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2020 Supreme(All) 406
IN THE HIGH COURT OF ALLAHABAD
Dinesh Kumar Singh, J.
Sudhanshu Dwivedi - Applicant
Versus
State of U.P. - Opposite Party
Bail No. - 12506 of 2019
Decided On : 07-04-2020
For the Applicant : Brij Mohan Sahai,Pankaj Yadav,Saurabh Shankar Srivastav,Syed Mehfuzur Rehman
Headnote:
Criminal Procedure Code, 1973 – Section 439 – Penal Code,1860 – Sections 409, 420, 467, 468, 471, 120B – Prevention of Corruption Act – Section 13(2) – Misappropriation of funds – Cheating – Scam of money – Seeking Bail – Held, scam of huge magnitude involving money of 42000 employees of the Three Electricity Corporations who had invested it with a hope that they would get good return on it at the time they would need money. Trust has been breached in criminal conspiracy by the accused which has resulted huge loss to the two Trusts resultantly to the employees. The accused is an influential person. The money trail is yet to be completely discovered and, therefore, at this stage, the accused-applicant cannot be released on bail – Bail application dismissed
Facts of the Case:
Appropriation of funds was not done in accordance with the notification dated 2nd March, 2015 issued by the Ministry of Finance, Government of India.It is further alleged that according to the aforesaid notification, the funds of non Government Provident Fund could have been invested in the unscheduled commercial banks to the maximum limit of 50%
Finding of the Court:
Scam of huge magnitude involving money of 42000 employees of the Three Electricity Corporations who had invested it with a hope that they would get good return on it at the time they would need money. Trust has been breached in criminal conspiracy by the accused which has resulted huge loss to the two Trusts resultantly to the employees. The accused is an influential person. The money trail is yet to be completely discovered and, therefore, at this stage, the accused-applicant cannot be released on bail.
Result: Bail application dismissed
JUDGMENT :
1. The present applications under Section 439 Cr.P.C. have been filed seeking bail in FIR No.540 of 2019 inititially registered under Sections 409, 420, 467, 468, 471, 120B IPC. Section 13(2) of the Prevention of Corruption Act has been added subsequently during the course of investigation.
2. On 2nd November, 2019, the aforesaid FIR came to be registered on the complaint of one I.M. Kaushal, Secretary, Trust of Uttar Pradesh Power Corporation Limited (hereinafter referred to as "U.P.P.C.L.") against one Mr. Praveen Kumar Gupta, ex-Secretary (Trust) and Mr. Sudhanshu Dwivedi, the accused-applicant in Bail No.12506 of 2019 who served U.P.P.C.L. in the capacity of Director (Finance) from June 2016 to June 2019.
3. As per the FIR, in pursuance of the implimentation of the Uttar Pradesh Electricity Reforms Transfer Scheme, 2000, the Uttar Pradesh State Electricity Board was divided on 14th January, 2000 into 3 Companies i.e. (i)Uttar Pradesh Power Corporation Limited, (ii) Uttar Pradesh Rajya Vidut Utpadan Nigam Limited, and (iii) Uttar Pradesh Hydro Power Corporation Limited. On 14th January, 2000 itself the employees working in the Uttar Pradesh State Electricity Board were assigned to the aforesaid three corporations established in pursuance of the Reform Scheme. In respect of all the employees working in these three power corporations, Uttar Pradesh State Power Sector Employees Trust was constituted on 29th April, 2000 under the provisions of the Provident Fund Act, 1952 to manage general provident fund, gratuity fund and pension fund of the employees of three electricity corporaions so consituted.
4. A Trust-deed was executed on 24th April, 2000 for creation of the Trust. As per trust deed, the aforesaid three funds namely, General Provident Fund, Gratuity Fund and Pension Fund created for the benefit of employees of three power corporations shall be called “Uttar Pradesh State Power Sector Employees General Provident Fund”, “Uttar Pradesh State Power Sector Employees Gratuity Fund” and “Uttar Pradesh State Power Sector Employees Pension Fund”. These funds collectively would be referred to as ‘Funds’.
5. As per the Trust-deed, the funds vest in Board of Trustees who shall administer the Funds in accordance with the Rules as set out in the Schedule of the Trust-deed. The First Trustees are:
(i)‘Chairman cum Managing Director, U.P.P.C.L.’ Chairman of the Trust;
(ii) ‘Chairman cum Managing Director of U.P.R.V.U.N.L.’ Member; and
(iii) ‘Chairman cum Managing Director, U.P. Hydro Power Corporation Ltd.’, Member.
6. The other Trustees are to hold office on appointment by nomination or otherwise, in the manner as provided in the Uttar Pradesh State Power Sector Employees General Provident Fund Rules, 2000.
7. Clause 7 of the Trust-deed reads as under:-
“7. That the trustees of the Board shall hold the ‘Funds’ and the amounts accruing in Trust for the Members and beneficiaries of the said ‘Funds’ and shall administer and apply the same in accordance with these presents and the Rules, nevertheless subject to the Provisions of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 and the Schemes framed thereunder, and the Income Tax Act, 1961 and the Income Tax Rules, 1962.”
8. For the management of provident fund of the employees joining the U.P.P.C.L. on 14.01.2000 or later, Uttar Pradesh Power Corporation Contributory Provident Fund Rules, 2004 were enacted and made applicable with effect from 1st April, 2004. Uttar Pradesh Power Corporation Contributory Provident Trust (hereinafter referred to as “CPF”) was constituted on 25th June, 2006 under the Provident Fund Act, 1952.
9. Appropriation and the management of Provident Funds of the employees of the Uttar Pradesh State Power Sector Employees Trust and the Uttar Pradesh Corporation C.P.F. Trust was the responsibility of Secretary (Trust) and Director (Finance) U.
