IMPORTANT POINT
Court should be more careful in granting bail in case of economic offences.

JUDGMENT

P.Sathasivam, J.

1) Leave granted.

2) This appeal is directed against the final judgment and order dated 24.01.2013 passed by the High Court of Judicature of Andhra Pradesh at Hyderabad in Criminal Petition No. 8750 of 2012 in R.C. 19(A)/2011-CBI- Hyderabad, whereby the High Court dismissed the petition filed by the appellant herein for grant of bail.

3) The only question posed for consideration is whether the appellant-herein has made out a case for bail.

Brief facts:

4) (a) On the orders of the High Court of Andhra Pradesh in Writ Petition Nos. 794, 6604 and 6979 of 2011 dated 10.08.2011, the Central Bureau of Investigation (in short “the CBI”), Hyderabad, registered a case being R.C. No. 19(A)/2011-CBI-Hyderabad dated 17.08.2011 under Section 120B read with Sections 420, 409 and 477-A of the Indian Penal Code, 1860 (for short ‘IPC’) and Section 13(2) read with Section 13(1)(c) and (d) of the Prevention of Corruption Act, 1988 (in short “the PC Act”) against Y.S. Jagan Mohan Reddy (A-1), Member of Parliament and 73 others.

(b) The appellant-Y.S. Jagan Mohan Reddy was named as an accused at Sl. No. 1 in the FIR dated 17.08.2011 (after the chargesheet was framed, he was arrayed as A-1 and hereinafter, he will be referred to as A-1).

(c) During investigation, it was revealed that Y.S. Jagan Mohan Reddy (A-1), son of Late Dr. Y.S. Rajasekhara Reddy, the then Chief Minister of Andhra Pradesh, has adopted several ingenious ways to amass illegal wealth which resulted in great public injury. The then Chief Minister of the State abused his public office to the benefit of his son Y.S. Jagan Mohan Reddy (A-1). Since May, 2004, A-1 started floating a number of companies including M/s Jagathi Publications Pvt. Ltd., which 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, Y.S. Jagan Mohan Reddy (A-1) was designated as the Authorised Signatory to operate the Bank accounts of the said Company. He was appointed as a Director and Chairman with effect from 21.06.2007. It is alleged that A-1 floated M/s Jagathi Publications Pvt. Ltd. with an objective of conducting media business with the ill-gotten wealth. Most of the shareholders were alleged to be the benamis of Y.S. Jagan Mohan Reddy (A-1). Further, as a quid pro quo to these investments, the benefits were received by various investors including the companies/individuals from the decisions of the State Government in allotment of lands for Special Economic Zones (SEZs), contracts for irrigation projects, special relaxations/permissions for real estate ventures, mines etc. It is further revealed that Y.S. Jagan Mohan Reddy (A-1) laundered the bribe money by routing it through various individuals and companies and getting investments made by them in his companies at a high premium.

(d) On 31.03.2012, 23.04.2012 and 07.05.2012, the CBI filed first, second and third charge sheet(s) respectively before the Special Judge for CBI Cases, Hyderabad and the appellant was arrayed as A-1 in all the charge sheets. The Principal Special Judge for CBI Cases took cognizance of the charge sheet dated 31.03.2012 which was numbered as CC No. 8 of 2012. The appellant was arrested on 27.05.2012 for his involvement and complicity in the case and presently, he is in judicial custody. On 29.05.2012 and 30.05.2012, the Principal Special Judge for CBI Cases took cognizance of second and third charge sheet(s) which were numbered as CC Nos. 9 and 10 of 2012 respectively.

(e) On 29.05.2012, the appellant filed Crl. M.P. No. 1055/2012 in CC No. 8 of 2012 before the Court of the Special Judge for CBI Cases at Hyderabad for grant of regular bail under Section 437 of the Code of Criminal Procedure, 1973 (in short ‘the Code’). The Special Judge, by order dated 01.06.2012, dismissed his application for bail.

(f) The CBI filed Criminal Petition Nos. 4743 and 4744 of 2012 before the High Court for the remand of A-1 for