Quashing of FIR where preliminary enquiry failed to establish fraudulent intent and the registration amounted to a roving inquiry.

Quashing of FIR RC2192023E0003: the court concluded that materials gathered in the preliminary enquiry and related records did not disclose a prima facie case of deception or dishonest intention by the company at the inception of transactions, and that the impugned registration risked a roving and fishing inquiry; the judgment emphasised the legal distinction between commercial/business decisions by lenders and criminal conduct requiring proof of fraudulent intent and noted procedural protections for investigations touching public servants, and accordingly quashed the FIR and allowed the writ petition in favour of the petitioner.

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Issues: Whether the First Information Report registered as RC2192023E0003 on 21st January 2023 by the Central Bureau of Investigation against GTL Limited and others should be quashed.

Analysis: The Court examined the materials collected in the Preliminary Enquiry and the complaint, including forensic audit reports, lender communications, minutes of Joint Lender Forum meetings, communications with the Ministry of Finance and RBI, forensic audit conclusions, and records of recoveries and settlements. The Court analysed whether the facts disclosed a prima facie case of deception or dishonest intention by GTL Limited at the inception of transactions necessary to sustain offences under the Indian Penal Code and the Prevention of Corruption Act, and whether the registration of the FIR amounted to permitting a roving and fishing inquiry. The Court considered the legal distinction between commercial/business decisions taken by lender banks (including collective decisions communicated to RBI and Ministry of Finance) and criminal conduct requiring proof of fraudulent intention, as well as statutory protections and procedural requirements applicable to investigations involving public servants.

Conclusion: The First Information Report RC2192023E0003 dated 21st January 2023 is quashed. The writ petition filed by GTL Limited is allowed, in favour of the petitioner.

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