Ltd., secured certain credit facilities from a consortium of banks led by the State Bank of India; that the facilities were secured by the creation of a charge on movable properties and a mortgage of certain immovable properties; that the account of the said Company was operated properly till 27.07.2012, but started showing signs of sickness thereafter; that the account was classified as NPA on 22.11.2012, with an outstanding book-balance of more than Rs.92 crores; that the account was classified by the Bank as fraudulent one on 03.02.2015; that one of the properties mortgaged to the Bank, by third party guarantors was later found to be involved in litigation, on account of the defective title of the guarantors; that another property was found 2 to have been grossly over-valued; that the Company had connived and conspired with advocates and valuers hired by the consortium of banks; and that therefore the promoters/directors of the Company, the guarantors as well as those involved in the sanction of the loan were guilty of the offences complained. After the CBI filed the final report on 31.12.2021, the Special Court issued summons for the appearance of the accused on 07.03.2022. Accused No.14, namely Shri Yatish Sharma is alleged to have operated the account of one M/s Shri Radhey Traders, to whom a huge amount had been transferred from the account of another firm by name Aggarwal Traders.
Therefore, it is 4 difficult to accept the contention that at this stage the custody of the appellants may be required; (ii) In the reply/counter filed before the High Court, the CBI had taken a categorical stand that the Court had merely issued summons and not warrant for the appearance of the accused. Suffice for the 5 present to note that it is not the CBI which is seeking their custody, but the appellants apprehend that they may be remanded to custody by the Trial Court and this is why they seek protection. Therefore, the appeals are allowed and the appellants are directed to be released on bail, in the event of their arrest, subject to such terms and conditions as may be imposed by the 6 Special Court, including the condition for the surrender of the passport, if any. , if any, stands disposed of accordingly.
Case Title: MAHDOOM BAVA Vs. CENTRAL BUREAU OF INVESTIGATION (2023 INSC 263)
Case Number: Crl.A. No.-000853-000853 / 2023
