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Bail Application No. 957/2018
CNR No. MHCC02­016610­2018
IN THE COURT OF SPECIAL JUDGE FOR C.B.I.
FOR GREATER BOMBAY AT MUMBAI
BAIL APPLICATION NO. 957 OF 2018
IN
REMAND APPLICATION NO. 1234 OF 2018
(R.C. No. BSM/2018/E/0004­CBI/BS & FC/Mumbai)
MR. PRAFFUL PRAKASH SAWANT,
S/o. Shri. Prakash Govind Sawant,
Age 29 years, Occ.:Working in Junior
Management Grade (Officer) in Punjab
National Bank, residing at B Wing,
Flat No. 204, Shrushti Complex,
Sector­34, Kamothe, Navi Mumbai.

Applicant/
Orig. Accd. No. 4
V/s.
THE CENTRAL BUREAU OF
INVESTIGATION, Bank Securities &
Fraud Cell, Mumbai.

Respondent/
Complainant
CORAM :
H.H. THE SPECIAL JUDGE,
SHRI. JAYENDRA C. JAGDALE,
(C. R. No. 51).

DATED :
18th January, 2019.

Mr. Aabad H.H. Ponda, Ld. Adv. for the applt./original accd. no. 4.
Mr. Omprakash, Ld. S.P.P. for the CBI/Respdt.

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Bail Application No. 957/2018
ORAL ORDER
1
This is an application placed by the applicant/original
accused no. 4 Mr. Prafful Prakash Sawant for regular bail 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)(c) & (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. 4 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. The prosecution 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 was arrested by CBI on 18/12/2018. He was posted
and functioning as an Officer in Forex Department of Punjab National
Bank, Mid Corporate Branch, Brady House, Mumbai during the period
from 05/08/2015 to 11/09/2017.

The accused persons facilitated
issuance of unauthorized/fraudulent LOU, whereby the accused
company viz. M/s. Chandri Paper & Allied Products Pvt. Ltd. accrued
wrongful gain and wrongful loss of Rs. 9,09,63,956.48 to Punjab
National Bank, Mumbai. The investigation has been going on for more
than 9 months.

The offences for which, the applicant/accused is
charged do not fetch any death term.

The applicant/accused was
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Bail Application No. 957/2018
connected with some operations including all routine work related to
exports and inward remittance, assist segment head RM&O as per
exigencies of business and report to In­charge of Foreign Exchange
Department and NPA. There was unlimited power given to accused
Gokulnath Shetty, which was noticed only in February 2018 by Punjab
National Bank top management after LOUs in another FIR became due
and the scam was revealed and a circular dated 12/02/2018 giving user
based limit for issue of LOUs.

There was no system of checks and
balances for the purposes of ensuring that SWIFT messages had to be
sent under the control of one person. The investigation in present case
is complete as far as the present applicant/accused is concerned. The
investigation till date does not reveal any evidence or documents to
prove
that
the
applicant/accused
has
issued
any
LOU
or
approved/sanctioned any LOU. The present alleged LOUs are relating
to import transaction.

The entire case is based on documents and
nothing has been recovered or discovered at the instance of
applicant/accused. He is not a beneficiary to any of the proceeds of
entire crime. On the basis of mere suspicion without any material on
record, no criminal liability can be fastened as against the present
applicant/accused. In the result, 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, both from Punjab National
Bank, Brady House, Mumbai entered into a criminal conspiracy with
Shri. Aditya Rasiwasia and Shri. Ishwardas Agarwal, both Directors of
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Bail Application No. 957/2018
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, 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 was posted
as an Officer in Forex Department of Punjab National Bank, MCB, Brady
House, Mumbai during 05/08/2015 to 11/09/2017. He dishonestly
and deliberately did not comply with office order dated 07/02/2017 &
14/03/2017 issued by accused Bechu Tiwari, Chief Manager to submit
compliance report in respect of SWIFT Monitoring on daily basis and
checking of all SWIFT messages except MT­103 & MT­202, thereby
facilitated in the commission of offence.

The applicant/accused has
abused his official position as a public servant and dishonestly
performed his duty improperly thereby facilitated the perpetration of
fraud of Rs. 9,09,63,956.48 on Punjab National Bank, MCB, Brady
House, Mumbai and wrongful gain to M/s. Chandri Paper & Allied
Products Pvt. Ltd. The applicant/accused was arrested on 18/12/2018
in this case. 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
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Bail Application No. 957/2018
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
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
It is clear from the record that the investigation against the
present applicant/accused is complete and charge­sheet has already
been filed against him. The apprehension expressed by the prosecution
that the applicant/accused may thwart the investigation by tampering
the evidence and influence the witnesses, however no details have been
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Bail Application No. 957/2018
given by the prosecution as to which witnesses, the applicant/accused
may influence and what kind of evidence, the applicant/accused may
tamper. The applicant/accused himself undertakes to co­operate with
the police and remain present whenever required. In short, these are
vague allegations and on the basis of such vague allegations, the
personal liberty of applicant/accused can not be curtailed. There is no
any proper reason to keep the applicant/accused in judicial custody for
indefinite time. Moreover, I have already mentioned that the charge­
sheet has already been filed in the matter.

Therefore, the
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. 957/2018 in R.A. No. 1234/2018
(R.C. No. BSM/2018/E/0004­CBI/BS & FC/Mumbai) is hereby allowed.
2
The applicant/original accused no. 4 MR. PRAFFUL
PRAKASH SAWANT 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
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Bail Application No. 957/2018
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
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. 957/2018 in R.A. No. 1234/2018
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 : 18/01/2019
Dictated on
Transcribed on
Signed on
Delivered to Certified
Copy Section on
: 18/01/2019
: 18/01/2019
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:
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Bail Application No. 957/2018
“Certified to be true and correct copy of the original signed
judgment/order”.
Upload Date & Time : 18/01/2019 at 5.30 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 :­18/01/2019
Judgment/order signed by the P.O. on :­18/01/2019
Judgment/order uploaded on :­18/01/2019