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Bail Application No. 963/2018
CNR No. MHCC020166202018
IN THE COURT OF SPECIAL JUDGE FOR C.B.I.
FOR GREATER BOMBAY AT MUMBAI
BAIL APPLICATION NO. 963 OF 2018
IN
REMAND APPLICATION NO. 1230 OF 2018
(R.C. No. BSM/2018/E/0004CBI/BS & FC/Mumbai)
SHRI. ISHWARDAS LAXMICHANDJI AGARWAL,
216, Dariya Mahal, 80, Nepean Sea Road,
Mumbai400 006.
Applicant/
Orig. Accd. No. 2
V/s.
THE CENTRAL BUREAU OF
INVESTIGATION, Bank Securities &
Fraud Cell, Mumbai.
Respondent/
Orig. Complainant
CORAM :
H.H. THE SPECIAL JUDGE,
SHRI. JAYENDRA C. JAGDALE,
(C. R. No. 51).
DATED :
11th January, 2019.
Mr. Parab, Ld. Adv. for the applt./original accd. no. 2.
Mr. Omprakash, Ld. S.P.P. for the CBI/Respdt.
ORAL ORDER
1
This is an application placed by the applicant/original
accused no. 2 Shri. Ishwardas Laxmichandji Agarwal for regular bail
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Bail Application No. 963/2018
u/sec. 439 of the Code of Criminal Procedure against whom the
offences punishable u/sec. 120B r/w 409 & 420 of Indian Penal Code,
1860 r/w section 13(2) r/w 13(1)(d) of Prevention of Corruption Act,
1988 have been registered by Central Bureau of Investigation, BS & FC,
Mumbai.
2
Heard arguments advanced by Ld. Advocate for the
applicant/original accused no. 2 and Ld. S.P.P. for the CBI/Respondent.
The Ld. Advocate for applicant/accused has reiterated the contents of
application. The prosecution has strongly objected to grant prayer in
the application. It has given say on the application on record vide Ex2.
I have perused the application and documents produced on record on
behalf of the applicant/accused. I have also perused the say filed on
record by the prosecution.
3
The applicant/accused has submitted through this bail
application that he is arraigned as an accused in the present matter
being a Director on the Board of Directors of M/s. Chandri Paper &
Allied Products Pvt. Ltd. on the basis of written complaint dated
09/03/2018 filed by Shri. Avaneesh Nepaliya, DGM, Punjab National
Bank, Zonal Office, Mumbai.
He was arrested on 17/12/2018 and
remanded in judicial custody till today. He is a senior citizen, aged
about 73 years and suffering from multiple medical complications arises
from Diabetics and Blood Pressure.
He has developed complication
following cataract surgery in the right eye, for which he has to take an
intra masculine injunction every month.
The applicant/accused has
been made a Director of Chandri by his son Shri. Aditya Rasiwasiya,
who stands as accused no. 3 in the Remand Application. He is merely a
namesake director without having any role to play in the day to day
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Bail Application No. 963/2018
business affairs and transactions of Chandri.
He was completely
unaware of the transactions. He has cooperated with the investigating
agency. A detailed statement of applicant/accused was recorded by the
CBI. After registration of the FIR and during the course of investigation,
Chandri returned a sum of Rs. 9,09,63,956/ to Punjab National Bank in
three tranches viz. Rs. 7,00,00,000/ on 12/06/2018, Rs. 1,00,00,000/
on 02/06/2018 and Rs. 10,96,539/ on 26/06/2018. The fact of said
payment was informed to the CBI vide letter dated 28/06/2018 by
Chandri. The said money has been received by Punjab National Bank is
an admitted position. In the said circumstances, no wrongful loss has
occasioned unto Punjab National Bank. In the present case, no role is
attributed to the applicant/accused, nor is there any material to show
any kind of knowledge on the part of applicant/accused. Therefore, the
applicant/accused has prayed to allow the application.
4
The prosecution has filed its reply and submitted that as
per complaint dated 09/03/2018 lodged by Shri. Avneesh Nepalia,
DGM, Punjab National Bank, Zonal Office, Mumbai, during April 2017,
Shri. Gokulnath Shetty, the then Dy. Manager and Shri. Manoj
Hanumant Kharat, Single Window Operator (now under suspension),
both from Punjab National Bank, Brady House, Mumbai entered into a
criminal conspiracy with Shri. Aditya Rasiwasia and Shri. Ishwardas
Agarwal (present applicant/accused), both Directors of M/s. Chandri
Paper and Allied Products Pvt. Ltd., Mumbai and unknown others in the
matter of dishonest and fraudulent issuance of two Letters of
Undertaking (LOUs) for USD 560444.44 and USD 860867.38
respectively, totalling to USD 1421311.82 (equivalent amount of Rs.
9,09,63,956.48), favouring SBI, Antwerp, Belgium on 25/04/2017, the
object of which to cheat Punjab National Bank, MCB, Brady House,
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Bail Application No. 963/2018
Mumbai. The said two LOUs were fraudulently issued to M/s. Chandri
Paper & Allied Products Pvt. Ltd., Mumbai without any sanctioned
credit limit to the company and also no 110% margin was provided by
the said company.
The accused bank officials without obtaining
required request application, documents and approval of the authorities
thereto and without making entries in the bank system, transmitted to
the overseas banks. The applicant/accused and his son Shri. Aditya
Rasiwasia were the main beneficiary of said amount and got issued LOU
in favour of SBI, Antwerp without any underlying import transactions.
It is disclosed that the purported import consignment of base oil which
was raw material, was misdeclared as capital goods by Shri. Aditya
Rasiwasia in connivance with the applicant/accused and Shri.
Gokulnath Shetty, the then Dy. Manager, PNB, MCB, Brady House,
Mumbai. The payment of defrauded amount was done only after the
registration of FIR. The repayment of amount would not absolve him
and the criminality.
The applicant/accused was arrested on
17/12/2018. The case is at crucial stage of investigation and there is
every reason to believe that the arrested accused would resort to all
means for thwarting the investigation by tampering with the evidence
that remains to be collected and influence the witnesses, which is highly
detrimental to the case. Hence, the Ld. SPP for CBI has prayed to reject
the application.
5
Herein, I would like to refer the case of Nimmagadda
Prasad v/s. Central Bureau of Investigation [2013 DGLS (Soft.)
404], wherein the Hon’ble Lordships of Hon’ble Supreme Court of India
have specifically described the considerations for bail application and
observed that while granting bail, the Court has to keep in mind the
nature of accusations, the nature of evidence in support thereof, the
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Bail Application No. 963/2018
severity of punishment which conviction will entail, the character of the
accused, the circumstances which are peculiar to the accused,
reasonable possibility of securing the presence of accused at the trial,
reasonable apprehension of the witnesses being tampered with, the
larger interests of public/State and other similar considerations.
6
In view of the abovementioned criteria, it is important to
mention that the prosecution has not raised any point that there is
difficulty for securing the presence of accused at the time of trial. The
prosecution has not raised any point regarding the larger interests of
the State or similar kind of consideration. A vague statement made by
the prosecution that at this crucial stage of investigation, the arrested
accused would thwart an investigation by tampering with the evidence
that remains to be collected and influence the witnesses.
7
In this respect, it is material to point out that the
investigating officer Mr. A.D. More has appeared in the Court and
categorically submitted that he is going to file a chargesheet within 23
days. Meaning thereby, the evidence has already been collected and
there is no possibility that arrested accused may resort to thwart the
investigation by tampering with the evidence that remains to be
collected. Apart from the said position of facts, it is also material to
note that this Court has obtained report from the jail authorities
regarding physical condition of the applicant/accused.
The jail
authorities have submitted the report wherein it has been specifically
mentioned that the present applicant/accused was hospitalized and he
is suffering from hypertension and other diseases. Moreover, it is also
important to note that the present applicant/accused is having the age
of 73 years.
These all factors cumulatively indicate that the
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Bail Application No. 963/2018
applicant/accused is require to be released on bail subject to certain
conditions. Hence, the application deserves to be allowed. Accordingly,
I proceed to pass the following order :
ORDER
1
Bail Application No. 963/2018 in R.A. No. 1230/2018
(R.C. No. BSM/2018/E/0004CBI/BS & FC/Mumbai) is hereby allowed.
2
The applicant/original accused no. 2 SHRI. ISHWARDAS
LAXMICHANDJI AGARWAL is hereby directed to be released on
executing P.R. Bond of Rs. 50,000/ (Rupees Fifty Thousand Only).
Further, he is hereby directed to furnish one or more sureties of the like
amount within two months.
3
The applicant/accused is directed not to leave India
without obtaining prior permission from this Court.
4
Further, till furnishing surety, the applicant/accused is
directed to surrender his passport, if any, with CBI.
5
The applicant/accused is directed to furnish his permanent
address as well as permanent contact numbers to the CBI.
6
The applicant/accused is directed to furnish addresses of
his two relatives and their permanent addresses and contact numbers to
the CBI.
7
The applicant/accused is further directed not to tamper
with the prosecution evidence and to assist in disposal of trial.
8
The applicant/accused shall not commit any offence while
on bail.
9
The applicant/accused is hereby directed to remain present
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Bail Application No. 963/2018
before investigating officer on every Tuesday in between 10.00 a.m. to
4.00 p.m. till further order.
10
Breach of any of the above conditions will amount to
cancellation of bail granted to the applicant/accused.
11
The applicant/accused is hereby allowed to be released
provisionally after furnishing cash bail of Rs. 50,000/, temporarily for
the period of two months.
12
Bail Application No. 963/2018 in R.A. No. 1230/2018
stands disposed of accordingly.
(Order dictated and pronounced in open court.)
(Jayendra C. Jagdale)
The Special Judge for CBI,
City Civil & Sessions Court,
Gr. Bombay.
Dated : 11/01/2019
Dictated on
Transcribed on
Signed on
Delivered to Certified
Copy Section on
: 11/01/2019
: 11/01/2019
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Bail Application No. 963/2018
“Certified to be true and correct copy of the original signed
judgment/order”.
Upload Date & Time : 11/01/2019 at 5.37 p.m.
Smt. G. K. Kotawadekar
Name of the Stenographer
H.H.J. SHRI. JAYENDRA C. JAGDALE (C. R. No. 51)
Date of pronouncement of judgment/order :11/01/2019
Judgment/order signed by the P.O. on :11/01/2019
Judgment/order uploaded on :11/01/2019