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IN THE HIGH COURT OF ALLAHABAD
BRIJ RAJ SINGH, J.
Sujay Uday Desai - Applicant
Versus
Central Bureau of Investigation, Thru S.P., S.C.B.-C.B.I. - Opposite Party
Criminal Misc. Anticipatory Bail Application U/s 438 CR.P.C. No. 1345 of 2022
Decided On : 21-09-2022
Anticipatory Bail - Economic Offence - Sections 120-B, 420, 467, 468, 471 I.P.C. - [Globiz Exim Pvt. Ltd. Case] - [120-B, 420, 467, 468, 471 I.P.C.] - The court discussed the legal provisions and guidelines for granting bail in cases of economic offences. The court rejected the anticipatory bail application considering the grave nature of the economic offence and the specific allegations against the applicant.
Fact of the Case:
The case involves an anticipatory bail application filed by the applicant in a criminal case pending in the Court of Special Judicial Magistrate - CBI, Lucknow. The case pertains to allegations of economic offences under Sections 120-B, 420, 467, 468, 471 I.P.C. The charge sheet filed by C.B.I. alleges that the applicant, as the Director and CEO of Frost International Ltd., was involved in defrauding Indian Overseas Bank to the tune of Rs.10.01 crores through M/s Globiz Exim Pvt. Ltd. and other companies of the Frost Group.
Finding of the Court:
The court found that the specific allegations against the applicant, his role in the fraudulent activities, and the grave nature of the economic offence make it unfit for granting anticipatory bail. The court rejected the anticipatory bail application based on the severity of the offence and the specific role attributed to the applicant.
Issues: The primary issue before the court was whether to grant anticipatory bail to the applicant in a case involving economic offences under Sections 120-B, 420, 467, 468, 471 I.P.C.
Ratio Decidendi: The court's decision was based on the severity of the economic offence, the specific allegations against the applicant, and the guidelines for granting bail in cases of economic offences as established in relevant judgments.
Final Decision: The court rejected the anticipatory bail application considering the grave nature of the economic offence and the specific allegations against the applicant.
JUDGMENT :
1. Supplementary affidavit filed today is taken on record.
2. The present anticipatory bail application has been filed on behalf of the applicant in Criminal Case No.87600 of 2021 (CBI V. Globiz Exim Pvt. Ltd. & Ors.) pending in the Court of Special Judicial Magistrate - CBI, Lucknow arising out of F.I.R. No.RC0532020E0004 of 2020, under Sections 120-B, 420, 467, 468, 471 I.P.C. registered at Police Station CBI-SCB Lucknow, District Lucknow with a prayer to enlarge him on anticipatory bail.
3. The F.I.R. was lodged on 11.06.2020 bearing F.I.R. No.RC0532020E0004 of 2020, registered by complainant, Sri Niranjan Panda, Chief Regional Manager, Indian Overseas Bank, Regional Office, Lucknow, under Sections 120B, 420, 467, 468, 471 I.P.C. at Central Burau of Investigation, Special Crime Branch, Lucknow (hereinafter referred to as "CBI").
4. As per F.I.R., it is stated that M/s Globiz Exim Private Limited had entered into criminal conspiracy and the verbatim of FIR is quoted below:-
Information discloses that M/s Globiz Exim Pvt. Ltd. Having its registered office at Kalpna Plaza, 24/147 B, Birhana Road, Kanpur (UP) was enjoying various credit facilities with Indian Overseas Bank under multiple banking arrangements viz. Letter of Credit (foreign) to the tune of Rs.2,000 crores; Letter of Credit on DP/180 days comes for purchase of goods for trading to the tune of Rs.128 crores etc. All the said facitilites were sanctioned by the Indian Overseas Bank, MCB, Central Office in the year 2014 and 2016. M/s Globiz Exim Pvt. Ltd. was incorporated as S.N.V. Trading Pvt. Ltd. On 14 July, 2005, however, the company later changed its name to M/s Globiz Exim Pvt. Ltd. On 2.9.2009. Initially, the company was engaged in manufacturing of leather items from its manufacturing plant at Jajmau at Kanpur but later on, it concentrated in trading of pluses and other commodities like Laptop/Computers, Coal, Copper Cathode etc.
M/s. Globiz Exim Pvt Ltd. and it's Promoters/Directors with intent to cheat the Bank, while availing the credit facilities from the IOB, had fraudulently siphoned off its funds through unsecured loans and advances to as many as 34 parties without any loan agreements or entering into any formal contract with such parties. The company duped the Bank by showing false Merchanting Trade Transactions amongst known companies/customers. The documents purportedly issued by different purchasers/suppliers were prepared by one and the same person related to the suspicious Merchanting Trade Transactions. The borrower company has further shown bogus local trades without support of related documents to falsify its Balance Sheet and mislead the Bank by way of showing false inflated stock. The account of the Company was classified Non Performing Asset (NPA) on 30.9.2018 and as on the date of NPA the total loss to the Bank was Rs.10.01 crores.
The contents of the complaint dated 05.06.2020 prima facie discloses commission of cognizable offences u/s 120-B, 420, 467, 468, 471 I.P.C. and substantive offences thereof against the aforesaid accused persons. Hence, a Regul
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