R SATYANARAYANA Vs. STATE

JUDGEMENT

(1.) These two criminal petitions are filed by the accused Nos.2 and 1 respectively for quashing charge sheet in C.C. No.22 of 2005 on the file of Special Judge for C.B.I cases, Hyderabad relating to offences punishable under Sections 120-B, 420 I.P.C and Sections 13(2)/13(1)(d) of the Prevention of Corruption Act.

(2.) A-1 worked as Branch Manager in Andhra Bank, M.G.Road Branch, Secunderabad. A-2 is Managing Director of M/s.Zental Drugs (P) Limited, Hyderabad. The respondent i.e., C.B.I filed charge sheet against A-1 to A-4 in Rc.37(A)/2003-Hyd, in the lower Court. A-2 applied for loans from A-1s bank under Open Cash Credit (O.C.C) limits and In-land Letter of Credit (I.L.C) for purpose of running his factory at Yellampet. It is alleged that A-1 as Chief Manager of the Bank during the year 2000-01 conspired with A-2 to A-4 and sanctioned O.C.C of Rs.65,00,000/- and I.L.C of Rs.65,00,000/- to M/s.Zental Drugs(P) Limited for manufacturing of medicines and formulations, on the basis of equitable mortgage of fraudulently acquired property documents pertaining to house belonging to one of the co-obligants Arti Kashyap without her consent and knowledge and that subsequently on advice of Zonal Office, credit limits were reduced to 50% and that on 31.03.2001 A-1 purchased three cheques worth Rs.12.5 lakhs issued by M/s.Pharma Link, a fictitious firm in whose name account was opened by A-3 who was actually employee of A-2 and that the said purchase of cheques was made even though the account was over drawn by Rs.1.77 lakhs by that time and that later those cheques were returned unpaid and that in February, 2001 A-1 issued five I.L.Cs worth Rs.32.25 lakhs without ensuring genuine business transactions and those I.L.Cs were later devolved on the bank as they were not honoured by A-2 and that the bank was put to wrongful loss of Rs.74.33 lakhs causing corresponding gain to the accused. After investigation, C.B.I filed charge-sheet in the lower Court concluding that A-1 abused his official position and conspired with A-2 to A-4 and sanctioned and disbursed credit limits to A-2 without proper post sanction inspection and without ensuring proper end use of funds causing loss of Rs.74.33 lakhs to the bank and that the bank could not recover the loss since collateral security owned by Arti Kashyap was fraudulently obtained by A-2. According to the prosecution, Arti Kashyap of Mumbai who is owner of collateral security of plot No.1017, Survey No.403/1 (Old) and 120 and 102/1(new), Jubilee Hills Co-operative House Building Society, Jubilee Hills, Hakeempet village, Hyderabad and who is not associated with A-2s company had no knowledge of creating equitable mortgage of her property.

(3.) While so, on filing private complaint filed by Special Power of Attorney holder of Arti Kashyap against A-1, A-2 and others, the XI Metropolitan Magistrate, Secunderabad referred the complaint to Mahankali Police of Secunderabad for investigation under Section 156(3) Cr.P.C. After investigation, the Sub Inspector of Police, Mahankali Police Station filed charge sheet in Crime No.32/2002 against A-1, A-2 and others in the same Magistrate Court and it was registered as C.C. No.524/2003 for offences punishable under Sections 419, 420, 468, 471, 474, 120-B, 506, 506/109 I.P.C. Averments in that case are to the affect that Jubilee Co-op House Building Society Limited executed sale deed in the year 1987 in respect of the above plot No.1017 of Jubilee Hills in favour of Arti Kashyap and that some impostor got released the pending document from the Sub-Registrars Office by paying requisite stamp duty and that several banks including A-1s bank sanctioned loans on the strength of security of the said registered document in favour of 3rd parties including A-2s company.