2017 (11) TMI 1751 - HC - Indian Laws

Bail Application - allegations of corruption and amassing of unaccounted money - Held that - Taking into account the nature of allegation levelled against the applicant and the prosecution case as stated in the F.I.R. and charge-sheet submitted in the case shows an organized crime committed by the accused persons causing huge financial loss to NOIDA Authority and misuse of public money in collusion with the public servants posted in the NOIDA Authority at the relevant point of time, the prayer for bail of the applicant is refused. There is no good ground for grant of bail to the applicant Pradeep Garg - bail application dismissed.

Summary

Issues Involved:
1. Legality of the tender process and alleged irregularities.
2. Allegations of pre-award commencement of work.
3. Allegations of bid alteration and undue gain.
4. Alleged financial transactions indicating bribery.
5. Alleged financial loss to the government exchequer.
6. Bail application and health-related short-term bail application.

Detailed Analysis:

1. Legality of the Tender Process and Alleged Irregularities:
The applicant contended that there was no fault or irregularity in the tender process, which adhered to the parameters of the settling work awarded. It was argued that the tender process was transparent, with tenders invited from approved and registered contractors. The C.B.I., however, alleged that the tender process was irregular, flouting norms prescribed by CPWD and adopted by Noida. The court noted that the allegations indicated an organized crime causing significant financial loss to the NOIDA Authority.

2. Allegations of Pre-Award Commencement of Work:
The applicant's counsel argued that the work commenced only after the formal award of the contract and that the preliminary estimates were revised to reflect competitive rates. Conversely, the C.B.I. alleged that the contractors, including the applicant's company, started work prior to the award of the contract, indicating pre-decided selection of contractors. The investigation revealed that materials were purchased and delivered before the official contract award dates.

3. Allegations of Bid Alteration and Undue Gain:
The applicant denied any wrongdoing, stating that the bid was filed based on the estimates available at the time. The C.B.I. alleged that the quotes of the bidders were altered to benefit pre-decided contractors, causing undue gain. The investigation found that the price bids were manipulated after the technical bids were opened, and entries in Measurement Books were falsified to cover up the pre-award work commencement.

4. Alleged Financial Transactions Indicating Bribery:
The applicant's counsel explained that a sum of ?1 crore was transferred for investment in shares, not as a bribe. However, the C.B.I. alleged that ?50 lakhs were transferred to the account of Smt. Kusum Lata, wife of the main accused Yadav Singh, through a series of transactions, indicating it was a bribe. The balance sheet of M/s Kusum Garments Pvt. Ltd. showed the amount as an interest-bearing loan, which the applicant claimed was legitimate.

5. Alleged Financial Loss to the Government Exchequer:
The C.B.I. alleged a loss of ?4.52 crores to the government exchequer due to the applicant's actions. The applicant's counsel argued that the Noida Authority had withheld security and amounts due to the applicant's company, which could cover the alleged loss. The court noted that the detailed analysis of purchased bills and laying costs revealed significant financial discrepancies, supporting the C.B.I.'s allegations.

6. Bail Application and Health-Related Short-Term Bail Application:
The court considered the nature of the allegations, the organized crime involved, and the financial loss caused. The applicant's bail application was rejected, citing the serious nature of the charges and the need to strengthen the fight against corruption. The short-term bail application on health grounds was also rejected, with the court directing the Superintendent of District Jail to ensure proper medical care as per the Jail Manual. The trial court was instructed to expedite the trial and consider separating the trial of the applicant if co-accused persons remained absconding.

Conclusion:
The court refused the bail application and the short-term bail application of the applicant, emphasizing the serious nature of the corruption charges and the organized crime involved. The trial court was directed to expedite the trial and consider separating the applicant's trial if necessary.