AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2019 (10) TMI 1523
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....g on the file of the learned Special Chief Judge, CBI, Bhubaneswar. 2. Heard the learned counsel appearing for the petitioners and Shri A.K. Bose, learned Asst. Solicitor General of India appearing for the Republic of India (CBI). 3. It appears from the materials available on record that M/s. ARSS Infrastructure Projects Limited is a Construction Company having its registered office at Bhubaneswar. It launched a special purpose vehicle known as M/s. ARSS Damoh-Hirapur Tolls Pvt. Limited to undertake the work for construction of two lane of State Highway No.37 for a distance of 69.90 kilometers between Damoh and Hirapur in the State of Madhya Pradesh. The work was originally entrusted to M/s. Madhya Pradesh Road Development Corporation Lim....
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....loan and despite insistence of the Bank, did not take steps to execute the work and complete the same as targeted by the Madhya Pradesh Road Development Corporation. When in spite of several reminders of the Madhya Pradesh Road Development Corporation, the work was not executed, the agreement was cancelled. The loan became a bad debt / NPA. As alleged, the loan amount was diverted by the company and the conditions of the agreement were not complied with. Alleging that the borrower and the guarantor company which was also to execute the work, in connivance with the Bank officials who are public servants, committed fraud of inter-State ramification, F.I.R. was lodged against the Company. 4. It appears that the petitioners had challenged the ....
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....on-completion of the work in time their contract has been terminated. The learned counsel further submits that the allegation that fund was diverted, is without any substance inasmuch as the petitioners have sufficient plant and machinery and violation of any of the terms and conditions of the contract by them should not be viewed adversely when the petitioners have already executed certain portion of works, and dispute is going on between them and Madhya Pradesh Government for termination of the contract. He further submits that the entire allegation of the prosecution being based on documentary evidence and also most of them being in possession of the Bank, to which the petitioners have no access, and the relevant documents being also ava....
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...., it is also not disputed that the entire allegations of the prosecution are based on documentary evidence with regard to breach of the contract, diversion of fund etc. and the petitioners have no access to those documents. Hence, there is no apprehension of their tampering with the evidence. 8. There can be no manner of doubt that economic offences are to be held in a different manner. It has been held by the Apex Court in the case Y.S. Jagan Mohan Reddy vrs. C.B.I., reported in AIR 2013 Supreme Court 1933, that economic offences constitute a class apart and need to be visited with a different approach in the matter of bail. The economic offence having deep rooted conspiracies and involving huge loss of public funds needs to be viewed ser....
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....s are running their business and, as such, there is least chance of their fleeing from investigation or justice. It is also never the case of the C.B.I. that the petitioners are not cooperating with the investigation. 10. In the context of the allegation that the petitioners diverted the loan amount by not utilizing the same for execution of the work, and thereby impeded chance of the Bank to get back the amount, it may be reiterated that the Bank has already worked out one time settlement and a major part of the amount has already been received by the Bank. In the aforesaid circumstance, when there being least chance of absconding of the petitioners, more particularly their release on pre-arrest bail would not have any serious impact on a....