Prakash Industries Ltd & Anr Vs Directorate Of Enforcement & Anr (Delhi High Court)
Delhi High Court held that the allegations against the petitioners are based on telephonic conversations, vague statements, and uncorroborated allegations which are insufficient to establish a criminal conspiracy or wrongful conduct. Accordingly, all proceedings arising out of FIR are quashed.
Facts- M/s. Prakash Industries Ltd. is a company incorporated and is engaged in the business of coal mines, iron and steel, power and wind energy. Mr. Vipul Agarwal, is a Chartered Accountant and has been working as a Financial Consultant in the company since 2013. The company submitted Form 83 for the allotment of loan registration number of their Foreign Currency Convertible Bonds amounting to USD 50 Million in light of the External Commercial Borrowing /FCCB guidelines of the Reserve Bank of India.
Consequently on 1stAugust 2014, criminal law was set into motion with the registration of the instant FIR, u/s. 9 and 13(2) read with 13(1)(d) of the Prevention of Corruption Act, 1988 and Section 120B of the Indian Penal Code, 1860 against the petitioner and other co-accused persons.
It is mainly contested that company along with others have secured a $20 Million loan from Syndicate Bank through illegal channels by paying huge amount of bribe. The petitioners are aggrieved by the aforesaid summoning order and proceedings arising out of the same and has sought for quashing of the FIR, charge sheet as well as the summoning order.
