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TMI Blog2019 (10) TMI 1523X X X X Extracts X X X X X X X X Extracts X X X X ..... oners are now in dispute with the Madhya Pradesh Road Development Corporation Limited for termination of the said contract. The other allegation with regard to diversion of funds is there. Sanction and disbursement of the loan is not in dispute. The allegation is that the petitioners failed to comply with the contract by not purchasing machinery and other things and hypothecating the same with the Bank. But, the Bank in the meanwhile has settled the claim at Rs.40 Crore in One Time Settlement basis out of which Rs.30 Crore has already been paid by the petitioners leaving the balance of Rs.10 crore to be paid by the end of December, 2019. The entire evidence is documentary in nature. In the context of the allegation that the petitioners d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arrest bail being indicted in CBI/NS FC No.RCBSK2018E0003 dated 09.04.2018, which has been registered for alleged commission of offences under Sections 13(2) read with Section 13(1)(c) (d) of the Prevention of Corruption Act, 1988, pending on the file of the learned Special Chief Judge, CBI, Bhubaneswar. 2. Heard the learned counsel appearing for the petitioners and Shri A.K. Bose, learned Asst. Solicitor General of India appearing for the Republic of India (CBI). 3. It appears from the materials available on record that M/s. ARSS Infrastructure Projects Limited is a Construction Company having its registered office at Bhubaneswar. It launched a special purpose vehicle known as M/s. ARSS Damoh-Hirapur Tolls Pvt. Limited to undertake t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anch, IDCO House, Bhubaneswar. The amount was disbursed for purchasing of equipment, materials etc. for execution of the work and for hypothecating the same as security for the loan, as agreed. But, the company even after disbursement of the loan and despite insistence of the Bank, did not take steps to execute the work and complete the same as targeted by the Madhya Pradesh Road Development Corporation. When in spite of several reminders of the Madhya Pradesh Road Development Corporation, the work was not executed, the agreement was cancelled. The loan became a bad debt / NPA. As alleged, the loan amount was diverted by the company and the conditions of the agreement were not complied with. Alleging that the borrower and the guarantor comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n is purely commercial one and due to certain unforeseen circumstances the work executed by them could not be completed, for which they sustained huge loss and that it is nobody s case that they did not carry on the execution of the work, but for non-completion of the work in time their contract has been terminated. The learned counsel further submits that the allegation that fund was diverted, is without any substance inasmuch as the petitioners have sufficient plant and machinery and violation of any of the terms and conditions of the contract by them should not be viewed adversely when the petitioners have already executed certain portion of works, and dispute is going on between them and Madhya Pradesh Government for termination of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be paid by the petitioners by end of December, 2019. It is also not brought to the notice of this Court much less at his instance that the petitioners are likely to flee from justice if released on pre-arrest bail or there is any flight risk. Further, it is also not disputed that the entire allegations of the prosecution are based on documentary evidence with regard to breach of the contract, diversion of fund etc. and the petitioners have no access to those documents. Hence, there is no apprehension of their tampering with the evidence. 8. There can be no manner of doubt that economic offences are to be held in a different manner. It has been held by the Apex Court in the case Y.S. Jagan Mohan Reddy vrs. C.B.I., reported in AIR 2013 S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce or threat to free and fair investigation. Custodial interrogation of the petitioners appears to this Court to be not likely to yield any more result in investigation, considering the nature of allegation for collection of further evidence. The petitioners are running their business and, as such, there is least chance of their fleeing from investigation or justice. It is also never the case of the C.B.I. that the petitioners are not cooperating with the investigation. 10. In the context of the allegation that the petitioners diverted the loan amount by not utilizing the same for execution of the work, and thereby impeded chance of the Bank to get back the amount, it may be reiterated that the Bank has already worked out one time settl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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