TaxTMI 
TaxTMI 
2017 (11) TMI 1751
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....leged corrupt practices while executing engineering work between 14.12.2011 and 23.12.2011 in which agreement bonds of Rs. 954.38 crores were executed by Engineering Department of Noida. The investigation of the case was initially carried out by the local police but thereafter the same was entrusted on 3.11.2012 to C.B.C.I.D. which submitted final report on 13.1.2014 and on 27.11.2014, the final report was accepted by the Special Judge S.C./S.T. Act, Gautam Budh Nagar. On 16.7.2015, the Lucknow Bench of this Court has passed an order in Misc. Bench No. 12396 of 2014 (Dr. Nutan Thakur vs. State of U.P. & others) directing the C.B.I. to conduct investigate into all allegations of corruption and amassing of unaccounted money against ninth respondent ( in the said petition) Yadav Singh, the then Chief Engineer, Noida, Greater Noida and Yamuna Express Authorities and in regard to all transactions, persons and entities connected thereto. 4. In compliance of the aforesaid order of this Court, a regular case is registered against Yadav Singh, the then Chief Engineer, Noida, Greater Noida and Yamuna Express Authorities and other unknown persons for the offence under sections 409, 420, 466,....
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....nnace and Leasing Pvt. Ltd. and the said amount was withdrawn by Smt. Kusumlata on different occasions. (v) The loss of Rs. 4,52,44,095/- was alleged to the government exchequer in lieu of payment made to M/s NKG Infrastructure Ltd." 5. Heard Sri Gopal S. Chaturvedi, learned Senior Advocate assisted by Sri Anoop Trivedi, learned counsel for the applicant, Sri Amit Misra, learned counsel for the C.B.I. and perused the record. 6. It has been contended by the learned counsel for the applicant that there was no fault or irregularity in the tender process which was in accordance with parameter of the settling work awarded. The applicant is the Managing Director of M/s NKG Infrastructure Ltd which was entrusted with the work of laying underground electrical lines from Electrical Sub Station ESS Sector-19 to Sector-12, 22 and 56 T points of MP-1 Road, Noida. The alleged rates viz. the preliminary/rough estimates were finalized in order to favour the pre-decided contractors is wholly absurd and baseless. The preliminary/rough estimates were revised on various occasions and even in the Bill of Quantity (BOQ) the estimated rates are quite competitive and asking to the prevalent rates in ....
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....g Pvt. Ltd. (a group concern of the applicant's Company) to the account of Country Wide Holding Pvt. Ltd. a Company controlled by Mohan Rathi. The fact that the amount of Rs. one crore was transferred only for investment in quoted shares is evident from a letter dated 18.3.2012 of Mohan Rahi. The amount of Rs. one crore was invested in shares by Mohan Rathi is clear upon perusal of balance sheet of the Country Wide Pvt. Ltd as on 31.3.2012. It appears that the Countrywide Holdings Pvt. Ltd. transferred a sum of Rs. 50 lakhs to M/s Kusum Garments Pvt. of which Smt. Kusum Lata, who is the wife of main accused Yadav Singh is the owner which the C.B.I. alleges to be bribe amount. The balance sheet of M/s Kusum Garments Pvt. Ltd. of 2012-13 indicates that the said amount is an interest-bearing loan on which even interest was paid. The allegation that the amount given to the said Company was given to be transferred to M/s Kusum Garments Pvt. Ltd. or to Yadav Singh in any manner is completely baseless. 8. Learned counsel for the applicant further urged that the Noida Authority passed an office order whereby it withheld a security of Rs. 16.01 crores and an amount of Rs. 8.25 crores d....
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....and opened in the month of November, 2011 but the work had already been started from the month of April, 2011 onward which clearly established pre-decided selection of the accused contractor and thus wrongful loss to the government exchequer to the amount of Rs. 4.52 crores (approx.) has been caused by the applicant in this way. Moreover it is established during the investigation that applicant was the ultimate beneficiary of M/s NKG and he transferred bribe amount of Rs. 50 lacs in the bank account of Smt. Kusum Lata wife of Yadav Singh through Mohan Rathi Chartered Accountant of Yadav Singh. The accused applicant arranged EMD (FDRs) for other participating contractors which proves cartel formation and pre decided selection of the Company of accused applicant. During investigation it was found that the contractors had started work prior to the opening of the price bid. In pursuance to the conspiracy, M/s NKG Infrastructure Pvt. Ltd. purchased 11KV and 33 KV cables during the period 8.3.2011 to 25.6.2011 and M/s Steel Pipes during the period 27.4.2011 to 4.11.2011 from Chemco and were delivered at the actual place of work. It has been found during investigation that after opening o....
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....by the Noida Authority against the alleged loss amount. He has drawn the attention of the Court towards the relevant Clause of Control Bonds in this regard. He submitted that the said amount of Rs. 16.01 Crores was deposited by the applicant's firm in 12 different contracts of various divisions of Noida Authority out of which 3 contracts are subject matter of investigation and out of the said three contracts, charge-sheet has been filed in one instant case and remaining two contracts are still under investigation. 10. The Apex Court in the case Subramanian Swamy v. Dr. Manmohan Singh, AIR 2012 SC 1185 has held that corruption in our country not only poses a grave danger to the concept of constitution governance, it also threaten the very foundation of Indian democracy and the rule of law. The magnitude of corruption in our public life incompatible with the concept of a socialist, secular, democratic republic. It cannot be disputed that where corruption begins all right ends. Corruption devalues human rights, chokes development and undermines justice, liberty, equality, fraternity which are the core values in our preamble vision. Therefore, the duty of the Court is that any ant....