Anticipatory bail denied due to serious fraud allegations involving conspiracy, misappropriation, and the necessity for custodial interrogation to ensure effective investigation.

O R D E R

Dated this the 25th day of November, 2025 This is an application for anticipatory bail moved by accused Nos.1 to 3 as well as accused Nos.21 and 22 in Crime No.678/CB/TSR/R of 2023 of Crime Branch Economic Offences Wing, Thrissur.

2. Heard the learned counsel for the petitioners as well as the learned Additional Director General of Prosecution (ADGP) appearing for the prosecution. Also heard Adv.N.L.Bitto, the learned counsel appearing for the additional 2^nd respondent/defacto complainant. Perused the relevant records.

3. Here, the prosecution alleges commission of offences punishable under Sections 406 , 409, 420, 465, 468, 471, 423, 120B and 477A r/w Section 34 of the Indian Penal Code (hereinafter referred to as ‘ IPC ’) as well as under Section 13 (1)(c)(d) r/w (2) of the Prevention of Corruption Act, 1988 (hereinafter referred to as ‘PC Act, 1988’) and under (1)(a) r/w 13(2) of the Prevention of Corruption (Amendment) Act, 2018 (hereinafter referred to as ‘PC (Amendment) Act, 2018 by the accused persons.

4. There are 22 accused persons in this case, as per the report of the Investigating Officer. The allegation of the prosecution, as could be seen from the report filed by the Deputy Superintendent of Police, Crime Branch, Thrissur, dated 18.11.2025 and the prosecution records, is that, accused Nos.1 to 3, the office bearers of the Karuvannur Service Co-operative Bank, after hatching conspiracy with the 2^nd accused and the other accused persons, viz., accused Nos.4 to 20 and accused Nos.21 and 22 who are the wives of accused Nos.1 and 3 respectively, with intention of cheating the complainant and the Bank, falsely assured the complainant that they would arrange a loan to clear the liability pending in connection with the agreement to purchase properties that were owned by the wives of accused Nos.1 and 3, fraudulently mortgaged the properties with the aid of forged records and obtained ₹3 crore as loan, as against ₹1.25 Crore applied by the complainant, his wife and three other relatives. The specific case is that the complainant, his wife and three other relatives submitted five loan applications before the Karuvannur Service Co- operative Bank, requesting loan of ₹25 lakh each. Out of which accused Nos.1 to 3 and other accused hatched conspiracy and neglected to process the loan application put in by the complainant. While acting upon the other four loan applications submitted for ₹25 lakh each, accused Nos.1 to 22 fraudulently suppressed original loan applications and forged loan applications in their names showing the loan amount as ₹50 lakh each instead of ₹25 lakh each. Apart from that, accused Nos.1 to 3, without the knowledge or consent of a friend of the 1^st accused and his wife wlong with whom he had studied, fraudulently created loan files after forging loan applications in their names also. Thereby six loans to the tune of ₹50 lakh each were sanctioned and encashed by fraudulent means and thereby misappropriated ₹3 crore by the accused. The prosecution alleges that accused Nos.1 to 3 were the staff members of the Bank, and accused Nos.4 to 20 were the Director Board Members of the Bank during the relevant period. During investigation, it has been revealed that the 21^st accused, Smt.Jitha, W/o. Biju M.K.(1^st accused) and the 22^nd accused, Smt.Sreelatha, W/o.Jilse C.K. (3^rd accused), who were the owners of 3.79 acres of landed property as per document No.2639/12, 2940/12 and 2641/12 situated in Kottanellur Village under Vadakkekara SRO, entered into a property sale agreement with the complainant on 31.12.2013 fixing the sale price of the landed property as ₹1,38,000/- per cent,