Though this matter is listed for admission, with the

consent of both learned counsel, it is taken up for final

disposal.

2.

Accused No.5 has filed this appeal seeking

setting aside the order dated 19.01.2023 passed in

Cr.No.158/2022 by the Principal City Civil and Sessions

Judge, Bengaluru where under the bail application of

appellant/accused No.5 sought in respect of crime

No.158/2022 for the offences punishable under Section

406, 417, 506, 120B of IPC, Section 9 of Karnataka

Protection

of

Interest

of

Depositors

in

Financial

Establishment Act, 2004 (KPIDFE Act) and Section 22 of

Banning of Unregulated Deposit Schemes Act, 2019 (BUDS

Act) came to be rejected.

3.

Heard the learned counsel appearing for the

appellant and learned HCGP for respondent-State.

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4.

The case of the prosecution is that one

Pradeep.K., S/o Ganesh Bhat has filed a complaint on

21.10.2022 stating that he is a Software Engineer at Intel

Company and he is a member of Kuruhinashetti Souharda

Credit Cooperative Ltd, J.P.Nagar, Bengaluru (for short

'society') and he had kept fixed deposit of Rs.60 Lakhs

with the said society. It is further stated that the

complainant requested the society to prematurely close

the fixed deposit. However, the same has not been

accepted by the officials of the society. Several other

account holders of the society have invested money in the

form of fixed deposits in the said society.

5. It is further stated that from 2011-2016, 2016-

2021 and 2021-2026 those persons who are elected as

office bearers for the aforesaid period had lent mortgage

loan and different types of loans to the borrowers and that

the members of the same family were also granted loan

and the society officials instead of accepting the original

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title deeds for mortgage loan, have released the loan

amount only based on the photocopies of the title deeds.

It is further stated that the act of the Board members of

the society from 2011-2016, 2016-2021 and 2021

onwards has caused total loss of Rs.90 crores to the

society as on June, 2022. Subsequent to resignation of

the office bearers who were elected in 2022, Administrator

has now been appointed to the said society. It is further

stated though the society was able to recover part of the

money lent to different account holders, the office bearers

instead of distributing the aforesaid sum equally to the

account holders, have distributed the same to the account

holders of their blood relatives and thus, have committed

the offences.

6.

The complaint came to be registered in crime

No.158/2022 of Kempegowda Nagar Police Station for the

offence punishable under Sections 120-B, 406, 420, 417,

506 of IPC, Section 9 of KPIDFE Act and Section 22 of

BUDS Act. The said crime is registered against 23 accused

- 5 -

persons. Appellant/accused No.5 came to be arrested on

30.12.2022 and he is in judicial custody. He filed bail

application which came to be rejected by the impugned

order dated 19.01.2023 which is challenged in this appeal.

7.

Learned

counsel

for

the

appellant

would

contend that this appellant/accused No.5 was working as

Chief Executive Officer for the period between 2011-2021.

He had no authority to sanction loan except for processing

the loan application and it is for the Directors to pass

resolution for sanctioning loan. He contends that due to

the efforts put forth by this appellant/accused No.5 the

society would recover more than 30 crores from the loan

account which were classified as Non-Performing Assets

(NPA). There is no role of appellant/accused No.5 in not

returning the deposit amount to the members/customers.

The society could not get the deposit made with

Gururaghavendra Souharda Bank and Charan Co-operative

Bank. There is no fraudulent default in repayment of

deposit amount by this appellant/accused No.5. The

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Board of Directors who are responsible for sanction of

loans have been granted bail in Crl.A.No.2109/2022 and

connected appeals by this Court. Theref