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Criminal Bail Application No. 960/2018
CNR No. MHCC02н016615н2018
IN THE COURT OF SPECIAL JUDGE FOR C.B.I.
FOR GREATER BOMBAY AT MUMBAI
CRIMINAL BAIL APPLICATION NO. 960 OF 2018
IN
REMAND APPLICATION NO. 1230 OF 2018
(R.C. No. BSM/2018/E/0004нCBI/BS & FC/Mumbai)
MR. SANJAY KUMAR PRASAD,
Age 58 years, Occ.:Service,
Present addressнB/507, Surya Vihar,
Kapashera Border, Dundahera Old Delhi,
Gurgaon Road, Gurgaonн122016.
Permanent addressнC258, Road No. 1C,
Ashok Nagar, PS Argora,
Dist.:Ranchi, Jharkhand.
(At present applicant/accused is in
Judicial Custody)
Applicant/
Orig. Accd. No. 13
V/s.
UNION OF INDIA,
(Through 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 :
19th January, 2019.

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Criminal Bail Application No. 960/2018
Ms. Karishma Kalathil @ Mr. N. Mundergi, Ld. Adv. for the applt./original accd. no. 13.

Mr. Omprakash, Ld. S.P.P. for the CBI/Respdt.

ORAL ORDER
1
This is an application placed by the applicant/original
accused no. 13 Mr. Sanjay Kumar Prasad for regular bail u/sec. 439 of
the Code of Criminal Procedure against whom the offences punishable
u/sec. 120нB 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.

13
CBI/Respondent.

The Ld. Advocate for applicant/accused has
reiterated the contents of application.

and
Ld.

S.P.P.

for
the
The prosecution has strongly
objected to grant prayer in the application. The prosecution has given
say on the application on record vide Exн2.

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
application
The applicant/accused has submitted through this bail
that
during
the
course
of
investigation,
the
applicant/accused came to be implicated in the subject FIR and
accordingly arrested on 17/12/2018. The applicant/accused had joined
the Punjab National Bank, Brady House Branch, Mumbai on
16/05/2016 as AGM (Branch Head) and relieved from branch on
28/04/2017. The applicant/accused was working as Branch Head for
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Criminal Bail Application No. 960/2018
almost 1 year and thereafter promoted as Circle Head, Mumbai due to
his hard work and good performance. The account of M/s. Chandri
Paper & Allied Products Pvt. Ltd. was dealing with the said bank since
2007 and enjoying credit facilities upto Rs. 33.75 crores including issue
of LC & LOU. The applicant/accused has neither sanctioned the credit
facilities, nor approved issue of LC or LOU. The said LOUs were issued
by junior level officer, who has not entered them in bank’s books of
account i.e. CBS, hence it was impossible for anyone to check. The
amount involved in FIR is that of Rs. 9.10 crores. The entire subject
amount is recovered by the said bank. The applicant/accused is having
medical issues. He is a public servant. The evidence in the subject case
is of documentary nature, hence the custody of applicant/accused for
the purpose of investigation is not needed.

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
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
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Criminal Bail Application No. 960/2018
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.

During relevant time when the
alleged LOUs were issued, the applicant/accused, the then AGM (now
DGM, Punjab National Bank, HO, New Delhi) was the Branch Head of
Punjab National Bank, Brady House, Mumbai and he was responsible
for overall functioning and supervision of the branch. He deliberately
and dishonestly failed to ensure the compliance of Foreign Exchange
Circulars dated 15/12/2016 & 17/01/2017 issued by Punjab National
Bank, HO, New Delhi regarding reconciliation that were to be carried
out on the SWIFT messages generated daily with the CBS system by the
other accused branch officers/officials working under him in Foreign
Exchange Department. He had committed deliberate illegal omissions
by not complying the above said circulars issued by Punjab National
Bank, HO, New Delhi and Circle Office, Mumbai City and dishonestly
performed his duties improperly by abusing his official position 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 17/12/2018 in this case. The case is at crucial stage of
investigation
and
there
is
every
reason
to
believe
that
the
applicant/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.

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5
Criminal Bail Application No. 960/2018
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 chargeнsheet 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
given by the prosecution as to which witnesses, the applicant/accused
may influence and what kind of evidence, the applicant/accused may
tamper. In short, these are vague allegations and on the basis of such
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Criminal Bail Application No. 960/2018
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 chargeнsheet 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 :н
ORDER
1
Bail Application No. 960/2018 in R.A. No. 1230/2018
(R.C. No. BSM/2018/E/0004нCBI/BS & FC/Mumbai) is hereby allowed.
2
The applicant/original accused no. 13 MR. SANJAY
KUMAR PRASAD is hereby directed to be released on executing P.R.
Bond of Rs. 50,000/н (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.

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7
Criminal Bail Application No. 960/2018
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/н, temporarily for
the period of two months.
12
Bail Application No. 960/2018 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 : 19/01/2019
Dictated on
Transcribed on
Signed on
Delivered to Certified
Copy Section on
: 19/01/2019
: 19/01/2019
: 19/01/2019
:
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Criminal Bail Application No. 960/2018
УCertified to be true and correct copy of the original signed
judgment/orderФ.
Upload Date & Time : 19/01/2019 at 5.39 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 :н19/01/2019
Judgment/order signed by the P.O. on :н19/01/2019
Judgment/order uploaded on :н19/01/2019