Case Law Details
Mahdoom Bava Vs Central Bureau of Investigation (Supreme Court of India)
Supreme Court directed release of appellant on bail in the event of Court chooses to remand them to custody under Prevention of Corruption Act, 1988.
Facts- The First Information Report in this case was registered on 29.06.2019 at the instance of the Corporation Bank, for the alleged offences u/s. 420, 467, 468, 471 read with Section 120B IPC and Section 13(2) read with Section 13(1)(d) of the Prevention of Corruption Act, 1988.
The gravamen of the allegations contained in the FIR was, that a Company by name M/s NaftoGaz India Pvt. 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 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.
Though the FIR was lodged on 29.06.2019, none of the accused was ever taken into custody by the respondent-CBI. 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. Therefore, apprehending arrest, the appellants moved applications for anticipatory bail. The applications were rejected by the Special Court and the rejection order was also confirmed by the High Court. Therefore, the appellants are before this Court.
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