The court granted anticipatory bail, emphasizing the importance of individual freedom and questioning the credibility of delayed accusations in fraud cases.

ORDER :

This Criminal Petition, under Section 482 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (for short ‘the BNSS’), has been filed on behalf of the petitioner/accused No.1 to grant anticipatory bail in connection with Crime No.30 of 2024 of CID PS., Mangalagiri.

2. A case has been registered against the petitioner/accused No.1 and other accused for the offences punishable under Sections 506, 384, 420, 109, 467, 120B read with 34 of the Indian Penal Code, 1860 (for short, ‘IPC’) and Section 111 of the Bharatiya Nyaya Sanhita, 2023 (for brevity ‘BNS’).

3. Pursuant to a report dated 02.12.2024 lodged by 2nd respondent/defacto complainant, the subject crime came to be registered. The allegations, in brief, are as follows:

(a) M/s. Kakinada Seaports Limited (for short, ‘KSPL’) is a concessionaire from the Government of Andhra Pradesh (for short, ‘GoAP’) vide Concession Agreement dated 19.03.1999, to carry on business of Kakinada Deep Water Port (for short, ‘KDWP’). KSPL made huge investments and developed KDWP. It became a profit-making company. M/s. Kakinada SEZ Limited (for short, ‘KSEZ’) acquired 8320 acres of land in various villages around Kakinada for setting up of SEZ and the Government of India also granted permission to set up multiproduct SEZ. The shareholders in the said company are M/s. Kakinada Infrastructure Holdings Private Limited (for short, ‘KIHPL’), M/s. Veda Infra Products (India) Private Limited and 2nd respondent/defacto complainant in personal capacity, altogether holding 48.74% shares, and the rest of the shareholding was by M/s. GMR SEZ and Ports Holdings Limited. KSEZ borrowed about Rs.2,000 crores, by way of inter-corporate deposits or sub-debts from GMR Group, for the purpose of undertaking acquisition of land, development of infrastructure, etc. As GMR Group has substantial interest in addition to 51% of shareholding and to avoid liabilities arising out of the debt and not been able to earn any income from KSEZ, KVR Group desired to part with their shares, and after negotiations between GMG Group and group of 2nd respondent/defacto complainant, it was agreed that GMR would pay Rs.400 crores for acquisition of his 48.74% of the shareholding and an agreement was executed by the parties on 22.10.2019. KIHPL is a group investment company, which holds 41.12% of shareholding in KSPL and 48.74% (along with KVR Group), in KSEZ. KIHPL is totally held by 2nd respondent and his family members.

(b) After change of regime in GoAP in 2019 general elections, KSPL was not receiving co-operation from the Directors of the Port/AP Maritime Board in conduct of operations. KSPL is paying 22% of gross earnings of the company as revenue share to the State Government. The company had been paying the revenue share to the GoAP without any default. In addition to the calculations made by the Company to arrive at the gross earnings, the GoAP is also conducting audit of the revenues of the Company for determining the gross revenue as per the Concession Agreement. There was never substantial difference between the figures arrived at and paid by the Company and the determination by the audit authorities of the GoAP.

(c) While so, the KSPL received a Letter, dated13.11.2019 from the GoAP, appointing M/s. PKF Sridhar & Santhanam LLP (for short, ‘PKF’) for conducting special audits for PPP Ports, and the KSPL was called upon to furnish the entire data for the Financial Years ending 31.03.2015 to 31.03.2019, and the audit company called for records of the company, visited port office and started conducting the special audit. The GoAP vide Letter, dated 04.12.2019 informed the Port Company that it had appointed M/s. KROLL India, a Bombay based consulting firm, for conducting forensic audit in respect of KSPL and directed the company to furnish all the required documents, to enable smooth conduct of forensic audit. Accordingly, the Company furnished all the records. A team of said KROLL India came to Kakinada and obtained requisite documen