IMPORTANT POINT
Sec. 17-A of the Prevention of Corruption Act requires prior approval for investigations into offenses by public servants only when those offenses are related to their official functions, and such approval can be validly granted by the Board of Directors of the concerned organization.

JUDGMENT/ORDER

1. The petitioner has invoked Article 227 of Constitution of India and Sec. 482 of Code of Criminal Procedure and sought following reliefs.

<WXY>a. That the Hon'ble Court may be pleased to set aside and the order dtd. 14/8/2021 passed by the Ld. Special Judge whereby the Ld. Special Judge dismissed the Application filed by the petitioner for seeking directions to the CBI not to proceed in the matter in non-compliance of approval, as contemplated under Sec. 17-A of the Prevention of Corruption Act.

b. That this Hon'ble Court be pleased to issue a Writ of Certiorari and/or a Writ in the nature of Certiorari or any other appropriate writ, necessary orders and directions thereby declaring that the investigation, including custody of the petitioner conducted by the CBI in the present matter is without valid sanction is illegal, void ab-intitio and no est in the eyes of law.

c. To further direct the respondent not to proceed in the matter in non-compliance of a proper approval, as contemplated under Sec. 17-A of the Prevention of Corruption Act.</WXY>

2. The First Information Report (for short 'FIR') was registered by Respondent No.1/CBI on 12/3/2020 vide R.C. BA1/2020/A0004 for offence under Ss. 120-B r/w 420 of Indian Penal Code (for short 'IPC') and Sec. 7, 11 and 12 of Prevention of Corruption Act, 1988 (for Short ' P. C. Act') against Shri. Rana Kapoor (Petitioner) then MD and CEO of Yes Bank Ltd., Shri. Gautam Thapar, Smt. Bindu Rana Kapoor and others.

3. The brief allegations in the FIR are as follows:

<WXY>(a) The FIR bearing No.RC BA1/2020/A0004 was registered by CBI/ACB, Mumbai on 12/3/2020 for offence under Sec. 120B r/w 420 of Indian Penal Code and under Ss. 7, 11 and 12 of Prevention of Corruption Act, 1988 ('P.C.Act' for short);(b)It is alleged that the applicant was the Managing Director and Chief Executive Officer of YES Bank Limited ('YBL'). He had obtained illegal gratification in the form of property in prime location in New Delhi at much less then realizable market value belonging to M/s. Avantha Reality Limited ('ARL') for a loan taken by ARL from YBL for extending concessions, relaxations and waivers in the already existing credit facilities provided to Avantha Group ('AG;) Companies and for advancing new/additional loans to them. The petitioner entered into criminal conspiracy with his wife Smt. Bindu Kapoor and Mr.Gautam Thapar-Promotor of AG Companies, for the purpose of obtaining illegal gratification;

(c) Information reveals that M/s. Avantha Holding Limited had obtained credit facilities from ICICI Bank Ltd and Development Credit Bank ('DCB') against collateral security of the immovable property at 40, Amrita Shergil Marg, New Delhi. This property is owned by ARL and is lavish bungalow spread over an area of 1.2 acres approximately in prime location in Delhi. The valuation of the property in the loan books of ICICI Bank was done at Rs.550.00 crores. M/s. Avantha Holding Ltd and ARL are part of AG Companies;

(d) Information reveals that there was principal outstanding ofRs.350 crores to ICICI Bank and Rs.30.00 crores to DCB in March-2016 against charge of the above property; (e) As a part of conspiracy, YES Bank sanctioned loan of Rs.400.00 crores to ARL in March-2016 as lease rental discounting (LRD) for a period of ten years. In lease rental discounting, the discounted values of future lease rentals proposed to be received by the borrower by leasing its properties are sanctioned as loan amount. For this purpose ARL is stated to have entered into lease rental agreement with M/s. BILT Graphics Paper Pvt. Ltd ('BGPPL'), another AG Company. As per agreement, lease rental of Rs.65.00 crore per annum was payable by BGPPL to ARL. The lease rental agreement was executed on 22/3/2016, just two days prior to sanction of loan of Rs.400.00 crores by YES Bank to ARL;

(f) Earlier the aforesaid property was leased to M/s. Ballarpur Industries Ltd (BILT) on a lease rent. The proposed increase of rent of Rs.1.02 c