C O M M O N O R D E R

Both these petitions have been filed to call for the records and quash the FIR No.RCBDI/2021/C/0002 dated 24.03.2021 on the file of the Central Bureau Of Investigation, BSFB registered for the offences under Sections 120-B r/w Sections 420, 467, 468 and 471 IPC and Section 13(2) r/w 13(1)(d) of Prevention of Corruption Act, 1988. This FIR had been registered on the basis of the complaint dated 23.03.2021 given by Mr.S.Ravichandran, Deputy General Manager, State Bank of India, SAMB Branch, Chennai. On the allegations that the first accused company (Borrowing company), its Directors and other unknown persons and public servants conspired and committed the acts of cheating, forgery including valuable securities, used forged documents as genuine, criminal misconduct, diverted and siphoned of the Bank's funds and cheated the lending banks to the tune of Rs.237.84 crores. M/s.Ind Barath Power Gencom Limited is the first accused and its Directors viz., 1).Sri.Kanumuru Raghu Rama Krishna Raja-Director, 2).Smt.Kanumuru Rama Devi-Director, 3).Smt.Kanumuru Indira Priyadarshini-Additional Director, 4).Sri.Ambedkar Rajkumar Ganta-Director, 5).Sri.Dumpala Madhusudhana Reddy-Whole-time Director, 6).Sri.Narayana Prasad Bhagavathula-Director, 7).Sri.Ramachandra Iyer Balakrishnan-Whole- time Director and other unknown persons & public servants are the other accused in this case.

2. Challenging the registration of the First Information Report against the petitioners, these criminal original petitions are filed for quashing the FIR.

3. It is submitted by the learned Senior Counsel for the petitioners that the first accused company namely M/s.Ind Barath Power Gencom Limited is one of the largest electricity producers in Tamil Nadu. It primarily, has dealing with Tamil Nadu Generation and Distribution Company Limited (TANGEDCO). TANGEDCO failed to make payments to the first accused company and it is the source of all problems for the Ind Barath Group. A sum of Rs.157,85,71,585/- is receivable from TANGEDCO, as on 30.06.2017. Owing to the failure of TANGEDCO in paying amount, first accused company found it difficult to meet the claim of its creditors. Creditors of the first accused company approached this Court and obtained prohibitory orders, prohibiting TANGEDCO from releasing the sum mentioned in the applications to the first accused company. Proceedings were initiated before NCLT, Chennai and the same was dismissed. Appeal filed against the dismissal order was admitted and compromise was arrived at National Company Law Tribunal (NCLT) and it was recorded in the order of NCLT dated 29.05.2018. As on the date of settlement, TANGEDCO owed a total sum of Rs.229 crores to the first accused company and its group companies. However, first accused company had gone into the insolvency and due to default in repayment of loans, it was declared as Non-Performing Assets and had gone into insolvency. First accused company approached the creditors and proposed an One Time Settlement of Rs.200 crores to the consortium of lenders on 01.08.2019. This proposal was rejected by consortium of lenders.

3(i). One of the lenders, Axis Bank Limited had approached the NCLT, Hyderabad vide CP(IB) No.187/7/HDB/2019 under Section 7 of Insolvency and Bankruptcy Code, 2016. NCLT Hyderabad, admitted the petition and initiated CIRP against the first accused company vide its order dated 13.11.2019. Committee of Creditors formed under the provisions of the Code for controlling the management of first accused company, commissioned a forensic audit by M/s.BDO India LLP, in its meeting on 21.01.2020. M/s.BDO submitted a Forensic Audit Report dated 24.07.2020. The copy of the Forensic Audit Report was not furnished to the petitioners or to the ex-management of the first accused company. Proceedings were initiated as per RBI Circular dated 01.07.2015 against the first accused company. The number of officers including the petitioners were identified as willful defau