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TMI Blog2015 (8) TMI 1108X X X X Extracts X X X X X X X X Extracts X X X X ..... C Act") against Y.S. Jaganmohan Reddy (A-1), Member of Parliament and 73 others. (b) V. Vijay Sai Reddy-the respondent herein was named as an accused at Sl. No. 2 in the FIR dated 17.08.2011 (after the chargesheet was framed, he was arrayed as A-2 and hereinafter, he will be referred to as A-2). The respondent herein was the founder Director of M/s Jagathi Publications and was the Financial Advisor for the group of companies of Y.S. Jagan Mohan Reddy (A-1). (c) He was arrested on 02.01.2012 and was in police custody from 04.01.2012 to 09.01.2012 and again from 11.01.2012 to 17.01.2012. On 27.01.2012, he filed an application for grant of regular bail under Section 437 of the Code of Criminal Procedure, 1973 (in short 'the Code') before the Court of the Special Judge for CBI Cases at Hyderabad. The Special Judge, by order dated 21.03.2012, dismissed his application for bail. (d) During investigation, it was revealed that M/s Jagathi Publications Pvt. Ltd. was originally incorporated as a private limited company on 14.11.2006 and later converted into a public limited company on 12.01.2009. At the relevant time, the respondent herein was the founder Director of the Company and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompanies. On 29.05.2012 and 30.05.2012, the Principal Special Judge for CBI Cases took cognizance of second and third chargesheet(s) which were numbered as CC Nos. 9 and 10 of 2012 respectively. (h) The High Court, by order dated 13.06.2012, dismissed the petition filed by the CBI. (i) Being aggrieved by the order of the High Court, the CBIthe appellant herein has preferred this appeal by way of special leave. 4) Heard Mr. Ashok Bhan, learned senior counsel for the appellant herein and Mr. Raju Ramachandran, learned senior counsel for the respondent herein. 5) It is useful to refer the order dated 10.08.2011 passed by the High Court ordering for CBI investigation wherein, in para 51, it is stated thus: "51. Prima facie, it emerges from the record forming part of the writ petitions including pleadings of the parties that from May, 2004 onwards, respondent No. 52 floated number of companies wherein quid pro quo investments have been made out of the benefits received by the investors/beneficiaries from the decisions of the State Government in various forms like SEZs, irrigation contracts, relaxation/permission for real estate ventures, mines etc. besides payment of huge pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansactions. He also pointed out that no investments were made in Jagathi Publications during the period when he was the Director. He further submitted that the State Government itself had passed various Government Orders to protect the Ministers and Secretaries who alleged to have been involved on the ground that everything was done in the course of normal business of the Government. When such is the position, according to him, the appellant being a Chartered Accountant, without any financial gain, the Special Judge was justified in granting him the bail. He also pointed out that even when the appellant was out, five charge-sheets have been filed and there is no impediment in finalizing the remaining three charge-sheets and he is willing to cooperate with the Agency by fulfilling all the conditions imposed by the Special Court and the High Court. 8) We have considered the rival contentions and perused all the relevant materials relied on by both the sides. 9) Let us consider the contentions put-forth by learned senior counsel for the CBI. It is settled by a series of decisions that if irrelevant materials have been taken into account or relevant materials have been kept out of co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the criminal conspiracy, played a vital role in soliciting investments in the form of bribes as a quid pro quo from the individuals related to the MD of M/s Aurobindo Pharma Ltd. and the companies M/s Hetero Group Companies (A-4) and M/s Trident Life Sciences Ltd. (A-5). v) By the above mentioned overt acts V. Vijay Sai Reddy (A-2) in furtherance of criminal conspiracy with remaining accused, has committed the offences under Section 120-B read with Sections 409, 420 and 468 IPC and thereby facilitated Y.S. Jagan Mohan Reddy (A-1) to reap undue benefit in the form of investments in his company from the beneficiaries mentioned above as a quid pro quo. 11) It is brought to our notice that M/s Jagathi Publications Private Limited was incorporated on 14.11.2006 as a Private Limited Company and was converted into a Public Limited Company on 12.01.2009. M/s Jagathi Publications Private Limited represented by its the then Directors, Y.S. Jagan Mohan Reddy (A-1) and V. Vijay Sai Reddy (A-2) solicited investments from the general public although it was a private limited company in violation of the provisions of the Companies Act, 1956. It is contended by the CBI that the main intention ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d a main role in pumping crores of money to M/s Jagathi Publications Private Limited through several companies like Artillegence Bio-Innovations Ltd., Bay Inland Finance Pvt. Ltd., Bhaskar Fund Management Pvt. Ltd., and other individuals based in Kolkata and Mumbai. Likewise, VANPIC's grant of mining lease and permits to several group of companies, the investigation is under progress and custodial interrogation from the appellant is required. 14) Mr. Ashok Bhan, learned senior counsel has pointed out that the Special Judge erroneously observed that the investigation has reached to a conclusion and based on such a wrong assumption enlarged him on bail. 15) According to the CBI, the investigation is still in progress in other separate and distinct offences. He also pointed out that the said conclusion is totally contrary to the record. By pointing out various facts and figures, he asserted that A-2 is an active member of the criminal conspiracy and releasing him at the stage of investigation would result in miscarriage of justice as the role played by him in the conspiracy is serious and grave in nature. The main grievance of the CBI is that when there was sufficient evidence on re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... auritius based Companies and the source of those monies is being investigated speedily and efforts to trace the source are being done expeditiously. It is also brought to our notice that Letter of Rogatories have been sent to six foreign countries and they have furnished the status of LRs. 19) It is also the claim of the CBI that investigation is under progress regarding granting of mining lease of limestone to the extent of 2037.52 acres by the Government of Andhra Pradesh to Raghuram Cements. It is highlighted that during the period under review, the CBI has collected 400 documents running into thousands of pages from various departments/banks and so far about 40 persons have been examined. 20) It is also highlighted that the investigation disclosed that respondent A-2 was nominated as a part time nonexecutive Director of Oriental Bank of Commerce by the Ministry of Finance vide notification dated 14.12.2006 based on the recommendation of late Dr. Y.S. Rajasekhara Reddy, the then Chief Minister of Andhra Pradesh and father of A-1. It is the assertion of the CBI that respondent A-2 was not only the direct beneficiary of the post of Director in a Nationalised Bank but was also a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Special Court to substantiate their stand. The Special Judge has also noted that when respondent herein (A-2) was released on bail on 13.04.2012 and again surrendered before the Court on 23.04.2012, there is no allegation against him that during this period, he tried to run away from the investigating agency or made any attempt to influence the witnesses. In this regard, learned senior counsel for the CBI has brought to our notice the statement of one Gopalakrishnan Murali dated 20.06.2012. In his statement, in the penultimate paragraph, it is noted that on receipt of notice under Section 91 of the Code from CBI on 13.06.2012 the said deponent immediately contacted V. Vijay Sai Reddy (A-2) for his instructions. According to him, A-2 directed him not to part with any document/information to CBI and directed to approach the High Court of Andhra Pradesh through their legal advisors. Admittedly, he had not brought any information as required under the notice dated 13.06.2012 on the advise of the respondent herein (A-2). As rightly pointed out, there is no need to go to High Court to get specific direction for each and every thing. When the Investigating Officer is in need of certain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pecial Judge while granting bail imposed certain conditions and the High Court has also added some more additional conditions, however, taking note of few instances in which how the respondent has acted, it cannot be possible for the investigating agency to collect the remaining materials for the remaining three charge sheets to be filed. In such circumstances, we are satisfied firstly the Special Court took irrelevant materials for consideration for grant of bail and secondly, the High Court having arrived definite conclusion that several findings of Special court are unacceptable or irrelevant but ultimately affirmed the very same order of the special Judge granting bail. 28) While granting bail, the court has to keep in mind the nature of accusations, the nature of evidence in support thereof, the severity of the punishment which conviction will entail, the character of the accused, circumstances which are peculiar to the accused, reasonable possibility of securing the presence of the accused at the trial, reasonable apprehension of the witnesses being tampered with, the larger interests of the public/State and other similar considerations. It has also to be kept in mind that f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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