Point of Law: It does not prima-facie appear that the grant of anticipatory bail would hinder or hamper the investigation as the material is documentary in nature and most of it is already in the possession of the investigating agency.

JUDGMENT :

CHANDRA DHARI SINGH, J.

1. The present application has been filed under section 439 of the Code of Criminal Procedure, 1973 on behalf of the petitioner/applicant praying for regular bail in FIR bearing No. 043/2021 registered at Police Station EOW Mandir Marg for the offences punishable under Sections 406/420/120B of the Indian Penal Code, 1860.

FACTS

2. As per the FIR the prosecution story is as follows:

(a) In the year, 2014, Mr. Vikas Chawla and Ms. Pooja Chawla, Directors of Auto Web Performance Cars Private Limited (hereinafter “Auto Web”) approached the Complainant at the office of HDFC Bank Limited at 2nd Floor, Indian Express Building, Bahadur Shah Zafar Marg, New Delhi-110002 for the grant of Credit Facilities in the nature of Inventory Funding and Cash Credit Limits (“CC Limit”) by the Complainant. It was represented that Auto Web was the Authorized Dealer of Hyundai (having dealership code (Hyundai): N1215) and engaged in the business of ‘sales’ and ‘service’ of vehicles manufactured by Hyundai since the year 2013.

(b) On the basis of the request and representation made by Mr. Vikas Chawla (director of Auto Web) and Ms. Pooja Chawla and the documents submitted by them, the Complainant processed and sanctioned the above-mentioned credit facilities to Auto Web, vide Sanction Letter dated 9th January, 2014. Consequent thereto, Loan Agreement dated 9th April, 2014 was executed between the Complainant and Auto Web, in relation to the above-mentioned facilities.

(c) Mr. Vikas Chawla/Petitioner herein signed the loan agreement in the capacity of Director of Auto Web Performance Cars Private Limited. The stocks of the vehicles (inventory) were the primary security of the complainant, in addition to the cross collateral (i.e. immovable property). Accordingly, from time to time, on the request of Vikas Chawla, and Ms. Pooja Chawla, Directors, existing facilities were modified/enhanced/renewed and other facilities were granted, on the basis of the documents (financial statements like balance-sheet, board resolutions, collateral security documents), to Auto-Web. Last renewal of the facilities was done by the complainant on 26th June, 2019. Pertinently, in all the financial statements (balance-sheets) submitted by Auto Web, it was shown that Auto Web was generating profits.

(d) As per the last enhancement/renewal, on 26th June, 2019 the complainant had sanctioned Rs. 15.00 crores towards Inventory funding, Rs. 1.50 crore as CC Limit and ad-hoc limits of Rs. 3.50 crore to Auto Web (Through its Director, Mr. Vikas Chawla and Ms. Pooja Chawla) duly utilized said limits sanctioned by the complainant.

(e) The purpose of availing the credit facility (inventory funding) as represented was to fund the inventory/stock to be purchased by the said dealership from the manufacturer (Hyundai Motors). Based on the request of the accused persons for disbursal of funds (from within the limit sanctioned by the complainant), the complainant used to disburse the amounts (as requested) directly into the account of the manufacturer, whereupon the stocks (Cars) got released to the dealer, which stock was hypothecated to the Complainant.

(f) In terms of the arrangement between the complainant and Auto Web, proceeds from the sale of the inventory (Cars) were to be credited into the inventory funding account of the dealer (as maintained with the complainant) for the purposes of repayment of the limits utilized by the dealer (i.e. interest and principal). As the complainant had funded the inventory, in terms of the agreement, the stocks were hypothecated to the complainant and the security for the repayment of the facilities granted by it.

(g) Around December, 2019 the officials of Bank noticed stress in the account of Auto Web and also observed certain gaps in stock audit report. The complainant made various attempts to follow-up with Mr. Vikas Chawla and Ms. Pooja Chawla for the regularization of the accounts by making the due payments to the Bank and a