The valuation of immoveable properties is not an exact science, but the reasoning for the escalation of market value in a valuation report should be based on material.

JUDGMENT

(Prayer: Criminal Original Petition has been filed under Section 482 of Cr.P.C., to call for the records of the proceedings in C.C.No.2541 of 2022 on the file of the Chief Judicial Magistrate, Coimbatore and quash the same as illegal and without jurisdiction.)

The petition herein is a Government Registered Valuer. He is arraigned as A-6 in the criminal case C.C.No.2541 of 2022 on the file of the Chief Judicial Magistrate, Coimbatore, arising from the complaint investigated by CBI in connection with cheating the Indian Overseas Bank, Fairland Branch, Salem to a tune of Rs.62.20 crores.

2. On the complaint lodged by the Chief Regional Manager of Indian Overseas Bank, Regional Office, Gandhipuram, Coimbatore, case was registered in RC.8(E)/2021/CBI/EOB/Chennai against M/s Subhashri Bio Energies Pvt. Ltd. and its 5 Directors by name S.Durairaj, D.Malliga, D.Salai Sivaprakasam, Nalla Govindasamy and G.Sarswathy and other unknown persons.

3. On completion of investigation, Final Report filed against the company, its 5 Directors and the petitioner, who gave the valuation report for the property given to the bank as primary security. Two of the company Directors namely, Nalla Govindasamy and his wife G. Saraswathy shown as accused in FIR were not sent for trial and their names were shown in column II of the Final Report.

4. As per the Final report, the first accused Company during the year 2004 had given a project proposal to generate power from poultry litters and the waste after generating power to be used as organic manure, a value added products (Bio power and Bio manure). The scheme being sponsored by Ministry of Non-Conventional Energy Sources (MNES) and the project found to be viable, the Indian Overseas Bank, Fairland Branch sanctioned to the first accused company the Cash Credit Facilities of term loan, CCL, Supply Bill Purchase Limit and Short Term Loan. The loan was secured with immovable property creating equitable mortgage. Based on the performance and request, the loan limit was extended from time to time. On 27/05/2008, the cash credit was enhanced from Rs.8.42 crores to Rs.17.80 crores for bio power and bio manure division. Additional securities (a) the land measuring 17.38 ½ acres of agricultural land of D.Malliga (A-3) at Kumarapalayam and (b) land measuring 5.18 acres held by D.Salai Sivaprakasam (A-4) were given as security. This petitioner, as approved valuer of the lending Bank has given the valuation report dated 05/01/2008 stating the value of the property at Kumarapalayam in the name of D.Malliga (A-3) is totally worth Rs.52 lakhs and the land in the name of D.Salai Sivaprakasam (A-4) is worth Rs.12.00 lakhs per acre.

5. Time and again, the sanction limit was extended after getting fresh valuation report. The last such enhancement of loan limit was in the year 2014 when the Bank sanctioned Short Term Loan (with WC) for Rs.7.50 crores. The last valuation report from the petitioner for the properties given as security was on 19/05/2014. With this, the renewed limit enhanced to Rs.57.50 crores as on 23/10/2014.

6. The loan account secured through equitable mortgage of the properties offered by the borrowering company supported by the valuation certificate given by valuers became NPA and the matter was reported to RBI on 12/12/2019. By the time, the money due and payable to the Bank was Rs.62.20 crores. The funds were dishonestly diverted and misappropriated. The Investigation has also found that the petitioner as the valuer, involved in the valuation of the properties mortgaged by A-1, M/s Subhashri Bio Energies Pvt Ltd to Indian Overseas Bank for the enhancement of loan in the year 2014, had given valuation certificate with inflated value to facilitate the borrowing Company and its Directors. This has induced the Bank to enhance the loan. The property which really worth Rs.8.5 lakhs to Rs.15 lakhs rupees overvalued by the petitioner and estimated as Rs.40 lakhs per acre. The valuation certificates given by the