LAWS(MAD)-2023-8-101

M.GURUPRASAD Vs. ADDITIONAL SUPERINTENDENT OF POLICE

Decided On August 29, 2023
M.Guruprasad Appellant
V/S
ADDITIONAL SUPERINTENDENT OF POLICE Respondents

JUDGEMENT

(1.) The petitioner herein arrayed as the 5th accused in C.C.No.530 of 2022 on the file of the Additional Chief Metropolitan Magistrate, Egmore, Chennai, has filed a petition to quash the case pending against him on the ground that he being a Professional Chartered Accountant won several accolade in the profession, but been maliciously prosecuted in the said case as if he conspired with the other accused to cheat the State Bank of India and other consortium of banks to the tune of Rs.494.00 crores between the year 2009 and 2016 and thereby, liable to be punished under Sec. 420 r/w 120 B of IPC.

(2.) The petitioner claims that he being a renowned Chartered Accountant of the firm M/s Guru and Jana was engaged by the Board of Directors of M/s Nathella Sampath Jewelry Private Limited vide, letter dtd. 9/6/2017 to conduct audit of the finance status of the company for the past 4 to 5 years extent the same upto 30/6/2017 and assess the apparent health of the group entities. Further, to recommend corrective measures that may be adopted by the management to remedy the situation, initially to salvage the situation and gradually stabilize and put the operations back on rails. The petitioner with his team of auditors after making a visit to the corporate office of M/s Nathella Sampath Jewelry Private Limited and with the information provided by the company which engaged him, gave a report on 5/8/2017 to the Board of Directors of M/s Nathella Sampath Jewelry Private Limited. The report consists of recommendations and options. The Manager of State Bank of India was also furnished with a copy of the report along with his covering letter dtd. 5/8/2017.

(3.) The report and the covering letter according to the prosecution are the only incriminating material to charge the petitioner. Except making inspection and submitting the stock audit report, in the year 2017, he had no role either at the time of sanctioning the loan to M/s Nathella Sampath Jewellery Private Limited in the year 2009 and thereafter for the company's default in payment of loan which was declared as NPA in the year 2016. In the Final Report, the petitioner being inducted as an accused for the substantive offence under Sec. 420 IPC and under Sec. 120B IPC for conspiracy with the co-accused. The Final Report however has given a clean chit to the FIR named accused Sohun C.J. Parmar (A5), the Statutory Auditor for the defaulting company during the disputed period.