Judgment

Raveendran, J.—Leave granted. The appellants have challenged the order dated 15.12.2003 passed by the High Court of Gujarat at Ahmedabad, rejecting their application for bail filed under Section 439 of the Code of Criminal Procedure.

2. First appellant was one of the Directors of M/s Charotar Nagarik Sahakari Bank Limited [for short ‘the Bank’]. He became a shareholder of the bank on 18.10.99 and was appointed as a Director on the same day. It is alleged that one Chiman Sathi, Managing Director of the said bank, first appellant and other Directors of the bank siphoned off the funds of the bank by bogus loans and fictitious letters of credit in the name of their friends, relatives, associates and name-lender companies either without any security or with wholly inadequate security.

3. The wives of appellant Nos. 1 and 2 along with appellant No. 3 are the Directors of M/s Bhavika Creations which is one of the beneficiaries of the illegal and collusive loans/credit facilities given by the Bank. It is alleged that appellant Nos. 2 & 3 actively assisted and supported appellant No. 1 in several fraudulent transactions in the name of Bhavika Creations, Jayraj Multimedia, Hindustan Ea