G UNNIKRISHNAN NAIR Vs. STATE OF KERALA

JUDGEMENT

(1.) These bail applications arise from various criminal proceedings pending before various police stations of the State.

(2.) Since common allegations and factual issues arise in these bail applications, all of them are dealt with commonly.

(3.) Petitioners claim to be the persons in control and management of the Kerala Housing Finance Public Limited company incorporated in the year 1992. K.Gopalakrishnan, one of the petitioners, is its manager. Another petitioner G.Unnikrishnan Nair is the CMD and Mr.Krishnan Nair is the Director cum General Manager. The bail applications are filed by them, individually or in combination with the coaccused. The company is a non-banking finance company which is essentially engaged in financing house construction. It has obtained license under the relevant Statutes. Certificate of registration was also obtained from the National Housing Bank. According to the petitioner, it has got 5,000 share holders with a total paid up capital of Rs.14 Crores. It owns property worth Rs.50 Crores. The company has 28 branches in Kerala. According to the petitioners, housing and personal loan issued by the company is Rs.80 Crores. It is claimed that, the company was functioning normally till recently. However, due to unexpected contingencies consequent to the demonetization of currency notes and floods that shook Kerala, repayment of loans availed by its clients slowed down and loans became non performing assets. Moratorium was declared by the Government in relation to housing loans. In the meanwhile, the deposits became mature. These contingencies cumulatively led to a financial crunch. In the above circumstances, apprehending that the money deposited by the depositors will not be repaid, several complaints were laid in the various police stations. It was alleged that, petitioners have committed offences punishable under section 420 Penal Code along with other offences. Apprehending arrest, petitioners have sought for bail.