THE HONOURABLE SRI JUSTICE K.SURENDER CRIMINAL PETITION No.7131 OF 2019

ORDER:

This Criminal Petition is filed under Section 482 of Cr.P.C., by the petitioners/accused Nos.5 and 4, to quash the proceedings in C.C.No.1136 of 2019, on the file of the VI Metropolitan Magistrate, Medchal, Ranga Reddy District, for the offences under Sections 420, 468, 471, and 120-B read with Section 34 of I.P.C.

2. Heard Sri G.Vidya Sagar, learned Senior Counsel appearing for the petitioners/accused Nos.5 and 4 and Sri M.Vivekananda Reddy, learned Assistant Public Prosecutor for the respondent No.1 – State.

3. Briefly, the facts of the case are that the accused Nos.1 and 8, who are the husband and the wife respectively, were actively involved in preparing fictitious documents for the purpose of taking loans from the bank and providing the said fabricated documents to the persons who wanted to obtain loans, by taking huge amounts. According to the investigation, these petitioners were in a financial crisis and approached the accused No.1, who promised to secure loan from Telangana Grameena Bank. Accordingly, documentation was done by the accused No.1, and a loan of Rs.35,00,000/- was sanctioned on 20.06.2015, prior to lodging of the complaint. An amount of Rs.13,00,000./- was paid towards EMI/repayments. The complaint was filed on 28.10.2015. According to the complaint, the Bank came to know that loan was obtained by filing fabricated documents in respect of the four properties. One such property was mortgaged by these petitioners.

4. The complaint was investigated by the Police, Alwal Police Station, and during the investigation, they found that the accused Nos.1, 6, and 8 are the persons, who are responsible for preparing the fabricated documents. As on the date of lodging the complaint, i.e., 28.10.2015, an amount of Rs.13,00,000/- was repaid by the petitioners. It is not disputed that the entire amount of loan was repaid by the petitioners during pendency of investigation and the housing loan transaction was closed on the payment of the loan amount with interest. The Branch Manager of Telangana Grameena Bank, addressed a letter to the Station House Officer, Alwal, when enquired about loan transaction. In his letter dated 04.05.2016, bearing Letter No.F/Police/16-

17/17, he stated as follows:

“Sri Badam Ramesh Reddy, S/o.Ram Reddy resident of H.No.11-10-26/1, Plot No.Q1, SBI Colony, LB Nagar Circle, Saroor Nagar, Hyderabad – 35, who availed housing loan of Rs.35.00 lakhs on 20.06.2014 against Housing loan bearing No.79021504010 has closed the same on 02.05.2016 by paying principal plus interest.”

5. Even according to the investigation, on submission of the documents by the petitioners, a document verification was done and legal opinion was sought for. On the basis of the legal opinion and the valuation reports, the house was inspected on 22.05.2014 and the application was forwarded to the Regional Office. The loan amount of Rs.35,00,000/- was sanctioned and disbursed on different dates. However, an encumbrance certificate was taken and the fraud was detected. By the time the fraud was detected, an amount of Rs.13,00,000/- was already paid and Rs.22.93 lakhs was outstanding. The entire amount, along with interest, was paid on 04.05.2016, i.e., 3 years prior to filing of the charge-sheet.

6. It is not the case of the Bank that the petitioners took loan and absconded nor it is their case that the petitioners have defaulted in payment of any EMIs. The loan was taken on 20.06.2014, and as on the date of 28.10.2015, i.e., after 1 year and 4 months, the repayment of Rs.13,00,000/- was made. The bonafides of the petitioners are reflected from the manner in which the repayment was made. It cannot be said from the present facts that the petitioners entertained any fraudulent intention at the inception of the transaction i.e., while obtaining the loan. From the repayment of Rs.13,00,000/- within 1 year and 4 months, it is apparent that the loan was taken with