TaxTMI 
TaxTMI 
2019 (6) TMI 1647
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....nvestigating Officer to submit the report of further investigation on 08.01.2019, since after filing of chargesheet, C.B.I. continued to further investigate the matter. It was also directed that the Investigating Officer shall aim to complete the investigation on or before 30.01.2019 and further request on this count shall not be entertained. The C.B.I. since had desired more time, this Court without expressing any opinion on the merits of the case, on 05.02.2019 had granted liberty to the applicant to approach this Court after three months, since further investigation which was going on was likely to be over. 2.The brief facts as alleged in the F.I.R. are as follows: 2.1. The Company viz. Diamond Power Infrastructure Limited, Vadodara (hereinafter referred to as 'the Company') had obtained borrowings from different banks, although, the Company had appeared in the defaulter list of the Reserve Bank of India (R.B.I.). It is also alleged by the prosecution that the actual turnover of the company was much less than the projected turnover and the false statements and documents were created so as to avail more drawing power under cash credit facilities. 2.2. The letters of ....
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.... never given to the company in post 2013 period and merely interest recovery has been pressed. The company also faced according to the applicant, a cash drain out of over Rs. 740.82 Cr. in the form of PV, penalties, retentions and other issues related to execution of ongoing and past supplies. 2.5. It is the case of the applicant that due to insistence of the directors/promoters of the company in the year 2014, a joint lenders' forum was formed to restructure and to give additional funds to the company. The Joint Lenders' Forum insisted and investigated forensic audit to be carried out in the affairs of the company and the Banks which are part of the consortium, appointed one T.R. Chhadha & Co. for carrying out the forensic audit of the company. According to the applicant, after a thorough inquiry, a report was prepared by the auditor indicating that there was no diversion of fund or any other issue which would suggest any fraud has been committed by the company or its promoters. The consortium of the bank has also accepted the said audit and had not questioned the same at any time and at any stage. An independent evaluation committee headed by representative of different....
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....f arrest in most of the cases. There is no possibility of disposing of the trial within a reasonable time, and therefore, statutory right guaranteed under Article21 of the Constitution would require also the grant of bail. There are more than 100 witnesses and 5000 documents which will take years to complete the trial. 3.Affidavitinreply has filed by the respondent-C.B.I. urging that the present application is not maintainable. According to the C.B.I., on the basis of reliable source of information, a case came to be registered by CBI, ACB, Gandhinagar against M/s. Diamond Power Infrastructure Limited (DPIL), Vadodara, the founder of which is Shri Suresh Narain Bhatnagar and Managing Director of the said company is Shri Amit Suresh Bhatnagar and Joint Managing Director, Shri Sumit Bhatnagar. The present applicant is the Managing Director of the company. The searches came to be conducted at the premises on 05.04.2018, however, the applicant did not join the investigation, despite the service of notice under Section 41A of the Code of Criminal Procedure. The applicant was arrested on 18.04.2018 and was also granted police custody remand till 27.04.2018 and thereafter till 30.04.2018....
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..../applicant of having intention of cheating by getting the working capital limits released from Bank of India. Moreover, as per the valuation data provided by the Directorate of Enforcement dated 24.04.2018, the valuation of land and building, plant and machinery along with other properties of the borrower firm and its sister concerns/ directors and his family members is approximately Rs. 1,122 Cr. which is grossly inadequate to cover the outstanding dues. 6.It is also averred that from the year 2012 to 2014, the transaction with the companies indicate that there was no actual sale / purchase of goods which had taken place and the transactions were merely accommodation entries in order to project higher turnover so as to avail enhancement in credit facilities. It is further urged that the inventory was prepared by the officials of the company especially Accounts Department, but the applicant/accused is one of the directors of the company and is equally responsible for all the dealings undertaken with the consortium Banks. Furthermore, the Drawing Power (DP) is calculated on the basis of the Stock and Book Debt statements submitted by the borrower, by submitting false and inflated S....
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....ion No. 11793 of 2018 had provided the period of three months' time to the C.B.I. for completing the further investigation. 10. However, the CBI since is unable to complete its work of further investigation and is desirous of more time to investigate, which is again its prerogative being the investigation agency, this Court while recognising its right to further investigation needs to strike a balance and consider the request of the applicant. 11. This Court has heard learned senior advocate, Mr.S.V.Raju with learned advocate, Mr.Virat Popat for the applicant who have argued on the line of the memo of the application. Ld. Counsel has also argued about the family conditions of the applicant, whose daughter is mentally challenged. He has further urged that no purpose is going to be served of incarceration of the applicant. He has also been granted a temporary bail and has not misused the said liberty. He has urged that stringent conditions may be imposed, however, applicant be released on bail. 12. Per contra, learned Special Public Prosecutor Mr. R.C. Kodekar appearing for the C.B.I. has urged this Court that no leniency be shown, considering the huge outstanding of the bank.....
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....ow no.6/B Green Park Society, Nizampura, Vadodara (Land admeasuring 649.21 Sq. M. & Building) 3,73,54,450 Suresh Bhatnagar 8 Commercial office plot no. 5/9 & 5/10 BIDC, Gorwa, Vadodara (Land admeasuring 1212 Sq m and building) 6,90,66,000 1)Madhurilata S. Bhatnagar 2)S.N. Bhatnagar HUF 3) Richa Bhatnagar 4)Mona Bhatnagar 9 Residential Bungalow, R.S 217/P, Opp.Greenwood, New Alkapuri, Vadodara (Rear SideEast side Direction) (Land admeasruing 1866.51 S.M. & Building) 11,85,24,750 Amit Bhatnagar/Mona Bhatnagar 10 The Address Priyalaxmi Mill Compound, Ahead of Arunoday Cross Roads, Alkapuri, Vadodara R.S. No. 609 bearing city survey no. 3412 of Village Kasba, Dist. Vadodara, Tower B Flat No. 801 & 802 {Rs. 21850000 x 2} 4,37,00,000 Amit Bhatnagar 11 R. S no. 4/Part, Sheet no. 12, City survey no. 500. Janki Apartment, 2nd Floor, Flat no. 102, Opp. Yogi Amrut & Reliance Fresh Near C.H. Jewellers & HDFC bank, Alkapuri, Vadodara 42,30,000 Amit Bhatnagar 12 R.S 217/P, Opp. Greenwood, New Alkapuri, Vadodara (Front Sidewest side Direction) Land admeasruing 1793.17 Sq.M. & Building 11,37,16,000 Sumit Bhatnagar/Richa Bhatnagar 13 The Address Priyalaxmi Mill Compoun....
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....801, 901 & 1001 (1 Unit) 902 & 1002 (1 unit) {Rs. 7150000/x 5 Units} 3,57,50,000 Northway spaces ltd(earlier Mayfair Spaces Ltd.) 21 Millennium, opp. Navrachna University, VasnaBhayli Road, Vadodara R. Survey No. 2566, 2567 & 2568, Block No. 1769 of Village Bhayli, Dist. Vadodara, Tower C33000 Sq. Ft per unit. Flat No. 601, 701, 801, 901 & 1001 (1 Unit) {Rs. 71,50,000/x 1} 71,50,000 Northway spaces ltd(earlier Mayfair Spaces Ltd.) 22 Millennium, opp. Navrachna University, VasnaBhayli Road, Vadodara R. Survey No. 2566, 2567 & 2568, Block No. 1769 of Village Bhayli, Dist. Vadodara, Tower B11500 Sq. Ft 3 BHK per unit. Flat No. 201, 202, 601, 701, 801, 901, 1001, 1101 & 1102 {3375000 x 9} 3,03,75,000 Northway spaces ltd(earlier Mayfair Spaces Ltd.) 23 Millennium, opp. Navrachna University, VasnaBhayli Road, Vadodara R. Survey No. 2566, 2567 & 2568, Block No. 1769 of Village Bhayli, Dist. Vadodara, Tower B2, - 1080 Sq. Ft. 2 BHK per unit. 101, 102, 103, 104, 201, 202, 203, 301, 302, 303, 401, 403, 501, 503, 502, 601, 603, 602, 701, 703, 702, 704, 803, 802, 901, 902, 903, 1001, 1003, 1002, 1004, 1101, 1103, 1102, 1104 {Rs. 25,00,000/x 35 } 8,75,00,000 Northway s....
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....ected in the order under the PMLA Act and those which have been specifically reflected in the list of properties tendered by the C.B.I. 15.1 The CBI was also asked as to whether it was contemplating to attach any property and whether any properties are left out for attachment. On 17.06.2019 the list of the properties had been submitted by the learned Special Public Prosecutor, Mr.R.C.Kodekar, on instructions, from the CBI officers, who are present before this Court and he could show that there were in all 25 properties. 15.2 List of the properties is as follows: Sr No Name of the person/company Description of Property 1 Amit Suresh Bhatnagar Plot No.3, Sr. No.215216, Akashvan Bunglows, Ahead of Sevasi, Gotri. 2 Northway Spaces Ltd. (erstwhile Mayfair Spaces Ltd.) 9th floor, Mayfair Atrium, Opp. Delhi Public School, Old Padra Vadsar Ring Road, Vadodara. 3 Mona Amit Bhatnagar Plot No.123, Survey No.217, Aakshvan Sardar Patel Marg, Near Sheshav School, Vadodara. 4 Mona Bhatnagar N.A. Land adm.15000 sq.feet, R.S.No.218 & 219, City Survey No.2564 and 2565 of Moje Gotri, Vadodara. 5 M/s. Jyoti Ltd represented by Sh.Rahul Amin Land adm.25,123 sq.mts. At S....
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.... (Vendor Party) 23 Sumit Suresh Bhatnagar (Purchaser party) Office No.A_310, Third Floor, Corporate Park, Survey No.657, Vibhag3 (Akota), Atladara, Vadasar Road, Vadodara Road, Vadodara (vendor party) 24 Mona Amit Bhatnagar Shop No.AGF01, Ground Floor Front Side, Corporate Park, Survey No.657, Vibhag3 (Akota), Atladara, Vadasar Road, Vadodara (Vendor Party) Shop No.AFF101, Floor Front Side, Corporate Park Survey No.657 , Vibhag3, (Akota), Atladara, Vadasar Road, Vadodara (Vendor Party) 25 Madhuri Finsere Private Limited 202, Sunrise Apartment, Alkapri, Vadodara, GJ390007 For some of which even the Enforcement Directorate has not issued the notice whereas the C.B.I. is contemplating to attach all of them. There was a voluntarily disclosure on the part of the applicant with regard to three properties. The details of which is as follows: Sr. No. Details Owner 1 Flat No.EB5, Utopian Exotica, New Alkapuri, Sevasi Road, Vadodara Mahurilata Bhatnagar Shrishti Bhatnagar 2 Flat No.PB5, Utopian Exotica, New Alkapuri, Sevasi Road, Vadodara Mona Bhatnagar Shrishti Bhatnagar 3 Flat No.PB6, Utopian Exotica, New Alkapuri, Sevasi ....
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....priate action. Apart from this, from the applicant's side another list of properties is also produced. The properties contained in all three lists are substantially same and overlaps one another except properties at Sr.No.7, 10, 11, 14, 16 and 25 in the list of Enforcement Directorate and properties at Sr No.1, 2 and 3 in the list submitted by the present applicant. 5. I submit and declare that apart from the properties which have been mentioned in these lists, the deponent does not possess any right, title or interest in any other property. That deponent has disclosed all properties belonging to him by way of present affidavit. 6. That deponent further undertakes that he shall not alienate/transfer any of the abovementioned properties belonging to the deponent in any manner and will abide by any condition that is imposed by this Hon'ble Court in the present proceedings." 19. Having been satisfied that the applicant understood the version and also furnished details which were necessary, this Court deems it appropriate, at this stage, when the investigating agency is further investigating into the matter, that instead of granting the regular bail to the present applican....
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....ons, since the jurisdiction is discretionary, it has to be exercised with great care and caution by balancing valuable right of liberty of an individual and the interest of the society in general. In our view, the reasoning 2 adopted by the learned District Judge, which is affirmed by the High Court, in our opinion, a denial of the whole basis of our system of law and normal rule of bail system. It transcends respect for the requirement that a man shall be considered innocent until he is found guilty. If such power is recognized, then it may lead to chaotic situation and would jeopardize the personal liberty of an individual." 21. This Court is conscious of the fact that essentially and predominantly the case is based on documentary evidences. The further investigation of the C.B.I. which is on going is also mainly relying on the documentary evidences and concerned witness is being questioned on the strength of such documents. There is no likely hood of tampering with the documentary evidences which have been seized and which are in the custody of various Banks. The Court is also conscious of the well laid down principle of 'bail and not jail' where more particularly there....