Public officers misusing their authority to sanction loans and misappropriate funds are liable for criminal conspiracy and corruption under IPC and the Prevention of Corruption Act.

JUDGMENT :

A. Badharudeen, J.

The 1^st accused in C.C.No.4 of 2003 on the files of the Court of the Special Judge (SPF/CBI)-I, Ernakulam has filed this appeal challenging conviction and sentence imposed against him as per judgment dated 24.12.2007.

2. Heard the learned counsel for the appellant and the learned Special Public Prosecutor appearing for CBI/the prosecution.

3. The prosecution case is that accused Nos.1 and 2 hatched conspiracy to grant loan of Rs.5 lakhs in the name of Cheriyan Varghese, the father of the 2^nd accused and later this loan was released in the account of the 2^nd accused. This loan was sanctioned without the knowledge of the Zonal Office. The further case is that in pursuance of the criminal conspiracy, in order to secure more funds for the personal needs of the 2^nd accused, the 1^st accused sanctioned Housing loan for Rs.5 lakhs in the name of Cheriyan Varghese, the father of the 2^nd accused. The amount under housing loan was released and it was credited in the CC account of the 2^nd accused. This was done without the knowledge of Zonal office. The said amount was availed by the 2^nd accused for his personal needs. The 1^st accused in pursuance of the criminal conspiracy by abusing his official position dishonestly sanctioned Rs.1 lakh as clean overdraft to the 2^nd accused on 15.11.1997. The amount sanctioned under the above overdraft was transferred to the Cash Credit account No.201 of the 2^nd accused. The 1^st accused in pursuance of the criminal conspiracy dishonestly sanctioned two clean Overdrafts of Rs.2 Iakhs each in the name of one Varghese Daniel, the brother-in-law of the 2^nd accused and one M.G.Baby, a close associate of the 2^nd accused. Both of them were strangers to the Bank and these loans were sanctioned by the 1^st accused in order to provide funds to the 2^nd accused. The 1^st accused also dishonestly and by abusing his official position purchased clean bills presented by the 2^nd accused in his cash credit account without intimating the Zonal office, to the tune of Rs.2 lakhs on 19.01.1998, Rs.2.5 lakhs on 06.02.1998, Rs.1.6 lakhs on 16.03.1998, Rs.2 lakhs on 03.04.1998 and Rs.2.25 lakhs on 16.04.1998. The cheque purchased on 16.04.1998 for Rs.2.25 lakhs was returned unpaid. Thereafter one V.G.Narayanan Unnithan was taken by the 2^nd accused to the 1^st accused intimating him that the Manager was arranging loan from SBT, Pandalam. The 1^st accused Ramachandran and the 2^nd accused Moncy Cheriyan, in furtherance of the said conspiracy requested Narayanan Unnithan to make a transfer of 12.50 cents of land belonging to him and his wife, Meera to a person in Pandalam area in order to sanction a loan against the said transfer. Narayanan Unnithan was told by the 1^st accused and 2^nd accused that a loan would be sanctioned in the name of the buyer and the proceeds of the loan would be given to Narayanan Unnithan as the seller of the property. Accordingly, the property was transferred in the name of one Simon Daniel. Then the 1^st accused dishonestly sanctioned housing loan to the tune of Rs.4 lakhs and by abusing his official position. The amount was transferred to the joint SB Account of Narayanan Unnithan and Meera and the cheque book issued to this account was kept by the 1^st accused. On 01.03.1999, three cheques of the above account in the name of Narayanan Unnithan and Meera amounting to Rs.2,25,800/-, Rs.84,200/- and Rs.90,000/- were fraudulently obtained from Narayanan Unnithan