TaxTMI 
TaxTMI 
2021 (6) TMI 1091
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....h the case in ECIR No. ECIR/MDSZO/5/2018 on the file of the respondent respectively. 2. The case of the prosecution:- i) A complaint has been lodged by the Assistant General Manager, Zonal Office of the Corporation Bank, Tiruchirappalli, to the Superintendent and Head of the Branch, CBI, Bank Securities and Fraud Cell, No.36, Bellary Road, Ganga Nagar, Bangalore - 560 032, which was registered in Crime No.17 of 2018. ii) The main allegation against the petitioners is that the petitioners and the others, who are family members availed loans on the basis of inflated value of the properties mortgaged and indulged in wilful diversion of funds through various group accounts. The case has been declared as fraud by the Bank on 06.12.2017. ....
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....so far. 3. During the course of enquiry, a specific overt acts have been found and in the complaint the following allegations are made. 4. The petitioner in Crl.OP (MD) No. 6883 of 2021, is alleged to have interacted with the lendor Bank for loan facilities (CC/LC/OD) from Corporation Bank in various names of family members; alleged to have looked after the Banking and financial dealings; alleged to have submitted the loan documents and RTGS/Cheques for movements of funds on the guise of genuine sales between the group concerns and other firms with the premeditated notion of cheating. Without proper trading activities, he ensured movements of funds from one group entity to another. Later, the loan funds were siphonedoff and so, he deriv....
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.... These are the main allegations that have been levelled against the petitioners as per the complaint. 7. The petitioners seek bail on the following grounds:- It is denied that inflated values of mortgage properties were submitted. The petitioner repaid more than Rs. 200 Crores interest and principal amount. Moreover, totally, Rs. 43.50 Crores were also paid, which was received by the Corporation Bank. It is long term loan commenced from 2017. The value of the mortgaged properties is more than the loan availed to them. They are doing business in various fields such as, agriculture, sugar, timbers and other investments. So, fund transfer cannot be defined under Money Laundering Act. Because of the huge loss in the business, they were not in....
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....of 2021. 8. They produced documents in the typed set of papers showing the health condition of the petitioners and details of the property etc., Counter has also been filed by the respondents. 9. The case is very simple in nature. There was non-payment of secured loan by the petitioners on behalf of the Companies as mentioned in the complaint. Because of the non-payment of the loan amount, it was transferred to NPA account and the Corporation Bank Officials found smelt rat in the transaction. So,they lodged a complaint with the CBI, upon which, the case was registered as detailed above. Now, the investigation is undertaken by CBI with regard to the offences under Sections 120-B, 406, 420 etc., Simultaneously, the proceedings under Preve....
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....o is under the age of sixteen years or is a woman or is sick or infirm, may be released on bail, if the special court so directs: 12. This section was challenged before the Hon'ble Supreme Court in the judgment reported in Nikesh Tarachand Shah Vs. Union of India AIR 2017 SC 5500 and the same was declared as unconstitution on various grounds. Later, the Central Government has amended this provision and after amendment, the Section reads as under:- " Offences to be cognizable and non-bailable. -- i) 'Notwithstanding anything contained in the code of Criminal Proceedure 1973 (2 of 1974), 'no person accused of an offence (under this Act) shall be released on bail or on his own bond unless ii) the Public Prosecutor has be....
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....reproduction of words used section 37 in NDPS Act into the provision of Money Laundering Act. 17.The reason can be seen in the present day situation. At one end the economy of the country is growing and at another end, Offences against the economy, more particularly, Banking frauds are on the rise running to several Crores. The economic offences are more capable of destablishing the very sustenance of penniless Indian majority than affecting the society at large. When we approach this provision from this angle, we see more reason than one expressed in the words used. But, this is also greatly commented as draconian in nature. But as long as it remains in the Statute Book, it has to be applied with its full vigour and force. 18. So, I am....