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IN THE HIGH COURT OF JUDICATURE AT MADRAS

Dated : 20.01.2023

CORAM:

THE HONOURABLE MR. JUSTICE P.VELMURUGAN

Crl.R.C.No.423 of 2020

T.D.Naidu

...Petitioner

Vs.

The Additional Superintendent of Police,

Central Bureau Investigation,

Bank Securities and Fraud Cell,

Bangalore.

Crime No.RC.3(E)/2012

...Respondent

Prayer: The Criminal Revision case filed under Section 397 read with

401 of Code of Criminal Procedure to call for the records in CC.No.7 of

2017 on the file of the learned Principal Sessions Judge, Chennai and set

aside the order passed in Crl.MP.No.4441 of 2015 dated 14.02.2020 and

discharge the petitioner from CC.No.7 of 2017 on the file of the learned

Principal Sessions Judge, Chennai.

For Petitioner : Mr.R.Johnsathyan

Senior Advocate

For Respondents : Mr.K.Srinivasan

Spl. Public Prosecutor

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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

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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

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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 accou