Amit Sarawgi V. The Union of India through Central Bureau of Investigation, Economic Offence Branch, Ranchi

A.B.A./746/2023

AI Insights

Amit Sarawgi sought anticipatory bail from the High Court of Jharkhand at Ranchi, apprehending his arrest in connection with a case registered under various sections of the IPC, including criminal conspiracy and forgery. The case involved allegations that Sarawgi and others diverted a loan of Rs. 10 Crore, obtained for trading in textiles, to shell companies and used it for real estate purposes. The Central Bureau of Investigation (CBI) opposed the bail, citing evidence of forgery and diversion of funds. However, the court granted bail, referencing the Supreme Court's decision in Satender Kumar Antil Vs CBI and noting Sarawgi's cooperation during the investigation and the submission of the charge sheet without his arrest.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 801232 (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; CHANDANA KUMARI; NITISH SARTHI
• Assessee Lawyers: INDRAJIT SINHA; SUMIT PRAKASH
• Keywords: Anticipatory bail; Collateral security; Criminal conspiracy; Forgery; Loan diversion; NPA; Shell companies
• Section: 120-B; 120-B; 420; 471; 467; 438(2)

Judgement Text

"IN THE HIGH COURT OF JHARKHAND AT RANCHI A. B. A. No. 746 of 2023 Amit Sarawgi . .... .. ... Petitioner(s) Versus The Union of India through Central Bureau of Investigation, Economic Offence Branch, Ranchi .. ... ...Opp. Party(s) ........... CORAM :HON'BLE MR. JUSTICE GAUTAM KUMAR CHOUDHARY ......... For the Petitioner : Mr. Indrajit Sinha, Advocate Mr. Sumit Prakash, Advocate For the CBI : Mr. Anil Kumar, ASGI Ms. Chandana Kumari, AC to ASGI Mr. Nitish Parth Sarthi, AC to ASGI …... 06/ 27.06.2023. Apprehending his arrest, petitioner above-named has moved this Court for grant of anticipatory bail in connection with CBI / EOW / Ranchi FIR No.RC0932018S007 registered under Sections 120-B read with Sections 420, 467, 471 of the Indian Penal Code. Heard the parties. As per the prosecution case, the accused persons and other unknown entered into a criminal conspiracy during 2014 to 2018 and in pursuance thereof obtained loan of Rs.10.00 Crore from Bank of India, Ranchi in the name of accused company 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 and Shri Ram Comtrade Pvt. Ltd. The loan account became NPA on 31.03.2018 with outstanding amount of Rs.10.37 Crores due to default in repayment of loan. 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. 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 for the CBI has vehemently opposed the prayer. Learned ASGI in support of his submission has relied upon Paras 9, 11, 13 and 16 of the charge-sheet, which read as follows :- 9. Investigation further revealed that Board of Directors of M/s Sunbeam Dealer Pvt. Ltd. resolved that Shri Amit Sarawgi, one of the Directors of Company was authorized to take all the steps and initiatives to furnish the said appraisal and execute all documents and papers including creation of mortgage of the property and as and when required on behalf of the Company and common seal of the Company be affixed in his presence and it was approved by Board of Directors. 11. Investigation revealed that Shri Amit Sarawgi provided third party collateral guarantee to the Bank. The landed property in the name of M. Raju Gopal Dutta and Mr. Dinbandhu Dutta situated at Mauza Mohinagar, Rajpur Sonarpur, Municipality Ward No.22 J.L. No.79, Khatiyan No.1542/1, dag No.154/ 155/ 156/ 157 District 24 Parganas (South), area of land 164 decimal vide Sale Deed No.3959 of 1943. However, investigation revealed that original owners of the said plot Shri Raju Gopal Dutta and Shri Dinbandhu Dutta did not execute the mortgage deed as a guarantee to the loan availed by M/s Sunbeam Dealers Pvt. Ltd. In place of actual owners, two different persons impersonated themselves as Shri Raju Gopal Dutta and Shri Dinbandhu Dutta and executed mortgage deed in favour of Bank of India, Lalpur Branch, Ranchi. Shri Amit Sarawgi informed the Bank about these impersonators that they were known to his father and thus, they provided collateral security in lieu of loan to M/s Sunbeam Dealers Pvt. Ltd. Those two impersonators submitted forged and fabricated sale deed/ documents of immovable property in the Bank. 13. Investigation further revealed that Shri Amit Sarawgi, Director of M/s Sunbeam Dealer Pvt. Ltd. remitted crores of rupees to the account of different Companies / Firms and from these accounts money has been remitted in the account of other group concerns of M/s Sarawgi Builder and Promoter Limited and Shell Companies created especially for this purpose. 16. Investigation further revealed that though the loan was sanctioned to M/s Sunbeam Dealers Pvt. Ltd. for the purpose of trading of clothes/ textiles, however, M/s Sunbeam Dealers Pvt. Ltd. partially did the actual business and diverted/ round tripped the rest of loan amount and same was again transferred in the account of M/s Sarawgi Builders and Promoters Pvt. Ltd. and in its other group companies/ Firms. This diversion of funds clearly reflects that Shri Amit Sarawgi in connivance with promoter of M/s Sarawgi Builders and Promoters Pvt. Ltd. used the money in Real Estate as the actual business of M/s Sarawgi Builders and Promoters Pvt. Ltd. was Real Estate and Construction of Buildings. 18. Investigation further revealed that Shri Amit Sarawgi was authorised by the Board of Directors of the Company to look after all the issues related with the business of the Company, further he was also made as a authorised signatory of the Company. Considering the submissions of learned counsel that charge sheet has been submitted and the fact as discussed above, the anticipatory bail application is allowed. Hence, in the event of his arrest or surrender within a period of three weeks from the date of receipt of a copy of this order before the learned court below, the petitioner named above shall be released on bail on furnishing bail bond of Rs.One Lakh (Rupees One Lakh) with two sureties of the like amount and subject to the condition that one of the Bailors should be Income Tax Payee and to the satisfaction of learned Court below, subject to the conditions laid down under Section 438(2) Cr. P.C. (Gautam Kumar Choudhary, J.) Sandeep/uploaded. "