Loan Fund Diversion Prima Facie Constitutes Cheating; Section 482 Quashing Denied: J&K HC

Madhu Bakshi Vs Anti-Corruption Bureau & Anr. (Jammu & Kashmir High Court) Diversion of sanctioned bank loan funds for Non-Project purposes constituted prima facie cheating; one-time settlement did not bar criminal prosecution Conclusion: Where investigation revealed prima facie diversion and siphoning of sanctioned loan funds for purposes outside the sanctioned project, resulting in dishonest inducement to the lending bank, criminal proceedings for cheating could not be quashed under Section 482 CrPC merely because the project was completed, a forensic audit did not conclusively esta...