The seriousness of misappropriation of public funds and the necessity of custodial interrogation for effective investigation.

1. These petitions have been filed praying for grant of anticipatory bail in F.I.R No. 4/2002 registered in Police Station, Vigilance Organisation Kashmir, Srinagar.

2. Since the ground, submission and prayer in all the petitions are similar and the respondents have adopted the same stand for cancellation of anticipatory bail as objections to all the applications, therefore all the applications will be governed by this common order.

3. The record reveals that Government of India evolved a scheme, to waive off individual loans upto the tune of Rs. 50,000/- drawn by pity trader from bank upto 30.6.1996. In order to protect the interest of the banks, the Government of India decided to compensate the banks by reimbursement of the loan amount. In pursuance of this scheme, it is alleged that officers/officials of the Central Cooperative Bank operating in the districts of Anantnag and Pulwama in 25 branches of the bank prepared highly inflated bills of Rs. 11,69.67 crores in pursuance of which the Central Government released an amount of Rs. 10,85.82 crores. It is alleged that the officers/ officials of these banks, prepared not only highly inflated claims, but projected that the loans have been drawn by the persons who were non-existing in order to cause wrongful loss to the government and wrongful gaint to the said officers. It is also alleged that lacs of rupees were shown adjusted under Agriculture Sector, which sector, as per the scheme, was not eligible for the said benefit. On these irregularities FIR Under No. 4 of 2002 was filed with Vigilance Organisation Kashmir, in which Gulam Mustafa Wani, Farooq Ahmed Khan (General Managers of Central Co-operative Bank Anantnag) Gulam Hassan Lone, Mohammad Yousuf Zargar, Mohammad Abdullah Rather Gulam Nabi Darzi and Nazir Ahmed Pandit were named as main accused instrumental in preperation/adjustment of ineligible non-existing borrowers for securing illegal benefits, to the extent of Rs. 10,85.82 crores.

4. In the petitions seeking anticipatory bail, it is submitted that the petitioners are innocent; they have not committed any offence; their names are not mentioned in the FIR; they were not incharge of any record or disbursement of the money and as such they may be saved from harrasment and arrest by the Vigilance Organisation in the said FIR.

5. Heard learned counsel for the parties at length.

Learned counsel for the petitioners has submitted that the petitioner have not committed any mis-appropriation or embezzlement of the Goverment money; the entire money is lying safe with the respondents; the petitioners are co-operating, by being actually present with the Investigating agency for any recovery or evidence. The petitioners are respectable law abiding, senior citizens of the state and there is no apprehension of their absconding or keeping away from the Investigating Agency. On these grounds, it is submitted that the petitioners be admitted to bail in anticipation of their arrest.

6. On the other hand, the stand and submission of learned counsel for the respondents is that the petitioner as officer officials of the Central co-operative Bank at Anantnag and Pulwama, prepared ficticious claims in order to swindle the Government of an amount of Rs. 10,85.82 crores. The huge public money was drawn either by showing names of ficticious loanees or by misues and abuse of their official positions by adjusting the amount under Agriculture sector, when the petitioner knew that the loan drawn under Agriculture sector was not eligible for adjustment under the debit relief scheme. Besides the involvement of person named in the FIR the direct involvement of the petitioner is also made out FIR is meant to start the investigation process the plea taken by petitoners that they are not named in the FIR so they are not involved in any allegations, is not legally sustainable because their active involvement is made out. The petitioners have concealed the officials record which is evidence in the present off

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