Pre-arrest bail may be denied when there are specific overt acts attributed to the accused and custodial interrogation is deemed necessary for the investigation of serious fraudulent allegations.

The Court made the following:

ORDER

The Criminal Petition has been filed under Sections 482 of the Bharatiya Narik Suraksha Sanhita, 2023 (for brevity ‘the BNSS’) by the Petitioner/Accused No.1 for granting of pre-arrest bail in connection with Crime No.82 of 2026 of Jangareddigudem Police Station, Eluru District registered for the alleged offence punishable under Section 316(5) of the Bharatiya Nyaya Sanhita, 2023 (for brevity ‘the BNS’).

2. Heard the learned Counsel for the Petitioner and the learned Assistant Public Prosecutor.

3. The case of the prosecution, in brief, is that prior to 21/02/2026, the complainant, Nagaraju Dhana Lakshmi, had pledged 270 grams of gold with IIFL Gold Loans, Jangareddigudem, and obtained a loan of Rs.13,00,000/-. The branch manager, Uddagiri Chaitanya Ramu, gained her trust and repeatedly obtained OTPs from her under the pretext of interest payments. When she visited the branch on 20/12/2025 to repay the loan and redeem her gold, she was informed that no loan existed in her name and that the manager had resigned.She later discovered that the accused had allegedly misused her OTPs to fraudulently obtain higher loans on her pledged gold in the names of other persons without her knowledge..

4. Mr. Karthik Siddhartha Saladi, learned Counsel for the Petitioner/Accused No.2 submits that the FIR is false, vague, and based on unsubstantiated allegations arising out of a financial dispute that has been given a criminal colour. It is argued that the essential ingredients of the alleged offence are not made out, and the complaint lacks specific transaction details or documentary evidence. The Petitioner is a law-abiding citizen with no criminal antecedents, is willing to cooperate with the investigation, and there is no need for custodial interrogation. The Petitioner further submits that vague allegations, misuse of criminal law, and unnecessary arrest are impermissible, and anticipatory bail should be granted. The Petitioner submits that he is not likely to abscond or tamper with evidence and that denial of anticipatory bail would cause irreparable prejudice to his reputation, livelihood, and family and urged to allow the pre-arrest bail.

5. Per contra, Sri A. Sai Rohit, learned Assistant Public Prosecutor vehemently opposed granting of pre-arrest bail contending that the investigation is at a nascent stage and the custodial interrogation of the Petitioner is imperative for eliciting material facts. It is submitted that if the Petitioner is granted pre-arrest bail, there is a grave apprehension that he may not cooperate with the investigation and may evade the process of law.

6. It is further urged that the prosecution also apprehends that the Petitioner may influence witnesses or tamper with evidence, thereby obstructing the fair and impartial investigation. In view of the seriousness of the allegations and the potential risk to the integrity of the investigation, it is prayed that the instant bail application be dismissed.

7. Thoughtful consideration is bestowed on the arguments advanced by the learned Counsel for both sides. I have perused the entire record.

8. In the light of the case of the prosecution and the contentions of the learned Counsel for both the sides, now the point for consideration is:
“Whether the Petitioner is entitled for grant of pre-arrest bail?”

9. As seen from the record, while working as Branch Manager of IIFL Finance Limited, the Petitioner is alleged to have dishonestly obtained OTPs from the de-facto complainant a