The court emphasized the necessity for fair investigation and the importance of evidence in determining criminal liability in cases of alleged conspiracy and fraud in loan sanctioning processes.

JUDGMENT :

CHAITALI CHATTERJEE DAS, J.

1. This is an application under Section 401 and 482 of the Code of Criminal Procedure filed by C.B.I against an order dated 28.11.2014 passed by the Learned 3rd Special Judge, CBI, Bankshall Court, Kolkata in Special Case No. 16 of 2010 arising out of RLBSK 2009E003 under Section 120 B.R/W 420/467/468/471 of the Indian Penal Code and Section 13 (2) of the P.C Act1988.

The genesis of the case is as follows :

2. The instant case being RLBSK 2009E003, emanated on the basis of a written complaint dated 15.1.2009 filed by the General Manager and Chief Vigilance Officer, Canara Bank, against 9 accused persons with allegations inter alia that M/s. Raiganj solvent oil industries, Pvt. Ltd. Raiganj, promoted and managed by Rajkumar Rathi with Santosh Devi Rathi as Director, already a defaulter at SBI, Raiganj approached the Burra Bazar Branch, Kolkata of Canara Bank for credit facilities. The company was sanctioned with the following limits;-

OCC Rs. 375 Lakhs (for upcoming edible oil refinery project) primary security Submit; OBDB –Rs. 90 Lakhs Term Loan of Rs. 450 Lakhs The limits of the loan were sanctioned against

1) Primary Security of hypothecation of stocks and Books debt

2) Collateral security of-

a) EMT of industrial land and shades (what Rs.339 lakhs)

b) Hypothecation of plant and missionary c) EMT of residential property at Raiganj town (worth Rs.80 lakhs)

3) Personal Guarantee of Directors-Shri R.K Ranchi, Managing Director and Smt. S. Devi, Director.

Subsequently, the accounts became overdue and slip to NPA and accordingly an investigation conducted, and it was revealed that the party has fraudulently availed the limits with certain facts like having its registered office at Karanjora . It further revealed that the party developed a connection with the Burra Bazar branch through Karunamoyee Goswami, local youth who acted as a middle man and the company had no way, business connection and only to get the loan sanctioned from Kolkata simply changed the address of the registered office From Raiganj to Kolkata suburbs at Garia. The party made a turnover of Rs. 9.50 lakhs in current account during 5 months from November 2005 to March 2 006 mostly in cash and the cash deposited in current account was withdrawn on the same day only to show turnover in the account. The current account was introduced by M/s. Rigid Auto industry maintaining account with their Grand Street, Kolkata branch and enjoying OCC limit with unsatisfactory operation. That limit was also permitted by Shri K.D Bakshi the then Manager during his tenure and the account is NPA with liability of Rs.41.37 lakhs .The company also engaged a middle man Gunadhar Naskar, who paid Rs.14.50 lakhs from the term loan account and Rs.37.20 lakhs paid to other middleman Karunaamaya Goswami from OCC account who is relative of Shri Goswami and the elder brother of Shri Goswami were paid Rs.1 lakh each.

3. Further allegation made that a number of transactions revealed showing large diversion of funds from the accounts by the company and they had no genuine trade transactions and they no business connections with the company. The company submitted audited balance sheet for the year 2003, 2004 and 2005 and the balance sheets were not genuine for all the three years. Accordingly, there were several lapses on the part of the branch official, which facilitated the fund like recommending the proposal for a huge amount to a unit situated 350 km away from Kolkata knowing fully well about the difficulties in monitoring, especially in the case of term loan.

4. On the basis