IN THE HIGH COURT OF MADHYA PRADESH AT GWALIOR BEFORE HON'BLE SHRI JUSTICE MILIND RAMESH PHADKE

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ON THE 13 OF FEBRUARY, 2026 MISC. CRIMINAL CASE No. 8485 of 2017 RAMAVTAR SINGH TOMAR Versus THE STATE OF MADHYA PRADESH THR AND OTHERS Appearance:

Shri Dharamvir Singh Parihar - Advocate for the petitioner [P-1].

Shri Rajeev Shrivastava- Advocate for respondents No.1 and 2 Shri Utkarsh Bajpai - Advocate for the respondent [R-3].

ORDER This petition under Section 482 of Cr.P.C. has been filed by the petitioner seeking quashment of FIR bearing Crime No. 53/2016 registered at Economic Offences Wing, Bhopal for offence punishable under Sections 409, 420, 467, 468, 471, 120B of IPC and Section 13(1)(D) r/w 13(2) of Prevention of Corruption Act, 1988 against the petitioner and all consequential proceedings arising therefrom.

2. The factual matrix giving rise to the present petition are that the petitioner was posted as Branch Manager of Jila Sahakari Kendriya Bank Maryadit, Joura Branch, District Morena during the year 2009–10. The allegations emanate from certain financial transactions undertaken in relation to the Krishi Sakh Sahakari Samiti, Sumawali, whereby it is alleged that on the basis of a forged and fabricated bond containing suspicious and incomplete particulars and bearing fraudulent signatures of office-bearers of the Society, substantial amounts were disbursed in lump sum. The inquiry conducted by the Audit Officer of the Cooperative Department concluded that the Society Manager, Chairman, members of the Board of Directors, along with the Branch Supervisor and Cashier of the Bank, acted in collusion and that the Branch Manager accorded approval to the transaction without proper verification, thereby facilitating misappropriation. Subsequently, respondent No. 3 submitted an application before the Economic Offences Wing, Bhopal, along with a copy of the inquiry report submitted by O.N. Sharma, seeking action against the petitioner. After the complaint was lodged, the Economic Offences Wing, Bhopal, informed its Gwalior Unit. By letter dated 08.07.2014, respondent No. 2 directed the petitioner to appear before it on 25.07.2014. The petitioner appeared before the Economic Offences Wing, Gwalior Unit, on 25.07.2014 and submitted his reply. Thereafter, on 26.12.2016, Crime No. 53/2016 was registered against the petitioner under Sections 409, 420, 467, 468, 471, and 120-B of the Indian Penal Code, as well as under Section 13(1) read with Section 13(2) of the Prevention of Corruption Act.

3. Learned Counsel for the petitioner submits that the present proceedings arise out of a fundamental misconception regarding the distinct and independent functioning of a Cooperative Bank and a Cooperative Society. A Cooperative Bank operates strictly in accordance with the regulatory framework, circulars, and supervisory control prescribed by the Reserve Bank of India and the competent banking authorities. In contrast, a Cooperative Society functions within its own statutory sphere, primarily for the purpose of extending agricultural credit facilities and other benefits to its members. The spheres of operation of the Cooperative Bank and the Cooperative Society are entirely separate and distinct; their administrative structures, procedural mechanisms, and departmental hierarchies function independently and autonomously. The Bank has no role in the internal management or distribution of funds by the Society to its members beyond compliance with banking formalities.

4. It is further submitted that prior to 13.11.2009, under the then prevailing procedure governing loan disbursement, the Secretary of the Society would affix his signature on the reverse side of the cheque issued by the Bank and record the name of the person authorized to receive the amount. In the alternative, the intended recipient would sign on the reverse side of the cheque, and such signature would be duly attested and certified by the Secretary of the Society. Upon verification of