opening form for FD
a/c in the name of accused No.2 for
Rs.66,50,000/- deposited on 31.12.2012
enclosed with transaction slip, deposit slip, T.D.Ledger report with Certificates u/S.2A of Banker's Book Evidence Act and u/S.65B(4) of Evidence Act.
Ex.P-28 Account opening form for SB a/c of accused No.2 dated 13.9.2012 enclosed with Form No.16 and Xerox copy of voter ID.
Ex.P-29 Certified copy of statement of SB Account of accused No.2 from 1.1.2011 to 4.7.2013. Ex.P-30 to Attested copies of transaction slips of different P-37 dates.
Ex.P-38 Attested copy of cash withdrawal form dated 28.12.2012.
Ex.P-39 Cash withdrawal slip dated 18.4.2013. Ex.P-40 Attested copy of pay slip dated 4.7.2013 for Rs.20 lakhs (subject to objection) Ex.P-41 Attested copy of cheque No.075209 dated 20.8.2012 for Rs.6,20,000/- issued by Surya Enterprises in the name of accused No.2. Ex.P-42 Letter dated 2.5.2015 addressed to Dy.S.P., CBI Ex.P-42(a) Signature of P.W.8 303 Spl.CC.34/2016 Ex.P-43 Original a/c opening form for overdraft a/c in the name of Surya Enterprises Ex.P-44 Statement of Account for the period from 1.1.2011 to 31.12.2012 and from 1.1.2013 to 17.4.2015 with Certificates of u/S.2A of Banker's Book Evidence Act and u/S.65B(4) of Evidence Act Ex.P-44(a) Relevant entries of different dates. and (b) Ex.P-45 Attested copy of cheque dated 20.8.2012 for Rs.6,2,000/- in favour of accused No.2 Ex.P-46 Attested copy of transaction slip dated 30.3.2013 for Rs.12 lakhs debited by accused No.1 credited to Surya Enterprises Ex.P-47 Covering letter dated 29.7.2015 Ex.P-47(a) Signature of P.W.8 Ex.P-48 Application for advance given by accused No.1 Ex.P-49 Certified copy of Statement of Account for the period from 1.1.2011 to 17.4.2015 along with Certificates u/S.2A of Banker's Book Evidence Act and u/S.65B(4) of Evidence Act Ex.P-50 Transaction slip dated 27.8.2012 for Rs.50,000/- debited by accused No.1 credited to his name Ex.P-51 Transaction slip dated 3.10.2012 for Rs.34,315/- credited in the name of HSBC Ex.P-52 Credit challan (RTGS slip) Ex.P-53 Transaction slip dated 3.10.2012 for Rs.50,000/- credited in the name of Suguna 304 Spl.CC.34/2016 Sathish Ex.P-54 Transaction slip dated 26.10.2012 Ex.P-55 Transaction slip dated 2.11.2012 for Rs.20,000/- credited in the name of Suguna Sathish Ex.P-56 Transaction slip dated 28.11.2012 Ex.P-57 Transaction slip dated 8.1.2013 Ex.P-58 Credit challan (RTGS slip) Ex.P-59 Transaction slip dated 9.1.2013 Ex.P-60 Transaction slip dated 18.1.2013 Ex.P-61 Transaction slip dated 12.2.2013 Ex.P-62 Transaction slip dated 12.3.2013 Ex.P-63 Transaction slip dated 26.2.2013 Ex.P-64 Transaction slip dated 28.2.2013 Ex.P-65 Transaction slip dated 2.3.2013 Ex.P-66 Deposit receipt for Rs.26,634/- Ex.P-67 Carbon copy of Transaction slip dated 27.3.2013 Ex.P-68 RTGS slip for Rs.30,000/-
Ex.P-69 Carbon copy of Transaction slip dated 28.3.2013 for Rs.30,000/- debited by accused No.1 credited in the name of Zaal Dance Academy Ex.P-70 RTGS slip for Rs.30,000/-
Ex.P-71 Carbon copy of Transaction slip dated 4.4.2013 305 Spl.CC.34/2016 Ex.P-72 Carbon copy of Transaction slip dated 17.4.2013 Ex.P-73 RTGS slip for Rs.30,000/-
Ex.P-74 Transaction slip dated 17.5.2013 Ex.P-75 Transaction slip dated 17.5.2013 Ex.P-76 RTGS slip for Rs.35,000/- Ex.P-77 Transaction slip dated 5.6.2013 for Rs.50,000/- Ex.P-78 RTGS slip for Rs.50,000/- Ex.P-79 Copy of Transaction slip dated 5.6.2013 for
Rs.1 lakh debited by accused No.1 credited in the name of accused No.3 Ex.P-80 RTGS slip for Rs.1 lakh Ex.P-81 Original cash paid cheque dated 17.6.2013 for Rs.1 lakh in favour of S.T.Triveni Ex.P-82 Transaction slip dated 26.7.2013 for Rs.61,600/- debited by accused No.1 credited in the name of HSBC Ex.P-83 RTGS slip for Rs.61,600/-
Ex.P-84 Letter with five sheets of documents Ex.P-84(a) Signature of P.W.10 Ex.P-85 Letter dated 13.4.2015 to AGM (Vigilance) Ex.P.86 Covering letter with details of payment made by accused No.1 for telephone No.23402392 from 9.12.2011 to 28.2.2015 Ex.P.86(a) Signature of P.W.12 306 Spl.CC.34/2016 Ex.P.86(b) Signature of Chief Accounts Officer Ex.P.87 Letter of sanction of housing loan by Circle Office to accused No.1 dated 9.5.1988 Ex.P.88 Letter dated 10.7.1991 pertaining to sanction of loan of Rs.12,500/-
Ex.P.89 Letter dated 17.1.1995 pertaining to sanction of supplementary housing loan of Rs.1 lakh Ex.P.90 Letter dated 15.6.1999 for sanction of loan of Rs.90,300/-
Ex.P.91 Letter dated 22.6.2001 for sanction of additional housing loan of Rs.2,77,500/- Ex.P.92 Letter dated 4.9.2003 for sanction of additional housing loan of Rs.1,77,800/-
Ex.P.93 Letter dated 24.1.2015 for sanction of additional housing loan for repairs. Ex.P.94 Documents executed by accused No.1 in respect of housing loans Ex.P.95 Equitable mortgage executed by accused No.1 by way of deposit of title deeds (Total 12 sheets) Ex.P.96 Certified copy of statement of housing loan of accused No.1 from 1.1.2011 to 11.9.2015, certificates u/S.2A of Banker's Book Evidence Act and u/S.65B(4) of Evidence Act.
Ex.P.97 Seizure memo
307 Spl.CC.34/2016
Ex.P.98 Covering letter dated 14.9.2015
Ex.P.98(a) Signature of P.W.14
Ex.P.99 Statement of account of agricultural gold loan
for Rs.2 lakh with u/S.2A of Banker's Book Evidence Act and u/S.65B(4) of Evidence Act Ex.P.100 First gold loan sanction slip dated 3.10.2011 of accused No.2 Ex.P.101 Debit slip Ex.P.102 Credit slip dated 14.11.2011 related to gold loan credit Ex.P.103 Certified copy of statement of account of vehicle loan of accused No.1 for the period from 1.1.2011 to 14.9.2015 with Certificates u/S.2A of Banker's Book Evidence Act and u/S.65B of Evidence Act Ex.P.104 Covering letter dtd.16.12.2015 Ex.P.104(a) Signature of P.W.15 Ex.P.105 Account opening form dtd.30.11.2011 by accused No.5 Ex.P.106 Transaction slip dated 30.11.2011 issued in the name of accused No.5 Ex.P.107 - Kamadhenu Deposit Receipt issued in the name of accused No.5 Ex.P.108 Certified copy of account extract relating to transaction of accused No.5 from 30.11.2011 to 16.12.2015 with Certificates u/S.2A of Banker's Book Evidence Act and u/S.65B(4) of Evidence Act 308 Spl.CC.34/2016 Ex.P.109 Account opening form of accused No.5 with his photograph and Xerox copy of voter I.D with KYC documents.
Ex.P.109(a) Signatures of accused No.1 and (b) Ex.P.110 Statement of account relating to SB Account of accused No.5 for the period from 18.11.2011 to 16.12.2015 with Certificates u/S.2A of Banker's Book Evidence Act and u/S.65B(4) of Evidence Act Ex.P.111 Credit slip dated 30.11.2011 issued to the account of accused No.5 for Rs.1,63,000/- Ex.P.112 Cheque dated 30.11.2011 issued by accused No.5 Ex.P.113 Transaction slip dated 16.12.2011 of accused No.5 Ex.P.114 Cheque drawn in Canara Bank dated 1.2.2012 for Rs.7,500/- issued by accused No.5 Ex.P.115 Transaction slip dated 30.3.2011 credited by accused No.3 debited by accused No.5 for Rs.50,000/-
Ex.P.116 Transaction slip dated 4.6.2012 debited in the name of accused No.5 for Rs.4,75,000/- Ex.P.117 Cash receipt of accused No.5 for initial deposit of Rs.1000/-
Ex.P.118 Credit slip dated 30.11.2011 for Rs.12,000/- in the name of accused No.5 309 Spl.CC.34/2016 Ex.P.119 Credit slip dated 2.12.2011 for Rs.3,88,000/-
in the name of accused No.5 Ex.P.120 Credit slip dated 17.12.2011 for Rs.9,000/- in the name of accused No.5 Ex.P.121 Credit slip dated 24.12.2011 for Rs.6,000/- in the name of accused No.5 Ex.P.122 Cash receipt for Rs.6,000/- in the name of accused No.5 Ex.P.123 Transaction slip dated 20.3.2012 shown in the name of Canara Bank HSBC-OBC Life Insurance for Rs.75,000/- debited by accused No.5 Ex.P.124 Cash deposit slip for Rs.75,000/- Ex.P.125 Transaction slip dated 30.3.2012 for Rs.3,50,000/- credited in the name of accused No.3 debited by accused No.5 Ex.P.126 to Cheques issued by Managing Director of Aircom P.128 Solutions Private Limited in the name of accused No.5 Ex.P.129 Covering letter dated 20.12.2015 Ex.P.129(a) Signature of P.W.15 Ex.P.130 Credit slip dated 2.12.2011 for cash deposit of Rs.10,000/- in the name of accused No.3 Ex.P.131 Cash withdrawal form dated 5.12.2011 for withdrawal of Rs.3000/- by accused No.1 Ex.P.132 Credit slip dated 9.12.2011 for cash deposit of Rs.7500/- in the name of accused No.3 310 Spl.CC.34/2016 Ex.P.133 Cash withdrawal form dated 13.12.2011 for withdrawal of Rs.9000/- by accused No.1 Ex.P.134 Transaction slip dated 24.1.2012 relating to transfer of Rs.75,000/- from staff OD a/c of accused No.1 to the credit of Account of accused No.3 Ex.P.135 Cash withdrawal form dated 24.1.2012 for withdrawal of Rs.50,000/- by accused No.1 Ex.P.136 Transaction slip dated 24.1.2012 relating to transfer of Rs.25,000/- from the a/c of accused No.3 to staff OD a/c of accused No.1.
Ex.P.137 Transaction slip dated 31.1.2012 for cash deposit of Rs.4000/- in the name of accused No.3.
Ex.P.138 Transaction slip dated 28.2.2012 for Rs.3,238/-
credited in the name of accused No.3 debited by accused No.1.
Ex.P.139 Transaction slip dated 8.3.2012 for cash deposit of Rs.5000/- in the name of accused No.3.
Ex.P.140 Cash withdrawal form dated 9.3.2012 for withdrawal of Rs.1000/- by accused No.1. Ex.P.141 Transaction slip dated 17.3.2012 for Rs.2000/-
credited in the name of accused No.3 debited by accused No.1.
Ex.P.142 Cheque of Canara Bank dated 30.3.2012 for transfer of Rs.4 lakhs through RTGS.
311 Spl.CC.34/2016 Ex.P.143 Transaction slip dated 3.4.2012 for Rs.5000/-
credited in the name of accused No.3 debited by accused No.1.
Ex.P.144 Credit slip dated 19.4.2012 for cash deposit of Rs.1000/- in the account of accused No.3. Ex.P.145 Transaction slip dated 19.5.2012 for Rs.5000/-
credited in the name of accused No.3 debited by accused No.1.
Ex.P.146 Transaction slip dated 24.5.2012 for Rs.3000/-
credited in the name of accused No.3 debited by accused No.1.
Ex.P.147 Transaction slip dated 24.5.2012 for Rs.2000/-
credited to SB Account of accused No.3 from staff OD Account of accused No.1.
Ex.P.148 Transaction slip dated 29.5.2012 for Rs.6000/-
credited in the name of accused No.3 debited by accused No.1.
Ex.P.149 Transaction slip dated 4.6.2012 for Rs.2000/-
credited to SB a/c of accused No.3 from staff OD a/c of accused No.1.
Ex.P.150 Cash deposit receipt dated 7.6.2012 for Rs.2000/- deposited to the Account of accused No.3.
Ex.P.151 Transaction slip dated 29.6.2012 for Rs.5000/-
credited to SB Account of accused No.3 from staff OD Account of accused No.1.
Ex.P.152 Flat Expenses book.
312 Spl.CC.34/2016
Ex.P.153 Seizure memo.
Ex.P.153(a) Signature of P.W.18.
Ex.P.154 Covering Letter dated 17.11.2015.
Ex.P.154(a) Signature of P.W.19.
Ex.P.155 Certified copy of sale deed book I vol:4120
with two E/C for the period from 18/07/1988 till 31.03.2004 and 24.05.2004 till 13.11.2015. Ex.P.156 Covering letter dated 21.11.2015 with Statement of account, certificate u/S.65(B)(4) of Evidence Act and u/S.2(A) of Bankers Book Evidence Act.
Ex.P.156(a) Signature of PW 29.
Ex.P.157 Covering letter with Certified copy of sale deed dtd.5.9.2005.
Ex.P.157(a) Signature of PW21.
Ex.P.158 5 receipts issued by Nirman Shelters in the name of accused No.1.
Ex.P.159 The Bunch of documents containing correspondence dated 26.06.2012(32 sheets). Ex.P.160 Covering letter and attested copies of the reports submitted by PW 23.
Ex.P.160(a) Signature of PW 23.
Ex.P.161 The covering letter signed by Branch Manager and status report(3 sheets).
Ex.P.162 The original policy bearing No.614668289 with 8 premium report (12 sheets) in total. Ex.P.163 The details of statement of account for the 313 Spl.CC.34/2016 period from 01.07.2007 to 14.05.2015 with certificates U/S.65B(4) of Evidence Act and U/s 2(A) of Bankers book Evidence Act, account opening form with covering letter, relating to joint account No.2529101013174 of accused Nos.1,2 and 3 with covering letters(in all total 25 sheets).
Ex.P.163(a) Signature of PW 25.
Ex.P.164 The covering letter and khatha extract, property tax details and tax paid receipts (in 3 sheets).
Ex.P.164(a) Signature of PW 26.
Ex.P.165 The covering letter with details of retail price of diesel and petrol(2 sheets).
Ex.P.165(a) Signature of PW 27.
Ex.P.166 The covering letter with property tax and khatha Uttara patra of residential property No.424, BEML (3 sheets).
Ex.P.167 Covering letter dated 16.11.2015 to Dy.S.P. CBI from AGM Canara Bank PW 30.
Ex.P.167(a) Signature of PW 30.
Ex.P.168 Covering letter dated 16.11.2015 (22 sheets). Ex.P.168(a) Signature of PW 31.
Ex.P.169 Covering letter dated 23.09.2015 (6 sheets). Ex.P.169(a) Signature of PW 32.
Ex.P.170 Covering letter with policy details of Accused No.4 ( 12 sheets).
Ex.P.170(a) Signature of PW 32.
Ex.P.170(b) Signature of PW 55 at page No.8 of Ex.P.170.
314 Spl.CC.34/2016 Ex.P.171 Covering letter with policy details of accused No.5 ( 16 sheets).
Ex.P.171(a) Signature of PW 32.
Ex.P.171(b) Signature of PW 56 at page No.10 of Ex.P.170. Ex.P.172 The covering letter with screen print of AST Data of accused No.1 (19 sheets).
Ex.P.172(a) Signature of PW 33.
Ex.P.173 The covering letter with screen print of AST Data of accused No.2.
Ex.P.173(a) Signature of P.W.33.
Ex.P.174 The covering letter with details of income tax returns of accused No.1 for the assessment year 2011 to 2015 (19 sheets).
Ex.P.174(a) Signature of PW 33.
Ex.P.175 Covering letter with details of insurance policy No.0036229215 of accused No.1 (14 sheets). Ex.P.175(a) Signature of PW 34.
Ex.P.176 Covering letter with copies documents (12 sheets) excluding covering letter.
Ex.P.176(a) Signature of PW 35.
Ex.P.177 Covering letter dated 29.04.2015 along with account opening form, statement of account and certificate U/s.2(A) of Bankers' Book Evidence Act and u/S. 65(B) of Indian Evidence Act (9 sheets).
Ex.P.177(a) Signature of PW 38.
Ex.P.178 The covering letter dated 16.11.2015. Ex.P.178(a) Signature of PW 38.
Ex.P.179 The letter containing 10 cheques and 6 credit 315 Spl.CC.34/2016 vouchers (16 documents).
Ex.P.180 The covering letter.
Ex.P.180(a) Signature of PW 39.
Ex.P.181 Along with covering letters 7 credit vouchers
and 8 cheques (15 documents).
Ex.P.182 The covering letter with attested documents
and account opening form, statements of account, certificate u/S.2(A) of Bankers Books Evidence Act.
Ex.P.182(a) Signatures of PW 41 Ex.P.183 The letter dated 13.04.2015 issued by Senior Branch Manager to Investigating Officer. Ex.P.183(a) The signature of Senior Manager Ex.P.184 The covering letter and certified copy of the sale deed and encumbrance certificate Ex.P.184(a) Signature of PW 44 Ex.P.185 The covering letter with certified copy of sale deed, encumbrance certificate Ex.P.185(a) The signature of PW 45.
Ex.P.186 The covering letter with certified copy of statement of account, a cheque and certificates u/S. 65(B)(A)(C) of Indian Evidence Act and u/S. 2(A) of Bankers Book Evidence Act. Ex.P.186(a) The signature of PW46.
Ex.P.186(b) Signature of PW 47 in the cheque is a part of Ex.P186 dated 25.11.2015.
Ex.P.187 The covering letter with Xerox copies of documents.
Ex.P.187(a) Signature of PW 46.
316 Spl.CC.34/2016 Ex.P.188 The covering letter with Xerox copies of agreement of sale absolute sale deed and Bank loan details.
Ex.P.188(a) Signature of PW 48.
Ex.P.189 The search list dated 13.1.2015. Ex.P.189(a) Signatures of PW 49.
& (b) Ex.P.189(c) Signature of Dy.S.P. Ananda Krishnan in Ex.P189 search list.
Ex.P.190 Three LIC policies in the name of Rajatha B Eshwar.
Ex.P.191 The search list with Inventory. Ex.P.191(a) Signatures of PW 50.
& (b) Ex.P.191(c) Signature of PW 59.
Ex.P.191(d) Signature of PW 59 in the last page. Ex.P.192 The IT returns of accused No.1 containing 14 pages.
Ex.P.193 The duplicate bill issued by BSNL in the name of accused No.1 along with 14 sheets.
Ex.P.194 Proceedings in connection with inspection of locker No.283 held by H.S. Eshwar.
Ex.P.194(a) Signatures of PW 50 & (b) Ex.P.194(c) Signature of PW 59.
Ex.P.195 The covering letter with policy details. Ex.P.195(a) Signature of PW 51 in covering letter. Ex.P.195(b) Signature of PW 51 in policy details. Ex.P.196 Covering letter with three policies. Ex.P.196(a) Signature of PW 51 in covering letter.
317 Spl.CC.34/2016 Ex.P.197 Covering letter with Xerox copy of absolute sale deed.
Ex.P.197(a) Signature of PW 52 in covering letter. Ex.P.198 Covering letter with documents. Ex.P.198(a) Signature of PW 53.
Ex.P.199 Covering letter with cheques marked as Exs.P126 to 128.
Ex.P.199(a) Signature of PW 54.
Ex.P.200 The Salary particulars of accused No.3 Rajatha B Eshwar with covering letter marked with consent of P.P and counsel for accused Nos.1 to 5.
Ex.P.201 Certified copy of the investigation report obtained from HRM Section.
Ex.P.202 Covering letter with documents. Ex.P.202(a) Signature of PW 58.
Ex.P.203 F.I.R. Ex.P.203(a) Signatures of PW 59. & (b) Ex.P.204 The order dated 31.12.2014 issued by S.P. and
Head of Branch CBI/ACB, Bengaluru.
Ex.P.204(a) Signature of S.P.(CBI). Ex.P.204(b) Initial of PW 59.
Ex.P.205 Search warrant of accused No.3. Ex.P.205(a) Signature of PW 59.
Ex.P.206 The subscriber details of recharge history in respect of mobile No.9342954111 with forwarding letter dated 16.04.2015 of 318 Spl.CC.34/2016 Mallikarjuna Timalapur.
Ex.P.207 Letter dated 16.11.2015 enclosed with 36 sheets.
Ex.P.207(a) Initial of PW 59.
Ex.P.208 Letter dated 20.11.2015 of accused No.1 H.S. Eshwar.
Ex.P.208(a) Initial of PW 59.
Ex.P.209 Covering letter dated 21.12.2015. Ex.P.209(a) Initial of PW 59.
Ex.P.210 Copy of letter dated 20.05.2014 with bank challan.
Ex.P.211 Transaction slip.
Ex.P.211(a) Kamadhenu Deposit Receipt.
4. List of documents exhibited for the accused :-
- NIL -
(S.H.PUSHPANJALI DEVI) XLVI Additional City Civil and Sessions Judge and Special Judge for CBI Cases, Bengaluru.Digitally signed by SAKE HARIDAS PUSHPANJALI DEVI DN: cn=SAKE HARIDAS
SAKE HARIDAS PUSHPANJALI
PUSHPANJALI DEVI,ou=HIGH COURT OF
KARNATAKA,o=GOVERNME
DEVI NT OF
KARNATAKA,st=Karnataka,c
=IN
Date: 2019.04.27 17:38:42
IST