B V RAGHAVAIAH CHOUDARY Vs. STATION HOUSE OFFICER

JUDGEMENT

(1.) This Writ Petition is filed to issue a writ of certiorari to call for the records relating to Crime No.272 of 2000 on the file of the 1st respondent and quash the same holding that the criminal proceedings against the petitioner are illegal, improper, unjust, malafide and not maintainable and further to declare that the report of the 2nd respondent do not disclose any offence.

(2.) The 2nd respondent is the Assistant General Manager of the Andhra Pradesh State Cooperative Bank Limited, Troop Bazar, Hyderabad. The 1st and 2nd Petitioners are the Directors of M/s Masters Pearls Limited with its registered office at Ameerpet and the site office at Kothapet Village, Vetapalem Mandal, Prakasam District. The Andhra Pradesh State Cooperative Bank Limited, Troop Bazar, Hyderabad, (herein after referred as 'the bank') sanctioned a term loan of Rs. 300 lakhs for establishment of a Pearl culture project comprising of Hatchery and culture farm, with 5 million seed and 7.20 lakh pearls per annum at Kothapet, Vetapalem Mandal, Prakasam District, on terms and conditions communicated through fax letter dated 30-08-1997. The term loan was released in installments on the respective dates, which are as follows: <FRM> DATE AMOUNT SANCTIONED 08-12-1997 Rs. 98.20 Lakhs 17-07-1998 Rs. 65.00 Lakhs 18-11-1998 Rs. 71.88 Lakhs 20-11-1998 Rs. 12.23 Lakhs 04-01-1999 Rs. 48.37 Lakhs 18-05-1999 Rs.4.32 Lakhs TOTAL Rs. 300.00 Lakhsm</FRM>

(3.) It is stated by the learned counsel appearing for the petitioner that the bank officials inspected the project site on 07-10-1997, 10-10-1997 and on 15-10-1997 and satisfied with the installation of the project and therefore they have released the installment amounts from time to time as stated above. It is stated that the 1st petitioner is the Managing Director, the 2nd petitioner Sri G.Uama Varaprasada Rao and one N.V.Subba Rao, are the Directors of the company. 5th and 6th petitioners are the co-guarantors to the said loan.4th petitioner is the wife and the3rd petitioner is the brother of the 1st petitioner respectively. 3rd and 4th petitioners offered collateral properties as mortgage towards the loan in addition to the mortgage of immovable properties of the promoters/ guarantors of the unit and hypothecation of movables, plant and machinery.