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TMI Blog2019 (6) TMI 1647X X X X Extracts X X X X X X X X Extracts X X X X ..... s on going is also mainly relying on the documentary evidences and concerned witness is being questioned on the strength of such documents. There is no likely hood of tampering with the documentary evidences which have been seized and which are in the custody of various Banks. The Court is also conscious of the well laid down principle of 'bail and not jail' where more particularly there are rival claims of loss being not on account of any fraud committed with the Bank, but because of the various factors affecting the market so also the aspect that the chargesheet has been filed long ago and there is no likely hood of the trial getting over with such bulky volume of evidence and numbers of witnesses in a near future. The matters which are investigated by C.B.I. since involving serious question, the trial is likely to take a longer time - It will also give an opportunity to the Court to monitor the pace of investigation and the conduct of the accused during the course of further investigation. This will uphold the right of individual liberty and yet will not stultify in any manner the right of investigating agency to further investigate. The applicant is ordered to be rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs of credit by the bank were issued in favour of sister concern of the company without following R.B.I. Guidelines. The company also gave loan worth of ₹ 16.70 Cr. and ₹ 32.96 Cr. to the associates, relatives and family members. It is also further alleged that the company without the permission of the bank had opened the account outside the consortium and the receivable which should have been repaid in clearing the dues, were diverted in those accounts. 2.3. It is the say of the applicant that the loan transaction is a genuine transaction dehors any fraud or criminality. The company is one of the largest cable and conductor manufacturers in India and is in the said business since 1971. The company has incurred an accumulated loss of over ₹ 1,500 Cr. in last 20 quarters (five years), which was not on account of alleged act of any fraud committed by the directors. However, the expansion plant of the company to expand its conductor manufacturing capacity and an ancillary unit at Baroda, Gujarat was to be established, for which, a consortium of Banks led by the Bank of India advanced the finances. It is the say of the applicant that due to slowdown of the domestic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by representative of different institutions including Accountants, Engineers and Company Secretaries had supervised the said audit and approved the restructuring. Thus, indicates that there was no question of illegality or irregularity in relation to the management of the company was ever found by the auditors who were appointed by the Bank. 2.6. The Bank has also carried out further statutory annual audit by appointing KPMG and A.K. Yadav Company. That the said audit does not indicate any fraud or irregularity in the company. The Bank had also appointed simultaneously concurrent auditor who carried out audit till December, 2016. It is thus the say of the applicant that allegations with reference to the alteration or variation in stock statements are false. That Ruby Cables Ltd. is not a group company or sister concern of the DPIL. It is standard operating procedure for every Bank to take a credit information report on the supplier on whom the LC is to be opened. The allegation with regard to the investments and unsecured loans being given does not concern the funds given by the bank. These funds were raised through a private equity investment done by M/s. Clear Water Capital ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mand till 27.04.2018 and thereafter till 30.04.2018 and thereafter, till today, he is in judicial custody. The applicant has filed his application under Section 439 of the Code of Criminal Procedure for regular bail, which came to be rejected by the Special Court. Thereafter, the applicant accused has preferred temporary bail. Shri Amit Bhatnagar present applicant was granted temporary bail for a period of 20 days and again he had been granted temporary bail from 17.03.2019 to 22.03.2019 and from 05.04.2019 to 08.04.2019. 4.According to the C.B.I., there are total 11 Banks i.e. 9 nationalized, 2 private Banks and 8 nonBanking financial institutions from where M/s. DPIL had availed credit facilities involving outstanding loan amount of ₹ 2,654.40 Cr. of various Banks in the name of M/s. DPIL. During the course of investigation, voluminous documents have been collected from the different banks as well as private firms/ companies and investigation is continuing. It is also averred that the company had been enjoying various fund based and nonfund based credit facilities from the year 2007 till 2018. The investigation also revealed that the company had started defaulting by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts submitted by the borrower, by submitting false and inflated Stock and Book Debt Statements, the borrower firm had availed higher financial facilities by such manoeuvring. 7.It is also urged that from the year 2011 to 2014, M/s. DPIL had falsely shown purchase of cables and cores from M/s. Ruby Cables Ltd. to the tune of ₹ 254.61 Cr. on the basis of false and forged invoices which were used for getting 22 Lcs issued from Bank of India. Brother of the applicant Amit Suresh Bhatnagar was one of the directors of M/s. Ruby Cables from 01.07.2013 to 06.08.2015. It is also urged that C.B.I. though has filed chargesheet in order to ascertain the identity of the auditor of the documents, private persons are required to be examined. There is an allegation of defrauding a consortium of 11 banks and 8 nonbanking financial institutions to the tune of ₹ 2654.40 Cr. As one of the directors of the firm, he has played an important and active role in the functioning and decision making of the company. 8.It is urged that the investigation is at the crucial stage, applicant accused may tamper with the evidences and there is a possibility of influencing the witnesses by the applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d this Court that no leniency be shown, considering the huge outstanding of the bank. He has urged that investigation is going on. He is agreed that chargesheet has already filed in this case, however, since further investigation is going on, the Court may not exercise the discretion of grant of regular bail. 13. At the time of withdrawal of the last application for regular bail, the time was given of three months in the month of January, 2019 to complete the investigation. However, when today, inquired from the learned Special Public Prosecutor, he has on inquiring from the Investigating Officer has replied that further investigation may take about 6 (six) months time to complete the investigation. This Court also had gone through the case diary, more particularly, of the period of post January, 2019, and therefore, also a pertinent query was raised to the learned Special Public Prosecutor as to whether the further investigation is not based on documentary evidences and whether the apprehension of tampering can be sustained for denying the bail to the applicant. 14. During the course of the hearing, the details of the properties which have been attached by the Enforcement Di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 24,750 Amit Bhatnagar/Mona Bhatnagar 10 The Address Priyalaxmi Mill Compound, Ahead of Arunoday Cross Roads, Alkapuri, Vadodara R.S. No. 609 bearing city survey no. 3412 of Village Kasba, Dist. Vadodara, Tower B Flat No. 801 802 {₹ 21850000 x 2} 4,37,00,000 Amit Bhatnagar 11 R. S no. 4/Part, Sheet no. 12, City survey no. 500. Janki Apartment, 2nd Floor, Flat no. 102, Opp. Yogi Amrut Reliance Fresh Near C.H. Jewellers HDFC bank, Alkapuri, Vadodara 42,30,000 Amit Bhatnagar 12 R.S 217/P, Opp. Greenwood, New Alkapuri, Vadodara (Front Sidewest side Direction) Land admeasruing 1793.17 Sq.M. Building 11,37,16,000 Sumit Bhatnagar/Richa Bhatnagar 13 The Address Priyalaxmi Mill Compound, Ahead of Arunoday Cross Roads, Alkapuri, Vadodara R.S. No.609 bearing city survey no. 3412 of Village Kasba, Dist. Vadodara Tower B Flat No. 701 702 {₹ 21850000 x 2} 4,37,00,000 Amit Bhatnagar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 20 Millennium, opp. Navrachna University, VasnaBhayli Road, Vadodara R. Survey No. 2566, 2567 2568, Block No. 1769 of Village Bhayli, Dist. Vadodara, Tower C2, 3000 Sq. Ft per unit. Flat No. 601, 701, 801, 901 1001 (1 Unit) 902 1002 (1 unit) {₹ 7150000/x 5 Units} 3,57,50,000 Northway spaces ltd(earlier Mayfair Spaces Ltd.) 21 Millennium, opp. Navrachna University, VasnaBhayli Road, Vadodara R. Survey No. 2566, 2567 2568, Block No. 1769 of Village Bhayli, Dist. Vadodara, Tower C33000 Sq. Ft per unit. Flat No. 601, 701, 801, 901 1001 (1 Unit) {₹ 71,50,000/x 1} 71,50,000 Northway spaces ltd(earlier Mayfair Spaces Ltd.) 22 Millennium, opp. Navrachna University, VasnaBhayli Road, Vadodara R. Survey No. 2566, 2567 2568, Block No. 1769 of Village Bhayli, Dist. Vadodara, Tower B11500 Sq. Ft 3 BHK per unit. Flat No. 201, 202, 601, 701, 801, 901, 1001, 1101 1102 {3375000 x 9} 3,03,75,000 Northway spaces ltd(earlier Mayfair Spaces Ltd.) 23 Millennium, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 20437 Sq. M) 30,65,55,000 Northway Spaces Ltd.(earlier Mayfair Spaces Ltd.) 30 Residential land at Block S No. 83, Village Kalali, District Vadodara (admeasuring 7487 Sq. M) 11,97,92,000 Northway Spaces Ltd.(earlier Mayfair Spaces Ltd.) Total 11,22,72,08,030 15. This Court has heard the learned counsels on both the sides and had also perused the order passed under the Prevention of Money Laundering Act, 2002. It could be noticed that in relation to those properties attached under the PMLA Act, 2002, the attachment was initially for the period of 180 days. It is given to understand that later on the said order was confirmed. This Court, therefore, on 12.06.2019 raised a specific query raised as to whether there are any other properties, other than those reflected in the order under the PMLA Act and those which have been specifically reflected in the list of properties tendered by the C.B.I. 15.1 The CBI was also asked as to whether it was contemplating to attach any property and whether any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Survey No.657, Mouje Atladara, Vadodara (Office No.A204, 301 and 307) Corporate Park 14 Suresh Narayan Bhatnagar Survey No.657, Mouje Atladara, Vadodara. (Office No.A503 510)Corporate Park 15 Mona Bhatnagar Survey No.657, Mouje Atladara, Vadodara. (Shop No.AGF01 and AFF101) Corporate Park 16 Sumit Suresh Bhatnagar Survey No.657, Mouje Atladara, Vadodara. (Office No.310410) Corporate Park 17 Namo Narayan Bhatnagar B67, Oriental Apartment, Plot No.50, Sector9, Rohini, Delhi. 18 Suresh Narayan Bhatnagar B34, Goyal Park Apartment, Opp. Lad Society, Vastrapur, Ahmedabad. 19 M/s. Diamond Power Infrastructure Ltd. B62, Sixth Floor, Himalaya House, 23 Kasturba Gandhi Marg, New Delhi110001 20 Sumit Bhatnagar Plot No.1 2, Sumadhur , Survey No.217, Near Green Woods, GotriSevasi Road, New Alkapuri, Sevasi, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ti Bhatnagar 3 Flat No.PB6, Utopian Exotica, New Alkapuri, Sevasi Road, Vadodara Madhurilata Bhatnagar Rachita Bhatnagar This Court chose to direct the affidavit to be filed by the applicant specifying that over and above the details of the proceedings in both the lists which have been put forth before this Court and three properties which have been voluntarily disclosed, there are no other properties left with the applicant and his family members. 16. The jail authority had also been directed to produced the applicant today before this Court so that this affidavit could be filed before the Court decides the matter. 17. It is necessary to make a specific reference that since the applicant is in the judicial custody, this Court deemed it proper and fit to intimate all the possible consequences of any suppression or any attempt not to disclose the true facts before this Court. The Court also had verified their understanding of the English language and comprehensive capacity of the applicant of communication made by this Court to him as an under trial prisoner. After his having been communicated this aspect, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tage, when the investigating agency is further investigating into the matter, that instead of granting the regular bail to the present applicant, it is appropriate and equitable in wake of the chargesheet having been laid in this case in the month of July, 2018, to grant him interim bail with certain stringent conditions and more particularly the applicant is having agreed not to transfer in any mode or manner any of the properties which are enlisted by different list before this Court, to grant them interim bail for the period of three months for now. 20. Learned advocate, Mr.Virat Popat appearing for the applicant has emphatically urged this Court that other coaccused who have graver role than that of the present applicant have already been granted regular bail. Moreover, they have emphasized on the ratio laid down in various matters more particularly in case of Sanjay Chandra vs. Central Bureau of Investigation, (2012) 1 SCC 40. Following the ratio which has been relied upon in support of the submissions: 23.Apart from the question of prevention being the object of a refusal of bail, one must not lose sight of the fact that any imprisonment before conviction has a substan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the custody of various Banks. The Court is also conscious of the well laid down principle of 'bail and not jail' where more particularly there are rival claims of loss being not on account of any fraud committed with the Bank, but because of the various factors affecting the market so also the aspect that the chargesheet has been filed long ago and there is no likely hood of the trial getting over with such bulky volume of evidence and numbers of witnesses in a near future. The matters which are investigated by C.B.I. since involving serious question, the trial is likely to take a longer time. However, in this set of facts and circumstances, it is deemed appropriate and equitable to enlarge the applicant on interim bail rather than granting regular bail, at this stage, and allow the investigating agency to complete its task. It will also give an opportunity to the Court to monitor the pace of investigation and the conduct of the accused during the course of further investigation. This will uphold the right of individual liberty and yet will not stultify in any manner the right of investigating agency to further investigate. 22. For the foregoing reasons, this application ..... X X X X Extracts X X X X X X X X Extracts X X X X
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