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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 19^TH DAY OF MAY, 2022

BEFORE

THE HON’BLE MR. JUSTICE K.NATARAJAN

CRIMINAL PETITION NO.2185 OF 2021

CONNECTED WITH

CRIMINAL PETITION NO.9445 OF 2018

IN CRIMINAL PETITION NO.2185 OF 2021

BETWEEN

SRI VAKATI NARAYANA REDDY

AGED ABOUT 56 YEARS,

S/O LATE VAKATI DHUSYANTHA REDDY

NO.8-2-293/82/4

60/C, MLA COLONY

ROAD NO.12, BANJARA HILLS

HYDERABAD - 500 034.

… PETITIONER

(BY SRI K. SUMAN, SENIOR ADVOCATE

FOR SRI SIDDARTH SUMAN, ADVOCATE)

AND

CENTRAL BUREAU OF INVESTIGATION

BS AND FC BENGALURU BY ITS DY.S.P.

REPRESENTED BY SPECIAL STANDING COUNSEL

BENGALURU.

… RESPONDENT

(BY SRI. P PRASANNA KUMAR, SPECIAL COUNSEL)

THIS CRIMINAL PETITION IS FILED UNDER SECTION 482

OF THE CODE OF CRIMINAL PROCEDURE, PRAYING TO

QUASH/SET ASIDE THE ORDER DATED 02.01.2021 PASSED BY

THE COURT OF THE XXI ADDITIONAL CITY CIVIL AND

SESSIONS JUDGE AND PRINCIPAL SPECIAL JUDGE FOR CBI

CASES,

BENGALURU

IN

SPL.C.C.NO.231/2018

AND

CONSEQUENTLY STAY ALL FURTHER PROCEEDINGS OF THE

R

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CASE IN SPL.C.C.NO.231/2018 PENDING ON THE FILE OF THE

XXI ADDITIONAL CITY CIVIL AND SESSIONS AND PRINCIPAL

SPECIAL JUDGE FOR CBI CASES, BENGALURU.

IN CRIMINAL PETITION NO.9445 OF 2018

BETWEEN

SRI VAKATI NARAYANA REDDY

AGED ABOUT 56 YEARS,

S/O LATE VAKATI DHUSYANTHA REDDY

NO.8-2-293/82/4

60/C, MLA COLONY

ROAD NO.12, BANJARA HILLS

HYDERABAD - 500 034.

… PETITIONER

(BY SRI K SUMAN, SENIOR ADVOCATE

FOR SRI SIDDARTH SUMAN, ADVOCATE)

AND

CENTRAL BUREAU OF INVESTIGATION

BS AND FC BENGALURU BY ITS DY.S.P.

REPRESENTED BY SPECIAL STANDING COUNSEL

BENGALURU.

… RESPONDENT

(BY SRI P PRASANNA KUMAR, SPECIAL COUNSEL)

THIS CRIMINAL PETITION IS FILED UNDER SECTION 482

OF THE CODE OF CRIMINAL PROCEDURE, PRAYING TO i)

QUASH THE F.I.R. FILED BY THE RESPONDENT BEARING NO.RC

7(E)/2017 DATED 05.05.2017 REGISTERED AGAINST THE

PETITIONER UNDER SECTION 120(B) READ WITH SECTION 420

OF IPC AND SECTION 13(2) READ WITH 13(1)(d) OF

PREVENTION OF CORRUPTION ACT, 1988 AT ANNEXURE-A. ii)

QUASH THE CHARGE SHEET IN RC 7(E)/2017/CBI/BS&FC/BLR

DATED 19.03.2018 FILED BY THE RESPONDENT AGAINST THE

PETITIONER FOR THE OFFENCE PUNISHABLE UNDER SECTION

120(B) READ WITH 420 OF IPC AND SECTION 13(2) READ

WITH 13(1)(d) OF PREVENTION OF CORRUPTION ACT, 1988 AT

ANNEXURE-B AND ETC.

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THESE CRIMINAL PETITIONS HAVING BEEN HEARD AND

RESERVED FOR ORDERS ON 22.04.2022 THIS DAY, THE COURT

PRONOUNCED THE FOLLOWING:

ORDER

Both these petitions are filed by petitioner-accused

No.2 under Section 482 of Cr.P.C. for quashing First

Information Report filed by the respondent bearing No.RC

7(E)/2017 dated 05.05.2017 for the offence punishable

under Section 120B read with Section 420 IPC and Section

13(2) read with Section 13(1)(d) of Prevention of

Corruption Act, 1988 (hereinafter referred to as 'PC Act')

and also the charge sheet in Spl. C.C. No.231/2018

pending on the file of XXI Additional City Civil and

Sessions Judge

and

Special Judge for CBI cases,

Bengaluru.

2. Heard learned Senior counsel appearing for the

petitioner and learned Special Counsel for the respondent

CBI.

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3. The case of the prosecution is that one Smt.

Pooja Tiku, the Deputy General Manager of the Industrial

Finance Corporation Limited (IFCI) lodged a written

complaint dated 03.05.2017 against the petitioner and

others to the CBI at Bengaluru alleging that the company

VNR

Infrastructures

Ltd.

(Accused

No.1)

and

the

petitioner-accused No.2 being the Managing Director along

with accused Nos.3 to 9 said to have committed fraud on

the complainant IFCI Ltd. to the tune of Rs.205.02 crores

as on 15.03.2016 by way of misappropriation, cheating

and criminal misconduct. It is further alleged that accused

Nos.1 and 2 had availed corporate loan from the

complainant bank IFCI to the tune of Rs.190 crores in two

cheques, that is, Rs.90 crores on 15.09.2014 and Rs.100

crores on 05.05