O R D E R

The petitioner, who stands arrayed as first accused in CC.No.7 of

2017 on the file of the learned Principal Sessions Judge, Chennai has come with this criminal revision against the order passed in Crl.MP.4441 of 2015 dated 14.02.2020 whereby, the learned Principal Sessions Judge, Chennai has rejected the prayer of the petitioner to discharge him from the charges against him.

2. The case of the prosecution is that the petitioner has dishonestly and fraudulently availed term loan of Rs.41.00 Crores for construction of a Medical College Lab Buildings, Lecture Hall etc., and for purchase of medical equipment for the medical college and the loan was sanctioned from Andhra Bank Chennai by furnishing fake documents of his qualifications, discrepant financial statements etc., and diverted the term loan proceeds in collusion with one R.Varadarajan (A2) for various other purposes and thereby caused wrongful loss to the bank to the tune of Rs.57.64 crores. One Raveendranadha Reddy (A3) then Manager of Anna Nagar Branch has facilitated the fraud by his acts of recommending sanction of limit without proper due diligence of the background of the petitioner and also by disbursing the loan without following the sanction terms and ensuring proper use of the funds, in gross violation of the sanction stipulations.

3. The CBI, Bank Securities and Fraud Cell, Bangalore, registered a case in RC 03(E) 2012 on 20.3.2012 against Shri, T.D. Naidu (A1) Chairman and Managing Trustee, M/s. Deendayal Medical & Educational Trust, Chennai and two others u/s 120-B r/w 420, 468, 471 of IPC and sections 13(2) r/w 13(1)(d) of P.C, Act, 1988 on the basis of a written complaint received from C. Balasubramaniam, General Manager, Andhra Bank, Zonal Office, Chennai. The allegations in brief are that the petitioner Shri. T.D. Naidu(A1) has dishonestly and fraudulently availed term loan of Rs.41.00 crores sanctioned from Andhra Bank, Anna Nagar Branch, Chennai, by furnishing fake documents of his qualifications, discrepant financial statements etc., and diverted the term loan proceeds in collusion with the second accused for various other purposes and thereby caused wrongful loss to the bank to the tune of Rs.57.64 crores. One N.Raveendranadha Reddy, the then Branch Manager of Anna Nagar Branch has facilitated the fraud by his acts of recommending sanction of limit without proper due diligence to the background of T.D. Naidu and also by disbursing the loan without following the sanction terms and ensuring proper end use of the funds, in gross violation of the sanction stipulations.

4. The construction of the medical college building was to be completed within one year whereas the proposed construction work remain incomplete even till date despite the release of full term loan amount of Rs.41.00 crores. Due to non-payment of dues, Andhra Bank, Anna Nagar Branch, Chennai, classified the said account as NPA on 1.3.2011 and the present loss caused to the bank as on 30.9.2013 is Rs. 69.21 crores.

5. In the meanwhile, the petitioner/T.D. Naidu/A1 had also availed term loan of Rs. 37.00 crores and Bank Guarantee limit of Rs.9.5 crores from the Union Bank of India, Overseas Branch, Chennai during September 2009 for the construction of the said medical college buildings. Due to non- payment of the loan, the said account is presently classified as NPA with effect from 31.3.2011. The present outstanding balance as on 30.9.2013 is Rs.66.29 crores in Term Loan Account and Rs.9.50 crores towards issue of Letter of Guarantee facility.

6. On completion of investigation, a charge sheet against T.D.

Naidu(A1) Chairman and Managing Trustee, M/s. Deendayal Medical & Educational Trust, Chennai, R. Varadaraja(A2) Civil Engineering Consultant and N. Raveendranadha Reddy (A3), the then Chief Manager, Andhra Bank, Anna Nagar branch, Chennai for the offences punishable u/s 120-B r/w 420, 468, 471 of IPC and sections 13(20 r/w 13(1)(d) of P.C, Act, 1988 for substantive offences thereof was f