The Bench of Jusctice Jyotsna Rewal Dua passed this order today rejecting the bail applications of seven petitioners arrested by the police in connection with the loans disbursed to the bogus firm by the Kangra Central cooperative bank over a period of time.
These petitions under Sections 438 of Code of Criminal Procedure are in relation to FIR no.7/2021 dated 10.12.2021 under Sections 409, 420, 467, 468, 471, 120B of the Indian Penal Code and Section 13(1) of the Prevention of Corruption Act, registered at Police Station State Vigilance & Anti Corruption Bureau, Una, Himachal Pradesh.
The FIR emanates from an inquiry conducted by the State Vigilance Department on a complaint received through the office of ADGP/SV&ACB HP Shimla vide letter dated 20.12.2018 enclosing therein a letter dated 5.12.2018 of the Principal Secretary (Vigilance) to the Government of HP conveying approval of the Government to conduct detailed inquiry into the allegations that a loan of Rs. 19.50 Crores was disbursed to a bogus firm M/S UR Sinter Pvt. Ltd. Amb District Una ( hereinafter referred to as the company by the Kangra Central Cooperative Bank (KCCB for short).
The Court observed that irrespective of the issue as to whether the members of the Loan Committee are ‘public servants’ within the meaning of the Prevention of Corruption Act or not as contended by their Ld. Senior
Counsel, fact remains that they are facing accusations at present not only the Prevention of Corruption Act but also under the provisions of Indian Penal Code.
Looking to the nature and graveness of the accusations being faced by all the petitioners, their custodial interrogation cannot be refused at this initial stage of the investigation merely because the allegations pertain to economic offences or that according to the petitioners the investigating agency can statedly carry out further investigation only on the strength of documents collected by it, the order stated.
The inquiry into the matter was ordered in December 2018. It was completed in November 2020. The prosecution sanction was granted by the State in November 2021. The FIR was registered on 10.12.2021. Trail of entire loan amount disbursed to the Company is still being investigated by the investigating agency. Various firms linked with the loan amount & their accounts are still being investigated.
The extent of the role played by the members of the Loan Committee of the KCC Bank in the entire episode is still being investigated. According to the Ld. Advocate General, no meaningful cooperation has been extended by the petitioners to the investigating agency. As per one of the status reports petitioners Shivam Seth, Chetan Negi and Sunita Seth were not found to be residing at the addresses supplied by them. The matter is still being investigated by the Police.
The Court ruled that apprehension of the prosecution that there could be many more dubious transactions, there could be many more persons whose dubious role in the matter may come to light on custodial investigation from the petitioners and other accused persons, is well founded at this stage. "The petitioners are all well placed and influential persons. Their influencing the investigations and evidence also cannot be ruled out at this preliminary stage".
The Judge observed that for every single reason of the above observations, in my considered view, the custodial interrogation of the petitioners cannot be denied to the investigating agency at this stage. Their custodial interrogation is also necessary not only for protecting the interests of the bank but in the interest of public at large who deposit their hard earned money in the banks.
Hence all these petitions under Section 438 of Code of Criminal Procedure are dismissed, Judge ruled. "It is clarified that observations and expressions in this order shall not be construed as an opinion on the merits of the matter and the same shall remain confined only to the adjudication of the instant bail petitions".
