A lack of prima facie evidence for conspiracy negates the framing of criminal charges against a bank valuer who submitted inflated property valuations.

Prayer in this revision petition is for setting-aside the order dated 18.02.2021 passed by the Special Judge (CBI), Panchkula, vide which the application filed by the petitioner under Section 227 of the Criminal Procedure Code (in short 'Cr.P.C.') for discharge was dismissed as well as the order dated 18.02.2021, the trial Court has framed charges under Sections 120-B read with Sections 420 , 468, 471 of the Indian Penal Code , 1860 (in short ' IPC ') and Sections 13 (2) read with Section 13 (1)(d) of the Prevention of Corruption Act , 1988, against the petitioner.

Brief facts of the case are that the co-accused Subhash Wadhwa, proprietor of M/s. Prashant Enterprises, Faridabad, had applied for Cash Credit Limit with the Allahabad Bank, NIT Branch, Faridabad, on 20.01.2010, with a takeover–cum–enhancement proposal from Central Bank Branch Faridabad.

It is the case of the prosecution that the aforesaid borrower has submitted certain fabricated documents like financial statements, Capital Infusion Certificate dated 05.02.2010 through Sudhir Praveen & Associates and the Liquidation Certificate dated 05.02.2010 issued by Central Bank of India, Faridabad and on the basis of the said fabricated documents, submitted by Subhash Wadhwa on behalf of M/s. Prashant Enterprises, Allahabad Bank sanctioned the Cash Credit Limit of Rs.4.60 crores vide Account No.CC 50025421780 on 02.02.2010 for the purpose of trading in electronic goods.

It is further the case of the prosecution that the borrower Subash Wadhwa, fraudulently got the loan sanctioned and later on, transferred the whole Cash Credit Limit to various firms including sister concerns, which were unrelated to the business activity of trading in electronics, with an intention to siphoned off the funds, though, the firms to which the amount was transferred were not creditors in the balance sheet of the borrower firm.

It is also the case of the prosecution that simultaneously the borrower continued his Cash Credit Limit with Central Bank of India vide Account No.3002986861, though, he has already submitted a false certificate dated 05.02.2010 as takeover–cum–enhancement proposal from Central Bank of India to Allahabad Bank for availing the aforesaid Cash Credit Limit from Allahabad Bank.

In this process, the borrower – Subhash Wadhwa even after availing the loan from Allahabad Bank continued enjoying the Cash Credit Limit of Rs.1.25 crores from the Central Bank of India, Faridabad as well, which he was enjoying since 05.03.2007. It is further the case of the prosecution that while submitting the fabricated documents with Allahabad Bank, Subhash Wadhwa in criminal conspiracy with the other accused persons has fabricated certain documents to cheat Allahabad Bank and later on, siphoned off the entire loan amount of Rs.4.60 crores to other sister concerns without having any dealing with M/s. Prashant Enterprises.

Counsel for the petitioner has submitted that the role of the petitioner, as per the charge-sheet submitted before the trial Court, is which the petitioner (referred to as accused No.10), in the capacity of an empaneled valuer of the Bank has given inflated valuation of the 02 properties offered by Subhash Wadhwa as collateral securities and thus, the petitioner has facilitated the borrower to avail the Cash Credit Limit from the Bank. It is further submitted that there was a difference in the valuation done by the petitioner than the value as given in the registered sale deed of the properties.

It is also submitted that Property No.1, which is a plot had the value of Rs.18,72,000/- on 02.12.2009, as per sale deed whereas the petitioner has assessed its value as Rs.1.35 crores and similar second valuation was given by Subhash Chand Sharma (before sanction of the loan) as Rs.1.35 crores. Both these valuation assessments were made before sanctioning of the loan amount whereas after the loan account was declared NPA, the valuation in the year 2013 was found to be Rs.55,40,000/-. Similarly, t