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2020 Supreme(J&K) 411
HIGH COURT OF JAMMU AND KASHMIR AT JAMMU
Sanjay Dhar, J.
(Through Virtual Mode)
Hilal Ahmad Mir
Versus
Anti-Corruption Bureau and Anr.
Bail App No.63/2020
Decided on 19-10-2020
For the Petitioner(s):Mr. M.Y. Bhat, Advocate
For the Respondent(s): Mr. B.A. Dar, Sr. AAG
Headnote:
Constitution of India1950 - Article 21 – Criminal Procedure Code1973- Section 173(8) – FIR – Punishment - State Cooperative Bank Limited fraudulently sanctioned loan of a non-existent Cooperative Society namely River Jhelum Cooperative House Building Society Ltd- loan was sanctioned to aforesaid Cooperative Society for purpose of construction of a Satellite Township at Srinagar- An amount out of sanctioned loan was released in favour Chairman of Cooperative Society and said amount was credited to account of Chairman of Cooperative Society who happens to be petitioner herein- Prior to sanction of loan petitioner had approached Jammu and Kashmir Cooperative Department for grant of financial assistance to tune for purpose of construction of Satellite Township of proprietary land located in outskirts of Srinagar City- application of petitioner was endorsed by n Secretary to Government Co-operative Department to Registrar Co-operative Societies J&K for taking up matter with concerned bank application along with recommendation in terms of letter was forwarded by Registrar Co-operative Societies J&K to Managing Director J&K State Co-operative Bank Ltd- Enclosing photocopy of certificate of registration of River Jhelum House Building Co-operative Society –Held, Court it is clear that economic offences are required to be dealt with strictly especially in matters relating to grant of bail- grant of bail in such cases particularly when whole conspiracy is still under investigation would be detrimental to public interest as well as to interest of State Court has to strike a balance between rights of accused to his liberty and interest of society- Having regard and circumstances peculiar to instant case as have been analyzed hereinbefore it would not only be premature but it would also be inappropriate to grant concession of bail to petitioner keeping in view seriousness of allegations against him and public interest Arunachal Pradesh and ors Supreme Court was not considering question of grant of bail but was considering matter regarding quashing of proceedings- Similar is case with State through principles laid down by Supreme Court in two cases cannot be made applicable to petitioner’s case at this stage because we cannot undertake in-depth analyses of prosecution case as same is impermissible while considering a bail application- Central Bureau of Investigation was complete and charge sheet had already been laid before trial Court but in instant case although charge sheet has been filed before trial court yet investigation of case is still in progress as clear from contents of charge sheet- Thus ratio laid down in referred by learned counsel for petitioner in support of his case is not applicable of instant case aforesaid analysis without expressing any opinion on merits of case Court of opinion that petitioner cannot be released on bail at this stage- Anti-Corruption Bureau is however directed to complete investigation and file supplementary charge sheet as early as possible preferably within a period of one month from today- thereafter petitioner shall be at liberty to move trial court and if any such application is filed trial court is free to consider application independently on its own merits without being influenced by dismissal of this petition - Petition dismissed
Judgment
Sanjay Dhar, J.—As per the FIR (FIR No.04/2020 of P/S Anti-corruption Bureau, Srinagar), accused Mohammad Shafi Dar, the then Chairman, J&K State Cooperative Bank Limited, fraudulently sanctioned loan of Rs.250.00 crores in favour of a non-existent Cooperative Society, namely, River Jhelum Cooperative House Building Society Ltd. The loan was sanctioned to the aforesaid Cooperative Society for the purpose of construction of a Satellite Township at Shivpora, Srinagar. An amount of Rs.223 crores out of sanctioned loan was released in favour of the Chairman of the Cooperative Society and on 01.05.2019, the said amount was credited to the account of the Chairman of the Cooperative Society, who happens to be the petitioner herein. Prior to sanction of the loan, on 10.01.2018, the petitioner had approached the Jammu and Kashmir Cooperative Department for grant of financial assistance to the tune of Rs.300 crores for the purpose of construction of Satellite Township on 300 kanals of proprietary land located in the outskirts of Srinagar City. The application of the petitioner was endorsed by the then Secretary to the Government, Co-operative Department to the Registrar Co-operative Societies, J&K, for taking up the matter with the concerned bank. Thereafter the application along with the recommendation, in terms of letter dated 26.03.2019, was forwarded by Registrar, Co-operative Societies, J&K, to the Managing Director, J&K State Co-operative Bank Ltd. (JKSCBL) enclosing therewith a photocopy of the certificate of registration of River Jhelum House Building Co-operative Society Ltd. The JKSCBL sanctioned a loan in the amount of Rs.250 crores without obtaining field report, balance sheet, profit and loss statement, PAN Number, income tax returns, constitution of the Society including its byelaws and Board resolution etc. and also without securing the loan amount by way of taking sufficient collateral security. Thus, as per the FIR, the Chairman of JKSCBL in conspiracy with the petitioner herein, sanctioned and released the loan amount by flouting all the rules and regulations of the Bank including the one whereby the Bank could sanction cash credit to an individual in one go only up to the limit of rupees one crore. The FIR disclosed commission of offences under Section 5(1)(d) r/w Section 5(2) of Jammu & Kashmir Prevention of Corruption Act Svt. 2006 and offences under Section 465, 467, 468, 471 r/w 120-B RPC.
2. After conducting investigation of the case, the Investigating Agency has come to the conclusion that the accused Mohammad Shafi Dar, the then Chairman of JKSCBL, in conspiracy with accused Hilal Ahmad Mir (petitioner herein), the Chairman of non-existent River Jhelum Co-operative House Building Society, and accused Abdul Hameed Hajam, the Secretary of the aforesaid non-existent Society, entered into a conspiracy with each other and along with other persons, defrauded the Jammu and Kashmir Co-operative Bank Ltd. on the basis of false and forged documents and succeeded in causing loss to the tune of Rs.223 crores plus interest to the Government exchequer and to the Jammu and Kashmir Co-operative Bank, as the said Bank has sanctioned and released the aforesaid amount of loan by violating the banking rules and regulations. It is further stated in the charge sheet that investigation regarding roles of Mohammad Mujib-ur-Rehman Gassi, the then Registrar, Co-operative Societies, Ashiq Hussain, the then Deputy Registrar of Co-operative Societies and others is still in progress and report in terms of Section 173(8) of Cr. P. C would be submitted before the Court upon completion of further investigation of the case.
3. It appears from the record of the case that first bail application of the petitioner was rejected by the learned trial court (Special Judge, Anti-corruption, Kashmir, Srinagar) vide its order dated 05.06.2020 and his second bail application came to be rejected by the same Court in terms of order dated 18.07.2020.
