RAJENDRA SINGH SETHIA Vs. STATE

JUDGEMENT

(1.) This order shall dispose of the bail application dated 14-5-1986 of Rajendra Singh Sethia. His previous bail application wa dismissed by this Court about a year back on 17 7,1985. His earlier bail applications were dismissed by the magistrate and also by the Additional Sessions Judge. The last order dismissing his prayer for bail was passed on 5.51.986 by Shri Subhash Wason, Chief Metropolitan Magistrate, Delhi. Some new facts and contentions are raised in the present petition for the grant of bail.

(2.) In order to dispose of the bail application it would be necessary to set out in some details the allegations of the GBI against the petitioner which led to his arrest and the filing of the charge-sheel against him. The petitioner Rajendra Singh Sethia, an Indian National based at U.K., is the Managing Director of the Group of ESAL (Commodities) Ltd., London Some time during 1982-84 be entered into a criminal conspiracy with his own employees aswell as with certain officials of the branches of Punjab National Bank, Union Bank of India, Central Bank of India and other Institutions based at U.K., the object of which was to defraud those Banks/ Institutions to the tune of millions of pounds sterlings He dishonestly induced these Banks/Institutions to extend loans in reipect of alleged contracts with Nigerian National Supply Corporation and other African Bodies which did not have sufficient foreign exchange reserves and the said loans were obtained by making false representations regarding the value of the assets held by him.

(3.) The petitioner Rajendra Singh Sethia was the Chairman of ESAL Group of Companies since April 1977 and was controlling all the financial matters of all the Companies of this Group. His co-accused Amarjit Singh was posted as the General Manager at the London Branch of Punjab National Bank and both of them were quite close to each other. ESAL (Commodities) Ltd., 19/20, Noel Street, London had various accounts with Punjab National Bank at London including 'Dollars Merchanting Account' which was being operated by the petitioner as well, and in his capacity as the Chairman of the ESAL Group of Companies was not only responsible for the transactions entered into but was also the beneficiary of the same.