Amit Sarawagi V. Union of India through CBI

A.B.A./1140/2023

AI Insights

Amit Sarawagi, the petitioner, faced an anticipatory bail application concerning his alleged involvement in a criminal conspiracy that diverted a loan of Rs. 15 Crore from Bank of India, intended for wholesale trade/business of cloth and textiles, to various shell companies and ultimately to his real estate company. The prosecution accused Sarawagi and others of using fabricated documents and bogus bills to facilitate this diversion, leading to the loan account becoming a Non-Performing Asset (NPA). The defense argued that the charges were not substantiated, highlighting the ongoing proceedings at the Debt Recovery Tribunal and the lack of his arrest during the investigation, where he purportedly cooperated fully. The court considered the gravity of the offense and the procedural history, including the submission of the charge sheet and previous non-arrest during the investigation, before granting bail.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 695355 (HC-JHARKHAND)
• Appeal Type: Others
• Pronouncement Date: 27-06-2023
• Assessment Year: misc
• Other Referred Cases: Satender Kumar Antil Vs CBI (2022) 10 SCC 51
• Laws Referred To: Indian Penal Code
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: ANIL KUMAR
• Assessee Lawyers: INDRAJIT SINHA; RISHAV KUMAR
• Keywords: Anticipatory bail; Bogus Bills; Criminal conspiracy; Debt Recovery Tribunal; Loan diversion; NPA; Shell companies
• Section: 468; 409; 420; 471; 120B; 438(2)

Judgement Text

"IN THE HIGH COURT OF JHARKHAND AT RANCHI A.B.A. No. 1140 of 2023 ------ Amit Sarawagi .... .... …. Petitioner Versus Union of India through CBI .... .... .... Opp. Party CORAM: HON'BLE MR. JUSTICE GAUTAM KUMAR CHOUDHARY For the Petitioner : Mr. Indrajit Sinha, Advocate Mr. Rishav Kumar, Advocate For the C.B.I. : Mr. Anil Kumar, ASGI ------ Order No.07 Dated : 27.06.2023 The anticipatory bail application filed on behalf of petitioner, who is apprehending his arrest in connection with R.C. Case No.01(S)/2019-EOW-R for the offence registered under Sections 120B, 409, 420, 468, 471 of the I.P.C. pending in the Court of learned Sub Divisional Judicial Magistrate cum Special Judge, C.B.I., Ranchi, is pressed into motion. As per the prosecution case, the accused persons and other unknown entered into a criminal conspiracy during 2015 to 2018 and in pursuance thereof obtained loan of Rs.15.00 Crore on 29.06.2015 from Bank of India, Ranchi in the name of accused company i.e. M/s Badri Kedar Udyog Ltd. for doing wholesale trade/business of cloth and textiles. The loan amount was not for trading of cloths, rather money was diverted to various Shell companies headquartered at Kolkata and subsequently money was again transferred to the account of M/s Sarawagi Builders and Promoters Pvt. Ltd., Ranchi under the Directorship of the said Amit Sarawagi and Swati Sarawagi. The loan account became NPA on 31.03.2018 with outstanding amount of Rs.12.84 Crores due to default in repayment of loan. The loan amounts were remitted in the account of Shell companies on the basis of bogus/fabricated bills, raised by those companies and later on, the funds were transferred in the current account of M/s Sarawagi Builders and Promoters Pvt. Ltd., which was a real estate developers and builders and nowhere connected with the business of cloths and textiles. The loan amount was sanctioned against collateral security in the form of stocks and book debts, flat, land and building. Later on, stock audit was carried out and adverse report was submitted. Amit Sarawagi was Director of M/s Sarawagi Builders and Promoters Pvt. Ltd. and also of M/s Shree Badri Kedar Udyog Pvt. Ltd. Abhishek Agarwal was in the office of M/s Shree Badri Kedar Udyog Pvt. Ltd. He was relative of Amit Sarawagi and Gyan Prakash Sarawagi and it is alleged that he was the key person who formed fake firms. Thereafter, in connivance with the co-accused, got the bank account opened in the name of these companies and got issued the cheque from the bank and got it signed by the account holding staffs and utilized those signed cheque by rotating/diverting the money. It is submitted by the learned counsel on behalf of the petitioner that the offence alleged will not be made out. The matter regarding recovery is now pending before Debt Recovery Tribunal, Ranchi and as per Circular of the RBI dated 1st July, 2009 in case of diversion of fund, bank must recall amount so diverted and the bank can charge penal interest on the amount so diverted. Further, the charge sheet has already been submitted in this case and the petitioner was not arrested during pendency of the investigation where he had fully co-operated with the investigation in view of ratio decided by Hon’ble Supreme Court in Satender Kumar Antil Vs CBI reported in (2022) 10 SCC 51 and the subsequent order passed by this Court dated 21.03.2023. The petitioner is entitled to bail. Learned ASGI has opposed the prayer for bail on facts considering the gravity of offence that loan that was raised by the petitioner company, was deliberately diverted. Considering the submissions made, the anticipatory bail application is allowed. Accordingly, the petitioner, above named, is directed to surrender before the learned Trial Court within a period of two weeks and in the event of his arrest or surrender, he shall be released on bail on furnishing bail bond of Rs.1,00,000/- (Rupees One Lakh only) with two sureties of the like amount each to the satisfaction of the Court below, subject to the conditions as laid down under Section 438(2) of the Code of Criminal Procedure and one of the sureties will be income tax payee. (Gautam Kumar Choudhary, J.) Anit "