CENTRAL BUREAU OF INVESTIGATION Vs. SRINIVAS D. SRIDHAR

JUDGEMENT

(1.) The present appeal arises out of a charge sheet filed in First Information Report bearing no. RC 7/E/2014 registered with the Central Bureau of Investigation (CBI) (Bank Securities and Fraud Cell), Mumbai, for the offences punishable under Ss. 420, 468, 471 and 120-B of IPC and Sec. 13(2) read with 13(1)(d) of Prevention of Corruption Act, 1988 (for short, 'the PC Act'). Charge sheet was filed for the said offences on 8/8/2014. A total of seven accused persons were chargesheeted, including the respondent herein, who was shown as accused no.7. At the relevant time, he was the Chairman and Managing Director of the Central Bank of India (for short "the Bank"). Accused no.1 was M/s Electrotherm (India) Limited (for short, "the Company"). Accused no.2-Mukesh Bhanwarlal Bhandari was the Chairman of the Company. Accused no.3- Shailesh Bhanwarlal Bhandari was the Managing Director of the Company. Accused no.4-Avinash Prakashchandra Bhandari was the Joint Managing Director of the Company. Accused no.5 was one Hector Keki Vesuna, who was, at the relevant time, the Chief General Manager (Credit) of the Bank. Accused no. 6 was Ramnath Pradeep, who was an Executive Director of the Bank at the relevant time.

(2.) During the years 2010-2011, the Bank sanctioned following three facilities to the Company: -

(3.) The Bank disbursed a sum of Rs.247.50 crores against EPC on various dates. The Company claimed that it was awarded a contract by M/s Kamal Alloys Ltd., Tanzania, for the execution/setting up of a steel plant in Tanzania on a turnkey basis. Therefore, the EPC facility was granted for procurement of raw materials and components for the said project in Tanzania. The allegation is that instead of using the amount of Rs.247.50 crores for procuring raw material for the project, the amounts were transferred by the Company to its accounts with various other Banks as well as to builders. The amounts were also used for payment of ECGC premium.