The Banking Regulation Act mandates holding individuals responsible for knowingly making false statements affecting regulatory compliance, constituting a punishable offence.

JUDGMENT

Anu Malhotra, J. The petitioner Mr. Inder Pal Singh working as a General Manager to the PNB as per the averments made in the petition who was posted at the International Bank Division (IBD), Bhikaji Cama Place during the period October, 2016 to June, 2017 seeks to assail the impugned order dated 11.03.2019 of the learned MM-05, PHC in CC No.16711/2018 qua him wherein in the said complaint, he was arrayed as the accused No.10 and has also sought the quashing of that criminal complaint qua himself arrayed as accused no.10 to the complaint filed by the RBI as well as all actions pursuant thereto.

2. The connected petition in the matter is Crl.M.C.2696/2019 vide which the PNB, the petitioner thereof had assailed the very same order dated 11.03.2019 in CC No.16711/2018 whereby apart from the instant petitioner arrayed as the accused No.10 to that complaint bearing No.16711/2018, there were 10 other accused persons summoned inclusive of the PNB i.e. the petitioner of Crl.M.C.2696/2019 with all the accused persons inclusive of the present petitioner having been sought to be summoned for the offence punishable under Section 46 of the Banking Regulation Act, 1949.

3. The allegations in Crl.M.C.2696/2019 which relate to the contention raised on behalf of the RBI qua the accused persons arrayed in the complaint case of the commission of offence punishable under Section 46 of the Banking Regulation Act, 1949 are the same as is asserted against the present petitioner Shri I P Singh with specific observations made in para 8k of CC No.16711/2018 to the effect:

"That in response to the aforementioned question contained in letter dated 27.10.2016, the Accused No. 1 gave following false and misleading answer vide its letter dated 31.10.2016:

"Outward SWIFT message is sent after entering in CBS and passing/verification by two officials, without the entry in CBS, no financial SWIFT message can be sent. However, reconciliation to verify that all outward messages transmitted by the bank are captured in CBS is being done by AD branches."

This statement, which was approved by Accused no. 4, 5, 10& 11, made to the Reserve Bank of India by on behalf of Accused No.l bank is utterly and completely false."

(emphasis supplied)

4. The impugned order dated 11.03.2019 in CC No.16711/2018 reads to the effect:

"Present complainant u/s 200 Cr.P.C has been filed on behalf of Reserve Bank of India. As per case of complainant, complainant corporation is a statutory corporation and as per Section 35of the Banking Regulation Act, 1949, complainant is vested with the power to cause an inspection by one or more of its officers of any banking company and its books and accounts.

It is submitted that proposed accused no. 1 is a bank and proposed accused no. 2 was appointed as Managing Director and CEO of proposed accused no. 1 by Government of India and she worked in said capacity from 14th August, 2015 till 4th May, 2017. It is submitted that proposed accused no. 3 is former Executive Director of proposed accused no. 1 and he worked in said capacity from 13th March, 2014 till 28th February, 2018 and proposed accused no. 4 is Executive Director of proposed accused no. 1 and he is working in said capacity since 15th September, 2016. It is submitted that proposed accused no. 5 is General Manger (under suspension), proposed accused no. 6 is General Manager, (retired) & proposed accused no. 7 is Deputy General Manager (retired), proposed accused no. 8 is General Manager, proposed accused no. 9 & 10 are Assistant General Manager and proposed accused no. 11 is Chief Manager of proposed accused no. 1.

It is submitted that during the period