A criminal conviction against a public servant cannot be sustained solely on temporal discrepancies between administrative inspection reports, particularly in the absence of evidence demonstrating illicit personal gain, deviation from established procedures, or intentional misconduct by the accused.

JUDGMENT :

M.NIRMAL KUMAR, J.

1.This Criminal Appeal is filed to set aside the judgment and sentence dated 16.02.2015 passed in C.C.No.61 of 2000 by the learned XI Additional City Civil and Sessions Judge (CBI Cases relating to Banks and Financial Institutions), Chennai and acquit the appellant.

2.The appellant/A1 in C.C.No.61 of 2000 was convicted by the Trial Court by judgment dated 16.02.2015 and sentenced him to undergo one year simple imprisonment and to pay a fine of Rs.5,000/-, in default, to undergo three months simple imprisonment for the offence under Section 13(2) r/w.13(1)(d) of Prevention of Corruption Act.

3.The case of the prosecution is that Vigilance Officer, Bank of Baroda, Central Office, Mumbai lodged a complaint to CBI, who registered a case in R.C.No.6/E/96/Cbi/BS&FC/BANGALORE on 31.10.1996 against accused persons. In this case, A1 and A7 are public servants, who were working as former Managers/Chief Managers in the Industrial Finance Branch (IFB), Bank of Baroda. It is alleged that A1 and A7 entered into a criminal conspiracy with A2 to A6 by opening business accounts, thereby cheated and misappropriated public money and not utilized the same for the purpose for which it was granted. As regards A1 and A7, they had given false stock report. In this case, on the application of A5 Company (M/s.Corium Crafts Private Limited) initially packing credit facility to the extent of Rs.30 lakhs, foreign bills purchase facilities to the extent of Rs.45 lakhs sanctioned and later it was enhanced from time to time up to Rs.110 lakhs as packing credit and Rs.25 lakhs in regard to tobacco and beedi leaves, Rs.32.50 lakhs as Packing credit and Rs.20 lakhs by way of foreign bills purchase facility in regard to leather, totaling to Rs.187.50 lakhs between the period 1991 and 1994 was sanctioned.

4.In order to avail the said Packing Credit limit, A5 Company on 20.05.1992 informed the Bank that they were purchasing the goods from M/s.RR Enterprises for Rs.18 lakhs, M/s. Amul Tobacco Company for Rs. 25 lakhs and M/s.Prashant Traders for Rs. 23.50 lakhs and requested the Bank to directly disburse the amounts to the said firms. It was further declared that these firms possessed sufficient stock and corresponding stock statements submitted to the Bank. The entire amount advanced to A5 Company to be secured by the stocks of tobacco and by immovable properties held by Mr.D.Venkataraman and Mrs.V.Neelambal. Further, all the Directors of the Company extended their personal guarantees. As per the stock statements, large quantities of tobacco stock are shown to be stored in seven godowns situated in and around Anand and Baroda in Gujarat. However, since no export shipment took place for a considerable period after sanction of loan, the Chief Manager of IFB, V.R.Narayanan, the appellant herein conducted inspection and submitted a report favouring A5 Company. A7 took over charge as Chief Manager after A1, he also inspected the stocks and gave a report in January 1994. Since the Company failed to carry out exports or show genuine business activity, the Regional Office deputed R.R.Sharma/PW6 along with other officials to conduct a detailed inspection between 24.11.1994 and 30.11.1994.

5.The inspection report revealed shocking findings, no stock was available at the declared locations, the addresses in Gujarat were fake and fictitious, no godowns existed and in one instance, the location was found