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IN THE HIGH COURT OF JUDICATURE AT MADRAS
P. VELMURUGAN, J.
V. Gurumurthy - Petitioner
Vs.
State represented by The Inspector of Police SPE/CBI/ACB, Chennai - Respondent
Crl.R.C.No.603 of 2015
Decided On : 11-07-2017
Criminal Conspiracy - Corruption - IPC 120B, 420, 477A; Prevention of Corruption Act 1988 - Section 13(2) r/w 13(1)(c) & (d)
Fact of the Case:
The petitioner was accused of criminal conspiracy to cheat MMTC Ltd in bullion trade, leading to a wrongful loss of Rs.13.86 crores. The petitioner claimed the charges were groundless, but the court found incriminating evidence and dismissed the discharge petition.
Finding of the Court:
The court found incriminating materials against the accused and held that the benefit of doubt goes in favor of the prosecution at the stage of framing charges. The court dismissed the criminal revision petition and confirmed the order of the Special Court.
Issues: The issues revolved around the alleged criminal conspiracy, wrongful loss to MMTC Ltd, and the petitioner's claim of innocence based on commercial dispute and procedural irregularities.
Ratio Decidendi: The court emphasized that even a suspicion drawn on incriminating materials is enough to frame a charge against the accused. It also highlighted that the court's attention at the time of framing charges should be confined to the documents mentioned in Section 173 Cr.PC only.
Final Decision: The criminal revision petition was dismissed, and the order of the Special Court was confirmed.
This Criminal Revision is directed against the order passed by the learned IX Additional Special Judge, CBI Cases, Chennai made in MP.No.259 of 2014 in CC.No.36 of 2013 dated 15.10.2014, in dismissing the discharge petitions filed by the petitioner.
2. The case of the petitioner is that the respondent alleged commission of offences under Section 120B r/w.420, 477A of IPC and offences under Section 13(2) r/w.13(1)(c) & (d) of the Prevention of Corruption Act, 1988.
3. During the period between 2007-2008, one Vijaya Raj Surana(A4) entered into a criminal conspiracy with S. Gurusami(A1) along with the petitioner/V. Gurumurthy(A2) to cheat MMTC Ltd in the matter of bullion trade between Surana Corporation Ltd and MMTC Ltd., In the course of bullion trade during 2007-2011, the MMTC Ltd and A3 company along with A4 and A5/Directors of A3 company and A6 employee of A3 company conspired with A2 and M.S.S. Ragavan, Manager, Bank of India (A7) and S.S. Raj, Senior Manager, MMTC Ltd with dishonest and fraudulent intention to cheat MMTC Ltd in the matter of bullion trade and induced wrongful loss to the tune of Rs.13.86crores to MMTC Ltd.
4. S.Guruswamy/A1 then the Chief General Manager of MMTC Ltd during the period from 12.05.2006 to 30.06.2008, retired from service on 30.06.2008. The petitioner herein was the Deputy General Manager (Finance and Accounts) from 15.12.2003 to 14.12.2008 and thereafter served as General Manager (Finance and Accounts) from 15.12.2008 to 30.10.2010 and retired from service on 30.10.2010.
5. The petitioner herein states that the documents and the other materials submitted along with final report filed by the respondent disclose that the charges levelled against the petitioner are groundless and unsustainable in law and based on misconception of concepts relating to commercial dispute and principles relating to overseas bullion trade and foreign exchange.
6. The petitioner after receiving the copies of the documents furnished by the Court below, filed a petition to discharge petition for the reasons stated therein and the respondent/prosecution has also filed counter and a reply was also submitted by the petitioner along with the decisions of the High Court and Supreme Court. After considering all the above aspects, the Special Court for CBI Cases has rightly dismissed the Crl.MP.No.259 of 2014 in CC.No.36 of 2013 on 15.10.2014.
7. The case of the prosecution is that during the period between 2007 to 2011, Vijayaraj Surana (A4) entered into a criminal conspiracy with the petitioner/V. Gurumurthy (A2) and S. Guruswamy (A1) to cheat MMTC Ltd in the matter of bullion trade between MMTC Limited and M/s.Surana Corporation Ltd (A3) and during the course of bullion trade A4 to A6 along with A2, A7 and A8 conspired together with dishonest intention to cheat MMTC Ltd. An elaborate discussion of the over tacts of the accused under various heads in causing a wrongful loss to the tune of Rs.13,86,33,277.01 to MMTC and the corresponding wrongful gain obtained by M/s.Surana Corporation Ltd.
8. The petitioner and A3 knowing fully aware that reconciliation was pending in MMTC had drained out the money by way of their modus operandi, claiming excess refund from MMTC Ltd., The petitioner being the exclusive authority to bullion accounts had wilfully failed to reconcile the bullion accounts by making wrong entries in the account ledger of the accused company by raising dummy bullion receipts to the credit of M/s.Surana Corporation Ltd., and delivery of bullion metal to the accused company without obtaining the requisite financial backup. The above act of the petitioner were not to the foreign exchange concepts rather it attracted substantive offences under law for which the respondent had filed the charge sheet with oral and documentary evidences. The petitioner has also initiated note/proposal to refund the claims made by A3 and recommended and even sanctioned/handed over refunds to A3 without the approval of the competent autho
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