APHC010132402021 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI [3333]

(Special Original Jurisdiction)

MONDAY ,THE TWENTIETH DAY OF JANUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SMT JUSTICE V.SUJATHA CRIMINAL PETITION NO: 2135/2021 Between:

Manchala Dharma Rao ...PETITIONER/ACCUSED AND State Of A P and Others ...RESPONDENT/COMPLAINANT(S)

Counsel for the Petitioner/accused:

1. N SIVA REDDY Counsel for the Respondent/complainant(S):

1. PUBLIC PROSECUTOR (AP)

2. SRINIVAS BASAVA The Court made the following:

ORDER

This criminal petition is filed under Section 482 of Criminal Procedure Code (for short “Cr.P.C.”) to quash the proceedings in F.I.R.No.68 of 2021 on the file of Gandepalli Police Station, East Godavari District.

2. The petitioner herein is accused No.18 and the 2^nd respondent herein is the defacto complainant. The 2^nd respondent vide Rc.No.864/2020- D1, dated 20.03.2021 has submitted a detailed complaint to the Station House Officer, Gandepalli Police Station, East Godavari stating that he has conducted a Statutory Inquiry under Section 51 of Andhra Pradesh Cooperative Societies Act, 1964 into the affairs of District Cooperative Central Bank Ltd., Kakinada Branch at Gandepalli with reference to the loans sanctioned and disbursed to the members of Gandepalli Primary Agricultural Cooperative Credit Society Ltd., Gandeaplli and vide inquiry report dated 16.03.2021, he found that an amount of Rs.22,07,40,067.00/- was misappropriated by the employees of the said bank in collusion with the President, Chief Executive Officer and other members of the said branch, in the guise of sanction and disbursement of loan amounts of the members of the society during the period 25.11.2017 to 20.02.2020. Pursuant to the said report, the District Collector, East Godavari District, Kakinada vide proceedings dated 18.03.2021 has reported that the accused committed offences under Section 79-A(1)(a) and Section 83B(1)(C) of the A.P.C.S. Act, 1964 for misappropriation of the funds of the District Cooperative Central Bank Ltd., Kakinada branch at Gandepalli and that the accused are liable for criminal prosecution under Section 403, 405 and 477A of Indian Penal Code.

3. It is further stated in the complaint that the loan amounts credited in the S.B. accounts of the loanees were subsequently transferred into the personal savings accounts of delinquent Nos.3, 6, 7, 8, 9, 16 and 17. As such, the delinquents committed misappropriation of funds by tampering the statutory records required to be maintained in the District Cooperative Central Bank Branch; by creating fake vouchers, bougs pattadar pass books, fake mortgage bonds etc. Stating thus, the 2^nd respondent has requested the Police to take action against the delinquents/accused. After receipt of the said complaint, the police have registered a case in Cr.No.68 of 2021 on the file of Gandepalli Police Station, East Godavari District for the offences punishable under Sections 409, 419, 420, 471, 468, 477-A read with Section 109, 34 of IPC. Requesting to quash the aforesaid case, the petitioner/accused No.18 has filed the present petition.

4. During the course of arguments, learned counsel for the petitioner has argued that the petitioner herein has earlier worked as Chief Executive Officer of East Godavari District Cooperative Central Bank, Kakinada. The cooperative societies under the said branch have to transact the business from that branch and only administrative approvals will be issued by the District Office at Kakinada. The main allegation in the report of the 2^nd respondent is with regard to sanctioning of loans basing on fake and fabricated documents to the members of the primary agricultural cooperative society, Gandepalli and misappropriation of funds. He submitted that accused Nos.1 and 4 are the managers of the DCCB, Gandepalli and accused Nos.2 and 3 are the President and CEO of Gandepalli PACS. The accused Nos.2 and 3 allegedly prepared bogus loan files with fake and fabricated