D MALLESHAM GOUD Vs. STATE

JUDGEMENT

(1.) In this petition under Article 227 of the Constitution of India read with section 482 of the Criminal Procedure Code, 1973 (hereinafter referred to as the Code), the petitioner challenges the order, dated 9 July 1998, passed by the learned Special Judge, Delhi whereby his fourth application for grant of bail has been dismissed and prays for grant of bail in R.C.No.3(A)/96-ACU-I/CBI, registered under section 120 B read with section 409 and 420 Indian Penal Code and sections 7, 11 and 13(2) read with section 13(1)(c) & (d) of the Prevention of Corruption Act, 1988. The petitioner was arrested on 12 January 1998 and is in incarceration since then.

(2.) Briefly stated, the case of the prosecution, in the charge-sheet, is that the accused, C.K. Ramakrishnan, Managing Director, National Fertiliser Limited (for short NFL), D.S.Kanwar, Executive Director, (Marketing), NFL, M.Sambasiva Rao, Chief Executive, M/s.Sai Krishna Impex, Hyderabad, Tuncay Alankus and Cihan Karanci, both of M/s.Karsan Danismanlik Turizm Sanayi Ticaret Limited, Ankara, Turkey (hereinafter referred to as Karsan Limited), B.Sanjeeva Rao, a close relative of the then Prime Minister Mr.P.V. Narasimha Rao, Prakash Chandra Yadav, son of the then Fertiliser Minister Mr.Ram Lakhan Singh Yadav, D.Mallesham Goud, the present petitioner and one Agnaldo Ernesto Pinto entered into a criminal conspiracy with illegal object to misappropriate the funds of NFL, a Public Sector Undertaking and in furtherance thereof a contract for supply of 2 Lakh MT of urea at US$ 190 per MT on CIF basis against 100% cash pre-payment of price, was signed by accused D.S. Kanwar and Agnaldo Ernesto Pinto of Brasil Trading Limited, London on behalf of NFL, New Delhi with M/s.Karsan Limited. On behalf of M/s.Karsan Limited the agreement was signed by Tuncay Alankus. Accused Agnaldo Ernesto Pinto was a non-entity for NFL. The NFL officials dishonestly agreed to accept first class Llyods Insurance Policy to cover risk of non-performance and non-delivery of urea departing from normal practice of making payment by Letter of Credit and made cash pre-payment of US$ 38 million, i.e. approximately Rs.133 Crores to M/s.Karsan Limited represented by Tuncay Alankus and Cihan Karanci, who being entrusted with the said amount, misappropriated the same by committing criminal breach of trust and did not supply urea to NFL. In relation to the contract Tuncay Alankus promised to pay US$ 3 million and US$ 4 million to Agnaldo Ernesto Pinto and M.Sambasiva Rao respectively. The petitioner, it is alleged, was also a party to the conspiracy since the very beginning and accused Tuncay Alankus and Cihan Karanci had sent US$ 4 million for accused M Sambasiva Rao, B Sanjeeva Rao and petitioner and others through M/s.Edible Food Stuffs, Dubai, which money was remitted to Hyderabad through hawala channels as well as banking channels with the help of petitioner's friend Rajendra Kumar Babani, a resident of Dubai and out of the said amount, accused M.Sambasiva Rao paid Rs.70 lacs to B.Sanjeeva Rao, Rs.60 lacs to the petitioner who in addition is stated to have issued three cheques of Rs.12 lacs, Rs.10 lacs and Rs.10 lacs respectively from the accounts of M/s.Marg Leasing and Finance Private Limited, Hyderabad in favour of Medicon Marketing Private Limited, Hyderabad; M/s.SRR Finance and Investment Private Limited, Hyderabd and M/s.Sai Bharath Finance Private Limited, Hyderabd, controlled and owned by accused B.Sanjeeva Rao and his family members.

(3.) It is also alleged that Cihan Karanci, Vice-President of M/s.Karsan Limited, vide his letter dated 30 October 1995, had informed NFL that Indian company M/s.Sai Krishna Impex of Hyderabad was their authorised representative and Indian agent with special authority through accused M Sambasiva Rao, Chief Executive Officer on their behalf for their day-to-day transactions in India. M/s.Sai Krishna Impex, a partnership concern of the petitioner herein was converted into a private limited company and the petitioner continued to be one of its Directors.