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2023 Supreme(Mad) 3100
IN THE HIGH COURT OF JUDICATURE AT MADRAS
G. JAYACHANDRAN, J.
Dayandhi, The Senior Manager, Canara Bank, Vellore - Appellant
Versus
State Rep. by Inspector of Police, CBI, ACB, Chennai - Respondent
Crl.R.C. Nos. 830 & 868 of 2023 & Crl.M.P. Nos. 6394 & 6755 of 2023
Decided On : 07-08-2023
Advocates appeared:For the Petitioner:Siddrath Luthra, Senior Counsel for M/s. P. Wilson Asso., Senior Counsel, Navin Suresh, Advocates. For the Respondent: K. Srinivasan, (SC)., Spl. Public Prosecutor for (CBI).
The main legal point established is that the accused's fraudulent activities, including falsifying accounts and directly obtaining currency from the Currency Chest, constituted fraud and dishonest inducement, leading to a breach of bank security and violation of RBI regulations.
Headnote:
Criminal Revision Case - Currency Exchange Fraud - Cr.P.C 397, 401 - Summary
Fact of the Case:
The case involves a currency exchange fraud where the accused conspired to exchange old currency for new currency illegally, contrary to RBI guidelines and Canara Bank regulations.
Finding of the Court:
The court found that the accused had engaged in fraudulent activities by falsifying accounts, raising bogus requisitions, and directly obtaining currency from the Currency Chest, leading to a breach of bank security and violation of RBI regulations.
Issues: The issues revolved around the legality of the currency exchange, the involvement of the accused in fraudulent activities, and the validity of the prosecution's evidence and sanctions.
Ratio Decidendi: The court held that the accused's actions constituted fraud and dishonest inducement, leading to a delivery of property, and violated banking regulations, resulting in a breach of security and dishonesty by the bank officials.
Final Decision: The court dismissed the Criminal Revision Cases, affirming the trial court's decision to proceed with the charges against the accused.
JUDGMENT
(Prayers: Criminal Revision Case has been filed under Section 397 r/w 401 of Cr.P.C., to set aside the common order dated 28.03.2023 passed in Criminal M.P.No.4580 of 2022 by the Principal Special Judge for CBI Cases/VIII Additional City Civil Court, Chennai.)
Criminal Revision Case has been filed under Section 397 r/w 401 of Cr.P.C., to set aside the common order dated 28.03.2023 passed in Criminal M.P.No.3834 of 2022 by the Principal Special Judge for CBI Cases/VIII Additional City Civil Court, Chennai.)
Common Order:
1. Criminal Revision Case No.830 of 2023 is filed by the first accused (Dayandhi) under Section 397 r/w 401 of Cr.P.C and Criminal Revision Case No.868 of 2023 is filed by the second accused (S.Srinivasan) under Section 397 r/w 401 of Cr.P.C against the common order dated 28.03.2023 passed in Criminal M.P.No.3834 of 2022 in C.C.No.2 of 2022 on the file of the Principal Special Judge for CBI Cases/VIII Additional City Civil Court, Chennai. Being aggrieved by the dismissal of their petition to discharge, the revision petitions are directed against the order of the trial Court on 28.03.2023.
2. Factual background:-
On 01.04.2019, the Income Tax Department conducted a search at the residence of one Damodharan at Vellore. Currency Rs.200/- denomination for Rs.11.48 Crores was recovered in the course of the search proceedings. The petitioner (S.Srinivasan) in Crl.R.C.No.868 of 2023, is the brother-in-law of the said Damodharan. He came forward to make a claim that the money seized from the residence of Damodharan belongs to him. The currency seized were newly released Rs.200/- denomination. Hence, suspicion arose about the source of the currency.
3. Out of Rs.11.48 Crores, the trail for Rs.5,61,11,200/- let to Currency Chest of Canara Bank at Vellore. A suo moto complaint was registered by CBI soonafter news of seizure of new currency at the residence of Damodharan came out in public. The investigation disclosed that S.Srinivasan (A2) had exchanged his old currency to the new currency with an aid and help of A1(Dayandhi), Senior Manager, Regional Office. A3(Singaram)in-charge of Currency Chest and A4(R.Vinodha Krishnan), Cash Officer of Currency Chest, Canara Bank, Vellore. All the four accused had connived with each other entered into conspiracy to exchange the old currency to new currency illegally contrary to the RBI guidelines and Canara Bank Regulation.
4. Pursuant to the criminal conspiracy, A1 visited the Currency Chest on 06.03.2019, 07.03.2019, 13.03.2019, 25.03.2019, 26.03.2019 and 29.03.2019, discussed the modus operandi for exchange of old currency with new currency from the Currency Chest and pursuant to this conspiracy, the Branch Adjustment Requisition (BAR) against six branches of Canara Bank was raised as if currency moved from the Currency Chest to six branches of Canara Bank. The respective branch Managers were instructed to cancel their requisition to record as if the money sent to these branches returned back to the Currency Chest. Infact, there was no actual physical transaction of cash from the Currency Chest to the branches and back to the Chest. It was only a virtual transaction on record. The new currency were directly given to A2 (S.Srinivasan) by A1 (Dayandhi). Though A2 claims that he as a business man was in need of 200 rupees denomination and therefore, he got it exchanged and kept in the house of his brother-in-law. His explanation and reasoning was not convincing for the department of the Income Tax as well as CBI. Final Report laid by CBI against four persons. Damodharan shown as accused not sent for trial.
5. Gist of the Final Report indicates that the distribution of currency under RBI is done through Currency Chest of respective bank. The currency and coins supplied to the bank are to be distributed to the branches in their area of operation. As per the RBI norms
