GEORGEKUTTY KURIAN Vs. SPE/CBI KOCHI

JUDGEMENT

(1.) The first accused in C.C.No.10/2005 on the file of the Special Judge, (SPE/CBI No.II, Ernakulam) is the appellant in Crl.A.No.109 of 2008, while the 4th accused in the same case is the appellant in Crl.A.No.127 of 2008 and Crl.A.No.162 of 2008 was filed by the third accused in the same case. Since all these cases arose out of the same judgment, I am also disposing of these appeals by a common judgment. I am referring to the status of the parties as in the lower court for the purpose of convenience in these appeals.

(2.) The appellants along with the second accused K. Shahir Shaw, the Managing Partner of Shaw Cashew Company Ltd, Thiruvananthapuram were charge sheeted by the Inspector of Police, Central Bureau of Investigations (hereinafter referred to as the CBI for short) in R.C.No.18A/98/CBI/Kochi alleging offences under sections 13(1)(d) read with section 13(2) of the Prevention of Corruption Act, 1988 (hereinafter referred to as the P.C. Act for short) and sections 120 B , 420, 468 and 471 of the Indian Penal Code.

(3.) The case of the prosecution in nutshell was that the first accused Sri. Georgekutty Kurian was working as the Assistant Manager Credits in Bank of India, Quilon branch and he was in charge of the Manager of the said Bank from 2.3.1998 to 6.3.1998.The second accused Shahir Shaw was the Managing Partner of M/s. Shaw Cashew Company, Thiruvananthapuram doing business in procuring cashew kernels and exporting the same. The third accused Jayakumar was said to be the proprietor of M/s.K&M Manufacturers and Exporters, and having its office at Mumbai and he is a resident of Quilon. The 4th accused Ramakrishnan was the Senior Vice President of M/s. Fedex Security Limited, Mumbai. The second accused was having banking transaction with Bank of India, Quilon branch availing credit facilities such as cash credit hypothecation, cash pledge, letter of credit etc., for and own behalf of M/s. Shaw Cashew Company Ltd. During the first week of March 1988, the first accused hatched a criminal conspiracy with accused 2 to 4 to deceive the bank for the purpose of obtaining cash credit by opening and discounting an inland letter of credit. On account of the conspiracy hatched, in order to facilitate the second accused to get the letter of credit, the third accused prepared some false and fabricated sale contract papers acting for M/s. K&M Manufacturers and Exporters, Mumbai, a non existing concern agreeing to supply 270 metric tones of raw cashew kernels to M/s. Shaw Cashew company of which the second accused was the managing partner and the second accused in pursuance of the common intention hatched on account of the aforesaid criminal conspiracy, dishonestly submitted false contract papers, Bill of exchange, sale letter, invoices, packing list etc., falsely created by the third accused knowing that they are false documents with the dishonest intention of procuring some inland letter of credit facility from the bank, submitted an application to open an inland letter of credit for Rs.81 lakhs favouring M/s. K&M Manufacturers and Exporters, Mumbai and the first accused, on account of the criminal conspiracy hatched and with a view to help the second accused to get facility, misusing his official position as public servant of the bank by corrupt and illegal means in order to obtain pecuniary advantage to the second accused knowing that the documents submitted by the second accused are false documents and also knowing the object of the second accused in procuring the facility and without observing the required formalities and terms and conditions while granting the inland letter of credit facility like production of shipping documents, way bill etc, deceitfully included conditions favouring the second accused as goods received in good condition knowing fully well that there was no supply of contract of raw cashew kernels against the aforesaid inland letter of credit, sanctioned the letter of credit for Rs.81 lakhs and after sanctioning the facility, handed over the letter of credit to the 4th accused Ramakrishnan who was an instrumentality for providing a loan of Rs.70 lakhs using his position as Senior Vice President of Fedex Securities, Mumbai to the second accused for getting the facility and he had using the documents discounted the same for an amount of Rs.74,57,050/ - from Corporate Banking Branch, Fort Road Branch and fraudulently got the amount credited into the account of M/s. K&M Manufacturers and Exporters, Fort Road Branch, Mumbai using the signed blank cheque leaves of M/s.K&M Manufacturers and Exporters given by the third accused for this purpose and paid an amount of RS.71,75,000/ - to M/s.Fedex Securities and obtained Rs.1,75,000/ - for himself, Rs.41,000/ - to one Anand Sharma and Rs.44,225/ - for the third accused and another Rs.10,000/ - in the account of M/s. K&M Manufacturers and Exporters Ltd., and the second accused did not pay the amount devolved on by the letter of credit within the time specified and thereby caused a loss of Rs.43,80,895.54 to the bank and thereby all of them have committed the offences punishable under section 120 B of the Indian Penal Code and section 13(2) read with section 13(1)(d) of the P.C. Act and sections 420, 468 and 471 of the Indian Penal Code. PW50 registered the above crime in terms of the orders of the Superintendent of Police, C.B.I, Kochi on the basis of the reliable information received regarding the irregularities committed in the issue of Letter of Credit to the second accused by the first accused and others and he conducted investigation and filed final report after obtaining sanction from the authorities as against the first accused for prosecuting him for the offences under the P.C. Act and the Indian Penal Code and the case was taken on file as C.C.No.10/2005 on the file of the Special Judge, Ernakulam and it was made over to the Special Judge, SPE/CBI No.II, Ernakulam for disposal.