Back
HIGH COURT OF KERALA
MOHAMMED NIAS C.P., J
N. BASURANGAN – Appellant
Versus
STATE OF KERALA – Respondent
Bail Appl. 5950/2023
Anticipatory Bail - Criminal Procedure - IPC Sections List - The court addressed the application for anticipatory bail under Section 438 of the CrPC, interpreting the complexities of economic offences as distinct from other crimes, emphasizing the need for thorough investigation in cases involving financial fraud and possible tampering of evidence.
Fact of the Case:
The accused, as officials of a cooperative bank, allegedly induced the complainant to invest large sums with promises of high returns but failed to pay back following maturity, resulting in financial fraud accusations under multiple sections of the IPC.
Finding of the Court:
The court found that there was substantial evidence of financial misappropriation and a concerted effort to conceal information, necessitating custodial interrogation to facilitate the investigation.
Issues: Whether anticipatory bail should be granted to the accused considering the nature of the accusations involving economic offenses and the potential impact on the investigation.
Ratio Decidendi: The court ruled that anticipatory bail in economic offences could obstruct ongoing investigations and lead to destruction of evidence, thus rejecting the applications for bail.
Final Decision: Applications for anticipatory bail dismissed.
O R D E R
Apprehending arrest in Crime No.726/2023 of Maranalloor Police Station, Thiruvananthapuram District, registered for offences punishable under Sections 420 and 409 and r/w section 34 of the IPC accused have filed this application under Section 438 of the Code of Criminal Procedure .
2. The petitioners are accused Ns.1 and 2 in Maranalloor police station Crime No.726/2023 u/s Section 420 , 409 & 34 IPC . They served as the President and secretary of Kandala Co-operative Bank Ltd.No.197. With the intention to deceive the complainant, the petitioners dishonestly induced the complainant to invest money in Kandala Co-operative Bank by promising a higher interest rate for investment. By believing their words, the complainant deposited Rs.10,00,000/- on 27.06.2012. Rs.4,45,000/- on 6.9.2018, Rs.4,45,000/- on 5.9.2018 and Rs.2,00,000/- on 3.3.2023 with sum of Rs.21,00,000/-. After the completion of the investment tenure, the complainant was not paid the promised amounts. Thus, petitioners have committed an offence under the above sections by cheating and deceiving the complainant by not paying the deposit amount despite several demands.
3. As per the direction of this Court, the details such as the names of the accused, the amount involved, involvement of each accused and the stage of investigation in BA Nos.5661, 5948, 5950, 5952, 5956 & 5959 of
2023 were furnished as shown below:
| Sl.\nNo | BA Nos. | Name of accused | Amount\ninvolved | Involvement\n \nof\neach accused | Stage\n \nof\ninvestigation |
| 1 | BA\n \n5661/2023\nCrimeNo.726/23\nU/s:420,409 & 34 IPC & 3\nR/w 21, 5\nR/w 23 of BUDS Act | A1 Bhasurangan\nA2 Baiju Rajan | 1950565/- | A1 President \nA2 Secretary of\nKandala\n \nCo-\noperative Society | Under\ninvestigation |
| 2 | BA\n \n5948/2023\nCrimeNo.727/23\nU/s:420,409 & 34 IPC & 3\nR/w 21, 5\nR/w 23 of BUDS Act | A1 Bhasurangan\nA2 Baiju Rajan | 307035/- | A1 President \nA2 Secretary of\nKandala\n \nCo-\noperative Society | Under\ninvestigation |
| 3 | BA\n \n5950/2023\nCrimeNo.744/23\nU/s:420,409 & 34 IPC & 3\nR/w 21, 5\nR/w 23 of BUDS Act | A1 Bhasurangan\nA2 Baiju Rajan | 1500000/- | A1 President \nA2 Secretary of\nKandala\n \nCo-\noperative Society | Under\ninvestigation |
| 4 | BA\n \n5952/2023\nCrimeNo.754/23\nU/s:420,409 & 34 IPC & 3\nR/w 21, 5\nR/w 23 of BUDS Act | A1 Bhasurangan\nA2 Baiju Rajan | 1000000/- | A1 President \nA2 Secretary of\nKandala\n \nCo-\noperative Society | Under\ninvestigation |
| 5 | BA\n \n5956/2023\nCrimeNo.748/23\nU/s:420,409 & 34 IPC & 3\nR/w 21, 5\nR/w 23 of BUDS Act | A1 Bhasurangan\nA2 Baiju Rajan | 1442731/- | A1 President \nA2 Secretary of\nKandala\n \nCo-\noperative Society | Under\ninvestigation |
| 6 | BA\n \n5959/2023\nCrimeNo.747/23\nU/s:420,409 & 34 IPC & 3\nR/w 21, 5\nR/w 23 of BUDS Act | A1 Bhasurangan\nA2 Baiju Rajan | 690237/- | A1 President \nA2 Secretary of\nKandala\n \nCo-\noperative Society | Under\ninvestigation |
4. Learned counsel for the petitioner submits that the bank has a deposit of about Rs.112 crores and a loan outstanding of more than Rs.70 crores. From the monthly deposit scheme (MDS), more than 34 crores is due to the bank. The Bank has got a special sales officer. During the financial year 2022-23, the bank has filed 250 arbitration cases and 204 execution cases for recovering huge amounts. More than Rs.27 crore is liable to be recovered in the arbitration cases, and more than Rs.10 crore is also liable to be recovered in the execution petitions. The Kerala State Farmers Debt Relief Commission has written off more than Rs.10 crore on account of Debt Relief; out of the same, more than Rs.6 crore is due from the Government to the bank. Despite various requests made by the bank to the Government since the amounts were not paid, petitioners filed WP(C)No.16790/2022 before this Honourable court and direction was issued on 30/5/2023 to pay to the bank Rs.3.5 crores within 10 days from 30.05.2023, challenging which the government filed an appeal,
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
