The severity of economic offences and the completion of investigation were crucial in granting bail with stringent conditions.

1. The petitioner has been arrayed as accused No.5 in final report submitted in R.C.19 (A)/2011 for offences punishable under sections 120B r/w 379, 420, 427 & 447 IPC and also for an offence punishable under section 13 (2) r/w 13(1)(d) of the Prevention of Corruption Act, 1988 (for short, 'the P.C.Act'). He has been in judicial custody from 05.06.2013. He has sought for bail.

2. The aforestated final report is the outcome of investigation conducted in pursuance of the orders of Supreme Court dated 23.09.2011 in Special Leave (Civil) 7366-7367 & connected matters reading as hereunder:-"(iii) Vide the said report of CEC, it is further pointed out to this Court that massive illegal mining by a third party was being done in mining lease No.1111 of M/s.NMDC. That, despite various complaints to the numerous authorities in the State of Karnataka by M/s.NMDC no steps were taken to prevent that third party from resorting to massive illegal mining in mining lease No.1111 of M/s.NMDC till this court banned mining. These complaints were made against the third party, namely, M/s.Deccan Mining Syndicate ("DMS" for short) for encroaching into M/s.NMDC's mining lease area. Even the complaint lodged by M/s.NMDC against M/s.DMS to the Police Circle Inspector, Sandur on 10.07.2009 was interpolated (See Annexure R-1 to the Report being letter dated 15.09.2011 by M/s.NMDC Limited to CEC). We also want CBI to investigate the above illegalities including encroachment by M/s.Deccan Mining Syndicate in the area leased out to M/s.NMDC."

3. Based on the above order, CBI, ACB, Bangalore registered FIR in RC.19(A)/2011 for offences punishable under sections 120-B, 379, 411, 420, 427, 447, 468 & 471 IPC, for offences punishable under sections 13(2) r/w 13(1)(d) of P.C.Act, for an offence punishable under section 26 of the Indian Forest Act, 1927 and also for offences punishable under sections 21 r/w 4(1), 4(1)(A) & 23 of the Mines & Minerals (Development and Regulation) Act, 1957. 4

4. In brief, the allegations made against petitioner (accused No.5) in chargesheet and annexed documents are as follows:-

"Shri N Viswanathan (A-5) is a retired IAS officer of Karnataka cadre and he was the then Principal Secretary, Commerce and Industry Department from 26.06.1996 to 25.10.1999. He is responsible for submitting the proposal to Govt. of India without mentioning the intention of Govt. of Karnataka to change the sketch and suppressed the fact including the illegalities committed by M/s.DMSPL. This act committed by him with an intention to get renewal for M/s.DMSPL with a revised sketch to facilitate illegal mining. He had given illegal instructions to his subordinates to suppress the facts in the letter sent to Govt. of India. He also responsible for withdrawing the proposal from Govt. of India and dealt at Govt. of Karnataka resulted in renewal of mining lease to M/s.DMSPL with a revised sketch on 25.01.1999 which is against the MMDR Act and Mineral Concession Rules and thereby facilitated the illegal iron ore mining by M/s.DMSPL from the mining area of M/s.NMDC. This he had done with a conspiracy with other accused persons for which undue benefit has derived by the mine owners and facilitated the illegal iron ore mining which resulted in wrongful loss to the tune of Rs.1232 crores to the State exchequer and corresponding wrongful gain to accused persons."

5. The details of mining lease and subsequent renewals are stated thus:-

"f. M/s.Deccan Mining Syndicate Private Ltd. (DMSPL) was registered with ROC, Bangalore with the following Directors; viz. Shri SM Jain and Smt.Kamala Devi, later Shri Rajendra Kumar Jain S/o Shri S M Jain took over as the Managing Director of the Company consequent upon the death of his father, Shri S M Jain, on 01/05/2005. M/s.DMSPL took over the partnership firm M/s.DMS and all its liabilities w.e.f.25/09/1991. Thus, the Mining Lease no.636, initially granted in favour of Shri M J Boal on 19.05.1966, was renewed by the Dept. of