Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2024 Supreme(Online)(KAR) 11123

HIGH COURT OF KARNATAKA
MOHAMMAD NAWAZ, J
NARAYANASWAMY J.P. – Appellant
Versus
STATE OF KARNATAKA – Respondent
CRIMINAL PETITION NO. 13201 OF 2023

Advocates:
For the Appellants/Petitioners: SRI. PAVANA CHANDRA SHETTY H.
For the Respondents: SRI.B.A.BELLIAPPA, SPP-I, SRI.RANGASWAMY R, HCGP

Anticipatory bail denied due to serious allegations of financial fraud and manipulation of evidence.

Headnote:This petition under Section 438 of Cr.P.C. seeking anticipatory bail is preferred by accused No.1 in Crime No.213/2023 of Chickmagaluru Town Police Station, registered for the offence punishable under Section 420, 409 r/w 34 of IPC. The allegations include the manipulation of gold loan packets and submission of fake documents. The court found that the allegations were of serious nature and rejected the plea for anticipatory bail, emphasizing the need for custodial interrogation of the petitioner.

Judgement Key Points

Key Points from the Judgment

1. Details of the criminal petition and allegations against the petitioner

Petition filed under Section 438 Cr.P.C. by accused No.1 (petitioner, Special Assistant at Central Bank of India, Chickmagalur Branch) in Crime No.213/2023 at Chickmagaluru Town Police Station, for offences under Sections 420, 409 r/w 34 IPC. [1]
Complaint by Assistant General Manager, Central Bank of India, Bengaluru Regional Office, against petitioner (accused No.1), branch managers (accused Nos.2 & 3), and wives of accused Nos.1 & 2 (accused Nos.5 & 4). [3]
Branch failed to submit annual confirmation certificate for gold loan reappraisal; instead submitted unpaid appraiser bill; suspicion led to reappraisal revealing 6/147 gold packets missing, 140 with fake gold, plus bag of fake jewelry in strong room. [4]
Petitioner's wife (accused No.5) had 4 gold loans with incomplete/blank documents, no appraiser seals, fake gold packets, disbursed without vouchers; accused No.4's loan documents missing. [4][5]

2. Petitioner's defense and legal arguments for bail

Petitioner not involved in illegal activities, lacks authority for financial transactions/customer contact; supervised by branch manager; on deputation, no role in loan sanctioning or gold appraisal. [6]
Delay in FIR registration; no specific role alleged; no Section 120B IPC invoked; ingredients of offences not made out; appraisers/customers not accused/complainants; no misappropriation period specified. [7]
19-year bank employee without black marks; offences triable by Magistrate; no antecedents; willing to cooperate with investigation. [8]

3. State's opposition to the anticipatory bail plea

Specific serious allegations: petitioner colluded to cheat bank/public via fake gold, breach of trust; loans during his tenure without appraiser seals. [9]
Petitioner's wife's loans had blank documents, fake gold; petitioner primarily involved in repackaging genuine gold with fake, misappropriation for gain; admitted guilt, promised Rs.50 lakhs repayment but failed. [9][10]
Investigation ongoing; risk of evidence destruction/witness tampering if bail granted. [10]

4. Court's observations and findings on allegations

Confirmation certificate absence led to verification confirming 6 packets missing, 140 fake; petitioner's wife's 4 loans had blank documents, no seals, fake gold, disbursed sans vouchers; petitioner handled transactions via his maker ID even after relief from branch on 30.05.2023. [11]
Cash shortage of Rs.30 lakhs; petitioner deposited Rs.10,01,430/- each for 3 loans without verification; involved in repackaging in manager's cabin, theft of genuine gold. [12]
Petitioner's written admission of guilt to Regional Manager on 22.10.2023, undertaking Rs.50 lakhs repayment (failed). [13]

5. Rationale for denying anticipatory bail

Bank employee committed calculated fraud against bank/public for gain; prima facie case despite Magistrate-triable offences; custodial interrogation needed; not entitled to bail. [16]

6. Final ruling of the court

Petition dismissed; no anticipatory bail. [20]

Table of Content
1. details of the criminal petition and allegations against the petitioner. (Para 1 , 3 , 4)
2. petitioner's defense and legal arguments for bail. (Para 6 , 7 , 8)
3. state's opposition to the anticipatory bail plea. (Para 9 , 10)
4. court's observations and findings on allegations. (Para 11 , 12)
5. rationale for denying anticipatory bail. (Para 16)
6. final ruling of the court. (Para 20)

ORDER

This petition under Section 438 of Cr.P.C. seeking anticipatory bail is preferred by accused No.1 in Crime No.213/2023 of Chickmagaluru Town Police Station, registered for the offence punishable under Section 420 , 409 r/w 34 of IPC.

2. Heard the arguments of the learned counsel for petitioner, learned High Court Government Pleader for the State and perused the material on record.

3. Law is set into motion by the Assistant General Manager, Regional Office, Central Bank of India, Bengaluru. On the basis of the complaint lodged by him, the aforementioned case is registered against accused No.1-Special Assistant working at Central Bank of India, Chickmagaluru Branch, accused No.2 the then Branch Manager of the said bank, accused No.3 – Branch Manager, accused No.4 – wife of accused No.2 and accused No.5 – wife of accused No.1/petitioner.

4. The sum and substance of the complaint averments are that, the Branch Office is required to submit confirmation certificate annually for reappraisal in respect of gold loans sanctioned by it to the Regional Office, but for the current year, the Central Bank of India, Chickamagalur Branch did not send any confirmation certificate, but a bill of gold appraiser for Rs.53,100/- which was not paid by the Regional Office as GST particulars were not found in the said bill and no confirmation certificate for reappraisal of gold packets was received by the Regional Office. Hence, a suspicion was entertained in respect of maintenance, reappraisal and sanctioning of gold loan at Chickamagalur Branch. Accordingly, on the instructions of the Regional Office, one Balmukund, Branch Head of Hassan Branch was instructed to conduct reappraisal by utilizing the services of the gold appraiser of Hassan Branch. The said Mr.Balmukund and one Mr.Chandrashekara K.B., gold appraiser of Hassan Branch after reappraising the existing gold loan packets in the branch premises submitted a report dated 21.10.2023, as per which out of 147 gold loan packets, 6 packets are missing and 1 packet is having original gold and 140 packets are fake gold. Thereafter, the officials of Regional Office, Bengaluru visitied Chickamagalur Branch on 22.10.2023 and engaged the services of Arsikere Branch appraiser, one Mr.Ratnakarashet and he along with Mr.Chandrashekara K.B. jointly confirmed that out of 141 gold loan packets, 6 packets are missing and 140 packets are with fake gold. Further, the Regional Office officials found a bag containing a huge number of fake jewelleries kept inside the strong room.

5. Further, it was found that accused No.4 –Lavanya Kulluri, wife of accused No.2 has got one gold loan and accused No.5 – Swetha M, wife of accused No.1 (Petitioner) has got four gold loan accounts, however, the loan application and other loan documents of accused No.4 was not available and that of accused No.5 are all incomplete and blank. Further, the gold packets in respect of the gold loans sanctioned to accused Nos.4 and 5 contained fake ornaments. There were no seals of gold appraiser on the aforesaid gold packets and the disbursement of the loan was done without the support of vouchers etc.

6. The learned counsel for petitioner has vehemently contended that the entire allegations against the petitioner are false and baseless. Petitioner has never indulged in any kind of illegal activity. He has no official power to do any financial transaction and does not have any direct or indirect contact with any of the customers. Bank Manager is incharge of all the transactions and the petitioner is controlled and monitored by the Bank Manager. He

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