Smt P Sai Sudha

1 CC.No. 05/2018 XXI ACJM Court, Hyderabad

IN THE COURT OF THE XXI ADDL. CHIEF JUDICIAL MAGISTRATE - CUM-

Spl. JMFC FOR TRIAL OF CBI CASES, HYDERABAD.

PRESENT : : P Sai Sudha, XXI Addl. Chief Judicial Magistrate- cum- Spl. JMFC for trial of CBI Cases, Hyderabad.

Dated this the 13 th day of March, 2025

CC.No. 05 of 2018

Between: The Inspector of Police, CBI, EOW Chennai. ……..State/Complainant AND

1. K. Siva Rama Krishna, S/o K. Padmanabhaiah, Aged: 39 years, Occ: Business, R/o. H.No. 6-3-609/120, Flat No. 202, 3rd Floor, Sirkara Sriram Residency, Anand Nagar Colony, Khairatabad, Hyderabad. Permanent Address: Door No. 23/1227, Fathekhanpet, Nellore- 500 013.

2. M.V. Srinivasulu, S/o Late G.V. Naidu, Age: 81 years, Occ: Bank’s Panel Valuer, R/o. Plot No. 62-63 A, Radha Soami Colony, Sikh Road, Secunderabad-500 009. (Accused no.2 died. The case against Accused no.2 abated)

3. N. Mohan Reddy, S/o Late Venkat Reddy, Age: 39 years, Occ: Business, R/o. Door No. 5-9-16-11,405/14, Flat No. 503, 22/44, F-1, Opp. Rock Garden, Adarsh Nagar, Hyderabad. Permanent Address: Beside Asha Niketan, Venkat Rao Nagar, Kavali, Nellore. …. Accused no.1 to 3 2 CC.No. 05/2018 XXI ACJM Court, Hyderabad

This case has come up before me on 07-03-2025 for hearing in the presence of Sri Vijay Kumar Dubey, learned Assistant Public Prosecutor for State/CBI and SriRavinder Reddy,Sri. K.Srinivasa Rao, Counsels for A1 and A3 and the matter having stood over for consideration till this day, this Court delivered the following :

: JUDGMENT :

1.The Inspector of Police, CBI, EOW Chennai filed charge sheet against A1 to

A3 in RC. 6(E)/2013 for the offences under Sections 120-B r/w 420, 468, 471 of

IPC and substantive offences thereof.

2. The case of the prosecution, in brief is as follows :

2.1.K. Siva Rama Krishna (arraigned as A2 in FIR) is Proprietor of M/s Siva

Constructions (arraigned as A1 in FIR). On 19-03-2010, K. Siva Rama Krishna submitted a loan application to IDBI Bank Limited, Specialized Corporate Branch,

Chappel Road, Hyderabad requesting for sanction of Cash Credit facility of Rs. 12

Crores for his proprietorship concern M/s. Siva Constructions for the purpose of expansion of his existing business of executing infrastructure contract works mainly for Railways on sub-contract basis from M/s VNR Infrastructure Limited.

2.2.Basing on representations made by K. Siva Rama Krishna (arraigned as A2 in FIR) and satisfactory certificate from Andhra Bank on the operation of the ac- count of M/s. Siva Constructions, it was agreed by IDBI Bank to sanction Cash

Credit facility of Rs. 10 crores to M/s. Siva Constructions (arraigned as A1 in FIR) on the terms and conditions mentioned in the sanction letter, dt. 18-06-2010.

2.3.As per the terms of sanction letter, the Cash Credit facility was required to be secured, inter alia on the primary security of First charge on the current assets of the firm, present and future and also collateral security of immovable properties to 3 CC.No. 05/2018 XXI ACJM Court, Hyderabad the value approximately of Rs. 20 crores and personal guarantee of K. Siva Rama

Krishna (arraigned as A2 in FIR). In order to create stipulated security, K. Siva

Rama Krishna (arraigned as A2 in FIR) was required to submit a valuation report on the collateral property and a Net worth Certificate from a Chartered Accountant to prove his net worth before executing the personal guarantee in favour of IDBI

Bank.

2.4.Accordingly, K. Siva Rama Krishna (arraigned as A2 in FIR) through an au- thorized valuer ie., empanalled valuer of the bank M.V. Srinivasulu (arraigned as

A3 in FIR) submitted a Valuation report wherein the fair Market Value of the collat- eral property was assessed at Rs. 21.78 crores. K. Siva Rama Krishna has also sub- mitted Net Worth Certificate, dated 14-05-2010 from one M. Naresh Kumar (ar- raigned as A4 in FIR), Chartered Accountant, Hyderabad by stating that K. Siva

Rama Krishna is having net worth of Rs. 2.68 crores.

2.5.Basing on the above documents/certificates, IDBI Bank allowed K. Siva

Rama Krishna to execute loan and security documents in connection with creation of mortgage by way of deposit of title deeds in respect of collateral property i.e., 5

Acres land at Pulimamidi Village, Maheswaram Taluka, Ranga Reddy District owned by K. Siva Rama Krishna. Upon execution of loan and Security documents and compliance of all conditions stipulated in the sanction letter, IDBI Bank re- leased Cash Credit limit of Rs. 10 crores based on stock statement submitted by K.

Siva Rama Krishna. A visit to the site of project works, Nellore was undertaken by officials of IDBI Bank on 30-08-2010 and reported that 65% of the work was com- pleted and the balance work is in progress.

4 CC.No. 05/2018 XXI ACJM Court, Hyderabad 2.6.The performance and servicing of Cash Credit facility of M/s. Siva Construc- tions was satisfactory for the period from July 2010 to March 9, 2011. But, from

March 2011 onwards, M/s. Siva Constructions (arraigned as A1 in FIR) committed default in servicing the interest and K. Siva Rama Krishna, the proprietor, kept on postponing the payments on one pretext or the other. On constant follow up for clearance of interest dues and routing the contract receipts, M/s Siva Constructions deposited cheques worth of Rs. 0.60 crore through its Cash Credit account with

IDBI Bank and said cheques were dishonored due to insufficient funds. Due to non- servicing of interest from June 30, 2011, the account became irregular and then slipped to Non-Performing Asset (NPA) category as on September 30th, 2011. The

IDBI Bank incurred loss of Rs. 10.19 crores as on NPA date.

2.7.As K. Siva Rama Krishna failed to honour the commitments to service inter- est, route sufficient credits, etc., in the month of October 2011, IDBI Bank initiated fresh due diligence of the executed loan and security documents for the purpose of enforcing mortgage securities charged in favour of IDBI bank. During the site visit to collateral property, it was revealed that the market value would be around Rs.

0.30 crore only, whereas fair Market Value assessed at Rs. 21.78 crores by the val- uer in his report dated. 12-07-2010. In order to ascertain the discrepancies in the valuation of collateral property, IDBI Bank appointed another valuer M/s SRA

Consultants to carry out a fresh valuation of the same collateral property, who has valued the property stating that the fair market value is Rs. 0.52 crore, Realizable

Sale Value is Rs. 0.47 crore and Distress Sale Value is Rs. 0.42 crore.

2.8.IDBI Bank made enquiries and sought clarifications from M.V. Srinivasulu,

Panel Valuer on issuance of his Valuation report dated. 12-07-2010 with an inflated 5 CC.No. 05/2018 XXI ACJM Court, Hyderabad figure. In response to the queries of IDBI Bank, M.V. Srinivasulu, Panel Valuer in- formed through E-mail dated. 12-05-2012 that the valuation report was prepared on the basis of Market Value Assistance Card issued by the Office of Sub-Registrar,

Maheswaram which was submitted to him by authorized personnel of M/s Siva

Constructions. Later, on enquiry by the officials of IDBI Bank, it was informed by the Office of Sub-Registrar, Maheswaram vide letter dated. 16-02-2012 that the

Market Value Assistance Card was not issued by the Sub-Registrar, Maheswaram and it is a fake document and that the signature appearing on Market Value Assis- tance Card (MVAC) is not that of the said Sub-Registrar nor In-charge, Sub-Regis- trar, Maheswaram.

2.9.M. Naresh Kumar (arraigned as A4 in FIR) informed the bank vide letter dated. 21-02-2012 that as per his records, Net worth Certificate, dated 14-05-2010 was not issued from his office.

2.10. After receiving the above replies and confirmations, the Deputy General

Manager, ICG, IDBI Bank, Specialized Corporate Bank Branch, Chappel Road,

Hyderabad lodged a report with the Superintendent of Police, CBI, EOW, Chennai to investigate into the matter and to take appropriate action. On its basis, the case was registered in RC.No. 6(E)/2013-CBI/EOW/Chennai for offences under Sec- tions 120-B r/w 420, 467, 468, 471 IPC and Section 13 (2) r/w Section 13 (1)(d) of

P.C. Act, 1988 against the firm M/s. Siva Constructions as A1, K. Siva Ramakr- ishna as A2, M V Srinivasulu as A3, M. Naresh Kumar as A4 and other unknown public servants and other unknown persons.

6 CC.No. 05/2018 XXI ACJM Court, Hyderabad 2.11. During the course of investigation, the CBI officials examined witnesses, collected documents and conducted search at the premises of the residences of Siva

Rama Krishna, M V Srinivasulu, Mohan Reddy, T. Sailendra, Naresh Kumar and seized documents. Further the documents seized were sent to FSL, Hyderabad for comparison and giving opinion and report was received from FSL, Hyderabad. Af- ter completion of investigation, charge sheet is filed for offences under Sections 120-B r/w 420, 468 and 471 of IPC and substantive offences thereof against K.

Siva Ramakrishna as Accused no.1, M.V.Srinivasulu as Accused no.2 and Mohan

Reddy as Accused no.3.

2.12. Investigation revealed that K. Siva Rama Krishna/Accused no. 1 entered into criminal conspiracy with Mohan Reddy/Accused no. 3 to cheat IDBI bank and in pursuance of said conspiracy, they had prepared fake/forged Market Value Assis- tance Card, dt. 07-07-2010 purported to be issued by Sub-Registrar, Maheswaram and dishonestly and fraudulently submitted the same to IDBI bank for sanction of

Cash Credit Limit to M/s. Siva Constructions owned by K. Siva Rama Krishna. In- vestigation further revealed that K. Siva Rama Krishna/Accused no. 1 with the help of Mohan Reddy/Accused no. 3 purchased agricultural land as mentioned in the proposal in his name only on 06-07-2010 by way of Sale Deed, bearing Document

No. 2811/2010, for consideration of Rs. 25,16,800/- from Smt. Banda Mallamma,

W/o. Late Banda Veeraiah, and others and Sale Deed, bearing Document No.

2812/2010, for consideration of Rs. 23,23,200/- from one Gopal Das China Anjaiah and others registered at office of Sub-Registrar, Maheswaram and submitted said original Sale Deeds to the bank along with forged and fabricated Market Value As- sistance Card, dt. 07-07-2010 purported to be issued by Sub-Registrar, Mah- eswaram. Mohan Reddy/Accused no. 3 arranged funds through his friends for pur- 7 CC.No. 05/2018 XXI ACJM Court, Hyderabad chase of said agricultural land and later Mohan Reddy/Accused no. 3 returned said amount to his friends out of Cash Credit Limit sanctioned to M/s Siva Construc- tions by IDBI Bank.

2.13. During investigation, it is revealed that the seal and signature appearing on

Market Value Assistance Card, dt. 07-07-2010 is also fake and forged one. Further it is revealed that on 07-07-2010, the concerned Sub-Registrar office has issued

Card for six survey numbers which is Survey nos. 221, 236, 234, 3, 311, Door No.

2-5 Raichloor and Survey no. 1/3 Sardarnagar, but not for Survey no. 407. The value mentioned in the card is much more than the actual value. Moreover, the Sur- vey No. 407 is an agricultural land which was offered as collateral security by K.

Siva Rama Krishna to IDBI Bank whereas as per the Market Value Assistance Card submitted to the bank, the Survey No. 407 is Urban Vacant Land (Residential). It clearly establishes the forgery of Market Value Assistance Card. The forgery is within exclusive knowledge of K. Siva Rama Krishna/Accused no. 1 and N. Mohan

Reddy/Accused no. 3.

2.14. Investigation further revealed that M.V. Srinivasulu/Accused no. 2, the panel valuer of IDBI Bank has colluded with K. Siva Rama Krishna/Accused no. 1 and

N. Mohan Reddy/Accused no. 3 with an intention to cheat IDBI Bank and in fur- therance of the criminal conspiracy M.V. Srinivasulu/Accused no. 2 had dishon- estly and fraudulently valued both the above said properties viz., Agricultural lands situated at Pulimamidi Village standing in the name of K. Siva Rama Krishna/Ac- cused no. 1, vide Sale Deed Doc. Nos. 2811/2010 and 2812/2010 both dated 06-07- 2010 registered at SRO, Maheswaram for Rs. 2178 lakhs as depreciated/fair market value and replacement value; Rs. 1742.40 lakhs as realizable value and Rs. 1524.60 8 CC.No. 05/2018 XXI ACJM Court, Hyderabad lakhs as distress/forced sale value respectively without ascertaining the correct value, inspecting the records available with Sub-Registrar Office, Maheswaram and submitted to the Bank which caused release of the credit facilities.

2.15. Investigation further revealed that as per the instructions of G. Suneel Babu,

Deputy General Manager, IDBI Bank, Chappel Road Branch, Hyderabad M.V.

Srinivasulu/Accused no. 2 re-valued the same property and submitted his valuation report dt. 10-10-2011 to the bank. In the second valuation report, he had valued the property for Rs. 963 lakhs as depreciated/fair current market value/replacement value, Rs. 774.40 lakhs as realizable value and Rs. 677.60 lakhs as distress/forced sale value, whereas D. Mohan Raghavaiah of Sri Rishi Associates Consultancy, an- other bank’s Panel Valuer valued the same property for Rs. 42 lakhs only as distress value vide his valuation report, dt. 16-11-2011.

2.16. Investigation further revealed that Cash Credit limit of Rs.10 crores was sanctioned by Regional Credit Committee to M/s Siva Constructions, represented by its Proprietor Siva Rama Krishna/Accused no. 1 on 16-06-2010 based on the recommendations made by the branch. Subsequently, Siva Rama Krishna/Accused no. 1 opened a current account in the name of M/s Siva Constructions on 24-07- 2010 at IDBI Bank, Chappel Road Branch, Hyderabad.

2.17. Investigation further revealed that Siva Rama Krishna/Accused no. 1 had dis-

honestly and fraudulently submitted a false stock statement to the bank and on get-

ting of release the credit facility, he misappropriated the funds of the bank in active connivance with Mohan Reddy/Accused no. 3 by transfer of funds to M/s. PMR

Constructions, M/s. NMR Constructions, which are fictitious companies in the 9 CC.No. 05/2018 XXI ACJM Court, Hyderabad name of N. Mohan Reddy/Accused no. 3, M/s. Srikara Ganesh Infrastructure Ltd., to the Savings Account of one Prashanth Potluri and also to the account of M/s.

Universal Engineering through RTGS cheques, etc. Further, Siva Rama Krishna/

Accused no. 1 had misappropriated the entire sanctioned limit of Rs. 10 crores within a span of six months and utilized the funds for his personal obligations and not for the purpose for which it was sanctioned. Further, out of Cash Credit limit of

Rs.10 crores, Rs. 6.5 crores was transferred to the Savings Bank Account of Pras- anth Potluri maintained at Barclays Bank, Banjara Hills, Hyderabad from the ac- count of Srikara Ganesh Infrastructure India Pvt Ltd., owned by N. Mohan

Reddy/Accused no. 3 and maintained at Bank of Baroda, Adarsh Nagar Branch,

Hyderabad without any genuine business. The entire amount of credit facility was misutilized by Siva Rama Krishna/Accused no. 1 and Mohan Reddy/Accused no. 3 without doing any genuine business and by way of submitting forged and fabricated documents, they caused wrongful loss to IDBI Bank, Chapel Road Branch to the tune of Rs. 10,19,69,623/- as on NPA dt. 30-09-2011 and corresponding gain to themselves.

2.18. Investigation further revealed that K. Siva Rama Krishna/Accused no. 1 opened a current account in the name of M/s Siva Constructions at HSBC, Soma- jiguda and transferred Rs. 5 Crores from Cash Credit account of M/s Siva Con- structions maintained at IDBI Bank, Chapel Road Branch to M/s Srikara Ganesh

Infrastructure and from there to M/s Universal Engineering and M/s Universal Ca- ble Services. As trading did not take place, the entire amount of Rs. 5 crores was again transferred to M/s. Siva Constructions Cash Credit Account maintained at

IDBI Bank. The interest in the Cash Credit account of M/s. Siva Constructions was 10 CC.No. 05/2018 XXI ACJM Court, Hyderabad serviced by Mohan Reddy/Accused no. 3 by way of cash or by way of transfer of funds of M/s Srikara Ganesh Infrastructure Pvt. Ltd.

2.19. Investigation further revealed that Siva Rama Krishna/Accused no. 1 opened one current account in the name of M/s. Universal Cable Services at Axis Bank,

Begumpet only for the purpose of routing the funds for transferring amounts to

HSBC, Somajiguda. This account was closed soon after the transfer was com- pleted. Further Siva Rama Krishna/A1 also started one more office in the name of

M/s. Universal Engineering Services for the purpose of getting franchise from

VSNL, Internet services, but it was not materialized.

2.20. Investigation further revealed that a false sub-contract agreement was exe- cuted between M/s. Siva Constructions and M/s. Srikara Ganesh Infrastructure Ltd., and the same was submitted to the bank without any underlying contracts with the

principal contractor M/s. VNR Infrastructure Ltd., to justify transfer of amount

from M/s. Siva Constructions to M/s. Srikara Ganesh Infrastructure Ltd., and mis- guided the bank by providing said false sub-contract agreement.

2.21. Investigation further revealed that Siva Rama Krishna/Accused no. 1 submit- ted false, fabricated and forged work orders, forged financial statements, false in- formation about the list of projects completed and latest position of orders-com- mencement and completion date details etc., forged agreements showing sub-con- tracts. Further Siva Rama Krishna/Accused no. 1 furnished insufficient collateral security and furnished false valuation through forged Market Value Assistance

Card, forged and fabricated net worth certificate, false and fabricated stock state- ments etc., for getting the sanction of credit facility, in active connivance with M V 11 CC.No. 05/2018 XXI ACJM Court, Hyderabad

Srinivasulu/Accused no. 2 and Mohan Reddy/Accused no. 3. Further, Siva Rama

Krishna/Accused no. 1 had dishonestly and fraudulently misappropriated the entire amount of Rs. 10 crores for his personal use.

2.22. Investigation further revealed that Siva Rama Krishna/Accused no. 1 entered into criminal conspiracy with Mohan Reddy/Accused no. 3 to deceive the bank of- ficials and in pursuance of said conspiracy, Mohan Reddy/Accused no. 3 arranged false and fabricated Project Profile, false/fake financial statements of M/s Siva

Constructions, he had forged the signature of one Suresh, Chartered Accountant of

S. Suresh & Co. in the financial statements which is Profit and Loss Account and

Balance Sheet for the year ended on 31-03-2008 and 31-03-2009 respectively.

2.23. Further, Mohan Reddy/Accused no. 3 also signed as authorized signatory of

VNR Infrastructure Ltd., in the false and forged letters prepared by Siva Rama

Krishna/Accused no. 1. Mohan Reddy/Accused no. 3 is also authorized signatory of

M/s. Siva Constructions and he filled the cheques and RTGS forms and transferred the funds from Cash Credit account of M/s. Siva Constructions to some other ac- counts. Mohan Reddy/A3 facilitated Siva Rama Krishna/Accused no. 1 in diverting the funds sanctioned to M/s. Siva Constructions through current accounts of M/s.

Srikara Ganesh Infrastructure Ltd., (opened on 10-03-2010) and M/s. PMR Con- structions (opened on 29-03-2010), maintained at Bank of Baroda, Adarsh Nagar and NMR Constructions (opened on 10-03-2010), maintained at SBI, Saifabad

Branch and that to facilitate the transfer of funds from M/s. Siva Constructions to the Current Account of M/s. Srikara Ganesh Infrastructure, Mohan Reddy/Accused no. 3prepared false/fake sub-contract agreement, dated 21-04-2010 and submitted to IDBI Bank, though there is no business relation between both the firms.

12 CC.No. 05/2018 XXI ACJM Court, Hyderabad 2.24. Investigation thus revealed that K. Siva Rama Krishna/Accused no. 1, M.V.

Srinivasulu/Accused no. 2 and Mohan Reddy/Accused no. 3 dishonestly and fraud- ulently conspired together to cheat the IDBI Bank, Chapel Road Branch, Hyder- abad by way of committing forgery, forgery for the purpose of cheating and using forged documents as genuine etc., and thereby caused wrongful loss to IDBI Bank,

Chapel Road Branch to the tune of Rs. 10,19,69,623/- as on NPA, dt. 30-09-2011 and corresponding gain to themselves.

3. The XIV Additional Chief Metropolitan Magistrate Court, Hyderabad took cognizance of offences under Sections 120-B r/w 420, 468, 471 of IPC and sub- stantive offences thereof against Accused no.1 to 3 and the case is numbered as

CC.No. 1208 of 2014.

4.On appearance of Accused no.1 to 3 before said court, copies of documents were furnished to them as required under Section 207 Cr.P.C.

5.During the pendency of the case proceedings, Accused no.2/M.V. Srinivasulu died and the prosecution has filed copy of death certificate. Hence, the case against

Accused no.2 abated.

6.Accused no. 1 and Accused no. 3 were examined under Section 239 CrPC and after hearing and perusing the record, charges were framed against them for of- fences under Sections 420, 467, 468 and 471 r/w 120-B of IPC and Section 13 (2) r/w 13 (1) (d) of Prevention of Corruption Act, 1988, read over and explained to them in their vernacular language. They pleaded not guilty and claimed to be tried.

13 CC.No. 05/2018 XXI ACJM Court, Hyderabad

7.Consequent thereto, the accused filed Crl.P.No. 5810/2019 before the

Hon’ble High Court seeking to quash the charges framed against them for offences

under Section 13 (2) r/w 13 (1) (d) of Prevention of Corruption Act, 1988 and the same was allowed thereby quashing the charges framed against Accused no. 1 and

Accused no. 3 for the offences under Section 13 (2) r/w 13 (1) (d) of Prevention of

Corruption Act, 1988.

8.At the stage of trial, as per the proceedings of the Hon’ble Metropolitan Ses- sions Judge, Hyderabad in Dis.no.5586 of 2018, dt. 16-04-2018, the case was with- drawn from the file of XIV Additional Chief Metropolitan Magistrate, Hyderabad and the same was transferred to this court. In this court, the case is re-numbered as

CC.No. 05/2018.

9.In order to prove its case, the prosecution has examined PWs.1 to 45 and

Exs. P1 to P213 are marked. During the course of cross-examination of prosecution witnesses, Exs. D1 to D5 are marked.

10.After closure of prosecution side evidence, Accused no. 1 and Accused no. 3 were examined under Section 313 CrPC by explaining to them incriminating mate- rial appearing against them in the evidence of prosecution witnesses. They denied it totally and reported defense evidence.

11.Written statements were filed by Accused no.1 and Accused no. 3 under Sec- tion 313 (5) Cr.P.C. Perused said Written Statements.

14 CC.No. 05/2018 XXI ACJM Court, Hyderabad

12.Subsequently, Accused no.1 and Accused no. 3 filed a memo reporting that they are not examining any witness on their side. In view of said memo, Defense evidence is closed.

13.Heard both sides. Perused entire record.

14. Now, the points for determination are :

(i). Whether the Accused no.1 and Accused no.3 conspired with each other to cheat IDBI Bank, Chapel Road Branch officials in inducing them to sanction loan basing on fabricated documents in order to cause wrongful loss to the bank and to conse- quently have wrongful gain for themselves ?

(ii). Whether Accused no.1 and Accused no.3, in pursuance of their conspiracy to cheat the bank, fabricated Market Value Assistance Card, dt. 07-07-2010 purported to be issued by Sub-Registrar, Maheswaram ?

(iii). Whether Accused no.1, Accused No. 3 conspired with Accused no.2/Bank Panel Valuer and used said fabricated Market Value Assistance Card, dt. 07-07- 2010 as genuine document for the purpose of cheating IDBI Bank, Chapel Road Branch officials and thereby Accused no.2 issued Inflated Valuation Report ?

(iv). Whether Accused no.1, in pursuance of his conspiracy with Accused no.3 to cheat bank, furnished fabricated sub-contract agreement to the IDBI Bank in order to induce the bank officials to show that there is sufficient work to M/s. Siva Con- structions ?

(v). Whether Accused no.1 and Accused no.3, in pursuance of their conspiracy to cheat the bank, furnished false Net worth certificate to the bank officials for the purpose of personal guarantee of Accused no.1 ?

(vi). Whether Accused no.1 and Accused no.3, in pursuance of their conspiracy to cheat the bank, furnished fake/fabricated financial statements of M/s. Siva Con- structions to the IDBI bank which are alleged to have been forged by accused no.3 ?

15 CC.No. 05/2018 XXI ACJM Court, Hyderabad

(vii). Whether the Accused no.1, in pursuance of conspiracy entered into with ac- cused no.3 to cheat the bank, diverted the loan facility sanctioned to M/s. Siva Constructions by the bank to M/s. Universal Engineering Services, M/s. Universal Cable Services and M/s. Srikara Ganesh Infrastructure, and that thereby they caused wrongful loss to IDBI bank and consequent wrongful gain to themselves ?

(viii). Whether the prosecution has proved beyond reasonable doubt that Accused No.1 and Accused No.3 conspired to cheat the bank by submitting false/fake docu- ments for inducing the bank officials to sanction Cash Credit facilitate to M/s. Siva Constructions and to divert the Cash Credit limit for the purpose other than the purpose for which loan facility was sanctioned and thereby to cause wrongful loss to the bank and corresponding wrongful gain to themselves and thereby committed offence punishable under section 120-B of IPC?

(ix). Whether the prosecution has established the guilt of Accused no.1 and Ac- cused no.3 for offences under Sections 420, 468 and 471 of IPC beyond all reason- able doubt ?

15.It is the case of the prosecution that on 19-03-2010, Siva Rama Krishna/Ac- cused no. 1, Proprietor of M/s. Siva Constructions approached IDBI Bank, Chapel

Road Branch, Hyderabad for sanction of Cash Credit facility of Rs. 12 Crores for the purpose of expanding his business and execution of sub-contract works majorly

Railway contracts, delegated by M/s. VNR Infrastructure Ltd., and submitted an application to the bank. It is further case of the prosecution that while submitting documents along with the loan application, Accused no.1/Siva Rama Krishna with the assistance of Accused no. 3/Mohan Reddy submitted fabricated Market Value

Assistance Card purported to be issued by the Sub-Registrar, Maheswaram by forg- ing the signatures of Sub-Registrar, Maheswaram.

16.It is further case of the prosecution that Accused no.2/M.V. Srinivasulu, the panel valuer of IDBI Bank has colluded with Accused no.1 and Accused no. 3 with an intention to cheat IDBI Bank and in furtherance of the criminal conspiracy, Ac- 16 CC.No. 05/2018 XXI ACJM Court, Hyderabad cused no.2/M.V. Srinivasulu had dishonestly and fraudulently valued both the prop- erties viz., Agricultural lands situated at Pulimamidi Village standing in the name of

Accused no.1/Siva Rama Krishna vide Sale Deeds bearing Doc. Nos. 2811/2010 and 2812/2010, both dated 06-07-2010 registered at Sub-Registrar Office, Mah- eswaram for Rs. 2178 lakhs.

17.It is further case of the prosecution that Accused no.1/Siva Rama Krishna in conspiracy with Accused no.3/Mohan Reddy submitted false, fabricated and forged work orders, forged financial statements, false information about the list of projects completed and latest position of orders-commencement and completion date details etc., forged agreements showing sub-contracts and that said documents were fabri- cated with the help of Accused no.3/Mohan Reddy.

18.It is further case of the prosecution that Accused no.1/Siva Rama Krishna had dishonestly and fraudulently submitted a false stock statement to the bank and on getting released the credit facility from the bank, he misappropriated the funds of the bank in active connivance with Accused no.3/Mohan Reddy by transfer of funds to M/s. PMR Constructions, M/s. NMR Constructions (which are fictitious companies in the name of Accused no.3/N. Mohan Reddy), M/s. Srikara Ganesh In- frastructure Ltd., and to the Savings Account of one Prasanth Potluri and also to the account of M/s. Universal Engineering through RTGS cheques. It is further case of the prosecution that Accused no.1/Siva Rama Krishna had misappropriated the en- tire sanctioned limit of Rs. 10 crores within a span of six months and utilized the funds for his personal obligations and not for the purpose for which it was sanc- tioned. It is further case of the prosecution that thus Accused no.1 and Accused no.3, in pursuance of their conspiracy to deceive the bank, diverted the funds sanc- 17 CC.No. 05/2018 XXI ACJM Court, Hyderabad tioned by the bank and thus caused wrongful loss to the bank and corresponding wrongful gain to themselves.

19.Initially, the aspect relating to sanction of loan facility ie., Cash Credit limits of Rs. 10 Crores to M/s. Siva Constructions by IDBI Bank, Chapel Road branch,

Hyderabad involving submission of loan application, documents by Accused no.1 to the bank and execution of necessary documents by Accused no.1 is taken up.

20.It is the case of the prosecution that Accused no.1/Siva Ramakrishna, propri- etor of M/s. Siva Constructions, submitted an application to IDBI Bank, Chapel

Road Branch, Hyderabad requesting for sanction of Cash Credit facility of Rs. 12

Crores and submitted fabricated documents. It is further case of the prosecution that

Accused no.1 conspired with Accused no.3 to cheat the bank and in pursuance of said conspiracy, they fabricated documents and submitted said documents to the bank and induced them to sanction loan facility to M/s. Siva Constructions.

21. Sanction of loan facility to M/s. Siva Constructions :

Accused no.1/K. Siva Ramakrishna has not disputed at any point the fact that he is proprietor of M/s. Siva Constructions. In order to prove sanction of Cash

Credit facility to M/s. Siva Constructions, represented by its proprietor Accused no.1 and the process followed while sanctioning the loan facility, the prosecution has examined PW-4, PW-13, PW-14, PW-16, PW-19, PW-22, PW-23, PW-25, PW- 26, PW-27, PW-28, PW-31 and adduced documentary evidence.

22.The evidence of PW-13/T. Rama Rao, who worked as Assistant General

Manager, Infrastructure Corporate Group, IDBI Bank, Chappel Road Branch, Hy- 18 CC.No. 05/2018 XXI ACJM Court, Hyderabad derabad is at length on the aspect of entire procedure of sanction of loan facility to customers i.e., pre-sanction and post sanction procedures involved in sanction of loan and release of credit facility. PW-13 deposed in detail the process involved in sanction of loan i.e., from the initial stage of the customer approaching the bank for availing Cash Credit facility, submission of application for sanction of loan along with all the supporting documents, putting up name clearance note either by Assis- tant Manager/Manager/AGM and submission of the recommendation to the dele- gated authorities depending upon the loan amount for approval, communication to the borrower about sanction, verification of documents submitted by the borrower, vetting of documents, execution of mortgage deed, fixation of drawing power and release of credit limit. In support of his version, the prosecution has exhibited Ex.

P117/Manual on Working Capital Finance of IDBI Bank, which contains proce- dural guidelines on Working Capital. Ex. P118/Delegation of powers of IDBI Bank was also exhibited in order to show that Regional Credit Committee is entrusted for sanction of Rs.100 Crores per non Project Finance/Working Capital Finance.

23.Regarding the process followed in sanction of loan facility to M/s. Siva Con- structions, represented by its proprietor K. Siva Rama Krishna, who is arraigned as

Accused no.1 in the present case, the prosecution has examined PW-4//V.V.S.

Ravindra, who worked as Deputy General Manager, IDBI Bank, Chappel Road,

Hyderabad during the relevant period and handled the loan proposal submitted by

M/s. Siva Constructions. PW-4//V.V. S. Ravindra deposed that during his tenure as

Deputy General Manager, IDBI Bank, Chappel Road, Hyderabad, he handled the proposal submitted by Accused no.1/Sivarama Krishna, Proprietor of M/s. Siva

Constructions for sanction of Working Capital facility of Rs. 10 Crores. As seen from Ex.P13/Original loan application submitted by M/s Siva Constructions, dt.19- 19 CC.No. 05/2018 XXI ACJM Court, Hyderabad 03-2010, it is evident that Accused no.1 submitted an application seeking Cash

Credit Limits of Rs. 1200 Lakhs to M/s. Siva Constructions and that he has en- closed documents viz. Ex.P14/Project profile, Ex.P15/Bio-data, Ex.P16/provisional balance sheet of Siva Constructions as on March 31, 2010, Ex.P17/Profit and Loss account of Siva Constructions for the year ended March 31, 2010, Ex.P18/Sub-con- tract Agreement, dated 21/04/2009 between M/s. Siva Constructions and M/s.S- rikara Ganesh Infrastructures India Private Limited., Ex.P19/List of projects com- pleted by M/s. Siva Constructions, Ex.P20/Latest position of orders-commence- ment and completion date and Ex.P21/Photocopy of PAN Card in the name of K.

Siva Rama Krishna for processing said application.

24.PW-4/V.V.S.Ravindra, Deputy General Manager further deposed that Ex.

P13/Original Loan application was enclosed with project profile of Siva Construc- tions, Audit balance sheets for preceeding two years, CMA data for five years, bank statements for five years from April 2009, particulars of orders received and value of works completed till date of application by such constructions. He further de- posed that M/s. Siva Constructions, represented by Accused no. 1, offered property to an extent of Ac. 2.24 guntas covered by Sale deed, vide Document No.

2811/2010 under Ex.P3 and land to an extent of Ac. 2.16 Guntas covered by Sale deed, vide Document No. 2812/2010 under Ex.P4 i.e., total Ac. 5.00 guntas of land owned by Accused no. 1 in Survey No. 407/A of Pulimamidi Village, Maheswaram and handed over Ex.P3 and Ex.P4 title deeds. He further deposed that basing on the proposal, A. Sahita, Assistant Manager has placed Name Clearance Note, Dt. 06- 05-2010/Ex. P22 for taking of sanction processing and that said name clearance note was recommended by him on the same day and it was approved by Smt.

Amitha Narayana, Head Infrastructure Corporate Group of their bank.

20 CC.No. 05/2018 XXI ACJM Court, Hyderabad

25.Regarding Ex.P22/Name Clearance Note, the prosecution has examined PW- 16/P. Sahita, who worked as Assistant Manager (Corporate Finance), IDBI Bank,

Chappel Road Branch and PW-31/RS Vidya Sagar, who worked as General Man- ager, In-charge of Infrastructure Corporate Group (ICG) South at the material time.

PW-16/Sahita deposed that she has placed Ex.P22/Name Clearance Note in respect of M/s Siva Constructions before their bank Deputy General Manager Ravindra and that he has sent it to their bank’s General Manager by name Vidyasagar, who in- turn has sent it to the Head of the Department by name Amitha. So also, PW-31/RS

Vidya Sagar, General Manager, Infrastructure Corporate Group (ICG) South, de- posed that the file relating to sanction of Cash Credit Limit to M/s. Siva Construc- tions was placed before him for Name Clearance and that the name of the firm was cleared for taking up detailed appraisal and sanction of Cash Credit Limits. He fur- ther deposed that basing on the information submitted in the Ex.P22/Name Clear- ance Note, he has approved the proposal.

26.PW-4/VVS Ravindra, Deputy General Manager, deposed that Name Clear- ance Note was recommended by him and it was approved by Smt. Amitha

Narayana, Head Infrastructure Corporate Group of their bank. He further deposed that after approval of the same, he along with Sri. A. Mallikarjun, Relationship

Manager of their bank placed sanction note before the Regional Credit Committee,

IDBI Bank for sanction of loan and basing on Ex.P23/proposal, the Regional Credit

Committee sanctioned Working Capital of Rs. 10 crores to Siva Constructions. The prosecution has exhibited Ex.P23/Proposal, Dt. 14-06-2010, which shows that PW- 4/VVS Ravindra and PW-28/Mallikarjun in their official capacities as Deputy Gen- eral Manager and Relationship Manager respectively, have sent the proposal to Re- gional Credit Committee, for Working Capital Assistance i.e., sanction of Cash 21 CC.No. 05/2018 XXI ACJM Court, Hyderabad

Credit Limit of Rs. 10 crores to Siva Constructions, subject to certain terms and conditions. The contents of Ex.P24/Memorandum to the Credit Committee along with sanction minutes dt. 05-07-2010 would reveal that Regional Credit Committee has sanctioned Working Capital Assistance i.e., Cash Credit Limit of Rs. 10.00

Crores to M/s. Siva Constructions.

27. PW-4/VVS Ravindra, Deputy General Manager, further deposed that as M/s.

Siva Constructions submitted copies of sub-contracts and work orders during the processing of above loan, they have met M/s. VNR Constructions Limited with whom Accused No. 1/Siva Rama Krishna was alleged to have sub-contracts. He further deposed that on enquiry, M/s. VNR Constructions confirmed that they are regularly giving contracts to M/s. Siva Constructions and as VNR Constructions promoted to take up the processing the proposal of M/s. Siva Constructions, they continued to process the application of Siva Constructions.

28.PW-4/VVS Ravindra, Deputy General Manager, further deposed that during processing of loan, PW-28/ Mallikarjun, Relationship Manager, received Net Worth

Certificate of Accused No. 1/Siva Rama Krishna on 14-05-2010 and as per said cer- tificate, the total net worth of Accused No. 1/Siva Rama Krishna as on 14-05-2010 was Rs. 268.77 lakhs. He further deposed that during the processing of loan, PW- 28/Mallikarjun has obtained CIBIL report, dated 04-06-2010 relating to Accused

No. 1/Siva Rama Krishna and that the sanction of loan was communicated to Ac- cused No. 1/Siva Rama Krishna through sanction letter, dt. 18-06-2010. Ex.P25/

Sanction letter, dt. 18-06-2010 shows that the bank has informed to Accused no.1 about sanction of Cash Credit facility to M/s. Siva Constructions, subject to the normal terms and conditions contained in Facilities Agreement and in case said 22 CC.No. 05/2018 XXI ACJM Court, Hyderabad terms and conditions are acceptable to him, he may return the duplicate copy of said letter signed by him. Ex. P25/Sanction letter further shows that Accused no.1 has signed the sanction letter in acceptance of the terms and conditions referred to in said sanction letter.

29.In order to corroborate the evidence of PW-4/VVS Ravindra regarding pro- cessing of loan proposal of M/s. Siva Constructions and submission of documents by Accused No. 1/Siva Rama Krishna, the prosecution has examined PW-28/A.-

Mallikarjun, who worked as Assistant General Manager/Relationship Manager dur- ing the material time. PW-28/A.Mallikarjun deposed that during the period 2001- 2011, he worked as Assistant General Manager, IDBI Bank, Chappel Road, Hyder- abad. His evidence is to the effect that in this case, the proposal came up before him for detailed appraisal of loan proposal pertaining to Cash Credit Limit of Rs. 10

Crores to M/s. Siva Constructions and that as part of loan application the company gave its profile, business module, revenue module, balance sheets, IT returns and sub- contract agreements with VNR Infrastructure Ltd. His evidence is further to the effect that he has processed the loan proposal based on the documents submit- ted byM/s. Siva Constructions and a photocopy of IT return was also submitted by

M/s. Siva Constructions. His evidence is to the effect that said proposal was recom- mended for sanction. He also deposed that they have visited VNR Infrastructure

Ltd., and met its Managing Director Mr. V. Narayana Reddy who has actually con- firmed that they are working as sub-contractor and they are satisfied with the work of M/s. Siva Constructions. He also deposed that the Managing Director of VNR

Infrastructure Ltd., told them that they are going to give further contracts to M/s.

Siva Constructions. He also deposed that after being satisfied with the claims made by M/s. Siva Constructions stating that the number which they reported to the bank, 23 CC.No. 05/2018 XXI ACJM Court, Hyderabad the bank authorities relied on the documents submitted by Siva Rama Krishna/Ac- cused no.1 and incorporated it as part of Appraisal Memorandum and submitted it to the Regional Credit Committee for sanction. The above evidence of PW-28/

Mallikarjun/Relationship Manager is in line with the evidence of PW-4/VVS

Ravindra, Deputy General Manager on the aspect relating to processing the loan application of M/s. Siva Constructions and submission of documents to the bank by

Accused no.1.

30.As seen from the cross-examination of PW-4, PW-16 and PW-28, it is only emphasized that guidelines/circulars of IDBI bank are to be followed for processing of loan application and sanctioning of loan and in case of any deviation in that re- gard, responsibility will be fixed on the person or authority who sanctioned loan.

However, it relates to internal action that may be initiated by higher authorities of the bank against the errant bank officials, who are involved in sanction of loan, if they are found to have acted in derogation of said circulars and guidelines.

31.The learned Assistant Public Prosecutor for CBI argued that the evidence of

PW-4/VVS Ravindra, Deputy General Manager, PW-28/Mallikarjun, Relationship

Manager, PW-16/Sahitha, Assistant Manager and PW-31/Vidya Sagar, General

Manager, ICG, who have dealt with the loan application of M/s. Siva Constructions clearly establishes the fact of Accused no.1 approaching IDBI bank for sanction of loan facility to M/s. Siva Constructions and submission of documents by Accused no.1. He also submitted that Ex. P13 Original loan application, dt. 19-03-2010 un- der which Working Capital Facility for Rs. 10 crores was requested by M/s. Siva

Constructions was also duly proved.

24 CC.No. 05/2018 XXI ACJM Court, Hyderabad

32.With regard to Manual on Working Capital Finance of IDBI Bank/Ex.P117, the learned counsel for accused argued that the entire Manual is not brought on to the record and the material part of the Manual is suppressed from which an adverse inference can be drawn and that Ex. P117/Manual cannot be considered.

33.A careful scrutiny of Ex.P117/Manual on Working Capital Finance goes to show that the prosecution has filed said document containing page nos. 2, 59, 61, 67, 68, 132, 133, 134, 159, 160, 163, 164, 166 out of total number of 203 pages and these pages contain the details relating to Appraisal of Credit Proposal (Chapter 6),

Hypothecation of Machinery, Book debts/Receivables, Monitoring of Working

Capital Advances (Chapter 14). As seen from the preface provided in the page no.2 of Ex. P117/Manual on Working Capital Finance, it is apparent that said Manual is provided to the bank officers in order to assist them in the management of the

Working Capital Finance. The prosecution has exhibited said document in order to show the procedure adopted by IDBI Bank while processing application for Work- ing Capital Finance. Though it is argued by learned defence counsel that

Ex.P117/Manual is an incomplete document and it cannot be considered, no such suggestion was put to PW-13/T Rama Rao, Assistant General Manager through whom said document was marked. When it is suggested to PW-45, Investigation of- ficer in this case that Ex. P117/Manual does not contain all the pages, he admitted the same and he stated that on seeing the manual, he has requested for the full text of the document Ex. P117 Manual. Though it is argued by learned defence counsel that the investigation officer has deliberately suppressed the full text of Ex. P117/

Manual on Working Capital Finance of IDBI Bank, it is not explained by Accused in what way prejudice was caused to them on account of non-production of entire document and what was the material fact that was suppressed by the prosecution by 25 CC.No. 05/2018 XXI ACJM Court, Hyderabad not producing the entire Manual. Therefore, the argument put forth by the learned counsel for accused is not tenable.

34.Regarding the post sanction procedure, the evidence of PW-13/T. Rama Rao,

Assistant General Manager, is to the effect that upon receipt of the minutes from the sanctioning authority, basing on the instructions of DGM, the A.G.M or Man- ager in Credmin will prepare sanction letter and issue a sanction letter to the bor- rower and upon receipt of the acceptance of sanction letter by the borrower, Cred- min officer in the rank of Assistant Manager or Manager or AGM as assigned by the branch Head would prepare finance/loan agreement document and security doc- uments i.e., Hypothecation deed, if the charge is on current assets or in case of movables, fixed assets and in case the charge is in respect of immovable property a mortgage deed will be executed.

35.With regard to preparation of documents after acceptance of terms and condi- tions referred to in the Sanction Letter/Ex. P25 by the borrower, the prosecution has examined PW-14/D.V. Krishna Kumari, who worked as Manager, IDBI Bank, In- frastructure Corporate Group, Credmin Branch, Chappel Road, Hyderabad at the material time. Her evidence is to the effect that in respect of M/s. Siva Construc- tions, she has prepared documentation, took approval for acceptance of title and af- ter execution of documents, she has placed the documents to the Legal department for vetting. Her evidence further shows that she has prepared Ex. P122/Loan-cum-

Hypothecation agreement and Ex.P123/Guarantee Agreement, Ex. P119/ Declara- tion and undertaking, Ex. P120/Facility Agreement, Dt. 16/07/2010, Ex. P121/

Memorandum of Entree No.14, Dt.16/07/2010 based on standard loan documenta- tion formats. Her evidence further shows that Ex. P136/Office note, Dt. 19/07/2010 26 CC.No. 05/2018 XXI ACJM Court, Hyderabad to the Legal Department for vetting documents and Ex. P137/ Office Note, Dt.

16/07/2010 for taking approval of title report were placed by her. She also deposed that the borrower has submitted Exs. P3 and P4 Sale deeds and that Ex.P1/ Valua- tion Report was given by M.V.Srinivasulu, Panel Valuer and Ex.P27/Title Investi- gation Report was given by P. Gurumurthy, Empanelled Advocate.

36.A careful scrutiny of Ex.P122/Loan-cum-Hypothecation Agreement and

Ex.P123/ Guarantee Agreement would reveal that Accused no.1 has executed said agreements in favour of IDBI Bank in pursuance of sanction of Cash Credit limit of

Rs. 10 Crores to M/s. Siva Constructions thereby hypothecating movable goods to the bank and also agreeing to repay the credit facility availed by the firm within stipulated time. In her cross-examination, PW-14 denied the suggestion that she stated before CBI Officials that the documents properly stamped were executed by

M/s. Siva Constructions on 16/07/2011 and the same is exhibited as Ex. D1. PW- 45, the investigation officer in this case deposed that PW-14 stated before him as in

Ex. D1. Though said former statement of PW-14 is said to be a contradiction in the evidence of PW-14, this court is of view that said contradiction does not effect the case of the prosecution in any manner as there is a variation only with regard to the date of execution of said documents. Further execution of the above documents was not disputed by Accused no. 1.

37.PW-18/ P. Gurumurthy, who was Panel Advocate for IDBI Bank, Chappel

Road Branch, Hyderabad deposed that Ex P-27/Title Investigation Report, dt. 13- 07-2010 was prepared by him and submitted to IDBI Bank.

27 CC.No. 05/2018 XXI ACJM Court, Hyderabad

38.The evidence of PW-27/ A. Soma Lingam, who worked as Manager (Legal),

IDBI Bank, Chappel Road, Hyderabad, is to the effect that his duties as a Manager (Legal) were to draft documents and to do vetting of documents. So far as this case is concerned, PW-27 deposed that when Dealing officers of the bank requested him to provide draft documents standardized, he has provided those documents for their finalization. His evidence shows that he has forwarded the executed documents for vetting with regard to stamping and execution and that he offered his comments on the same. PW-27 identified Ex. P122/Loan-cum-Hypothecation agreement and

Ex.P123/Guarantee Agreement to be the documents which were forwarded to him for verification, vetting and stamping and that Ex.P136/Office note bears his signa- ture. His evidence is further to the effect that he has offered his comments which is part of Ex. P121/Memorandum of Entree. A perusal of Ex. P136/Office note, Dt.

19/07/2010 shows that PW-14/DV Krishna Kumari, Manager had put up an office note requesting the legal department of the bank to vet the documents i.e., Ex.

P122/Loan-cum-Hypothecation Agreement, Ex.P123/Guarantee Agreement and DP note along with delivery letter under which PW-27/Somalingam, Manager (Legal) made his comments. In his cross-examination, PW-27 admitted that Exs.P122 to

P124 do not bear his signatures and endorsement to the effect that said documents were verified or vetted by him. He stated that in the loan proposal relating to M/s.

Siva Constructions, mortgage deed was not registered.

39.It is also the evidence of PW-04/VVS Ravindra, Deputy General Manager, that after sanction of loan, they have appointed valuer for valuation of property of- fered as collateral security by Accused no. 1 and so also appointed Advocate for Ti- tle search Report. He further deposed that the valuation report was given by Sri.

M.V.Srinivasulu (A2) and Title Investigation report/Ex.P27 was given by P.Guru- 28 CC.No. 05/2018 XXI ACJM Court, Hyderabad murthy/PW-18, Advocate. He further deposed that after sanction of loan, the post sanction formalities were taken care by PW-23/Suneel Babu, Deputy General Man- ager of IDBI Bank. The above evidence of PW-4, PW-14, PW-18 and PW-27 cou- pled with documentary evidence under Exs. P25, P119 to P123, P136 establish that after accepting terms and conditions stipulated in Ex. P25/Sanction Letter, Accused

No. 1 has executed documents under Exs. P119 to P123 and then PW-14/D.V.

Krishna Kumari, Manager has sent those documents to PW-27/A. Soma Lingam, who worked as Manager (Legal) for vetting documents. It is also established that

M.V.Srinivasulu/Panel Valuer has given Valuation Report and PW-18/Gurumurthy,

Panel Advocate has given Ex. P27/Title Investigation Report.

40.With regard to opening of Current Account in the name of M/s. Siva Con- structions at IDBI Bank, Chapel Road Branch, Hyderabad, as per the evidence of

PW-4/VVS Ravindra, Deputy General Manager, after sanction of loan and intima- tion of the same to Accused no.1 through Ex. P25/Sanction Letter, dt. 18-06-2010, the bank has requested Accused no.1 to open a Current Account in IDBI Bank in the name of M/s. Siva Constructions and to complete KYC formalities. PW-04 fur- ther deposed that Ex.P26/Current Account Opening Form and other KYC forms were verified by PW-22/Srilatha.

41.So also, the evidence of PW-22/B. Srilatha, who worked as Credmin Officer,

IDBI, Chappel Road Branch, Hyderabad during the relevant period and who was said to be given additional responsibility of opening Current Accounts of all the clients belonging to ICG Department, is to the effect that in the month of June/July 2010, Siva Constructions has approached their department for sanction of Cash

Credit limit and in that process they have requested him to open Current account 29 CC.No. 05/2018 XXI ACJM Court, Hyderabad with IDBI Bank to proceed further about his proposal and gave him the Account

Opening Form and requested him to submit the requisite documents to proceed fur- ther. It is her further evidence that subsequently within two to three days of time,

Siva Constructions submitted the Account opening Form along with all the requi- site documents to open current account i.e., Ex. P26 and that same set of documents were forwarded to their Regional Processing Unit, Chennai Branch. Ex. P26/Origi- nal Current Account opening Form along with KYC form establishes the fact that

Accused no.1 has submitted an Account Opening Form requesting the bank to open a Current Account in the name of M/s. Siva Constructions and thus the oral evi- dence of PW-04 and PW-22 is corroborated by the documentary evidence under Ex.

P26 Account Opening Form.

42.The evidence of PW-13/T. Rama Rao, the then Assistant General Manager, is to the effect that after completion of sanction process, the documents will be re- ferred to Internal Legal Department for vetting and that after receiving vetting note from the Legal Department, the operationalization process will be initiated basing on the instructions of the Branch Head and request of the borrower for release of amount. It is his further evidence that the bank will request the borrower to submit stock and receivable statement and after receipt of the same the bank will prepare operationalization note incorporating the compliance of all sanction conditions. It is his further evidence that if all the conditions are complied with, the DGM/ Branch

Head who is delegated authority releases the amounts and if any deviations are noted the same will be referred to Head Office basing on Delegation of Powers. He further deposed that after obtaining the approval from DGM/ delegated authority, the Dealing Officers will fix the drawing power in the finacle system for the amount of the drawing power arrived at basing on the stock and receivable state- 30 CC.No. 05/2018 XXI ACJM Court, Hyderabad ment submitted by the borrower and that if limit is made available, the borrower would be utilizing the limit for the business operations.

43. PW-13/T. Rama Rao, the then Assistant General Manager, further deposed that in the present case after release of the limits, borrower has utilized the sanc- tioned amount and received credits into the account. His evidence shows that after execution of documents under Exs. P119 to P123 and requests made by the bor- rower under Exs. P124 and P125, a visit to the office of M/s. Siva Constructions was carried out on 17/07/2010 and then operationalization note under Ex. P126 was prepared and drawing power was fixed in the system.

44.In support of evidence of PW-13/T. Rama Rao, PW-23/G. Suneel Babu, who worked as Deputy General Manager, IDBI Bank, Chappel Road Branch, Hyderabad deposed that after sanction of loan, documentation and security creation, the file re- lating to M/s. Siva Constructions has come to him for post sanction activity. He fur- ther deposed that his team has examined all the requests made by the company for operationalization of the Cash Credit Limit and submitted for his approval. He fur- ther deposed that after going through the note and noticing all the compliance are complied with, he has approved operationalization of the Cash Credit Limit. He further deposed that based on the stock statement submitted by the company i.e.,

M/s Siva Constructions, the limit release was approved and that Ex P-126 is the document under which operationalization of the Working Capital limit in the fina- cle system was approved and the drawing limit was also fixed in the same note for

Rs. 6 crores.

31 CC.No. 05/2018 XXI ACJM Court, Hyderabad

45.With regard to fixation of drawing powers basing on the stock statements submitted by the borrower, the prosecution has relied on the evidence of PW-19/

Jayashree M Limaye, who worked as Asst. General Manager, IDBI Bank, Credmin department during the relevant period. PW-19 deposed that Accused no.1/Siva Ra- makrishna submitted Stock statements under Exs. P145, P147, P149, P151, P153 and P155 and that soon after receiving the stock statements she has prepared the notes and placed the same before DGM for approval viz., Exs. P146, Ex P148, Ex

P150, Ex P152, Ex P154, Ex P156/Notes for approval of Drawing Power.

46.The evidence of PW-26/C. S. Visweswara Rao, who worked as Deputy Gen- eral Manager, IDBI Bank, Chappel Road, Hyderabad is relevant on the aspect of approval of drawing power basing on the stock statements submitted by M/s. Siva

Constructions to the bank. The evidence of PW-26 is to the effect that he has han- dled the accounts of M/s. Siva Constructions for a short period of six months from

December, 2010. He deposed that it is the duty of the company to give proper stock statement and which will be put up to him as a DGM by his officers for fixing drawing power. He also deposed that he had approved the drawing power put up to him by his officers from December, 2010 to May, 2011. PW-26 identified Exs.

P146, P148, P150, P152, P154 and P156 as the notes submitted to him for approval of drawing power. Ex. D5 relevant portion of his Statement under Section 161

CrPC was exhibited as he denied that he stated before CBI that he has not physi- cally verified the stocks for the entire six months when he was in-charge, whereas as per procedure, stocks have to be inspected periodically.

47.The above oral and documentary evidence adduced by the prosecution clearly establishes that after Accused no.1 submitted Original Loan Application/Ex.

32 CC.No. 05/2018 XXI ACJM Court, Hyderabad

P13 along with other documents under Exs. P14 to P21, to IDBI Bank, Chapel

Road Branch, Hyderabad requesting to sanction Cash Credit Limit of Rs. 12 Crores to M/s. Siva Constructions, the bank has processed the loan application and basing on Name Clearance Note/Ex. P22, the bank has recommended the loan proposal, sanctioned the Working Capital Assistance of Cash Credit Limit of Rs. 10 Crores which was intimated to Accused no.1 through Ex.P25/Sanction Letter, Dt. 18-06- 2010 and in order to process the loan, Accused no.1 has submitted title documents relating to the property offered as security to the bank vide Memorandum/Ex. P121 and executed Ex. P119/ Declaration and undertaking proposing to execute Mort- gage by deposit of title deeds, Ex. P120/Facility Agreement, Ex.P122/Loan-cum-

Hypothecation Agreement in favour of the bank and basing on the request made by the borrower under Ex. P124 and by enclosing Stock and Receivable Statement un- der Ex. P125 for release of sanctioned limits, the bank has released credit limits.

Though it is argued by the learned defense counsel that the prosecution has not ex- amined Amitha Narayana, Head Infrastructure Corporate Group in order to prove sanction of loan, the fact remains that as seen from the Written Statement filed by

Accused no.1, he has not raised any dispute on the aspect of sanction of Working

Capital Facilities to his firm M/s. Siva Constructions. Moreover, the witnesses ex- amined by the prosecution to prove sanction of loan are official witnesses and their evidence cannot be discarded solely on the ground that the prosecution has not ex- amined Amita Narayana, Head Infrastructure Corporate Group. It is also estab- lished from the above discussed evidence that when the bank has requested the Ac- cused no.1 to open a Current Account in their bank, Accused no.1 has submitted

Ex.P26/Original Current Account Opening Form for the purpose of Opening a Cur- rent Account in the name of proprietary firm M/s. Siva Constructions.

33 CC.No. 05/2018 XXI ACJM Court, Hyderabad

48.The oral and documentary evidence as discussed above clearly establishes that basing on title documents submitted by Accused no.1, Valuation Report (part of

Ex.P1) was obtained from Empanelled valuer of the bank M.V.Srinivasulu/Accused no.2 and Ex. P27/Title Investigation Report was obtained from Panel Advocate Gu- rumurthy/PW-18 and thereafter, said documents were vetted by PW-27/Manager (Legal) of the bank. The evidence on record further shows that after execution of said documents, submission of stock and receivable statements, operationalization note/Ex. P126 was prepared. Thus, it is established from the above oral and docu- mentary evidence adduced by the prosecution that basing on the application sub- mitted by Accused no.1 as proprietor of M/s. Siva Construction, the bank has pro- cessed loan proposal and after sanction of loan to M/s. Siva Constructions, basing on the documents submitted by him and execution of necessary documents by him undertaking to repay the credit facilities availed by him within stipulated time and that loan amount will be used for the purpose for which it is sanctioned and it shall not be used for any other purpose, credit facilities were released and the same was availed by M/.s Siva Constructions during the period between 2010 to 2011.

49.Points no. (ii) & (iii) :

(ii). Whether Accused no.1 and Accused no.3, in pursuance of their conspiracy to cheat the bank, fabricated Market Value Assistance Card, dt. 07-07-2010 purported to be issued by Sub-Registrar, Maheswaram ?

(iii). Whether Accused no.1, Accused No. 3 conspired with Accused no.2/Bank Panel Valuer and used said fabricated Market Value Assistance Card, dt. 07-07- 2010 as genuine document for the purpose of cheating IDBI Bank, Chapel Road Branch officials and thereby Accused no.2 issued Inflated Valuation Report ?

As points no. (ii) & (iii) relating to fabrication of Market Value Assistance

Card, dt.07-07-2010 by Accused no.1 and Accused no.3 and using said fabricated 34 CC.No. 05/2018 XXI ACJM Court, Hyderabad document as a genuine document for the purpose of obtaining Inflated Valuation

Report from the Panel Valuer M.V.Srinivasulu, are interlinked, they are being dealt with together.

50.Submission of fake/fabricated documents :

The evidence of PW-1/Sharada Sundaram DGM, Infrastructure Corporate group, Hyderabad who lodged Ex.P2/Complaint is to the effect that it is mentioned in the appendix column that collateral security was stipulated as equitable mortgage of value Rs. 20 crores and in their investigation, they came to know that the collat- eral security was far lower at about 48 lakhs as the Accused no. 1 has shown higher value as Rs. 21.7 crores. PW-1 further deposed that the valuer claimed that he has shown said value based on market value as well as based on the value of Sub-Reg- istrar Office. She further deposed that when they approached the Sub-Registrar Of- fice, they came to know that the valuation certificate is not based on the Market

Value Assistance Card (MVAC) of the Sub-Registrar Office and also that the SRO informed that enclosure no. 1 ie., Market Value Assistance Card, dt. 07-07-2010 is forged one and not issued by Sub-Registrar. She further deposed that in the valua- tion certificate, the property is shown as vacant residential flat, but in fact it is an agricultural land and after coming to know the above facts, she lodged Ex. P2/com- plaint with SP, CBI Chennai. Basing on Ex. P2/Complaint, the case was registered in RC.No. 6(E)/2013-CBI/EOW/Chennai for offences under Sections 120-B r/w 420, 467, 468, 471 IPC and Section 13 (2) r/w Section 13 (1)(d) of P.C. Act, 1988 against the firm M/s. Siva Constructions as A1, K. Siva Ramakrishna as A2, M V

Srinivasulu as A3, M. Naresh Kumar as A4 and others and Ex. P202/First Informa- tion Report was issued.

35 CC.No. 05/2018 XXI ACJM Court, Hyderabad

51.As per the evidence of PW-23/G. Suneel Babu, Deputy General Manager,

Credit Administration Department, M/s. Siva constructions has committed default from September, 2011, and the bank has issued notices to M/s. Siva Constructions on dt. 06/03/2012 and Ex. P159/Notice, dt. 21-03-2012. It is also apparent from Ex.

P160/Letter, Dt. 15-12-2011 that Accused no.1 has addressed a letter to the Deputy

General Manager, IDBI Bank, Chapel Road Branch, Hyderabad requesting time till

March 31, 2012 for closing the limits and not to charge any penal interest. Further- more, Ex. P161/Letter, Dt. 16-03-2012 was addressed by Accused no.1 and Ac- cused no.3 signed as Authorized Signatory and they have requested time to repay outstanding amount of Rs. 10 Crores. A perusal of Ex. P159/Notice, dt. 21-03-2012 shows that said notice was issued to Accused no.1 calling upon him to pay forth- with Rs. 10.48 crores and odd amount to the bank, together with further interest thereon with effect from 1st March, 2012.

52.The evidence of PW-23/G. Suneel Babu, Deputy General Manager, Credit

Administration Department, is also to the effect that when their bank has addressed a letter to the Sub-Registrar, Maheswaram to confirm issuance of Market Value As- sistance Card, the Sub-Registrar has issued a reply stating that it was not issued by them and further Naresh Kumar, Chartered Accountant has confirmed that he has not issued Net Worth Certificate of Siva Rama Krishna and then they identified that

M/s. Siva Constructions had done fraud and they reported to RBI and lodged com- plaint.

53.With regard to lodging of the complaint with CBI, Chennai, the learned counsel for accused argued that PW-23/G. Suneel Babu, Deputy General Manager, deposed that they lodged the report with CBI, whereas PW-1 also lodged Ex. P2 36 CC.No. 05/2018 XXI ACJM Court, Hyderabad

Complaint with CBI. He further argued that by suppressing earlier complaint, the bank officials have lodged another complaint through PW-1 and therefore, the bur- den is on the prosecution to explain about earlier complaint lodged by PW-23. He also argued that there are no enclosures to Ex. P2 Complaint and PW-45, investiga- tion officer deposed that he is not aware whether SP, CBI office, Hyderabad has re- ceived a complaint from G Suneel Babu/PW-23 against the accused in this case and therefore an adverse inference can be drawn against the prosecution for suppressing earlier complaint and not bringing on record earlier complaint.

54.With regard to the contention raised by the learned counsel for the accused that there are no enclosures to Ex. P2 Complaint, a careful scrutiny of the record shows that PW-01/Sharada Sundaram, DGM, ICG, IDBI Bank, furnished docu- ments relating to the account of M/s. Siva Constructions along with Ex. P203/Letter

Dt. 13-09-2013 and also furnished copy of Minutes of RCC held on 16-06-2010,

delegation of powers relevant during the period of sanction along with Ex. P204/

Letter Dt. 13-11-2013 in response to the letters addressed by the Investigation offi- cer. The further argument put forth by the learned counsel for the accused that there is earlier complaint lodged by PW-23 and by suppressing saidearlier complaint, an- other complaint was lodged by PW-01 is not tenable for the reason that PW-23/G.

Suneel Babu, Deputy General Manager deposed that they lodged complaint with

CBI and he has not specifically stated that he has lodged the report with CBI, Hy- derabad. Though PW-1 deposed in her cross-examination that prior to lodging Ex.

P2 complaint, PW-23/G. Suneel Babu, Deputy General Manager lodged a com- plaint with CBI, Hyderabad and that she has not enquired with CBI, Hyderabad about the fate of the complaint lodged by PW-23/G. Suneel Babu, the fact remains that there is nothing elicited in the cross-examination of PW-23/G. Suneel Babu, 37 CC.No. 05/2018 XXI ACJM Court, Hyderabad

Deputy General Manager with regard to the complaint said to be lodged by him with CBI, Hyderabad prior to PW-1 lodging Ex.P2 complaint with CBI, Chennai.

No suggestion was put to PW-23/G. Suneel Babu on the aspect of lodging a com- plaint by him with CBI, Hyderabad in order to prove that he has lodged a complaint with CBI, Hyderabad even before PW-1 lodged a complaint with CBI, Chennai.

The evidence of PW-1 that she cannot say as to how many days prior to lodging of

Ex. P2 Complaint, PW-23/Suneel Babu lodged complaint with CBI shows that she was not emphatic as to lodging of complaint by PW-23/G. Suneel Babu, Deputy

General Manager, with CBI, Hyderabad. It is not the contention of the accused that there is variation in the contents of Ex. P2 complaint and the complaint said to be lodged by PW-23/G. Suneel Babu, Deputy General Manager. Unless it is proved that PW-23/G. Suneel Babu, Deputy General Manager, has lodged a complaint with

CBI, Hyderabad and there are variations between contents of said complaint and contents of Ex. P2 complaint, there is no prejudice caused to the accused. There- fore, in the absence of any cogent evidence, it cannot be said that there is earlier complaint lodged by PW-23 with CBI, Hyderabad and therefore the argument put- forth by learned counsel for the accused that by suppressing earlier complaint lodged by PW-23/G. Suneel Babu, Deputy General Manager, another Complaint under Ex. P2 was lodged through PW-01 and therefore there is a material suppres- sion is not maintainable.

55.Now turning to the allegations levelled against the Accused no.1 and Ac- cused no.3 it is alleged that Accused no.1 and Accused no.3 in pursuance of their conspiracy to cheat the bank, they fabricated Market Value Assistance Card, Dt. 07- 07-2010 by showing the Market Value of the property as Rs. 8,47,00,000/- and used 38 CC.No. 05/2018 XXI ACJM Court, Hyderabad said document as a genuine document for the purpose of obtaining Inflated Valua- tion Report.

56.It is the main case of the prosecution that when the account of M/s. Siva

Constructions has become NPA, the bank has initiated fresh due diligence of the executed loan and security documents for the purpose of enforcing mortgage secu- rities charged in favour of IDBI bank and during the site visit, it was revealed that the market value would be around Rs. 0.30 crore only, whereas fair Market Value assessed at Rs. 21.78 crores by the valuer in his report dated. 12-07-2010 and in or- der to find out the actual market value of the properties offered as collateral secu- rity, the panel valuer M.V.Srinivasulu was asked to re-assess the value of said prop- erties and then he gave Ex. P128/Re-valuation Report, dt.10-11-2011 by assessing the value of the properties as Rs.9.68 crores. It is further case of the prosecution that M.V.Srinivasulu(Accused no.2) gave valuation report and revaluation report basing on Market Value Assistance Card alleged to be provided to him by Accused no.3/Mohan Reddy and further Sub-Registrar, Maheswaram has denied the is- suance of Market Value Assistance Card, dt. 07-07-2010. It is further alleged that

Accused no.1/Siva Ramakrishna, in conspiracy with Accused no.3, submitted the following documents which are fabricated and fake :

(a). Fabricated and forged Market Value Assistance Card;

(b). Fabricated sub-contract agreement purported to be executed by VNRIL;

(c). Forged Net Worth Certificate;

(d). Forged Financial Statements of M/s. Siva Constructions;

It is alleged that basing on said fake/fabricated documents, Accused no. 1 in- duced the bank officials to sanction the loan and that they induced Accused no. 2, 39 CC.No. 05/2018 XXI ACJM Court, Hyderabad panel valuer to issue Inflated Valuation Report basing on Fabricated and forged

Market Value Assistance Card, dt. 07-07-2010.

57.In order to prove that Accused no. 1 has submitted fabricated documents to the bank and internal investigation conducted by the bank officials established the same, the prosecution has examined PW-29/E. Srinivasa Rao, Deputy General

Manager, who conducted internal investigation in the bank and submitted Internal

Investigation Report/Ex. P167. The evidence of PW-29/E. Srinivasa Rao, who con- ducted internal investigation, is to the effect that he was asked by his Chief General

Manager to conduct an internal investigation in respect of M/s. Siva Constructions and VNR Constructions. He also deposed that as per their policy, they are supposed to verify the case files and approve credit policy and report deviations, if any. He also deposed that subsequently he verified all the records of the case at Chapel

Road Branch of IDBI Bank and submitted a report to CGM. He also deposed that after sanction, he has also verified how the loan documentation was prepared, mort- gage over security was created and finally how the facilities were operationalized, post operationalization how the disbursements were allowed and how facilities were monitored and that during the process, deviations identified were reported in his report. He also deposed that the deviations cited were : 1) Valuation report given by panel valuer, 2) Market value assistance report given by S.R.O, 3) Sub contract issued by VNR Infrastructure Ltd., 4) Audited Net worth statement given by C. A. Naresh Kumar, 5) Audited Financial Statements of the company and 6)

Credit Monitoring Arrangement Data and that those documents were verified by him. He also deposed that he also found that MVAC and audited net worth state- ment are not genuine. He further deposed that he has handed over to to Inspector of

CBI which are Ex. P-168/circular No. 162/CBSD-24/2007-08 and Ex. P-169/Circu- 40 CC.No. 05/2018 XXI ACJM Court, Hyderabad lar No. IDBI Bank/2010-11/79RBG/SME/42. Ex. P-168/circular provides the pro- cedure for selection of CA firms for undertaking various assignments including stock and receivable audit. Ex. P-169/Circular provides the guidelines for stock au- dit.

58.Though the prosecution has examined PW-29 and relied on Ex. P167/ Inter- nal Investigation Report, the burden lies on the prosecution to prove the allegations levelled against Accused no. 1 & 3 independently. The oral evidence of PW-29 cou- pled with Ex. P167/ Internal Investigation Report will be relevant for the purpose of corroborating the evidence adduced by the prosecution.

59.Fabricated and forged Market Value Assistance Card :

It is the case of the prosecution that basing on fabricated Market Value

Assistance Card, Dt. 07-07-2010, the bank’s empanelled valuer M V Srinivasulu/

A2 has issued the Valuation Report, Dt. 12-07-2010. Therefore, the allegation dis- puting the genuineness of Market Value Assistance Card, Dt. 07-07-2010 is taken up at first.

60.PW-28/ A Mallikarjun, Assistant General Manager/Relationship Manager,

IDBI Bank, deposed that the primary security offered by M/s. Siva Constructions was current assets and that besides primary security Siva Rama Krishna/A1 as pro- prietor of M/s. Siva Constructions has also offered collateral security i.e., property worth Rs. 20 Crores and that Siva Rama Krishna/A1 told them that the property is worth of Rs. 20 Crores and post sanction of the loan, he will submit the documents pertaining to property for creation of mortgage. He also deposed that initially Siva

Rama Krishna/A1 proposed to mortgage the property in the name of third parties 41 CC.No. 05/2018 XXI ACJM Court, Hyderabad and that subsequently that property was replaced with the property at

Pulimamidi(V). He also deposed that after loan was processed, the other formalities of security creation was completed since Siva Rama Krishna/A1 came and de- posited the title deed of the property situated at Pulimamidi village along with the market value certificate given by Sub Registrar.

61.As seen from the Valuation Report (part of Ex. P1), it is apparent that the bank’s empanelled valuer has relied on Market Value Assistance Card, dt. 07-07- 2010 wherein the market value of the property is shown as Rs. 8.47 Crores. It is the case of the prosecution that said Market Value Assistance Card is a fabricated docu- ment and in view of the value of the property shown in said document, bank’s em- panelled valuer has given Valuation Report, Dt. 12-07-2010 wherein the properties offered as collateral security by Accused no. 1 are valued at Rs. 21.78 Crores.

62.With regard to Market Value Assistance Card, dt. 07-07-2010, which is marked as Ex. P166, in order to prove that said document was submitted by Ac- cused no.3, the prosecution has relied on the evidence of PW-13. The evidence of

PW-13 reveals that after the account of M/s. Siva Constructions has become Non

Performing Asset (NPA) due to non servicing of interest dues, they have again en- trusted the matter to Panel Valuer M.V.Srinivasulu/Accused no.2 and he gave valu- ation report assessing it as Rs.9.68 crores under Ex. P128/Revaluation Report. His evidence is further to the effect that as they found that there is fall in valuation of the property, they have visited the collateral property and found that there is a fall in the value of the collateral property basing on the local enquiry. His oral version is corroborated by Ex. P127/Office note,dt. 18/10/2011 regarding visit report of collateral property, the contents of which would reveal that as Accused no.1/Siva 42 CC.No. 05/2018 XXI ACJM Court, Hyderabad

Ramakrishna failed to service the interest, preliminary due diligence on various se- curities was carried out and that the bank officials had discussions with the panel valuer M.V.Srinivasulu/Accused no.2, and thereafter he was required to re-assess the prevailing market value of the property as on that date. The contents of Ex.

P127/Office note further reveals that thereafter the General Manager V Venkata

Krishnan/PW-25 and Assistant General Manager T. Rama Rao/PW-13 have visited the properties on 8th October, 2011 and found that the property mortgaged to IDBI is costing only Rs. 0.30 Crore as against the values assessed by the valuer.

63.The evidence of PW-13 is further to the effect that M.V.Srinivasulu/A2 gave valuation report and Ex. P128/Re-valuation report basing on Market Value Assis- tance Card alleged to be provided to him by Mr. Mohan Reddy/A3 and hence, a let- ter under Ex. P11 was addressed to S.R.O, Maheswaram by PW-23/G. Suneel

Babu, Deputy G.M requesting to confirm the genuineness of said Market Value As- sistance Card. PW-13 further deposed that their bank received reply under Ex. P12

Letter denying issuance of the same by S.R.O, Maheswaram and stating that it is a fake one. He also deposed that due to huge difference in valuation of the property, denying issuance of Net Worth certificate by Chartered Accountant and also Market

Value Assistance Card by S.R.O, they have entrusted the matter to CBI.

64.PW-23/G. Suneel Babu, Deputy General Manager, Credmin Department, de- posed that they have approached the Sub-Registrar Office, Maheswaram request- ing to confirm the issuance of market value Assessment Report attached to the First

Valuation Report and in his reply during February, 2012, the Sub-Registrar has mentioned that it was not issued by them by specifically mentioning that the font used in the letter was never used by the Sub-Registrars. PW-23 identified Ex. P11 43 CC.No. 05/2018 XXI ACJM Court, Hyderabad to be the letter addressed by him to the Sub-Registrar, Maheswaram. He further de- posed that upon receipt of Ex. P12/letter, they have approved the note for de-listing the empanelled valuer/Ex P-162.

65.In order to prove that Ex. P166/Market Value Assistance Card, Dt. 07-07- 2010 is a forged and fabricated document, the prosecution has examined PW-2 and

PW-3 who worked as Sub-Registrars at the office of Sub-Registrar, Maheswaram and exhibited Exs. P3 to P10 and Exs. P11 and P12 respectively through them. The evidence of PW-2/V. Ramesh, who worked as Sub-Registrar, Maheswaram, is to the effect that Sale deeds bearing document No. 2811/2010, dt. 06-07-2010 and

Document No. 2812/2010, dt. 06-07-2010 vide Exs. P3 and P4 were registered at

Sub-Registrar office, Maheswaram in favour of K. Siva Rama Krishna, S/o K. Pad- manabhaiah and that as per said sale deeds, the properties purchased are situated in

Survey no. 407/AA and 407/A of Pulimamidi Village of Kandukur Mandal.

66. PW-3/P.V. Ramana Murthy, who worked as Sub-Registrar at SRO, Mah- eswaram from July, 2009 to July, 2013 deposed that Exs.P3 and P4/Sale deeds were registered at the office of Sub-Registrar, Maheswaram on 06-07-2010 and that their

In-charge Sub-Registrar by name Srikanth registered Exs.P3 and P4 Sale deeds. In- deed, there is no dispute with regard to purchase of properties situated in Sy.nos.

407 and 407/A of Pulimamidi Village of Kandukuru Mandal by Accused no.1 under

Exs. P3 and P4 Sale deeds. The main dispute is with regard to genuineness of Ex.

P166/Market Value Assistance Card, Dt. 07-07-2010.

67.With regard to Ex. P166/Market Value Assistance Card, Dt. 07-07-2010, PW- 3/P.V.Ramana Murthy, Sub-Registrar, SRO, Maheswaram, deposed that he received 44 CC.No. 05/2018 XXI ACJM Court, Hyderabad letter, dt. 18-02-2012 from G. Sunil Babu/PW-23, Deputy General Manager, IDBI

Bank, Chappel Road Branch, seeking clarification about the market value assis- tance card bearing no.1519 and also to confirm the basis for arriving the market value of the land at the rate of Rs. 8.47 crores. PW-3 further deposed that along with that letter, he received the photostat copies of letter, dt. 08-02-2012 and market value assistance card bearing no. 1519. He further deposed that in response to let- ter, he submitted the information vide letter dt. 16-02-2012, informing PW-23 that the original of the photostat copy of Market Value Assistance card enclosed to

Ex.P11 letter was not issued from the office of Sub-Registrar, Maheswaram and the value of the property was not Rs. 3,500/- per square yard as mentioned in the said market value assistance card. He further deposed that in Ex. P12/Letter, he has fur- ther clarified that the signature appearing on the photostat copy of market value as- sistance card enclosed to Ex.P11 letter is not his signature. The evidence of PW-03 coupled with Ex. P12/Letter shows that he has received a letter, Dt. 08-02-2012, from Deputy General Manger, ICG, IDBI Bank and in response to said letter, he has issued reply by denying the issuance of Market Value Assistance Card, Dt. 07- 07-2010. PW-3/P.V.Ramana Murthy, Sub-Registrar, SRO, Maheswaram has ad- dressed said letter in his official capacity as Sub-Registrar, Maheswaram.

68.In order to show that Market Value Assistance Card, Dt. 07-07-2010 was not issued by Sub-Registrar Office, Maheswaram on 07-07-2010, the prosecution has relied on oral evidence of PW-2/V. Ramesh and documentary evidence under Exs.

P5 to P10. PW-2/V. Ramesh, Sub-Registrar deposed that during the course of inves- tigation of this case, as per the request of the investigation officer, he furnished six applications under Exs. P5 to P10 Requisition forms for issuance of Market Value

Certificates, dt. 07-07-2010 filed with Sub-Registrar office, Maheswaram vide let- 45 CC.No. 05/2018 XXI ACJM Court, Hyderabad ter dt. 26-02-2014. He further deposed that as per the records of Sub-Registrar, Ma- heswaram, no market value assistance card was issued in respect of land in Survey no. 407 of Pulmamidi Village on 07-07-2010. In order to get over Exs. P5 to P10

Requisition Forms for Market Value Assistance Cards, several suggestions were put to PW-2 regarding Exs. P5 to P10 stating that said requisitions do not contain ac- knowledgment to show that said requisitions were received in their office, serial numbers are not mentioned in Exs. P5 to P10. However, as the evidence of PW-2 relates to official records, his evidence cannot be discarded solely on the ground that Exs. P5 to P10 Requisition Forms do not contain acknowledgment and serial numbers. Mere suggestions to PW-02/V Ramesh that Exs. P5 to P10 do not contain serial numbers and that register maintained at the office of Sub-Registrar was not produced cannot take away the credibility of evidence of PW-02 as his evidence re- lates to official records.

69.In order to prove that Market Value Assistance Card, Dt. 07-07-2010 is a fab- ricated document, the prosecution has also relied on the evidence of PW-41/N.

Ravi, Principal Scientific Officer, Chennai who gave his opinion vide Ex. P199/

Handwriting Examination Report, dt. 23-05-2014. His evidence is to the effect that in this case, the investigation officer has forwarded certain questioned, specimen and admitted documents and requested him to compare those documents and to of- fer scientific opinions vide Ex. P192/Letter, Dt. 07-05-2014 and Ex. P193/Forward- ing Note along with Annexures A, B, C, Comparison Chart. Though the learned counsel for the accused has raised an objection with regard to admissibility of Ex.

P192/Letter stating that the correspondence made by the investigation officer dur- ing the course of investigation is hit by section 162 CrPC, such objection is not ten- able in view of the fact that said letter addressed by the investigation officer to the 46 CC.No. 05/2018 XXI ACJM Court, Hyderabad

Principal Scientific Officer under Ex. P192 is not a statement made to the investiga-

tion officer. Ex. P192/Letter was addressed by the investigation officer enclosing certain documents and requesting the Scientific Officer to express his opinion as per the questionnaire.

70.As per the evidence of PW-41/N. Ravi, Principal Scientific Officer, ques- tioned documents sent to him were marked as Q1 to Q22. As seen from Ex. P193/

Forwarding Note along with Annexures A, B, C and Annexure ‘A’ contains the par- ticulars of Questioned Documents, Annexure ‘B’ contains the description of docu- ments containing Specimen Handwritings/signatures and Annexure ‘C’ contains the

Questionnaire.

71. PW-41/N. Ravi, Principal Scientific Officer, deposed that the signature ap- pearing on Ex.P166/Market Value Assistance Card, which was forwarded to him for comparison, was marked as Q1, Ex.P194/specimen signatures of Sri. P.V. Ramana- murthy (PW-03) were marked as S1 to S5, Ex.P195/specimen signatures of K. Siva

Ramakrishna (A1) were marked as S6 to S10, Ex.P196/specimen signatures of

Suresh (PW-24) were marked as S11 to S15, Ex.P197/specimen handwriting of N.

Mohan Reddy (A3) were marked as S16 to S20 , Ex.P198/ specimen handwriting of N. Mohan Reddy (A3) were marked as S21 to S26. He further deposed that the signature appearing on the letter dt. 16-02-2012/Ex.P12 is marked as A1 by him.

His evidence shows that after examining the documents in the lab using scientific aids, he gave his opinion vide Ex. P199/Handwriting Examination Report, dt. 23- 05-2014.

47 CC.No. 05/2018 XXI ACJM Court, Hyderabad

72.With regard to the signature marked as Q1 on Ex. P166/Market Value Assis- tance Card, Dt. 07-07-2010, he deposed that the authorship of the questioned signa- ture marked as Q1 could not be connected with the writer of the standard signatures marked as S1 to S5 and A1. His opinion shows that the signature appearing on Ex.

P166/Market Value Assistance Card, Dt. 07-07-2010 does not tally with S1 to S5 and A1 which are specimen and admitted signatures of P.V.Ramana Murthy/PW-3.

73.With regard to Admitted signature of PW-3/P.V.Ramana Murthy, Sub-Regis- trar marked as A1 appearing on Ex. P12/Letter addressed by him to the investiga- tion officer in this case, the learned counsel for the accused argued that the investi- gation officer did not collect any separate document containing the admitted signa- ture of PW-3/P.V.Ramana Murthy, who worked as Sub-Registrar at SRO, Mah- eswaram and that the signature appearing on Ex. P12/Letter which is addressed by

PW-3 to the investigation officer during the course of investigation cannot be used for the purpose of obtaining opinion of the expert. He further argued that PW-45, investigation officer in this case, deposed that he has not collected from the office of Sub-Registrar, Maheswaram, the extract of Inward register and Outward register relating to the date 07-07-2010, 16-02-2012 and 18-02-2012 and that he has not collected any contemporaneous documents from PW-3 to show that he is in the habit of subscribing his signature as appearing on Market Value Assistance Card/

Ex. P166 and therefore, the opinion given by PW-41 vide Ex. P199/Handwriting

Examination Report in respect of Q1 I.e, signature appearing on Ex. P166/ Market

Value Assistance Card cannot be considered.

74.As seen from Ex.P12/Letter, dt. 16-02-2012, it is apparent that from the ref- erence mentioned in said letter that the same was addressed by PW-3/P.V.Ramana 48 CC.No. 05/2018 XXI ACJM Court, Hyderabad

Murthy in reply to Letter, Dt. 08-02-2012, addressed by PW-23/G. Suneel Babu,

Deputy General Manager, requesting to confirm the issuance of the Market Value

Assistance Card, basis of arriving at the value of Rs. 8,47,00,000/- and the name of the Sub-Registrar who has signed the Market Value Assistance Card. The contents of Ex.P12/Letter, dt. 16-02-2012 would disclose that PW-3/P.V.Ramana Murthy has addressed said letter in response to the letter/Ex. P11 by stating that Market Value

Assistance Card, Dt. 07-07-2010 was not issued by their office and it is a fake doc- ument and that the signature on said certificate is not the signature of the Sub-Reg- istrar or the in-charge Sub-Registrar. It is also mentioned in Ex. P12/Letter that the market value of the agricultural land in Pulimamidi Village as on 07-07-2010 is Rs.

9,68,000/- per Acre and if the property is house site/plots, the rate applicable is Rs.

600/- Square yard and there was no such value of Rs. 3500/- per square yard.

75.It is evident that as on the date of alleged issuance of Market Value Assis- tance Card, Dt. 07-07-2010 and also as on the date of receiving letter under Ex.P11,

PW-3 was working as Sub-Registrar, Maheswaram and therefore he is the compe- tent witness to speak about issuance/non-issuance of Market Value Assistance Card,

Dt. 07-07-2010 by SRO, Maheswaram. The letter under Ex. P12 addressed by him

to PW-23/G. Suneel Babu, Deputy General Manager, stating that Market Value As- sistance Card, Dt. 07-07-2010 was not issued by their office and the contents of said certificate in respect of value of the land per acre are not correct is very much relevant in the present case. Moreover, PW-3 in his evidence has clearly deposed that the signature appearing on Market Value Assistance Card, Dt. 07-07-2010 is not his signature. The opinion of PW-41/N. Ravi, Principal Scientific Officer given in Ex. P199/Handwriting Examination Report in respect of Q1 i.e., signature ap- pearing on Market Value Assistance Card, Dt. 07-07-2010 stating that Q1 could not 49 CC.No. 05/2018 XXI ACJM Court, Hyderabad be connected with specimen signatures of PW-3 marked as S1 to S5 and Admitted signature of PW-3 on Ex. P12/Letter marked as A1, corroborates the version of

PW-3 that the signature appearing on Ex. P166/Market Value Assistance Card, Dt.

07-07-2010 is not his signature.

76.With regard to valuation of the property shown in Ex. P166/Market Value As- sistance Card, Dt. 07-07-2010 as Rs. 8,47,00,000/-, PW-3 has categorically men- tioned in his Ex. P12/Letter stating that the market value of the agricultural land in

Pulimamidi Village as on 07-07-2010 is Rs. 9,68,000/- per Acre and if the property is house site/plots, the rate applicable is Rs. 600/- Square yard and there was no such value of Rs. 3500/- per square yard. Even as seen from Exs. P3 and P4 Sale deeds, Dt. 06-07-2010 under which the Accused no.1 had purchased the property at

Pulimamidi Village, the value of the land per Acre is mentioned as Rs. 9,68,000/- per Acre. Indeed, there cannot be sudden increase in the value of the land with in a short period that too with in one day from the date of purchase of properties by Ac- cused no.1 under Exs. P3 and P4.

77.Moreover, in Ex. P166/Market Value Assistance Card, Dt. 07-07-2010 the classification of the land is shown as Urban Vacant Land (Residential) whereas as per description of the properties shown in Exs. P3 and P4 Sale deeds, the proper- ties are shown as Agricultural lands. Though it is suggested to PW-2 in his cross- examination that the office of Sub-Registrar is not concerned with classification of land such as agricultural land and non agricultural land, the fact remains that when

Exs. P3 and P4 Sale Deeds, Dt. 06-07-2010 and Ex. P166/ Market Value Assistance

Card, Dt. 07-07-2010 are juxtaposed, it is evident that in schedule of property shown in Exs. P3 and P4 Sale deeds, the properties are described as Agricultural 50 CC.No. 05/2018 XXI ACJM Court, Hyderabad land situated at Pulimamidi village, Kandukur Mandal whereas in Ex. P166/ Mar- ket Value Assistance Card, Dt. 07-07-2010 the nature of the land is mentioned as ‘Urban Vacant Land (Residential)’. When Exs. P3 and P4 Sale deeds were regis- tered at the Sub-Registrar Office, Maheswaram on Dt. 06-07-2010 Office and when

Ex. P166/ Market Value Assistance Card was said to be issued on Dt. 07-07-2010 by the very same Sub-Registrar office, it is highly impossible for there being sud- den change in classification of land from agricultural land to residential land within a span of one day. Though it is suggested to PW-02, PW-13, PW-23 and PW-45 that market value assistance certificates were issued by E-Seva/Mee Seva kendra during the relevant time, the fact remains that the contents of Ex. P166/ Market Value As- sistance Card, Dt. 07-07-2010 would reveal that it was purported to be issued at

Sub-Registrar office, Maheswaram, but not obtained from any Mee-Seva kendra.

Therefore, on careful scrutiny of contents of Exs. P3 and P4 Sale deeds and con- tents of Ex. P166/ Market Value Assistance Card, Dt. 07-07-2010 coupled with oral evidence of PW-02 and PW-03, this courts holds that the prosecution has estab- lished that the contents of Ex. P166/ Market Value Assistance Card, Dt. 07-07-2010 relating to classification of the land, Value of the land are false and that the signa- ture of PW-3 is forged on said document.

78.With regard to submission of said document by Accused, the contents of Ex.

P121/Memorandum of Entree No.14, Dt.16/07/2010 clearly establish that Accused no.1 has submitted Market Value Assistance Card, Dt. 07-07-2010 to the bank along with other title documents during processing of the loan application submit- ted by him on behalf of M/s. Siva Constructions.

51 CC.No. 05/2018 XXI ACJM Court, Hyderabad

79.On a careful scrutiny of above evidenceadducedby the prosecution i.e., oral evidence of PW-2, PW-3, PW-23 and PW-41 and documentary evidence under Exs.

P3, P4 Sale deeds, Exs. P5 to P10/Market Value Requisition Forms, Ex. P11/Letter addressed by PW-23 to the Sub-Registrar, Maheswaram requesting to confirm the issuance of Market Value Assistance Card, Dt. 07-07-2010 and basis for assessing the property at Rs. 8,47,00,000/-, Ex. P12/Letter addressed by PW-3 denying is- suance of Market Value Assistance Card, Dt. 07-07-2010, opinion of expert under

Ex.P199/Handwriting Examination Report along with the reasons for his said opin- ion stating that Q1/signature appearing on Market Value Assistance Card, Dt. 07- 07-2010 could not be connected to specimen and Admitted Signatures of PW-3, this court holds that the prosecution has established the fact that Ex. P166/Market Value

Assistance Card, Dt. 07-07-2010 is a fabricated document brought into existence by forging the signature of PW-3/P.V.Ramana Murthy, Sub-Registrar, SRO, Mah- eswaram and that the contents of said document are false.

80. Inflated Valuation Report :

It is the case of the prosecution that Accused no.1 and Accused no.3 in pur- suance of their conspiracy to cheat the bank, submitted forged and fabricated Mar- ket Value Assistance Card, Dt. 07-07-2010 and conspired with Accused no.2 and got issued inflated valuation report, dt. 12-07-2010 in respect of properties offered as collateral security by M/s. Siva Constructions and thus induced the bank officials to sanction the loan to M/s. Siva Constructions. As seen from Valuation Report which is part of Ex. P1 File, the contents of Valuation report, dt. 12-07-2010 goes to show that for the purpose of Working Capital Facilities with Cash Credit limits required by M/s. Siva Constructions for completing ongoing works and increasing the volume of civil/ mechanical/ electrical/ telecommunication & signaling works 52 CC.No. 05/2018 XXI ACJM Court, Hyderabad for improving the operational efficiency and diversification of activities, 2 proper- ties of Urban Vacant Residential Plots of Land Bearing : 1) Property No. 1 In Sy.

No. 407/A, Admeasuring AC 2-24 Gts with Regd. No. 2811/2010, 2) Property No.

2 In Sy. No. 407/A, Admeasuring AC 2-16 Gts with Regd. No. 2812/2010, both Dt.

6th July, 2010 of SRO Maheswaram, R.R. Dist., A.P. & both the properties are lo- cated abetting each other one behind the other totaling AC 5-0 Gts with the prop- erty no. 1 abetting the proposed 60’ Wide road linking Pulimamidi (V) to Mah- eswaram and both are located in Pulimamidi (V), Kandukur (M), R.R. Dist., A.P., are offered as collateral security and the valuation is shown as follows:

A.Depreciated/Fair Value:Rs. 2178.00 Lakhs.

Current Market Value:(Rupees Two Thousand One Hundred Seventy Eight Lakhs Only) B.Replacement Value:Rs. 2178.00 Lakhs (Rupees Two Thousand One Hundred Seventy Eight Lakhs Only) C.Realisable Value:Rs. 1742.40 Lakhs (Rupees One Thousand Seven Hundred Forty Two Lakhs & Forty Thousand Only) D.Distress/Forced Sale Value:Rs. 1524.60 Lakhs (Rupees One Thousand Five Hundred Twenty Four Lakhs & Sixty Thousand Only)

81.As seen from said Valuation Certificate, the enclosures are Market Value As- sistance Card, Dt. 07-07-2010 of SRO, Maheswaram, EC Dt. 09-07-2010 of SRO,

Maheswaram for the period from 19-06-96 to 08-07-2010, Registration plan of property no. 1 & 2, location of the site, route map of the site and photos.

53 CC.No. 05/2018 XXI ACJM Court, Hyderabad

82.On the aspect of issuance of Valuation report, dt. 12-07-2010 by M V Srini- vasulu, Panel Valuer of the bank, PW-04/V.V.S. Ravindra deposed that after sanc- tion of loan, the bank has appointed valuer for valuation of collateral security prop- erty offered by Accused No. 1 and also appointed Advocate for title search report and that the valuation report was given by M.V.Srinivasulu/Accused No. 2.

83.PW-13/T. Rama Rao, Assistant General Manager, deposed that after the ac- count of M/s. Siva Constructions became NPA due to non servicing of interest dues, himself and Venkata Krishnan/PW-25 visited the collateral property and found that there is a fall in the value of the collateral property basing on the local enquiry. PW- 13 further deposed that due to fall in the value of collateral property noticed during the visit, the matter was again entrusted to M.V.Srinivasulu/A2, Bank Panel Valuer who earlier carried out the valuation of the same property, to re-assess the property and that Accused No. 2 gave valuation report/Ex. P128 assessing it as Rs.9.68 crores. He further deposed that Accused No. 2 informed them that due to agitation of Telangana there is a down fall in the valuation of the property due to which the value earlier given by him was reduced. He further deposed that the valuation of the property was again entrusted to S.R.A. consultants, their bank’s empanelled val- uer for valuation of the property and then S.R.A Consultants gave valuation report/Ex. P129 on 16/11/2011 showing its fair market value as Rs.52,50,000/-.

84.On this aspect, PW-25/Venkata Krishnan, who worked as General Manager,

ICG Regional Office, Hyderabad, during the relevant period deposed that as M/s.

Siva Constructions was not doing well and there was over dues in the loan account, he called the borrower so many times and advised them to clear the over dues, to bring the account to standard account. He further deposed that he visited the prop- 54 CC.No. 05/2018 XXI ACJM Court, Hyderabad erty given as collateral security along with AGM Mr. Rama Rao/PW-13 situated in a village by name Pulimamidi. In his cross-examination, PW-25 stated that he has not visited concerned Sub-Registrar Office and concerned Mandal Revenue Office.

He also replied that he is not aware that Pulimamidi village is situated within the radius of 3 kms of outer ring road.

85.PW-23/G. Suneel Babu deposed that M.V. Srinivasulu/A2, Empanelled Val- uer of IDBI Bank has given the valuation report in the month of July, 2010 and thereafter he valued 5 acres land for around Rs. 20 crores. PW-23 further deposed that when the company has become technically NPA, then they started examining the valuable securities and that they asked the same valuer to submit the valuation report as there was decline in market rate. He further deposed that upon receipt of the valuation report which is half the value of which was done earlier, they have ap- pointed a third valuer SRA Consultants., who has given a very significantly low value of Rs.50 lakhs.

86.The prosecution has examined PW-15/Mohan Raghavaiah, Panel Valuer of

IDBI Bank, who has issued Ex.P129/Valuation Report, dt. 16-11-2011. The evi- dence of PW-15 is to the effect that he is Managing Partner of Sri Rishi Associates

Consultancy and that in the year 2011 at the request of IDBI Bank, Chappel Road

Branch, he has issued valuation report in respect of property situated at survey no.

407/A and 407/AA at Puli Mamidi Village, Kandukur Mandal, owned by Siva

Rama Krishna. He further deposed that he along with one Rama Rao, Bank Man- ager of IDBI Bank visited the property, verified the boundaries as per sale deed and noticed no demarcation of the land and agricultural activities were going on. He further deposed that he has verified with villagers, made local market enquiry and 55 CC.No. 05/2018 XXI ACJM Court, Hyderabad the value was Rs.10 lakhs to Rs.20 Lakhs per acre. He also deposed that he has also verified with the real estate websites and then he gave his opinion as Rs. 52.5 lakhs for total 5 acres land and gave Valuation report under Ex P-129.

87.In his cross-examination, PW-15 admitted that access to the property, loca- tion and nature of land are factors for valuation of the property and that after forma- tion of outer ring road, the valuation of lands were increased 20 to 40 times. PW-15 admitted that at the time of his visit to the property, the outer ring road was partially formed and that he has not mentioned in Ex P-129/Valuation Report about the for- mation of outer ring road, the distance of outer ring road from the property which he inspected.

88.The evidence of PW-29/Srininvas Rao, who conducted internal investigation shows that he submitted Internal Investigation Report/Ex. P167 stating that there is a deviation in respect of Valuation report given by panel valuer. PW-29 mentioned in the report that it was observed by him that the valuer has considered the property as vacant, open and level urban residential land, while sale deed, dt. 06-07-2010 refers to the property as Agricultural land and further the distance of the property from Airport is 25kms whereas the valuer has shown the distance as 5kms. Further

PW-29 made remarks in his Internal Investigation Report/Ex. P167 that ‘Valuer ap- pears to have inflated the value of the collateral security’.

89.With regard to inflated Valuation report, PW-45/investigation officer deposed that Accused no.1 got issued exaggerated Valuation report to IDBI bank in con- nivance with M V Srinivasulu/A2, Valuer and Mohan Reddy (A3) and that after the account became NPA, the branch has obtained the valuation of the said properties 56 CC.No. 05/2018 XXI ACJM Court, Hyderabad from Sri. Mohan Raghavaiah/PW-15, Bank’s Empanelled valuer who had arrived at the value of the said properties as Rs. 42 Lakhs only vide his report Dt. 16-11-2011.

In his cross-examination, PW-45 stated that he has not examined any expert to as- certain the authenticity of Ex. P129 Valuation report and to show that the value in

Ex. P1 is inflated.

90.The learned Assistant Public Prosecutor for CBI argued that

M.V.Srinivasulu/Accused no.2 inflated the value of the properties offered as collat- eral security by M/s. Siva Constructions and that there is huge variation in the valu- ation of the properties show in Ex.P1/Valuation Certificate, Ex. P128/ Revaluation,

Ex. P129/Valuation Report and this shows that Accused no.2 colluded with Ac- cused no.1 and Accused no.3 and issued Valuation report, which is part of Ex. P1

File.

91.Per Contra, the learned counsel for Accused no.1 and Accused no.3 argued that self contradictory statements were given by PW-13 in his evidence. He further argued that PW-15 is not a valuer in the individual capacity and the firm in which he was working is the Valuer. He further argued that nothing is placed on record to show that PW-15 is Managing partner of Sri Rishi Consultancy. He further argued that PW-15 is not a competent person to give the Valuation Report. He further ar- gued that according to PW-13 and PW-25, Ex. P127 is office note and therefore,

Ex. P127 is not a valuation report and no reliance can be placed on said report.

92.The evidence of PW-13/T. Rama Rao and PW-23/G. Suneel Babu shows that initially the valuation Report (part of Ex. P1) was given by the Bank’s empanelled valuer M.V.Srininvasulu/Accused No. 2 stating the valuation of the properties of- 57 CC.No. 05/2018 XXI ACJM Court, Hyderabad fered as collateral security by Accused no.1 were valued at Rs. 217.68 lakhs and later when the account of M/s. Siva Constructions slipped to NPA, PW-13 and PW- 25 have visited the property and they have called for valuation report from M.V.S- rinivasulu/Accused No. 2, who gave Revaluation Report/Ex. P128 stating that the value of the properties offered as collateral security is Rs. 968.00 lakhs and then the bank has again sought for valuation from Sri Rishi Consultancy who gave the Valu- ation Report/Ex. P129.

93.A careful scrutiny of Ex.P1 File containing Valuation report, dt. 12-07-2010 and Ex. P128 Revaluation report, dt. 10-10-2011 given by the panel valuer M.V.

Srinivasulu/Accused no.2 show that properties situated at Pulimamidi Village in the name of Accused no.1 offered as collateral security to the bank were valued at Rs.

2178.00 Lakhs in Ex.P1, whereas in Ex. P128/Revaluation report, Dt. 10-10-2011, it shows that properties were valued at Rs. 968.00 lacs. It is mentioned in Ex.

P128/Revaluation report that prevailing market rate of the land was Rs. 4,200 per square yard due to sudden crash in the real estate prices particularly in Hyderabad area and the guideline rate obtained from the Registrar’s office is Rs. 3,500/- as in- dicated in Market Value Assistance Card, Dt. 07-07-2010 of SRO, Maheswaram.

This shows that M.V. Srinivasulu, Panel valuer has given two valuation reports i.e., one report before sanction of loan and another valuation report after the account of

M/s. Siva Constructions has become NPA and both said valuation reports were given basing on Ex. P166/Market Value Assistance Card, Dt. 07-07-2010

94.Subsequently, PW-15/Mohan Raghavaiah visited the property and gave the

Valuation Report/Ex. P129, Dt. 16-11-2011 stating that fair market value of the property is Rs. 52,50,000/-. The evidence of PW-15 shows that there was increase 58 CC.No. 05/2018 XXI ACJM Court, Hyderabad in the valuation of the property due to formation of outer ring road and that at the time of his visit to the property, outer ring road was partially formed and he has not mentioned about it in his Valuation report/Ex. P129. He also stated that he has not enclosed to Ex.P129/Valuation Report, the print outs of the websites from which he has verified the valuation of the properties.

95. Be that as it may, in order to ascertain value of a property, it depends on vari- ous factors such as nature of the land i.e., whether it is agricultural or residential, location of the land, the surrounding areas, market value of the land, extent of the land. In the case on hand, as seen from Valuation reports given by Accused no.2/

M.V.Srinivasulu, Panel Valuer of the bank, he relied on Market Value Assistance

Card, dt. 07-07-2010 said to be submitted to the bank by Accused no.1 and Accused no.3. It is alleged by the prosecution that during verification, it is found that Market

Value Assistance Card, dt. 07-07-2010 given by Accused is not a genuine one.

Therefore, whether said fact is within the knowledge of Accused no.2 is not estab- lished by prosecution. Though Ex. P162/ Office note for de-listing of empanelled val- uer is exhibited to show that the bank has de-listed Accused no.2 from the list of panel valuers that will not help in any manner to prove role of Accused no.2 in issu- ing Inflated Valuation Report. PW-45, investigation officer deposed that he has not independently enquired about the market value of the land which is offered as col- lateral security while securing the loan.

96.During the course of cross-examination of bank officials, suggestions were put to them with regard to binding value of Valuation Report given by Panel Valuer.

PW-23, PW-25 deposed that the report given by the panel valuer is binding on the bank. When it was suggested to PW-14/DV Krishna Kumari that she stated in her 59 CC.No. 05/2018 XXI ACJM Court, Hyderabad statement under Section 161 CrPC before the CBI officials that since the equitable mortgage was created by her, it was her responsibility to assess the value of the property which she has not done, she denied said suggestion and the relevant por- tion of her statement under Section 161 CrPC was marked as Ex. D2. PW-31 admit- ted that he stated before CBI that “ As per the guidelines Smt. DV Krishna Kumari and Sri. VVS Ravindra are supposed to go through and compare the value of the property in the sale deed with the valuation report given by the approved valuer and also thoroughly scrutinize the documents at the time of creation of equitable mort- gage and that this office note came to me for approval without any property docu- ments as its enclosure”. Though the above suggestions were put to the bank offi- cials in order to show that PW-14 and PW-4 have not performed their duties care- fully, dereliction of duty by them while dealing with the loan application cannot ab- solve the liability of the Accused in view of the specific allegation that Accused submitted Market value Assistance Card and got issued Inflated Valuation Report,

Dt. 12-07-2010.

97.It is pertinent to mention that as seen from Exhibits P3 and P4 Sale Deeds pertaining to the properties which were offered as collateral security by the ac- cused, it is evident from Exs. P3 and P4 that property covered by Ex. P3 Sale deed,

dt. 06-07-2010, bearing Doc.no. 2811/2010, in an extent of Ac. 2.24 guntas was

purchased by Accused no.1 for consideration of Rs. 25,16,800/-, and property cov- ered by Ex. P4 Sale deed, dt. 06-07-2010, bearing Doc.no. 2812/2010, in an extent of Ac. 2.16 guntas was purchased by Accused no.1 for consideration of Rs.

23,23,200/-. Admittedly, as seen from Exs. P3 and P4 Sale Deeds, Accused no.1/

Siva Ramakrishna purchased said above properties only on dt. 06-07-2010 and the 60 CC.No. 05/2018 XXI ACJM Court, Hyderabad total consideration paid by him to vendors is Rs. 48,40,000/- and the price per acre is Rs. 9,68,000/-.

98.During the course of investigation, investigation officer has conducted search at the house of MV Srinivasulu/A2, Panel Valuer, on 28-08-2013 in the presence of

B. Tarachand and Niranjan Kumar Samariya and seized Valuation Reports, Dt. 12- 07-2010 in respect of properties situated in Sy.nos. 407/A of Pulimamidi Village,

R.R.District. The prosecution has examined PW-38/Tarachand and PW-43/Niranjan

Kumar Samariya, mediators to the Search Proceedings. Their evidence discloses that investigation officer conducted search at the residence of MV Srinivasulu and seized documents. Ex. P185/Letter, Dt. 03-04-2012 addressed to DGM, IDBI,

Mumbai was also said to be seized from the house of MV Srinivasulu/A2.

The learned defense counsel argued that PW-13 deposed that there is no provision in Ex P-117/Manual for calling the valuation report for second time from bank panel valuer and therefore Revaluation Report/Ex. P128 said to be issued by

M.V.Srinivasulu/A2, Panel Valuer for the second time cannot be considered.

Though it is argued as such, the fact remains that Ex. P117/Manual prescribes the procedure to be followed by the banking officials at the time of sanctioning the loan and in the case on hand Ex. P128/Revaluation Report was obtained from the panel valuer after the account of M/s. Siva Constructions slipped to NPA. The learned de- fense counsel further argued that it is not proved that the bank has sanctioned loan purely basing on Valuation Report, Dt. 12-07-2010. However, the fact remains that in general every bank sanctions loan to the customer basing on the guarantee and capacity of the customer to repay the loan. More particularly, when loan facility is availed in huge sum by any firm or company, the bank will sanction loan basing on 61 CC.No. 05/2018 XXI ACJM Court, Hyderabad the security as may be furnished by the borrower to the bank and value of said se- curity. In the case on hand, Accused no.1 in collusion with Accused no.3 fabricated

Ex. P166/Market Value Assistance Card and submitted said document to the bank and basing on said document, the bank’s panel valuer M.V.Srinivasulu/Accused no.2 has issued the Valuation Report, Dt. 12-07-2010 by valuing the properties of- fered as collateral security by Accused no.1 at Rs. 2178 lakhs which is much higher than actual market value of said property. In general, the market value of the prop- erty will be always higher than the value of the property fixed by the Government, but not of exaggerated value. In the case on hand, as per Exs. P3 and P4 Sale deeds, the total value of the properties as shown in said Sale deeds was Rs. 48,40,000/- as on Dt. 06-07-2010, whereas in Valuation Report, Dt. 12-07-2010, the value of the properties is shown as Rs. 2178 lakhs I.e, Rs. 21.78 Crores, that is to say, the value of the properties was shown at a very high value that too nearly 45 times the value mentioned in Exs. P3 and P4 Sale deeds and it is highly improbable that the value of the land increases to such an extent within a period of one week from the date of its purchase.

99.Hence, on a careful consideration of the evidence adduced by the prosecu- tion, this court holds even without resorting to the value of the properties men- tioned in Ex. P128/revaluation Report and Ex. P129/Valuation Report given by

PW-15, it can be unhesitatingly said that Valuation Report, Dt. 12-07-2010 (Part of

Ex. P1 file) was given by inflating the value of the properties in an extent of Acre 5-00, as high as Rs. 21.78 Crores as against the Government value of Rs. 9,68,000/- per Acre during the relevant period. Therefore, in view of the above discussed evi- dence and foregoing reasons, this court that it is established by the prosecution that

Accused no.1 and Accused no.3 submitted Market Value Assistance Card, Dt. 07- 62 CC.No. 05/2018 XXI ACJM Court, Hyderabad 07-2010 and got issued Inflated Valuation Report, Dt. 12-07-2010 by showing the value of the properties which were offered as collateral securities at a very high rate of Rs. 21.78 Crores, in order to induce the bank officials to sanction the loan to M/ s. Siva Constructions. Accordingly, points no. (ii) and (iii) are answered in favour of the prosecution and against Accused no.1 and Accused no.3.

100. Point no. (iv) : Whether Accused no.1, in pursuance of his conspiracy with Accused no.3 to cheat bank, furnished forged and fabricated sub-contract agree- ment to the IDBI Bank in order to induce the bank officials to show that there is sufficient work to M/s. Siva Constructions ? Forged S ub-Contract agreement : With regard to allegation that Accused no.1 furnished false project details along with Ex. P13/Original Loan Application, the prosecution has relied on the ev- idence of bank officials PW-4/VVS Ravindra, Deputy General Manager, PW-28/

Mallikarjun, Relationship Manager and other witnesses PW-06/Jayashree Bhatt,

Accountant at VNRIL and PW-35/V. Narayana Reddy, Managing Director of VN-

RIL.

101. The evidence of PW-4/VVS Ravindra, Deputy General Manager, who han- dled the loan proposal of M/s. Siva Constructions is to the effect that during the processing of the loan, they met VNR Constructions as Accused no.1 submitted copies of Sub-Contract and work orders. He further deposed that on enquiry, M/s.

VNR Constructions confirmed that they are regularly giving contracts to M/s. Siva

Constructions and as VNR Constructions promoted to take up the processing the proposal of M/s. Siva Constructions, they continued to process the application of

Siva Constructions.

63 CC.No. 05/2018 XXI ACJM Court, Hyderabad

102. The evidence of PW-28/Mallikarjun, Relationship Manager, is also to the ef- fect that they have visited M/s. VNR Infrastructure Ltd., and met the Managing Di- rector V. Naryana Reddy/PW-35 and he has confirmed that they are working as

Sub-Contractor and they are satisfied with the work of M/s. Siva Constructions and told them that they are going to give further contracts to M/s. Siva Constructions.

He further deposed that after being satisfied with claims made by M/s. Siva Con- structions stating the numbers which they reported to the bank, the bank has relied on the documents submitted by Accused no.1 and incorporated it as part of Ap- praisal Memorandum and submitted the same to the Regional Credit Committee for sanction.

103. The evidence of PW-06/Jayashree Bhatt, Accountant at M/s. VNR Infrastruc- ture Ltd., is to the effect that M/s. Siva Constructions is one of sub-contractors of

VNRIL and some works were entrusted to Siva Constructions. Exs. P42 to 47/Work orders, Exs. P48 and P49/Ledger sheets and Exs. P50 and P51/ Form 16A TDS

Certificate issued to M/s. Siva constructions, Ex. P52/Receipt Memo and Ex. P53/

Blank letter head of M/s. VNR Infrastructures Limited were exhibited through her.

Her evidence is further to the effect that two work orders given to M/s. Siva Con- structions during the period 2010-2011 were not executed.

104. With regard to List of Projects shown to be completed by M/s. Siva Con- structions in Ex. P19 which was submitted by Accused no.1 along with Ex.P13/

Original Loan Application, PW-06/Jayashree Bhatt deposed that the project work mentioned in Ex.P19 allotted to M/s. Siva Constructions for Vizag extension minor bridges was not executed by it, the work mentioned in Ex.P19 claiming to be allot- ted to M/s. Siva Constructions by M/s. VNRIL for Warangal Station signaling work 64 CC.No. 05/2018 XXI ACJM Court, Hyderabad was not at all allotted by M/s. VNRIL and further the Railway Lane work men- tioned in Ex.P19 from Tirupathi to Bangalore is not pertaining to M/s. VNRIL and hence the allotment of said work to M/s. Siva Constructions does not arise, whereas the other projects mentioned in Ex. P19 were partially executed by M/s. Siva Con- structions. In respect of Latest position of orders – commencement and completion date of Siva Constructions/Ex.P 20, PW-06 deposed that Somashila Swarnamukhi

Link Canal work as mentioned in Ex.P20 was not commenced by M/s. Siva Con- structions.

105. In her cross-examination, PW-06/Jayashree Bhatt admitted that the persons connected with operations are proper persons to say about the extent of work done by the sub-contractors. She also admitted that before passing the bill, the persons connected with operations have to certify the extent of work done by sub- contrac- tors and that she has not handed over to CBI the certifications made by operations

before passing the bills.

106. The prosecution has also examined V. Narayana Reddy, Managing Director of VNRIL as PW-35, who is competent witness to speak about sub-contracts be- tween VNRIL and M/s.Siva Constructions and execution of said works by M/s.

Siva Constructions. The evidence of PW-35/ V. Narayana Reddy is to the effect that prior to 2010, Accused no.1/Siva Rama Krishna approached him asking to provide sub-contracts from VNR Infrastructure Ltd., and then they have given Accused no.1/Siva Rama Krishna sub-contracts. His evidence is further to the effect that he does not have idea as to the value of sub-contracts given to Accused no.1 and that sub-contracts were given to Accused no.1 only till 2010. When Ex.P18/Sub-Con- tract Agreement, Dt. 21-04-2009 was shown to PW-35, he stated that his office peo- 65 CC.No. 05/2018 XXI ACJM Court, Hyderabad ple used to look after the agreements and said agreements will not be placed before him.

107. The investigation officer has forwarded Copy of Sub-Contract Agreement,

Dt. 21-04-2009, purported to be executed between M/s. VNRIL and M/s. Siva Con-

structions, to the Scientific Expert for obtaining his opinion. PW-41/N. Ravi, Prin- cipal Scientific Officer, deposed that signatures appearing on photocopy of Sub- contract agreement, dt. 21-04-2009 are marked as Q6, Q15, Q16, Q17 and Q18. So far as signature appearing on photocopy of Sub-contract agreement, dt. 21-04-2009 marked as Q6 is concerned, PW-41 deposed that he expressed his opinion in Ex.

P199/Handwriting Examination Report, Dt. 23-05-2014 stating that Handwriting evidence points to the writer of the standard signatures marked as A2 to A24 (signa- tures appearing on Account opening Form submitted by Accused no.1 to HSBC) and S6 to S10(specimen signatures of Siva Rama Krishna) being the person respon- sible for writing the red encircled questioned xerox copied signatures marked as Q2 to Q6. It is further mentioned in Ex. P199/Handwriting Examination Report, Dt.

23-05-2014 that ‘It has not been possible to express opinion on the rest of the ques- tioned items on the basis of material at hand’. This shows that PW-41/N. Ravi,

Principal Scientific Officer, after examination of the documents forwarded to him

has not expressed any opinion regarding signatures appearing on photocopy of Sub-

Contract Agreement which are marked as Q15, Q16, Q17 and Q18.

108. As regards signatures appearing on photocopies of letters addressed by VNR

Infrastructure Ltd., marked as Q19, Q20, Q21 and Q22 are concerned, no opinion was expressed by PW-41/N. Ravi, Principal Scientific Officer, after examination of 66 CC.No. 05/2018 XXI ACJM Court, Hyderabad documents containing questioned signatures, specimen signatures/handwritings and

Admitted signatures forwarded to him during the course of investigation.

109. The learned counsel for accused argued that PW-06/Jayashree Bhatt is not the competent person to speak about the execution of work orders by M/s. Siva

Constructions as she is an Accountant. He also argued that the evidence of PW-4/

VVS Ravindra, Deputy General Manager, IDBI Bank, shows that they have en- quired the Managing Director of VNRIL and only on being satisfied with the cor- rectness of contents of Exs. P19 and P20, they proceeded to process the loan sanc- tion proposal. He further argued that the investigation officer did not visit Somasila

Dam at Nellore which is one of the work sites of M/s. Siva Constructions as per the contents of Ex. P206/Visit report and that he has not examined the employees of

M/s. VNR Infrastructure who supervise the sub-contract works and allotment, per- sons connected with operations and who are competent to say about the extent of the work done and passing of bills. He further argued that evidence of PW-06/

Jayashree Bhatt cannot be relied upon as her name was not referred to by PW-35/V.

Narayana Reddy, Managing Director of VNRIL, and further there is no authoriza- tion letter given to PW-06/Jayashree Bhatt to give statement or to depose evidence on behalf of M/s. VNRIL.

110. As seen from the evidence of PW-6/Jayashree Bhatt, Accountant at VNRIL, she has handed over to PW-45, investigation officer in this case vide Ex. P52/Re- ceipt Memo, Dt. 25-11-2013 certain documents which are Exs. P42 to P47 Work

Orders, Exs. P48 and P49/Ledger sheets for the period from 01-04-2008 to 31-03- 2009 and 01-04-2009 to 31-03-2010 respectively, and Exs. P50 and P51/ Form 16A 67 CC.No. 05/2018 XXI ACJM Court, Hyderabad

TDS Certificates issued to M/s. Siva constructions and Ex. P53/Blank letter head of

M/s. VNR Infrastructures Limited.

111. The evidence of PW-35/V. Narayana Reddy, Managing Director of VNRIL and the evidence of PW-6/ Jayashree Bhatt, Accountant at VNRIL show that M/s.

VNR Infrastructure Ltd., has given some sub-contract works to M/s. Siva Construc- tions till the year 2010. Though PW-6 stated that some of the sub-contract agree- ments shown in Ex. P19/List of Projects completed were not entrusted to M/s. Siva

Constructions and that Somashila Canal work entrusted to M/s. Siva Constructions shown in Ex. P20/Latest position of orders – commencement and completion date of Siva Constructions was not commenced, in view of her own admission in her cross-examination that there is a separate department in their company to supervise the sub contract works allotted and that the persons connected with operations are proper persons to say about the extent of work done by the sub contractors, her oral version on the aspect of non-entrustment of sub-contracts to M/s. Siva Construc- tions and non-execution of Sub-contract works by M/s. Siva Constructions cannot be given much credence.

112. Moreover, opinion of PW-41 in respect of signature marked as Q6 is based on examination of Photocopy of Sub-Contract Agreement, Dt. 21-04-2009 and no opinion was expressed regarding signatures appearing on photocopy of Sub-Con- tract Agreement, Dt. 21-04-2009 which are marked as Q15, Q16, Q17 and Q18 and signatures appearing on photocopies of letters addressed by VNR Infrastructure

Ltd., marked as Q19, Q20, Q21 and Q22.

68 CC.No. 05/2018 XXI ACJM Court, Hyderabad

113. PW.45/investigation officer in this case, deposed that he has not collected any document to show that sub-contract works are not entrusted to M/s. Siva Construc- tions by M/s. VNR Infrastructures Ltd., and that he has not obtained copies of com- plete work orders which were allotted to M/s. VNR Infrastructures Ltd. It is settled law that photocopies of documents are inadmissible in evidence. But, the prosecu- tion has relied on the photocopy of Sub-Contract Agreement, Dt. 21-04-2009 and photocopies of letters addressed by VNR Infrastructure Limited in order to show that Accused no.1 submitted fabricated Sub-Contract Agreement purported to be executed by Authorized signatory of VNR Infrastructure Limited and fabricated let- ters purported to be addressed by Authorized signatory of VNR Infrastructure Lim- ited. Though Ex.P53/Blank Letter Head of M/s. VNR Infrastructures Limited, was collected by the investigation officer from PW-6, Accountant at VNRIL, it is of no avail.

114. Furthermore, the evidence of PW-4/VVS Ravindra, DGM, IDBI Bank and

PW-28/Mallikarjun/Relationship Manager, IDBI Bank, is to the effect that it is only after enquiring with M/s. VNRIL about sanction of work orders to M/s. Siva Con- structions, they have proceeded to process the loan sanction procedure. Therefore, it cannot be said that Exs. P19 and P20 submitted by Accused no.1 along with Orig- inal Loan Application/Ex. P13 played a significant role in inducing the bank au- thorities while proceeding with processing of loan application submitted by Ac- cused no.1. Ex. P206/Visit Report, Dt. 21-09-2010 submitted by PW-4/VVS Ravin- dra shows that on 30-08-2010, he has visited one of the worksites of Siva Construc- tions located at Somasila Dam near Nellore relating to the work pertaining to con- struction/excavation of Somasila-Swarnamukhi Link Canal and said contract was awarded to M/s. VNR Infrastructure Ltd., by the Irrigation Department, Govern- 69 CC.No. 05/2018 XXI ACJM Court, Hyderabad ment of A.P., and part of said work was sub-contracted by VNRIL to Siva Con- structions. The contents of Ex.P206/Visit Report further reveal that due to heavy rains, the work was going at slow pace since July 2010.

115. Hence, on a careful consideration of entire evidence adduced by the prosecu- tion on the issue relating to submission of forged sub-contract agreement by M/s.

Siva Constructions and showing false project details while submitting Ex. P13/

Original Loan Application, this court holds that there is no clinching evidence ad- duced by the prosecution to prove that Accused no.1 furnished false details in Exs.

P19 and P20 relating to list of projects by falsely showing that work orders were entrusted to them by M/s. VNRIL and that thereby deceived the bank officials.

Therefore, this court holds that prosecution failed to prove that Accused no.1 fur- nished false details in Exs. P19 and P20 relating to list of projects and submitted forged Sub-Contract Agreement purported to be executed between M/s. VNR Infra- structure Ltd., and M/s. Siva Constructions. Accordingly, this point is answered against the prosecution.

116. Point no. (v): Whether Accused no.1 and Accused no.3, in pursuance of their conspiracy to cheat the bank, furnished false Net worth certificate to the bank offi- cials for the purpose of personal guarantee of Accused no.1 ?

It is further case of the prosecution that Accused no.1/Siva Rama Krishna submitted fabricated Net Worth Certificate by showing the total value of his assets as Rs.268.77 Lakhs and there by falsely showing his net worth. Initially, PW-33/

Naresh Kumar was arraigned as one of the accused in FIR and after completion of investigation, charge sheet is not filed against him and he is cited as one of wit- nesses for prosecution.

70 CC.No. 05/2018 XXI ACJM Court, Hyderabad

117. In this regard, the prosecution has relied on the evidence of PW-4, PW-13,

PW-23, PW-29, PW-33, PW-34 and PW-40. The evidence of PW-4/VVS Ravindra is to the effect that during processing of loan, PW-28/Mallikarjun, Relationship

Manager received net worth certificate of A1 and as per said certificate, the total net worth of A1 as on 14-05-2010 was Rs. 268.77 Lakhs.

118. PW-13/T. Rama Rao, Assistant General Manager, IDBI also deposed that af- ter noticing the fall in the value of property, a notice was sent to M. Naresh Kumar,

Chartered Accountant, who issued Net Worth Certificate regarding the net worth of

Accused no.1/Siva Rama Krishna as on 14-05-2010, asking him to provide support- ive documents basing on which Net Worth Certificate was issued. PW-13 further deposed that the notice was sent to M. Naresh Kumar, Chartered Accountant/PW- 33 through e-mail on 22-10-2011 and they received reply e-mail on 23-01-2012 stating that he never issued any Net Worth Certificate to Accused no.1/Siva Rama

Krishna to produce or use for any banking purpose. PW-13 further deposed that due to huge difference in valuation of the property, denying issuance of net worth cer- tificate by Chartered Accountant and also Market Value Assistance Card by S.R.O, they have entrusted the matter to CBI.

119. PW-23/G. Suneel Babu who worked as Deputy General Manager, IDBI

Bank, Chappel Road Branch, Hyderabad deposed that as M/s. Siva Constructions defaulted from September 2011, they have issued a notice to M/s Siva Construc- tions. He further deposed that they also tried to verify the veracity of the net worth statement given by Mr. Naresh Kumar, Chartered Accountant and Naresh Kumar/

PW-33 has confirmed that he has not issued said certificate. PW-23/G. Suneel

Babu further deposed that then they have identified that M/s. Siva Constructions 71 CC.No. 05/2018 XXI ACJM Court, Hyderabad had done fraud and they reported to RBI and lodged complaint. Ex P-163 letter ad- dressed by Naresh Kumar, Chartered Accountant is exhibited through him.

120. PW-33/Naresh Kumar who was said to have issued Net worth certificate to

Accused no.1/Siva Rama Krishna, deposed that in the year 2010, he underwent kid- ney operation at Guntur and he stayed at Vijayawada with his parents and during that time, Sailendra/PW-34 called him and asked him to sign on Net Worth Certifi- cate of Siva Rama Krishna/A1. He further deposed that he has enquired about the documents which are required to be produced before signing on Net Worth Certifi- cate and then Sailendra/PW-34 told him that he will give copies of documents once he returns to Hyderabad. He further deposed that Sailendra/PW-34 has sent Net

Worth Certificate through post to sign and after signing Net Worth Certificate, he has sent it through post to Sailendra/PW-34.

121. PW-33/Naresh Kumar further deposed that Rama Rao from IDBI Bank called him and enquired him about Net Worth Certificate signed by him. He further deposed that then he called Sailendra/PW-34 and enquired him whether he has given Net Worth Certificate signed by him to Siva Rama Krishna/A1 for which

Sailendra/PW-34 told him that he gave photocopy of Net Worth Certificate signed by him to Siva Rama Krishna/A1. He further deposed that then he also confirmed to Mr. Rama Rao from IDBI Bank that Sailendra/PW-34 gave photocopy of Net

Worth Certificate signed by him to Siva Rama Krishna/A1. During the course of trial, the prosecution intended to exhibit photocopy of Net Worth Certificate taken from the original said to be issued by PW-33, but said photocopy of Net Worth cer- tificate is not admitted in evidence on the ground of inadmissibility.

72 CC.No. 05/2018 XXI ACJM Court, Hyderabad

122. PW-34/Sailendra deposed that Mohan Reddy/A3 approached him for Net

Worth Certificate for the purpose of loan and asked him to prepare the draft of said certificate. He further deposed that when he has asked Mohan Reddy/A-3 to pro- duce original property documents along with the valuations, Mohan Reddy/A3 promised him that original property documents along with the valuations will be produced shortly. He further deposed that then he has sent the Net Worth Certificate to Naresh Kumar/PW-33 for his signature and Naresh Kumar/PW-33 has sent the certificate to him after putting his signature. He further deposed that when Mohan

Reddy/A3 approached him asking for a copy of Net Worth Certificate he has de- clined as original documents were not produced, but Mohan Reddy/A3 requested to give the photocopy of the certificate just to show the bank officials that this is in progress and then the photocopy of Net Worth Certificate was given to Mohan

Reddy/A3.

123. PW-40/Shashwata Das, one of the mediators to the search proceedings, de- posed that on 28-08-2013 he along with CBI team and one Ramakrishna went to the house of Mohan Reddy/A3 situated at Adarsh Nagar and there the CBI officials conducted search in his presence and they seized documents which are Statements i.e., IT returns, Balance Sheet, Sub-contract Letter. He further deposed that from there they proceeded to the house of T Sailendra/PW-34, situated at Kukatpally, who was said to have given Net Worth Certificate to Mohan Reddy/A3 and there the CBI officials conducted search in his presence and they seized documents which is copy of Net Worth Certificate and Bank Statement relating to account of one company. PW-39/Karthik Raj, one of mediators to Ex.P187/Search Proceed- ings, Dt. 28-08-2013 deposed that he accompanied CBI officials to the house of

Mohan Reddy’s friend situated at Kukatpally and Exs. P188 to P191 documents 73 CC.No. 05/2018 XXI ACJM Court, Hyderabad were seized by CBI officials under Ex. P186/Search List. PW-39/Karthik Raj did not depose anything about seizure of documents at the house of PW-34/T. Sailen- dra.

124.The learned counsel for accused argued that original Net Worth Certificate is not produced in this case and since photocopy is produced, it is not marked. He also argued that the features of Net Worth Certificate are not brought on record. He also argued that the prosecution failed to prove that Net Worth Certificate is an impor- tant document which is to be considered while sanctioning the loan. He further ar- gued that PW-4 deposed in his evidence that PW-28/Relationship Manager received

Net Worth Certificate of A1 on 14-05-2010 where as no where in his evidence PW- 28 corroborated the evidence of PW-4 in respect of submission of Net Worth Cer- tificate of A1 and therefore self serving statement of PW-4 cannot be taken as con- clusive proof. He further argued that there is no clarity as to when Net Worth Cer- tificate was received ie., if PW-28 received Net Worth Certificate then it must be

before sanction of loan and if it is after sanction of loan then it is PW-23/Deputy

General Manager who received Net Worth Certificate. He further argued that the contents of Ex-P163/Letter addressed by PW-23 to PW-33/Naresh Kumar show that

Naresh Kumar has not issued Net Worth Certificate where as in his evidence PW- 33/Naresh Kumar said that he issued the Net Worth Certificate and the self contra- dictory statements of PW-33 dilutes other statements.

125. Though PW-29/E. Srinivasa Rao, Deputy General Manager, who conducted internal investigation in the bank and submitted his report deposed that he also found that MVAC and audited net worth statement are not genuine, his findings in 74 CC.No. 05/2018 XXI ACJM Court, Hyderabad

Ex. P167 Internal investigation report cannot be considered as such finding is based on photocopy of net worth certificate.

126. In order to prove that Accused no.3 approached PW-34/T. Sailendra for ob- taining Net Worth Certificate in the name of Accused no.1 for the purpose of fur- nishing personal guarantee to the bank and that PW-34/T. Sailendra obtained Net

Worth Certificate from PW-33/Naresh Kumar and that said Net Worth Certificate with false details was furnished to the bank, the prosecution did not lead any cogent evidence. The prosecution has not brought on to record the original Net Worth Cer- tificate said to be issued by PW-33/Naresh Kumar in the name of Accused no.1.

Therefore, on a careful consideration of evidence adduced by prosecution, this court holds that the prosecution failed to establish that Accused no.1 and Accused no.3 in furtherance of their conspiracy to deceive bank officials fabricated Net

Worth Certificate with false contents by showing the net worth of assets of Accused no.1 as on dt. 14-05-2010 is Rs. 268.77crores. Accordingly, this point is answered against the prosecution.

127. Point no. (vi): Whether Accused no.1 and Accused no.3, in pursuance of their conspiracy to cheat the bank, furnished fake/fabricated financial statements of M/s. Siva Constructions to the IDBI bank which are alleged to have been forged by ac- cused no.3 ?

Forged Financial Statements:

It is the case of the prosecution that Accused no.1 and Accused no.3 fabri- cated financial statement and submitted said document to the bank along with the loan application/Ex. P13. In order to prove said accusation, the prosecution has re- lied on the evidence of PW-24 and PW-41.

75 CC.No. 05/2018 XXI ACJM Court, Hyderabad

128. The evidence of PW-24/S. Suresh, Chartered Accountant, is to the effect that he has been practicing as Chartered Accountant in the name as ‘Suresh Babu and

Co’ from 2010. His evidence is further to the effect that he got acquaintance with

Sivarama Krishna through his client V.N.R Infrastructures Ltd., and that he has done tax audit for Sivarama Krishna/Accused no.1 for two years which are 2008-09 and 2007-08. His evidence further shows that he has handed over self attested copies of profit and loss account for the year ended on 31-03-2008 and 31-03-2009, balance sheets as on 31-03-2008 and 31-03-2009 to CBI vide Ex P-164 is Receipt

Memo dt. 05-03-2014. Ex P-165/System printout of Profit and loss account for the year ended 31-03-2008 is marked through him.

129. When photocopy of Profit and Loss Account for the period ended 31/03/2008 and photocopy of Profit and Loss Account for the period ended 31/03/2008 were shown to him, PW-24/S. Suresh stated that signatures appearing on said documents are not his signatures.

130. It is the case of the prosecution that during the course of investigation, PW- 44/B. Rajyalakshmi and PW-45/K. Saravanan, investigation officers in this case conducted search at the house of Accused no.1/Siva Rama Krishna on 28-08-2013 in the presence of mediators and seized certain documents. In order to prove seizure of documents from the house of Accused no.1 during search proceedings, the prose- cution has examined PW-37/D Ramakrishna, PW-39/Karthik Raj, PW-44/B. Ra- jyalakshmi and PW-45/K. Saravanan, investigation officers in this case.

131. The evidence of PW-44/B. Rajyalakshmi is to the effect that on 28-08-2013, search was conducted at the residential premises of Accused no.1 in the presence of 76 CC.No. 05/2018 XXI ACJM Court, Hyderabad

PW-37/D. Ramakrishna and PW-39/Karthik Raj and that PW-45/Saravanan was the

Head of said team. She deposed that during search proceedings/Ex. P179, 12 docu- ments were seized viz. Original Renewal of Certificate of Registration(Ex. P182),

Income Tax Returns for the Assessment Years 2007-2008 to 2010-2011 (Ex. P183) and Blank letterhead of M/s. VNR Infrastructures Limited (Ex.P53) and handed over a copy of said search list to Siva Ramakrishna (A1) under his acknowledg- ment and Search List/Ex. P178 was drafted by her.

132. The evidence of PW-45, investigation officer is also in similar lines of evi- dence of PW-44. The evidence of PW-37/D Ramakrishna, one of mediators to the search proceedings/Ex. P179 is to the effect that on 28-08-2013, he accompanied

CBI officials to the house of Siva Rama Krishna/A1 situated at Anand Nagar and there CBI officials conducted search and seized some documents and after comple- tion of entire search proceeding, his signature was obtained on documents. The evi- dence of PW-39/Karthik Raj, another mediator to search proceedings/Ex. P179, is in similar lines of evidence of PW-37.

133. The learned counsel for accused argued that Ex. P179/Search Proceedings cannot be taken into consideration as it contains the statement said to be made by

Accused no.1 by admitting the commission of offence. Admittedly, Ex. P179/

Search Proceedings contains the statement said to be made by Accused no.1 by ad- mitting the commission of offence and therefore said portion of Ex. P179/Search

Proceedings, is excluded from consideration.

134. The oral evidence of PW-37, PW-39, PW-44 and PW-45 coupled with Ex.

P178/Search List would reveal that during the course of search conducted at the 77 CC.No. 05/2018 XXI ACJM Court, Hyderabad residence of Accused no.1, the investigation officer has seized documents and ob- tained acknowledgment from Accused no.1. Though formal suggestions were put to mediators that the CBI officials did not summon any individual from the locality where search was conducted, it cannot take away the credibility of evidence of

PW-37 and PW-39.

135. The evidence on record further discloses that during the course of investiga- tion, investigation officer conducted search at the premises of Mohan Reddy/Ac- cused no.3, PW-34/T. Sailendra and seized documents in the presence of mediators under Search Lists. The evidence of PW-37/D Ramakrishna, one of mediators to the search conducted at the house of Mohan Reddy/Accused no.3 is to the effect that on 28-08-2013 after completion of search at the house of Accused no.1, the

CBI officials had taken him and others to Adarsh Nagar, residence of Mohan

Reddy/Accused no.3 and there the CBI officials conducted search in their presence and seized documents and drafted Ex. P180/Search List, Dt. 28-08-2013 and Ex.

P181/Search Proceedings and the documents seized were Ex. P182/Original Re- newal of Certificate of Registration, Ex. P183/Income Tax Returns for the Assess- ment Years 2007-2008 to 2010-2011.

136. The evidence of PW-40/Shaswata Das, another mediator to the search con- ducted at the house of Mohan Reddy/Accused no.3 is to the effect that on 28-08- 2013 he along with CBI team and one Ramakrishna went to the house of Mohan

Reddy/A3 situated at Adarsh Nagar and there the CBI officials conducted search in his presence and seized documents which are Statements i.e., IT returns , Balance

Sheet, Sub contract Letter. He further deposed that from there they proceeded to the house of T Sailendra/PW-34 who was said to have given Net Worth Certificate to 78 CC.No. 05/2018 XXI ACJM Court, Hyderabad

Mohan Reddy/A3 and search was conducted and CBI officials seized documents which is copy of Net Worth Certificate and Bank Statement relating to account of one company. He further deposed that his signatures were obtained on the proceed- ings, seized documents. Search list/Ex. P186, Proceedings/Ex. P187, Balance

Sheet/Ex. P188, Profit and Loss Account/Ex. P189, Statement of Account/Ex.

P190, Customer Account Ledger Print/Ex. P191.

137. Though, the documents relating to M/s. Siva constructions were seized dur- ing the course of search proceedings and the original Profit and Loss Account state- ments were available in the record, the investigation officer has forwarded photo- copy of Profit and Loss Account for the period ended 31st March, 2008, (the signa- tures appearing on which were marked as Q2 and Q7), photocopy of Balance Sheet as on 31st March, 2008 (the signatures appearing on which were marked as Q3 and

Q8), photocopy of Form No. 3CB (the signature appearing on which was marked as

Q9, photocopy of Form No. 3CD (signature appearing on which was marked as

Q10), photocopy of Profit and Loss Account for the period ended31st March, 2009 (signatures appearing on which were marked as Q4 and Q11), photocopy of Bal- ance Sheet as on 31st March, 2009 (signatures appearing on which were marked as

Q5 and Q12), photocopy of Form No. 3CB, dt. 14-09-2009 (signature appearing on which was marked as Q13), photocopy of Form No. 3CD, dt. 14-09-2009 (sig- nature appearing on which was marked as Q14).

138. The opinion of PW-41/N Ravi, Principal Scientific officer in respect of sig- natures marked as Q2 and Q7, Q3 and Q8, Q9, Q10, Q4 and Q11, Q5 and Q12,

Q13, Q14 is based on examination of photocopies of documents which is inadmis- sible in evidence. Even though PW-29/Srinivas Rao who conducted internal inves- 79 CC.No. 05/2018 XXI ACJM Court, Hyderabad tigation and submitted Ex. P167/Internal Investigation Report stating that the ac- cused submitted forged financial statement, his evidence cannot be taken in to con- sideration in the absence of any cogent evidence lead by prosecution.

139. Therefore, on a careful consideration of evidence adduced by prosecution, this court holds that the prosecution failed to establish that Accused no.1 and Ac- cused no.3, in pursuance of their conspiracy to cheat the bank, furnished fake/fabri- cated financial statements of M/s. Siva Constructions to the IDBI bank which are alleged to have been forged by accused no.3. Accordingly, this point is answered against prosecution.

140. Point no.(vii) : Whether the Accused no.1, in pursuance of conspiracy entered into with accused no.3 to cheat the bank, diverted the loan facility sanctioned to M/s. Siva Constructions by the bank to M/s. Universal Engineering Services, M/s. Universal Cable Services and M/s. Srikara Ganesh Infrastructure, and that thereby they caused wrongful loss to IDBI bank and consequent wrongful gain to them- selves ?

It is further case of the prosecution that Siva Rama Krishna/Accused no. 1 had dishonestly and fraudulently submitted a false stock statement to the bank and on getting of release the credit facility, he misappropriated the funds of the bank in active connivance with Mohan Reddy/Accused no. 3 by transfer of funds to M/s.

PMR Constructions, M/s. NMR Constructions, which are fictitious companies in the name of N. Mohan Reddy/Accused no. 3, M/s. Srikara Ganesh Infrastructure

Ltd., to the Savings Account of one Prashanth Potluri and also to the account of

M/s. Universal Engineering through RTGS cheques, etc. It is further alleged that

Siva Rama Krishna/Accused no. 1 had misappropriated the entire sanctioned limit of Rs. 10 crores within a span of six months and utilized the funds for his personal obligations and not for the purpose for which it was sanctioned. It is further alleged 80 CC.No. 05/2018 XXI ACJM Court, Hyderabad that out of Cash Credit limit of Rs.10 crores, Rs. 6.5 crores was transferred to the

Savings Bank Account of Prasanth Potluri maintained at Barclays Bank, Banjara

Hills, Hyderabad from the account of Srikara Ganesh Infrastructure India Pvt Ltd., owned by N. Mohan Reddy/Accused no. 3 and maintained at Bank of Baroda,

Adarsh Nagar Branch, Hyderabad without any genuine business. It is further al- leged that the entire amount of credit facility was misutilized by Siva Rama

Krishna/Accused no. 1 and Mohan Reddy/Accused no. 3 without doing any gen- uine business and by way of submitting forged and fabricated documents, they caused wrongful loss to IDBI Bank, Chapel Road Branch to the tune of Rs.

10,19,69,623/- as on NPA dt. 30-09-2011 and corresponding gain to themselves.

141. In order to prove the allegation that Accused no.1 submitted false stock state- ment to the bank for getting released the credit facility, the prosecution has relied on the evidence of PW-19/Jayashree M Limaye. PW-19 deposed that Accused no.1/Siva Ramakrishna submitted Stock statements under Exs. P145, P147, P149,

P151, P153 and P155 and that soon after receiving the stock statements she has pre- pared the notes and placed the same before DGM for approval viz., Exs. P146, Ex

P148, Ex P150, Ex P152, Ex P154, Ex P156/Notes for approval of Drawing Power.

142. In her cross-examination, she denied the suggestion that she has stated before

CBI officials in her statement under Section 161 CrPC that“as per guidelines in force, stocks have to be verified periodically by visiting sites and physical verifica- tion of the stock is necessary to safeguard the advance. However I admit that I have neither verified the stocks physically nor I have checked up with any one for confirmation of having verified the stocks before approving the drawing power. I have blindly believed the borrowers statement of stocks. The receivables were reck- 81 CC.No. 05/2018 XXI ACJM Court, Hyderabad oned on the face value of the statement that has been received. Even though the receivables were of high value, I have not verified the same I the books of M/s Siva

Constructions during my period. I have also not verified the genuineness of the same by writing it to Principle who have awarded contracts to M/s Siva Construc- tions. Without verifying the stocks and receivables I have allowed drawings in the account”. But, PW-45, investigation officer deposed that PW-19 deposed as in her statement under Ex. D4. The relevant portion of statement of PW-19 given to inves- tigation officer under Ex. D4 would suggest that she has not verified the stocks and proceeded to put up notes for approval basing on the stock statement furnished by

Accused no.1.

143. PW-22/Srilatha, Credmin Officer, IDBI, Chappel Road Branch,admitted that she stated before the CBI that she did not verify the correctness of statement by verifying the physically stocks/receivables during my tenure in the Credmin De- partment. The evidence of PW-23 is to the effect that stock verification of borrower and valuation of securities were verified before the sanction of the loan.

144. The above adduced by the prosecution reveals that the bank officials have proceeded to release the credit limits without proper verification of stock state- ments submitted by Accused no.1 to the bank.

145. Misappropriation of loan facility by diversion of funds to various accounts:

As seen from Ex. P126/Operationalization Note, dt. 24-07-2010, it is evident that PW-13/T. Rama Rao, Assistant General Manager, IDBI Bank, ICG-Hyderabad has submitted the note to the Deputy General Manager for approval of operational- 82 CC.No. 05/2018 XXI ACJM Court, Hyderabad ization of CC Limit of Rs. 10 Crores with DP of Rs. 6 Crores for Siva Construc- tions and the Deputy General Manager has approved said note.

146. It is the case of the prosecution that Accused no.1 and Accused no.3, in pur- suance of their conspiracy to cheat the bank, diverted the funds from the Cash

Credit Account of M/.s Siva Constructions to the Account of Srikara Ganesh Infra- structure belonging to Accused no.3 and from said account funds were transferred to the account of Universal Engineering Services and account of Universal Cable services belonging to Accused no.1 and from said accounts funds were routed to

Current Account of M/s. Siva Constructions maintained at HSBC, Somajiguda branch. It is further case of the prosecution that the amount was again transferred to the account of M/s. Siva Construction maintained at IDBI Bank and all the above transactions were done without there being genuine business.

147. Transfer of amounts to the account of Srikara Ganesh Infrastructure :

In order to prove diversion of funds to the account of M/s. Srikara Ganesh In- frastructure and from said account amounts were transferred to the account of Uni- versal Cable Services and Universal Engineering Services, the prosecution has re- lied on the evidence of PW-11 and documentary evidence under Exs. P103 to P115.

148. A careful scrutiny of contents of Ex.P130/Certified copy of statement of

Cash Credit Account of A/C No. 133622100001489 of M/s. Siva Constructions maintained at IDBI Bank Ltd., Specialized Corporate Branch, Chappel Road for the period from 01/07/2010 to 31/08/2013 coupled with Ex P-131/copy of e-mail dt.

09/09/2010 sent by Siva Rama Krishna, proprietor of M/s Siva Constructions in- structing IDBI Bank, Chappel Road Branch and Ex P-132/Letter dt. 20/12/2010 of

M/s Siva Constructions addressed to Manager, IDBI Bank, Chappel Road Branch 83 CC.No. 05/2018 XXI ACJM Court, Hyderabad would reveal that soon after approval of Operationalization Note, Dt. 24-07-2010 under Ex. P126 by the Deputy General Manager, on Dt. 24-07-2010 an amount of

Rs. 4 Crores was transferred to the Account of PMR Constructions, Rs. 1 Crore was transferred to the account of Universal Engineering Services and Rs. 1 Crore was transferred to the account of NMR Constructions.

149. For the sake of convenience, the transfer of amounts from the Cash Credit

Account of M/s. Siva Constructions to the account of M/s. Srikara Ganesh Infra- structure Ltd., are shown in the following tabular form :

DateAmount 09-09-2010Rs. 2 Crores 13-09-2010Rs. 2.05 Crores 14-09-2010Rs. 1.25 Crores 20-10-2010Rs. 30 lakhs 18-11-2010Rs 70 lakhs 22-12-2010Rs. 4 Crores

150. The evidence of PW-09/ P. Balaji, who worked as Sr. Branch Manager, Bank of Baroda, Chikkadapally / Adarsh Nagar branch. The evidence of PW-09 is to the effect that hereceived a letter from CBI to furnish documents relating to account of

PMR Constructions and M/s. Srikara Ganesh Infrastructure Limited and accord- ingly he has furnished the documents relating to said accounts to CBI. Ex.P64/

Original Current Account opening form in the name of M/s. Srikara Ganesh Infra- structure Limited for account bearing No. 25680200002744 shows that Mohan

Reddy/Accused no.3 submitted said application to the bank requesting to open an account in the name of M/s. Srikara Ganesh Infrastructure Limited and that he is the Authorized signatory of said firm. A careful scrutiny of Ex.P65/Certified copy 84 CC.No. 05/2018 XXI ACJM Court, Hyderabad of Statement of account of M/s. Srikara Ganesh Infrastructure Limited for account bearing No. 25680200002744 for the period from 12/08/2010 to 17/12/2011 along with Certificate under section 2(a) of Bankers Book of Evidence Act along with

Exs. P68 to P86 Cheques clearly establish transfer of amounts from the account of

M/s. Srikara Ganesh Infrastructure to the accounts of Siva Constructions, Universal

Engineering services and Universal Cable Services relating to Accused no.1 and also to the account of Prashanth Potluri/PW-7.

151. A careful scrutiny of Ex. P68/Certified copy of Statement of Account of M/s.

Srikara Ganesh Infrastructure Ltd., also clearly establishes that the above amounts were transferred from the account of M/s. Siva Constructions and deposited to the account of M/s. Srikara Ganesh Infrastructure Ltd., Though Ex. P18/Sub-Contract

Agreement, dt. 21-04-2009 executed between M/s. Siva Constructions and M/s.

Srikara Ganesh Infrastructure Ltd., showing that sub-contract was given to M/s.

Srikara Ganesh Infrastructure Ltd., there is no document filed by the accused in or- der to show that the said contract was executed by M/s. Srikara Ganesh Infrastruc- ture Ltd., and it is in the course of execution of said sub-contract amounts were transferred to the account of M/s. Siva Constructions.

152. Transfer of funds from Srikara Ganesh Infrastructure to M/s. Universal Engi - neering Services and M/s. Universal Cable Services :

In order to prove diversion of funds to the account of Universal Engineering Ser- vices, the prosecution has relied on the evidence of PW-11/P. Ramana and exhibited Ex.

P103/Original Current Account Opening Form of M/s. Universal Engineering Services,

Ex. P104/Letter dt. 27-11-2013 addressed by SBI, Khairatabad branch and Exs. P105 to

P115 which are SBI Cheques issued by Siva Rama Krishna/Accused no.1. He also de- posed that as per Ex.P115 on 27/07/2010 an amount of Rs. 50 Lakhs credited to the ac- 85 CC.No. 05/2018 XXI ACJM Court, Hyderabad count of Smt. K. Praveena from the account of M/s. Siva Constructions by way of RTGS but no separate voucher was prepared at the branch.

153. As seen from Ex. P115/Statement of Account of Universal Engineering Ser- vices, it is evident that an amount of Rs. 1 Crore was transferred from the Cash

Credit Account of M/s. Siva Constructions to the Account of Universal Engineering

Services. Furthermore, Ex. P65/Statement of Account of M/s.Srikara Ganesh Infra- structure Ltd., would reveal that on 04-09-2010, there was Rs. 50 Lakhs to the ac- count of M/s. Universal Engineering Services and transfer of Rs. 50 Lakhs to the account of M/s. Universal Cable Services from the account of M/s. Srikara Ganesh

Infrastructure Ltd. Ex.P65/Statement of Account pertaining to the account of M/s.

Srikara Ganesh Infrastructure Ltd further reveals that on on Dt. 06-09-2010, an amount of Rs. 50 Lakhs each was transferred from said account to the accounts of

Universal Engineering Services and Universal Cable Services respectively.

154. Ex. P65/Statement of Account of M/s.Srikara Ganesh Infrastructure Ltd., fur- ther reveals that on Dt. 13-09-2010, Rs. 96 lakhs, Rs. 95 lakhs and on Dt.15-09- 2010, Rs. 19 lakhs were transferred to the account of Universal Engineering Ser- vices belonging to Accused no.1.

155. The evidence of PW-8/Md. Burhanuddin, Sr. Manager, Axis Bank, Begumpet is to the effect that during the period he worked at Axis Bank, Begumpet Branch,

CBI officials showed him the documents relating to the account of M/s. Universal

Cable Services maintained at Axis Bank, Begumpet Branch. He also deposed that at the request of CBI police he has handed over cheques relating to M/s. Universal

Cable Services to CBI through a covering letter dated 14/12/2013.Exs. P58 to P61 are marked through him.Ex. P58 Account Opening Form of M/s. Universal Cable 86 CC.No. 05/2018 XXI ACJM Court, Hyderabad

Services along with Credit Card Statement of K. Siva Rama Krishna, would reveal that Accused no.1/Siva Rama Krishna submitted said Account Opening Form to the bank requesting to open an account in the name of M/s. Universal Cable Services.

Ex. P65/Statement of Account of M/s.Srikara Ganesh Infrastructure Ltd., further re- veals that on Dt. 07-09-2010, Rs. 50 lakhs, on Dt. 13-09-2010 an amount of Rs.

97.50 lakhs, Rs. 97.50 lakhs and on Dt.15-09-2010, Rs. 95 lakhs were transferred to the account of Universal Cable Services belonging to Accused no.1.(para 152 to be added here)

156. After transfer of above amounts from the account of M/s. Srikara Ganesh In- frastructure Ltd., to the accounts of Universal Engineering Services and Universal

Cable Services, the amounts were transferred to the account of M/s. Siva Construc- tions maintained at HSBC, Somajiguda.

157. The evidence of PW-30/Dilip Gopinath, Vice President and Cluster Manager,

HSBC coupled with Ex.P171/Statement of Account of M/s. Siva Constructions and

Ex.P115/Statement of Account of Universal Engineering Services clearly estab- lishes that after transfer of amounts from the account of M/s. Srikara Ganesh Infra- structure Ltd., to the Account of Universal Engineering Services, Accused no.1 has transferred Rs. 96 lakhs, Rs. 95 lakhs and Rs. 19 lakhs from the account of Univer- sal Engineering Services to the account of M/s. Siva Constructions maintained at

HSBC, Somajiguda.

158. So also, Ex.P171/ Statement of Account of M/s. Siva Constructions at

HSBC, Somajiguda branch and Ex. P59/Statement of Account of Universal Cable

Services clearly establishes that after transfer of amounts from the account of M/s.

Srikara Ganesh Infrastructure Ltd., to the Account of Universal Cable Services, Ac- 87 CC.No. 05/2018 XXI ACJM Court, Hyderabad cused no.1 has transferred Rs. 97.50 lakhs, Rs. 97.50 lakhs and Rs. 95 lakhs from the account of Universal Cable Services to the account of M/s. Siva Constructions maintained at HSBC, Somajiguda.

159. The evidence of PW-30/Dilip Gopinath, Vice President and Cluster Manager,

HSBC shows that total amount that was credited to the account of M/s. Siva Con- structions at HSBC, Somajiguda within a period of two days I.e, 14-09-2010 and 15-09-2010 was Rs. 5 Crores and all said transactions were through RTGS. His evi- dence also shows that on 18-10-2010, said amounts were withdrawn over three transactions vide Demand Draft for Rs. 1,50,00,000/-, Rs. 1,60,00,000/- and Rs. 1, 90,00,000/- in favour of M/s. Siva Constructions.

160. Ex.P171/Statement of Account of M/s. Siva Constructions maintained at

HSBC, Somajiguda Branch and Ex.P130/Statement of Account of CC Account of

M/s. Siva Constructions maintained at IDBI Bank clearly prove the above transac- tions I.e, transfer of funds from the accounts of Universal Engineering Services and

Universal Cable Services to the Account of M/s. Siva Constructions maintained at

HSBC, Somajiguda and again transfer of amount of Rs. 5 Crores from said account to the Cash Credit account of M/s. Siva Constructions maintained at IDBI Bank.

161. Transfer of funds to the account of Prashanth Potluri :

It is the case of the prosecution that after the above transactions, there was transfer of amount from the account of M/s. Siva Constructions maintained at IDBI

Bank to the account of M/s. Srikara Ganesh Infrastructure Ltd., and from said ac- count to the account of Prashanth Potluri maintained at Barclays Bank. It is also the 88 CC.No. 05/2018 XXI ACJM Court, Hyderabad case of the prosecution that there was also transfer of amount of Rs. 2 Crores from the account of M/s. Siva Constructions to the account of Prashanth Potluri/PW-7.

162. In order to prove the Siva Rama Krishna/Accused no.1 in conspiracy with

Accused no.3, has misappropriated the funds by giving amount to Prashanth

Potluri, the prosecution has relied on the evidence of PW-7/Prashanth Potluri, PW- 5/Paresh, Vice President of Barclays Bank, Mumbai and PW-42/ P. Vishnuvardhan

Rao.

163. The evidence of PW-7/Prashanth Potluri is to the effect that in the year 2010 they wanted to start a Residential Project at Banjarahills, Hyderabad for which they acquired land and that due to pendency of bills of their Civil contract works and in the process of acquiring land they got acquaintance with Siva Rama Krishna/A1 and Mohan Reddy/A3. He also deposed that in the process of purchasing land, due to deficit of funds they borrowed Rs. 6.5 Crores from from company of Mohan

Reddy and also company of Siva Rama Krishna promising to pay such amount with interest in total Rs. 8.00 Crores within 6 months. He also deposed that on 31/12/2010 the land was registered in the name of their company and that due to scarcity of funds and due date for repayment instead of going to Residential project, they decided to sell the land but they could not do so. He also deposed that since they have not repaid the amount to Siva Rama Krishna/Accused no.1 and Mohan

Reddy/Accused no.3, they have handed over the Sale deeds of the above land to them and that subsequently they have paid amount to an extent of Rs. 1.2 Cores to- wards interest by procuring from various sources. He also deposed that later they came to know that CBI registered a case against Siva Rama Krishna/Accused no.1 and Mohan Reddy/Accused no.3 and seized their Sale Deeds from custody.

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164. His evidence further reveals that on 26/11/2012, he has attended meeting conducted by IDBI bank and informed that their property is for sale and that he has handed over the sale deed to Accused no.1 and Accused no.3 and will clear the amount after sale of land. He also deposed that he attended the meeting conducted by bank for 3 to 4 times and that during said meetings, bank officials obtained his signatures on minutes of meeting. Ex.P54/Minutes of IDBI bank meeting dated 14/09/2011, Ex.P55/Minutes of IDBI bank meeting dated 11/11/2011, Ex.P56/Min- utes of IDBI bank meeting dated 04/05/2012, Ex.P57/Minutes of IDBI bank meet- ing dated 26/11/2012 are exhibited through him.

165. The evidence of PW-42/ P. Vishnuvardhan Rao, father of Prashanth Potluri/

PW-7 is in similar lines of evidence of PW-7. He deposed that on 30-12-2010, his son Prashanth/PW-07 purchased property situated at Road no. 3, besides the house of Venkatarami Reddy of Deccan Chronicle for Rs. 13.52 Crores and the sale deed/Ex. P201 was registered in the name of Srinivasa Engineering Construction

Company. He also deposed that at the time of registration of the above sale deed (Ex. P201), his son Prashanth/PW-07 and his friends took Rs. 6.50 Crores from

Siva Ramakrishna and Mohan Reddy and that they returned Rs. 1.5 Crores to them within one month of registration of the sale deed. His evidence further shows that

Accused no.1 and Accused no.3 forced them to hand over the sale deed and there- fore they have handed over the sale deed to Accused no.1 and Accused no.3. His evidence is further to the effect that Accused no.1 and Accused no.3 assured that they will sell said property and give them amount.

166. In order to prove transfer of amount to the account of PW-7/Prashanth Potluri from the account of M/s. Srikara Ganesh Infrastructure and from the account of 90 CC.No. 05/2018 XXI ACJM Court, Hyderabad

Siva Rama Krishna, the prosecution has examined PW-5/Paresh Tamhankar, Vice

President of Barclays Bank, Mumbai. The evidence of PW-5 reveals that at the re- quest of CBI officials under Ex. P31/Letter, dt. 12-09-2013, he has furnished Ex.

P28/Account Opening Form in the name of Prashanth Potluri, Ex. P29/Acknowl- edgment letter, Ex. P30/statement of Account of Prashanth Potluri for the period from 25-10-2010 to 15-11-2012 and Exs. P33 to P41 documents vide Ex. P32/Let- ter, Dt. 07-10-2013.

167. On a careful scrutiny of oral evidence of PW-7, PW-42 coupled with the doc- umentary evidence under Ex.P30/statement of Account of Prashanth Potluri for the period from 25-10-2010 to 15-11-2012 and Exs. P83 to P85 Cheques issued by M/ s. Srikara Ganesh Infrastructure Ltd., along with RTGS Application form clearly es- tablish that amount of Rs. 50,00,000/-, Rs. 2,00,00,000/- and Rs. 2,00,00,000/- I.e, total amount of Rs. 4.5 Crores was transferred to the account of Prashanth Potluri/

PW-7 through RTGS. It is also evident from the statement of Account under Ex.P30 that an amount of Rs. 2 Crores was transferred from the account of Siva Construc- tions on 30-12-2010 to the account of Prashanth Potluri/PW-7 through RTGS. Fur- ther Exs. P83 to P85 Cheques along with RTGS Application form clearly establish that amount of Rs. 50,00,000/-, Rs. 2,00,00,000/- and Rs. 2,00,00,000/- were trans- ferred to the account of Prashanth Potluri/PW-7.

168. A careful perusal of scrutiny of Ex.P130/Certified copy of Statement of Ac- count of Cash Credit Account of M/s. Siva Constructions would reveal that on 31- 12-2010 Accused no.1 had transferred an amount of Prashanth Potluri/PW-7. On

Dt. 18-11-2010, after transfer of amount of Rs. 70 Lakhs from the Cash Credit ac-

count of M/s. Siva Constructions to the account of M/s. Srikara Ganesh Infrastruc- 91 CC.No. 05/2018 XXI ACJM Court, Hyderabad ture Ltd., Accused no.3 has transferred an amount of Rs . 50 lakhs to the account of

Prashanth Potluri/PW-07.

169. After transfer of amount of Rs. 4 Crores to the account of M/s. Srikara

Ganesh Infrastructure Ltd., on Dt. 22-12-2010, Accused no.3 has transferred an amount of Rs. 2 crores and Rs. 2 Crores respectively by way of transfer through

RTGS under Exs. P84 and P85 cheques. So also Ex. P30/Statement of Account of

Prashanth Potluri(PW-7) clearly shows transfer of amount from the account of M/s.

Srikara Ganesh Infrastructure Ltd., to the Account of Prashanth Potluri maintained at Barclays Bank.

170. The above evidence adduced by the prosecution clearly establishes that Ac- cused no.1 has transferred the amounts from the Cash Credit account of M/s. Siva

Constructions to the account of M/s. Srikara Ganesh Infrastructure Limited and fur- ther there was transfer of amount from said account to the accounts of Universal

Engineering Services and Universal Cable Services belonging to Accused no.1. It is also established that there was transfer of amount from the accounts of Universal

Engineering Services and Universal Cable Services, belonging to Accused no.1, to the account of M/s. Siva Constructions maintained at HSBC, Somajiguda and from said account an amount of Rs. 5 Crores was transferred to the Cash Credit account of M/s. Siva Constructions maintained at IDBI bank on Dt. 18-10-2010. This shows though Ex. P18/Sub-Contract Agreement, dt. 21-04-2009 was furnished to the bank by Accused no.1 stating that there was sub-contract agreement between M/s. Siva

Constructions and M/s. Srikara Ganesh Infrastructure Limited, the above transac- tions involving transfer of funds in said manner clearly establishes that said

Ex .P18/Sub-Contract Agreement is a false agreement.

92 CC.No. 05/2018 XXI ACJM Court, Hyderabad

171.Though the prosecution has examined PW-20/ N. Padma Reddy, wife of Mo- han Reddy/Accused no.3, in order to prove the transactions relating to the account of M/s. Srikara Ganesh Infrastructure, she turned hostile and did not support the case of the prosecution in material particulars. Nothing significant could be elicited by the prosecution, except marking Ex.P157 which is her statement under Section 161 CrPC.

172. The above evidence adduced by the prosecution clearly establishes that Ac- cused no.1 has transferred the amounts from the Cash Credit account of M/s. Siva

Constructions to the account of M/s. Srikara Ganesh Infrastructure Limited and fur- ther there was transfer of amount from said account to the accounts of Universal

Engineering Services and Universal Cable Services belonging to Accused no.1. It is also established that there was transfer of amount from the accounts of Universal

Engineering Services and Universal Cable Services, belonging to Accused no.1, to the account of M/s. Siva Constructions maintained at HSBC, Somajiguda and from said account an amount of Rs. 5 Crores was transferred to the Cash Credit account of M/s. Siva Constructions maintained at IDBI bank on Dt. 18-10-2010. This shows though Ex. P18/Sub-Contract Agreement, dt. 21-04-2009 was furnished to the bank by Accused no.1 stating that there was sub-contract agreement between M/s. Siva

Constructions and M/s. Srikara Ganesh Infrastructure Limited, the above transac- tions involving transfer of funds in said manner clearly establishes that said

Ex .P18/Sub-Contract Agreement is a false agreement.

173. Transfer of amounts to the accounts of PMR and NMR:

In order to prove transfer of amount to the account of PMR Constructions, belonging to Accused no.3, the prosecution has examined PW-09/ P. Balaji, who 93 CC.No. 05/2018 XXI ACJM Court, Hyderabad worked as Sr. Branch Manager, Bank of Baroda, Chikkadapally / Adarsh Nagar branch. The evidence of PW-09 is to the effect that he received a letter from CBI to furnish documents relating to account of PMR Constructions and M/s. Srikara

Ganesh Infrastructure Limited and accordingly he has furnished the documents re- lating to said accounts to CBI. Ex. P62/Original Account opening Form in the name of PMR Constructions and Ex. P63/Statement of Account of PMR constructions for the period from 24-07-2010 to 23-03-2011 would reveal that an amount of Rs. 4.00

Crores was deposited in the account of PMR Constructions.

174. In order to prove transfer of amount to the account of NMR Constructions, belonging to Accused no.3, from the account of M/s. Siva Constructions, the prose- cution has examined PW-10/ R. Radhakrishnan, Manager (Accounts), SBI, SME

Branch, Saifabad. The evidence of PW-10 shows that on 23/11/2013 as per the in- structions of Asst. General Manager, SBI, SME Branch, Saifabad, Hyderabad, he has handed over original current account opening form, attested copy of statement of account, some original cheques relating to NMR Constructions to the CBI. Ex-

P87/Current Account Opening Form of M/s. NMR Constructions along with copies of KYC documents for Account No. 31089157834 shows that Mohan Reddy/A3 submitted said application to the bank to open an account in the name of NMR

Constructions, Ex-P88/Copy of statement of account of current account of M/s.

NMR Constructions for account number 31089157834 for the period from 01/04/2010 to 05/04/2013 along with Certification under section 2 (a) of Bankers book of Evidence Act also discloses transfer of amount from the account of M/s.

Siva Constructions.

94 CC.No. 05/2018 XXI ACJM Court, Hyderabad

175. The above discussed evidence clearly establish that Accused no.1 in conspir- acy with Accused no.3 has diverted funds from the account of M/s. Siva Construc- tions to the accounts of PMR Constructions, NMR Constructions belonging to Ac- cused no.3 and further there was diversion of funds from the account of M/s.

Srikara Ganesh Infrastructure Ltd., belonging to Accused no.3. It is also evident that Accused no.1 has diverted the funds from the accounts of Universal Cable Ser- vices and Universal Engineering Services and from there to the account maintained by him at HSBC, Hyderabad. Therefore, this court holds that the evidence on record clearly establishes that Accused no.1 in conspiracy with Accused no.3 di- verted the funds sanctioned to M/s. Siva Constructions and caused wrongful loss to the bank. Accordingly, this point is answered.

176. Point nos. (i) & (viii). The entire evidence on record clearly establishes the fact that Accused no.1 conspired with Accused no.3 and submitted fabricated Market Value Assistance

Card, dt. 07-07-2010 and got issued Inflated Valuation Report, Dt. 12-07-2010 by the panel valuer and induced the bank officials to sanction loan to M/s. Siva Con- structions.

177. In order to show that Accused no.3 helped Accused no.1 in purchasing the properties at Pulimamidi Village which are offered as Collateral security, the prose- cution has examined PW-12/Harikrishnan, friend of Accused no.3. His evidence shows that at the request of Accused no.3, he gave Rs. 5 lakhs and said amount was repaid within two months. His evidence further shows that he went to SRO, Mah- eswaram along with Accused no.3 in respect of land transaction situated at Puli- mamidi village. Nothing is elicited in his cross-examination to discredit his testi- mony.

95 CC.No. 05/2018 XXI ACJM Court, Hyderabad

178. The prosecution has also examined PW-21/Satish Kumar. His evidence is to the effect that in April, 2010 he has pledged gold ornaments of his wife with one

Pawn broker by name Mr. Rajesh Jain, borrowed Rs.20 lakhs from him and gave it to Accused No.3 enabling him to purchase land. He also deposed that in the month of July/August, 2010 A-3 returned money Rs.20 lakhs and he has repaid to Pawn broker and redeemed his gold ornaments. Though the prosecution has examined

PW-36/T. Vasanth Kumar to prove that Accused no.3 assisted Accused no.1 in pur- chasing the property at Pulimamidi village, he turned hostile and did not support the case of the prosecution in material particulars. Ex.P177 which is statement recorded under Section 161 CrPC was exhibited.

179. Besides the above evidence, the transactions relating to the accounts of PMR

Constructions, NMR Constructions and Srikara Ganesh Infrastructure Ltd., clearly establish that Accused no.3 co-operated Accused no.1 in diversion of funds. There- fore, on careful consideration of evidence on record, this court holds that the prose- cution has established that Accused no.1 and Accused no.3 conspired with each other to cheat IDBI Bank, Chapel Road Branch officials in inducing them to sanc- tion loan basing on fabricated documents in order to cause wrongful loss to the bank and to consequently have wrongful gain for themselves. The Charge for of- fence under section 120-B IPC is proved. Accordingly, these points are answered.

180.Point no. (ix). Whether the prosecution has established the guilt of Accused no.1 and Accused no.3 for offences under Sections 420, 468 and 471 of IPC beyond all reasonable doubt ?

The learned counsel for the accused has relied on the case lawSait Tarajee

Khimchand And Ors. vs Yelamarti Satyam Alias Satteyya And others, AIR 1971 SC 96 CC.No. 05/2018 XXI ACJM Court, Hyderabad 1865. The learned defense counsel argued that in this case law it was held that mere marking of document as an exhibit does not dispense with its proof.

181. The learned counsel for the accused has relied on the case law Harchand

Singh & Anr vs State Of Haryana, AIR 1974 SC 344, and submitted that in a case where the prosecution leads two sets of evidence, each one of which contradicts the other, it is difficult to find the conviction of the accused. Admittedly, in the case on hand, PW-33 has addressed a letter to the bank stating that he has not issued Net

Worth Certificate to Siva Rama Krishna/Accused no.1, whereas in his evidence

PW-33/Naresh Kumar deposed that he has issued Net Worth Certificate to Siva

Rama Krishna/Accused no.1 and gave it to his friend PW-34/T. Sailendra and that

PW-34/T. Sailendra informed that he gave photocopy of Net Worth Certificate to

Accused for the purpose of showing it in the bank. Therefore, the evidence of PW- 33/Naresh Kumar on the aspect of issuance of Net Worth Certificate is doubtful.

182. The learned counsel for the accused has relied on the case lawState Of H.P.

vs Diwana And Ors., 1995CRILJ3002 and submitted that it was held in said deci- sion that “it is a cardinal principle of criminal jurisprudence that circumstantial evi- dence must be fully established from which there should be inevitable conclusion of the guilt of the accused beyond reasonable doubt and facts so established should be consistent only with the hypothesis of the guilt of the accused, ruling out any hy- pothesis of innocence of the accused”. It was also observed that “There is yet an- other basic rule of criminal jurisprudence that if two views are possible on the evi- dence adduced in a case of circumstantial evidence, one pointing to the guilt of the accused and the other to his innocence, the court should adopt the latter view favourable to the accused”.

97 CC.No. 05/2018 XXI ACJM Court, Hyderabad

183. The learned counsel for the accused has relied on the case law Rathi Vs.

State of AP, 2009 (2) ALD 327 and submitted that it was held in the said decision that Evidence of Expert is only an opinion evidence and conviction on the basis of said opinion is not sustainable, unless corroborated by other evidence direct or cir- cumstantial. In the case on hand, apart from the evidence of expert PW-41, Princi- pal Scientific Officer, stating that the signature appearing on Market Value Assis- tance Card, Dt. 07-07-2010 could not be connected with specimen signatures and

Admitted signature of PW-3 corroborates the evidence of PW-3 to the effect that the signature appearing on Ex. P166/Market Value Assistance Card, Dt. 07-07-2010 is not his signature.

184. Though it is argued by the learned defense counsel that the investigation offi- cer has not followed the procedure provided under Section 91 CrPC while collect- ing the documents from bank officials and therefore said documents cannot be con- sidered, the fact remains that said documents were collected from bank officials and not from any individual and documents furnished by the bank officials relating to recorded transactions. Further, the contents of said documents are duly proved through the evidence of bank officials who deposed above the transactions pertain- ing to this case. Therefore, the argument put forth by the learned defense counsel is not tenable.

185. Hence, On a careful consideration of entire evidence on record and in view of foregoing reasons, this court holds that it is established by the prosecution that the Accused no.1 conspired with Accused no.3 to cheat IDBI Bank and in further- ance of said conspiracy, they have used forged and fabricated Market Value Assis- tance Card, Dt. 07-07-2010 and got issued Inflated Valuation Report, Dt. 12-07- 98 CC.No. 05/2018 XXI ACJM Court, Hyderabad 2010 (part of Ex. P1). It is also established by the prosecution that Accused no.1 in conspiracy with Accused no.3 submitted a false Sub-Contract Agreement, Dt. 21- 04-2009 to the bank in order to justify transfer of funds from the Account of M/s.

Siva Constructions to the account of M/s. Srikara Ganesh Infrastructure Ltd. It is also established that without there being any business funds were transferred from the account of M/s. Srikara Ganesh Infrastructure Ltd., to the accounts of Universal

Engineering Services and Universal Cable Services and again amounts were trans- ferred from said accounts to the account of M/s. Siva Constructions maintained at

HSBC, Somajiguda and from said account to the Cash Credit account of M/s. Siva

Constructions maintained at IDBI Bank, Chapel Road Branch, Hyderabad. It is also established that amounts were transferred to the account of Prashanth Potluri from the accounts of M/s. Siva Constructions and M/s.Srikara Ganesh Infrastructure

Limited. This shows that loan facility sanctioned to M/s. Siva Constructions by

IDBI Bank, Chappel Road Branch, Hyderabad was misutilized by Accused no.1 in conspiracy with Accused no.3 and later due to non-servicing of interest, the account of M/s. Siva Constructions has become NPA causing wrongful loss to IDBI Bank and corresponding wrongful gain to Accused no.1 and Accused no.3.

186. Though, Accused no.1 and Accused no.3 are charged for offences under Sec- tions 420, 467, 468 and 471 of IPC and Section 120-B IPC, it is established by the prosecution that Accused no.1 and Accused no.3 conspired to cheat IDBI Bank and that in pursuance of their conspiracy to cheat IDBI Bank used fabricated documents and deceived IDBI Bank, it is not established by the prosecution that it is Accused no.1 and Accused no.3 who forged Market Value Assistance Card, Dt. 07-07-2010 and Sub-Contract Agreement, Dt. 21-04-2009. Therefore, this court holds that the prosecution has established the guilt of Accused no.1 and Accused no.3 for offences under Sections 420 and 471 of IPC and failed to establish the guilt of Accused no.1 99 CC.No. 05/2018 XXI ACJM Court, Hyderabad and Accused no.3 for offences under Sections 467 and 468 of IPC. Accordingly, this point is answered.

187. In the result, Accused no.1 and Accused no.3 are found guilty for offences under Sections 420, 471 and 120-B of IPC and found not guilty for offences under

Sections 467 and 468 of IPC. Hence, Accused no.1 and Accused no.3 are convicted under Section 248(2) CrPC for offences under Sections 420, 471 and 120-B of IPC.

Accused no.1 and Accused no.3 are acquitted under Section 248(1) CrPC for of- fences under Sections 467 and 468 of IPC.

Typed directly to my dictation by Stenographer Gr-I, corrected and pronounced by me in the open court on this the 13th Day of March, 2025.

XXI-Additional Chief Judicial Magistrate- cum- Spl. JMFC for trial of CBI Cases, Hyderabad.

188. After the matter is posted for judgment, Accused have filed a memo stating that the officials of IDBI bank has agreed for One Time Settlement for an amount of Rs. 5 Crores and the same was confirmed by the bank officials vide Letter, Dt.

12-03-2025 and issued Confirmation Receipt of OTS Upfront amount of Rs. 3.50

Crores and the remaining amount of Rs. 1.50 Crores to be paid within a period of 90 days I.e, on or before 10-06-2025. However, said Letter, Dt. 12-03-2025 said to be issued by IDBI Bank Officials only relates to the payment agreed to be paid by

Accused no.1 to the bank and it has no bearing on the facts of the case.

189. Heard the Accused no.1 with regard to quantum of sentence that may be im- posed against him. Accused no.1 submitted that his parents are old aged and he is having a daughter and that he has not committed any offence and requested to take a lenient view. Considering the nature of offences committed by accused which is 100 CC.No. 05/2018 XXI ACJM Court, Hyderabad cheating bank by furnishing fabricated documents and causing wrongful loss to bank, this court holds that the provisions of Probation of Offenders Act cannot be invoked and a lenient view cannot be taken. Accused no.1 is sentenced to undergo simple imprisonment for a period of three years and to pay fine of Rs. 5,000/- for the offence under Section 420 of IPC. In default of payment of fine, Accused no.1 shall undergo simple imprisonment for a period of one month. Accused no.1 is fur- ther sentenced to undergo simple imprisonment for a period of three years and to pay fine of Rs. 5,000/- for the offence under Section 471 of IPC. In default of pay- ment of fine, Accused no.1 shall undergo simple imprisonment for a period of one month. Accused no.1 is furhter sentenced to undergo simple imprisonment for a pe- riod of three years and to pay fine of Rs. 5,000/- for the offence under Section 120-

B of IPC. In default of payment of fine, Accused no.1 shall undergo simple impris- onment for a period of one month. All the sentences shall run concurrently. The re- mand period undergone by Accused no.1 shall be set off under Section 428 CrPC.

The right of appeal is intimated to Accused no.1.

190. Heard the Accused no.3 with regard to quantum of sentence that may be im- posed against him. Accused no.3 submitted that his children are tender aged, his fa- ther passed away and he has to look after his old aged mother and she is suffering from health ailments and that he has not committed any offence and requested to take a lenient view. Considering the nature of offences committed by accused which is cheating bank by furnishing fabricated documents and causing wrongful loss to bank, this court holds that the provisions of Probation of Offenders Act can- not be invoked and a lenient view cannot be taken. Accused no.3 is sentenced to undergo simple imprisonment for a period of three years and to pay fine of Rs.

5,000/- for the offence under Section 420 of IPC. In default of payment of fine, Ac- 101 CC.No. 05/2018 XXI ACJM Court, Hyderabad cused no.3 shall undergo simple imprisonment for a period of one month. Accused no.3 is further sentenced to undergo simple imprisonment for a period of three years to pay fine of Rs. 5,000/- for the offence under Section 471 of IPC. In default of payment of fine, Accused no.3 shall undergo simple imprisonment for a period of one month. Accused no.3 is further sentenced to undergo simple imprisonment for a period of three years and to pay fine of Rs. 5,000/- for the offence under Sec- tion 120-B of IPC. In default of payment of fine, Accused no.3 shall undergo sim- ple imprisonment for a period of one month. All the sentences shall run concur- rently. The remand period undergone by Accused no.3 shall be set off under Section 428 CrPC. The right of appeal is intimated to Accused no.3.

191. In the result, Accused no.1 and Accused no.3 are found guilty for offences under Sections 420, 471 and 120-B of IPC and found not guilty for offences under

Sections 467 and 468 of IPC. Hence, Accused no.1 and Accused no.3 are convicted under Section 248(2) CrPC for offences under Sections 420, 471 and 120-B of IPC.

Accused no.1 and Accused no.3 are acquitted under Section 248(1) CrPC for of- fences under Sections 467 and 468 of IPC. Accused no.1 is sentenced to undergo simple imprisonment for a period of three years and to pay fine of Rs. 5,000/- for the offence under Section 420 of IPC. In default of payment of fine, Accused no.1 shall undergo simple imprisonment for a period of one month. Accused no.1 is fur- ther sentenced to undergo simple imprisonment for a period of three years and to pay fine of Rs. 5,000/- for the offence under Section 471 of IPC. In default of pay- ment of fine, Accused no.1 shall undergo simple imprisonment for a period of one month. Accused no.1 is further sentenced to undergo simple imprisonment for a pe- riod of three years and to pay fine of Rs. 5,000/- for the offence under Section 120-

B of IPC. In default of payment of fine, Accused no.1 shall undergo simple impris- 102 CC.No. 05/2018 XXI ACJM Court, Hyderabad onment for a period of one month. All the sentences shall run concurrently. The re- mand period undergone by Accused no.1 shall be set off under Section 428 CrPC.

The right of appeal is intimated to Accused no.1. Accused no.3 is sentenced to un- dergo simple imprisonment for a period of three years and to pay fine of Rs. 5,000/- for the offence under Section 420 of IPC. In default of payment of fine, Accused no.3 shall undergo simple imprisonment for a period of one month. Accused no.3 is further sentenced to undergo simple imprisonment for a period of three years to pay fine of Rs. 5,000/- for the offence under Section 471 of IPC. In default of payment of fine, Accused no.3 shall undergo simple imprisonment for a period of one month. Accused no.3 is further sentenced to undergo simple imprisonment for a pe- riod of three years to pay fine of Rs. 5,000/- for the offence under Section 120-B of

IPC. In default of payment of fine, Accused no.3 shall undergo simple imprison- ment for a period of one month. All the sentences shall run concurrently. The re- mand period undergone by Accused no.3 shall be set off under Section 428 CrPC.

The right of appeal is intimated to Accused no.3.

Typed directly to my dictation by Stenographer Gr-I, corrected and pronounced by me in the open court on this the 13th Day of March, 2025.

XXI-Additional Chief Judicial Magistrate- cum- Spl. JMFC for trial of CBI Cases,Hyderabad.

APPENDIX OF EVIDENCE

WITNESSES EXAMINED

FOR PROSECUTION

PW-1 – Sharada Sundaram PW-2 – V Ramesh PW-3 – P V Rama Murthy PW-4 - VVS. Ravindra PW-5 - Paresh Tamhankar PW-6 - Smt. Jayashree Bhat PW-7 - P. Prashanth PW-8 - Md. Burhanuddin PW-9 - P. Balaji 103 CC.No. 05/2018 XXI ACJM Court, Hyderabad

PW-10 - R. Radhakrishnan PW-11 - P Ramana PW-12 - B. Harikrishnan PW-13 - Telli Ramarao PW-14 – D. V. Krishna Kumari PW-15 - D. Mohan Raghavaiah PW-16 - Sahita Poturi PW-17 - Y Gowrishanker PW-18 - P Guru Murhty PW-19 - Jaya Sri M Limaye PW-20 - N. Padma Reddy PW-21 - C. Satish Kumar PW-22 - B Srilatha PW-23 - Gollepally Suneel Babu PW-24 - S. Suresh PW-25 - V Venkata Krishnan PW-26 – C S Visweswara Rao PW-27 - A Somlingam PW-28 - A Mallikarjun PW-29 – E Srinivas Rao PW-30 - Dilip Gopinath PW-31 - R S Vidhya Sagar PW-32 - V John Bernard PW-33 - M Naresh Kumar PW-34 - T Sailendra PW-35 - Vakati Narayana Reddy PW-36 - T Vasanth Kumar PW-37 - D Rama Krishna PW-38 - Tara Chand PW-39 - R Karthik Raj PW-40 - Shaswata Das PW-41 - N. Ravi, Principal Scientific Officer, CFSL, Chennai PW-42 - P Vishnu Vardhan Rao PW-43 - Niranjan Kumar Samariya PW-44 - B Rajalakshmi PW-45 - K Saravanan

E XHIBITS MARKED

FOR PROSECUTION

Ex.P1 : Entire file having valuation certificate issued by the valuer along with enclosures no. 1 to 6 mentioned as annexures A to F.

Ex.P2 : Complaint dt. 30-07-2013.

104 CC.No. 05/2018 XXI ACJM Court, Hyderabad

Ex.P3 : Registered sale deed, doc. no. 2811/2010, dt. 06-07-2010 (27 sheets)

Ex.P4 : Registered sale deed, doc. no. 2812/2010, dt. 06-07-2010 (28 sheets)

Ex.P5 : Requisition form for market value certificate in respect of land in survey no’s. 221, 236 of Thupra Khurdu Village, dt. 07-07-2010.

Ex.P6 : Requisition form for market value certificate in respect of land in survey no. 234 of Sub- hanpur Village, dt. 07-07-2010.

Ex.P7 : Requisition form for market value certificate in respect of land in survey no. 3 of Gollur Village, dt. 07-07-2010.

Ex.P8 : Requisition form for market value certificate in respect of land in survey no. 311 of Guduru Village, dt.07-07-2010.

Ex.P9 : Requisition form for market value certificate in respect of land in H. no. 2-5 of Rachloor Village, dt. 07-07-2010.

Ex.P10 : Requisition form for market value certificate in respect of land in survey no. 1/3 of Sar- dar Nagar Village, dt. 07-07-2010.

Ex.P11 : Letter dt. 18-02-2012.

Ex.P12 : Letter dt. 16-02-2012.

Ex.P13 : Original loan application submitted by M/s. Siva Constructions, dt. 19-03-2010.

Ex.P14 : Project profile submitted by M/s. Siva Constructions along with loan application/Ex. P13 (08 Sheets)

Ex.P15 : Biodata of Sivarama Krishna submitted along with loan application/Ex. P13 (02 Sheets)

Ex.P16 : Provisional balance sheet of Siva Constructions as at March 31, 2010.

Ex.P17 : Profit and loss account of Siva Constructions for the year ended March 31, 2010.

Ex.P18 : Sub contract agreement dated 21/04/2009 between M/s.Siva Constructions and M/s.S- rikara Ganesh Infrastructures India Private Limited.

Ex.P19 : List of projects completed by Siva Constructions.

Ex.P20 : Latest position of orders - commencement and completion date of Siva constructions.

105 CC.No. 05/2018 XXI ACJM Court, Hyderabad

Ex.P21 : Photocopy of PAN card in the name of K.Shivarama Krishna duly signed by him.

Ex.P22 : Name clearance note dated 06/05/2010.

Ex.P23 : Proposal dated 14/06/2010 for sanction of Working Capital limits of Rs.10 Crores to Siva Constructions.

Ex.P24 : Memorandum to the Credit Committee along with sanction minutes dated 05/07/2010.

Ex.P25 : Sanction letter dated 18/06/2010 sanctioning Working Capital of Rs.10 Crores.

Ex.P26 : Original current account opening form of A1 along with KYC forms.

Ex.P27 : Title investigation report dated 13/07/2010 submitted by Sri.P.Gurumurthy, Advocate.

Ex.P28 : Account opening form in the name of Prashanth Potluri.

Ex.P29 : Acknowledgment letter dated 12/10/2010 acknowledged by Prashanth Potluri.

Ex.P30 : Copy of statement of Account of Prashanth Potluri for account bearing No. 00000003713424 for the period from 25/10/2010 to 15/11/2012 along with Certificate under bankers books of evidence Act.

Ex.P31 : Letter dated 12/09/2013 addressed to The Inspector of Police, CBI, EOW, Chennai.

Ex.P32 : Letter dated 07/10/2013 addressed by PW-05 to the Inspector of Police, CBI, EOW, Chennai in respect of account bearing No. 000003713424 in the name of Prashanth Potluri.

Ex.P33 : Cheque bearing No. 007569 pertaining to Barclays Premier favoring Smt. Sujatha for Rs. 15,00,000/- dated 16/11/2010.

Ex.P34 : RTGS application of Prashanth Potluri dated 18/11/2010 for transfer or Rs. 3,00,000/- in the name of Smt. P. Sreelakshmi.

Ex.P35 : RTGS Application of Prashanth Potluri dated 19/11/2010 for transfer or Rs. 2,00,000/- in the name of A.V. Surendra Babu.

Ex.P36 : RTGS Application of Prashanth Potluri dated 23/12/2010 for transfer or Rs. 2,24,00,000/- in the name of M. Sujatha, Rs. 60,00,000/- in the name of Ch. Lakshmi Devi and Rs. 1,00,00,000/- in the name of Ch. Bharathi Devi

Ex.P37 : RTGS Application of Prashanth Potluri dated 23/12/2010 for transfer or Rs. 15,00,000/- in the name of P. Srilakshmi.

106 CC.No. 05/2018 XXI ACJM Court, Hyderabad

Ex.P38 : RTGS Application of Prashanth Potluri dated 30/12/2010 for transfer or Rs. 15,00,000/- in the name of Ch. Lakshmi Devi, Rs. 16,00,000/- in the name of Sravan Kumar and Rs. 10,00,000/- in the name of Md. Kaja.

Ex.P39 : RTGS Application of Prashanth Potluri dated 31/12/2010 for transfer of Rs. 2,13,60,500/- to the account of Joint Sub Registrar, Hyderabad (South).

Ex.P40 : RTGS Application of Prashanth Potluri dated 04/01/2011 for transfer or Rs. 2,00,000/- in the name of Swetha Chemicals Private Limited.

Ex.P41 : Details of RTGS transfer credit entries made in SB Account of Prashant Potluri vide Ac- count bearing No. 000003713424.

Ex.P42 : Work order No. VNRIL/ SIVA/01/2008-2009 dated 01/04/2008 for Rs. 15 Croresfor ex- ecution of sub contract work order for part constructions of HRT from ADIT 2 and 3.

Ex.P43 : Work order No. VNRIL/ SIVA/02/2008-2009 dated 01/04/2008 for Rs.5 Crores for exe- cution of sub contract work order for construction of new BG line from Obulavarepallem to Kr- ishnapatnam Phase -I.

Ex.P44 : Work order No. VNRIL/ SIVA/05/2009-2010 dated 21/04/2009 for Rs. 2 Crores for ex- ecution of sub contract work order for Civil Engineering Works for NF Railway.

Ex.P45 : Work order No. VNRIL/ SIVA/04/2009-2010 dated 21/04/2009 for Rs. 6 Crores for ex- ecution of sub contract work.

Ex.P46 : Work order No. VNRIL/ SIVA/06/2010-2011 dated 13/04/2010 for Rs. 10 Crores for execution of sub contract work at Somashila Swarnamukhi Link Canal.

Ex.P47 : Work order No. VNRIL/ SIVA/07/2010-2011 dated 15/04/2010 for Rs. 1.5 Crores for execution of sub contract works to be executed at NTPC Simhadri.

Ex.P48 : Ledger sheet of VNRIL for the year 2008-2009.

Ex.P49 : Ledger sheet of VNRIL for year 01/04/2009 to 31/03/2010.

Ex.P50 : Form 16A TDS Certificate issued to M/s. Siva constructions for Rs. 10,80,067/-.

Ex.P51 : Form 16A TDS Certificate issued to M/s. Siva constructions for Rs. 22,51,601/-. Ex.P52 : Receipt Memo dated 25/11/2013.

Ex.P53 : Blank letterhead of M/s. VNR Infrastructures Limited.

Ex.P54 : Minutes of IDBI bank meeting dated 14/09/2011.

Ex.P55 : Minutes of IDBI bank meeting dated 11/11/2011.

107 CC.No. 05/2018 XXI ACJM Court, Hyderabad

Ex.P56 : Minutes of IDBI bank meeting dated 04/05/2012.

Ex.P57 : Minutes of IDBI bank meeting dated 26/11/2012.

Ex.P58 : Account opening form of M/s. Universal Cable Services along with Credit Card State- ment of K. Shiva Rama Krishna,

Ex.P59 : Statement of account for the period from 01/04/2010 to 02/12/2013 relating to account No.910020013672780 of Universal Cable Services along with Certification under Bankers book of Evidence Act

Ex.P60 : RTGS Credit Vouchers dated 04/09/2010, 06/09/2010, 13/09/2010, 13/09/2010 and 15/09/2010 relating to account of Universal Cable Services.

Ex.P61 : Axis bank Cheque bearing No. 000030, dated 04/09/2010 for Rs. 50 Lakhs, cheque bearing No. 000031, dated 06/09/2010, for Rs. 50 lakhs, Cheque bearing no. 000033 dated 07/09/2010 for Rs. 50 Lakhs and cheque bearing No. 000034 dated 14/09/2010 for Rs. 97,50,000/-, cheque bearing No. 000035, dated 14/09/2010 for Rs. 97,50,000/- and cheque bear- ing No. 000036, dated 14/09/2010 for Rs. 95 Lakhs along with RTGS request forms for each cheque.

Ex.P62 : Original Current Account opening form in the name of PMR Constructions for account bearing No. 25680200002740.

Ex.P63 : Certified copy of Statement of account of PMR Constructions for account bearing No. 25680200002740 for the period from 24/07/2010 to 23/03/2011 along with Certificate under sec- tion 2(a) of Bankers Book of Evidence Act.

Ex.P64 : Original Current Account opening form in the name of M/s. Srikara Ganesh Infrastruc- ture Limited for account bearing No. 25680200002744.

Ex.P65 : Certified copy of Statement of account of M/s. Srikara Ganesh Infrastructure Limited for account bearing No. 25680200002744 for the period from 12/08/2010 to 17/12/2011 along with Certificate under section 2(a) of Bankers Book of Evidence Act.

Ex.P66 : Receipt memo dated 20/11/2013 showing handing over of 30 cheques issued by Srikara Ganesh Infrastructure Limited to CBI. Ex.P67 : Receipt memo dated 25/11/2013 showing handing over of 27 Credit Vouchers/RTGS applications issued by Srikara Ganesh Infrastructure Limited, to CBI.

Ex.P68 : Bank of Baroda Cheque bearing No. 087651, dated 14/08/2010 for Rs. 1 Crore, issued by Managing Director, Srikara Ganesh Infrastructure India Private Limited along with RTGS Ap- plication form.

108 CC.No. 05/2018 XXI ACJM Court, Hyderabad

Ex.P69 : Bank of Baroda Cheque bearing No. 087652, dated 03/09/2010 for Rs. 50 Lakhs, issued by Managing Director, Srikara Ganesh Infrastructure India Private Limited along with RTGS Ap- plication form.

Ex.P70 : Bank of Baroda Cheque bearing No. 087653, dated 03/09/2010 for Rs. 50 Lakhs, issued by Managing Director, Srikara Ganesh Infrastructure India Private Limited along with RTGS Ap- plication form.

Ex.P71 : Bank of Baroda Cheque bearing No. 087654, dated 04/09/2010 for Rs. 50 Lakhs, issued by Managing Director, Srikara Ganesh Infrastructure India Private Limited along with RTGS Ap- plication form.

Ex.P72 : Bank of Baroda Cheque bearing No. 087655, dated 06/09/2010 for Rs. 50 Lakhs, issued by Managing Director, Srikara Ganesh Infrastructure India Private Limited along with RTGS Ap- plication form.

Ex.P73 : Bank of Baroda Cheque bearing No. 087656, dated 06/09/2010 for Rs. 50 Lakhs, issued by Managing Director, Srikara Ganesh Infrastructure India Private Limited along with RTGS Ap- plication form.

Ex.P74 : Bank of Baroda Cheque bearing No. 087663, dated 13/10/2010 for Rs. 95 Lakhs, issued by Managing Director, Srikara Ganesh Infrastructure India Private Limited along with RTGS Ap- plication form.

Ex.P75 : Bank of Baroda Cheque bearing No. 087662, dated 13/09/2010 for Rs. 96 Lakhs, issued by Managing Director, Srikara Ganesh Infrastructure India Private Limited along with RTGS Ap- plication form.

Ex.P76 : Bank of Baroda Cheque bearing No. 087661, dated 13/09/2010 for Rs. 97.50 Lakhs, issued by Managing Director, Srikara Ganesh Infrastructure India Private Limited along with RTGS Application form.

Ex.P77 : Bank of Baroda Cheque bearing No. 087660, dated 13/09/2010 for Rs. 97.50 Lakhs, issued by Managing Director, Srikara Ganesh Infrastructure India Private Limited along with RTGS Application form

Ex.P78 : Bank of Baroda Cheque bearing No. 087664, dated 15/09/2010 for Rs. 95 Lakhs, issued by Managing Director, Srikara Ganesh Infrastructure India Private Limited along with RTGS Ap- plication form Ex.P79 : Bank of Baroda Cheque bearing No. 087665, dated 15/09/2010 for Rs. 19 Lakhs, issued by Managing Director, Srikara Ganesh Infrastructure India Private Limited along with RTGS Application form

Ex.P80 : Bank of Baroda Cheque bearing No. 087669, dated 17/09/2010 for Rs. 5 Lakhs, issued by Managing Director, Srikara Ganesh Infrastructure India Private Limited along with RTGS Ap- plication form 109 CC.No. 05/2018 XXI ACJM Court, Hyderabad

Ex.P81 : Bank of Baroda Cheque bearing No. 087657, dated 03/09/2010 for Rs. 50 Lakhs, issued by Managing Director, Srikara Ganesh Infrastructure India Private Limited

Ex.P82: Bank of Baroda Cheque bearing No. 087671, dated 29/09/2010 for Rs. 8 Lakhs, issued by Managing Director, Srikara Ganesh Infrastructure India Private Limited along with RTGS Ap- plication form

Ex.P83 : Bank of Baroda Cheque bearing No. 087678, dated 18/11/2010 for Rs. 50 Lakhs, issued by Managing Director, Srikara Ganesh Infrastructure India Private Limited along with RTGS Ap- plication form

Ex.P84: Bank of Baroda Cheque bearing No. 087689, dated 22/12/2010 for Rs. 2 Crores, issued by Managing Director, Srikara Ganesh Infrastructure India Private Limited along with RTGS Ap- plication form

Ex.P85: Bank of Baroda Cheque bearing No. 087690, dated 22/12/2010 for Rs. 2 Crores, issued by Managing Director, Srikara Ganesh Infrastructure India Private Limited along with RTGS Ap- plication form.

Ex.P86 : Bank of Baroda Cheque bearing No. 087688, dated 15/12/2010 for Rs. 8000/-, issued by Managing Director, Srikara Ganesh Infrastructure India Private Limited.

Ex-P87 : Current Account Opening Form of M/s. NMR Constructions along with copies of KYC documents for Account No. 31089157834.

Ex-P88 : Copy of statement of account of current account of M/s. NMR Constructions for ac- count number 31089157834 for the period from 01/04/2010 to 05/04/2013 along with Certifica- tion under section 2 (a) of Bankers book of Evidence Act.

Ex.P89 : SBI cheque bearing no. 474487, dated 28/07/2010 for Rs. 9 Lakhs issued by Mohan Reddy for M/s. NMR Constructions.

Ex.P90 : SBI cheque bearing no. 474488, dated 29/07/2010 for Rs. 5 Lakhs issued by Mohan Reddy for M/s. NMR Constructions.

Ex.P91 : SBI cheque bearing no. 474489, dated 02/08/2010 for Rs. 5 Lakhs issued by Mohan Reddy.

Ex.P92 : SBI cheque bearing no. 474490, dated 04/08/2010 for Rs. 5 Lakhs issued by Mohan Reddy.

Ex.P93 : SBI cheque bearing no. 474491, dated 04/08/2010 for Rs. 1 Lakh issued by Mohan Reddy.

110 CC.No. 05/2018 XXI ACJM Court, Hyderabad

Ex.P94 : SBI cheque bearing no. 474492, dated 06/08/2010 for Rs. 2.25 Lakhs issued by Mohan Reddy.

Ex.P95 : SBI cheque bearing no. 474493, dated 11/08/2010 for Rs. 4 Lakhs issued by Mohan Reddy.

Ex.P96 : SBI cheque bearing no. 474494, dated 16/08/2010 for Rs. 4 Lakhs issued by Mohan Reddy.

Ex.P97 : SBI cheque bearing no. 474495, dated 16/08/2010 for Rs. 9 Lakhs issued by Mohan Reddy.

Ex.P98 : SBI cheque bearing no. 474496, dated 16/08/2010 for Rs. 1 Lakh issued by Mohan Reddy.

Ex.P99 : SBI cheque bearing no. 474497, dated 16/08/2010 for Rs. 5,00,050/- issued by Mohan Reddy.

Ex.P100 : SBI cheque bearing no. 474498, dated 02/08/2010 for Rs. 5,00,050/- issued by Mohan Reddy.

Ex.P101 : SBI cheque bearing no. 511333, dated 09/07/2010 for Rs. 50,000/-issued by Mohan Reddy.

Ex.P102 : Receipt memo dated 25/11/2013.

Ex.P103 : Original Current Account form along with copies of KYC Documents of M/s. Univer- sal Engineering Services for account no. 31067453318.

Ex.P104 : Letter dated 27/11/2013 of SBI, Khairatabad branch.

Ex.P105 : SBI cheque bearing No. 403052, dated 26/07/2010 for Rs. 2 Lakhs issued by Sivarama Krishna for Universal Engineering services

Ex.P106 : SBI cheque bearing No. 403054, dated 26/07/2010 for Rs. 7.8 Lakhs issued by Sivarama Krishna for Universal Engineering services

Ex.P107 : SBI cheque bearing No. 403050, dated 26/07/2010 for Rs. 35 Lakhs issued by Sivarama Krishna for Universal Engineering services

Ex.P108 : SBI cheque bearing No. 403053, dated 26/07/2010 for Rs. 20,00,050/- issued by Sivarama Krishna for Universal Engineering services

Ex.P109 : SBI cheque bearing No. 403051, dated 26/07/2010 for Rs. 35 Lakhs issued by Sivarama Krishna for Universal Engineering services 111 CC.No. 05/2018 XXI ACJM Court, Hyderabad

Ex.P110 : SBI cheque bearing No. 403059, dated 06/09/2010 for Rs. 50.10 Lakhs issued by Sivarama Krishna for Universal Engineering services

Ex.P111 : SBI cheque bearing No. 403060, dated 07/09/2010 for Rs. 50 Lakhs issued by Sivarama Krishna for Universal Engineering services

Ex.P112 : SBI cheque bearing No. 403061, dated 14/09/2010 for Rs. 96,00,050/- issued by Sivarama Krishna for Universal Engineering services

Ex.P113 : SBI cheque bearing No. 403062, dated 14/09/2010 for Rs. 95,00,050/- issued by Sivarama Krishna for Universal Engineering services.

Ex.P114 : SBI cheque bearing No. 403064, dated 15/09/2010 for Rs. 19,00,050/- issued by Sivarama Krishna for Universal Engineering services.

Ex.P115 : Statement of account of Universal Engineering Services for the period from 22/02/2010 to 12/03/2013 along with Certificate under section 2(a) of Bankers Book of Evidence Act.

Ex. P116 : Statement under section 161 Cr.P.C. of B. Harikrishnan/PW-12.

Ex. P117 : Manual on Working Capital Finance of IDBI Bank.

Ex. P118 : Delegation of powers of IDBI Bank.

Ex. P119 : Original stamped declaration and undertaking dt. 16/07/2010 executed by Mr. Siva Rama Krishna on behalf of M/s Siva Constructions for mortgage by way of deposit of Title Deeds declaring the ownership of the property which is vetted by Legal Department of IDBI Bank Ltd., (D.No.14).

Ex. P120 : Facility Agreement Dt. 16/07/2010 executed by borrower K. Siva Rama Krishna, Proprietor Siva Constructions. (D.No.14)

Ex. P121 : Memorandum of Entry No.14 dt. 16/07/2010 in respect of immovable properties standing in the name of K.Siva Rama Krishna, Proprietor Siva Constructions. (D.No.14).

Ex. P122 : Loan cum Hypothecation Agreement dt. 16/07/2010 executed by K. Siva Rama Krishna, Proprietor, Siva Constructions

Ex. P123 : Guarantee Agreement dt. 16/07/2010 along with demand promissory note dt. 16/07/2010 executed by K. Siva Rama Krishna, Proprietor, Siva Constructions.

Ex. P124 : Request of borrower/ K. Siva Rama Krishna dt. 16/07/2010 for release of the sanc- tioned limits.

112 CC.No. 05/2018 XXI ACJM Court, Hyderabad

Ex. P125 : Request of borrower/ K. Siva Rama Krishna Dt. 17/07/2010 for release of sanctioned limits enclosing stock and book debts receivables statement as on 15/07/2010 and insurance.

Ex. P126 : Operatinalisation note dt. 24/07/2010 in respect of M/s Siva Constructions.(D.No.30)

Ex. P127 : Office note dt. 18/10/2011 regarding visit report of collateral property.

Ex. P128 : Revaluation submitted dt. 10/11/2011 issued by Sri M.V.Srinivasulu. (D.No.110)

Ex. P129 : The Valuation Report dt. 16/11/2011 issued by S.R.A Consultants (D.No.115)

Ex. P130 : Certified copy of statement of Cash Credit account of A/C No. 133622100001489 of M/s Siva Constructions maintained at IDBI Bank Ltd.,Specialized Corporate Branch, Chappel Road for the period from 01/07/2010 to 31/08/2013 (D.No.17)

Ex. P131 : copy of e-mail dt. 09/09/2010 sent by Siva Rama Krishna, proprietor of M/s Siva Constructions instructing IDBI Bank, Chappel Road Branch for transfer/processing Rs.2 Crores to the account of Srikara Ganesh Infra (D.No.27)

Ex. P132 : Letter dt. 20/12/2010 of M/s Siva Constructions addressed to Manager, IDBI Bank, Chappel Road Branch for transfer of Rs.4 Crores from M/s Siva Constructions to the account of Srikara Ganesh Infrastructure India Pvt. Ltd., maintained at Bank of Baroda, Adarshnagar Branch. (D.No.28)

Ex. P133 : Original RTGS Application dt. 31/12/2010 of M/s Siva Constructions for transfer of Rs.2 Crores to the SB Account of Prashant Potluri maintained at Barclays Bank, Banjara Hils (D.No.29)

Ex P-134 : Original RTGS Application dt. 20/10/2010 of M/s Siva Constructions for transfer of Rs.30 Lakhs from the CC Account to Srikara Ganesh Infrastructure. (D.No.25)

Ex P-135 : copy of e-mail dt. 18/11/2010 sent by Siva Rama Krishna, Proprietor of M/s Siva Constructions instructing IDBI Bank, Chappel Road Branch for processing RTGS payment of Rs.70 lakhs to the account of Srikara Ganesh Infrastructure (D.No.26) Ex P-136: Office note placed by PW-14 on 19/07/2010 to the Legal Department for vetting doc- uments.

Ex P-137 : Office Note placed by PW-14 on 16/07/2010 for taking approval of title report.

Ex P-138 : Original RTGS Funds transfer application form dt. 24/07/2010 for transfer of Rs.4 crores to the account of P.M.R. Constructions from A/c No. 133655100001489 of M/s Siva Con- structions.

Ex P-139 : Original RTGS Funds transfer application form dt. 24/07/2010 for transfer of Rs. 1 crore to the account of Universal Engineering from A/c No. 133655100001489 of M/s Siva Con- structions.

113 CC.No. 05/2018 XXI ACJM Court, Hyderabad

Ex P-140 : Original RTGS Funds transfer application form dt. 24/07/2010 for transfer of Rs. 1 crore to the account of N.M.R. Constructions from A/c No. 133655100001489 of M/s Siva Con- structions. (D.No.21)

Ex P-141 : Original RTGS Funds transfer application form dt. 24/08/2010 for transfer of Rs. 0.50 crore to the account of K. Praveena, W/o. Siva Rama Krishna from A/c No. 133655100001489 of M/s Siva Constructions. (D.No.22)

Ex P-142 : Stock and book debts receivables statement for the month of July, 2011, Dt. 06/08/2011 submitted by M/s Siva Constructions. (Part of D.No.30)

Ex P-143 : Stock and book debts receivables statement for the month of August, 2011 Dt. 10/09/2011 submitted by M/s Siva Constructions (Part of D.No.30)

Ex P-144 : Office Note Placed by PW-14 on Ex P-143 statement. (Part of D.No.30)

Ex P-145 : Stock Statement M/s Siva Constructions Dt. 10/01/2011.

Ex P-146 : Note for approval of Drawing Power Computation for January, 2011 prepared by PW- 19 for approval of DGM.

Ex P-147 : Stock Statement M/s Siva Constructions Dt. 31/01/2011.

Ex P-148 : Note for approval of Drawing Power Computation for February, 2011 prepared by PW-19 for approval of DGM.

Ex P-149 : Stock Statement M/s Siva Constructions Dt. 10/03/2011.

Ex P-150 : Note for approval of Drawing Power Computation for March, 2011 prepared by PW- 19 for approval of DGM.

Ex P-151 : Stock Statement M/s Siva Constructions Dt. 28/03/2011.

Ex P-152 : Note for approval of Drawing Power Computation for April, 2011 prepared by PW-19 for approval of DGM.

Ex P-153 : Stock Statement M/s Siva Constructions Dt. 30/04/2011.

Ex P-154 : Note for approval of Drawing Power Computation for May, 2011 prepared by PW-19 for approval of DGM.

Ex P-155 : Stock Statement M/s Siva Constructions Dt. 31/05/2011.

114 CC.No. 05/2018 XXI ACJM Court, Hyderabad

Ex P-156 : Note for approval of Drawing Power Computation for June, 2011 prepared by PW-19 for approval of DGM.

Ex. P157 : Statement under section 161 Cr.P.C. of N Padma Reddy/PW-20.

Ex P-158 : original cheque bearing No. 065154 for Rs. 30 lakhs.

Ex P-159 : Notice dt. 21-03-2012.

Ex P-160 : Letter, dt. 15-12-2011.

Ex P-161 : Letter, dt. 16-03-2012.

Ex P-162 : Office note for de-listing of empanelled valuer.

Ex P-163 : Letter addressed by Naresh Kumar, Chartered Accountant.

Ex P-164 : Receipt Memo dt. 05-03-2014.

Ex P-165 : System printout of Profit and loss account for the year ended 31-03-2008

Ex. P166 : Market value assistance card

Ex. P167 : Internal Investigation Report along with Annexures I to III.

Ex. P168 : Circular No. 162/CBSD-24/2007-08.

Ex. P169 : Circular No. IDBI Bank/2010-11/79RBG/SME/42.

Ex -P170 : Account opening form Submitted by M/s. Siva Constructions along with KYC documents.

Ex- P171 : Account statement of M/s. Siva Constructions along with the certificate under section 2A of Bankers Book of Evidence Act, 1891 vide Current Account no. 082- 253352-001.

Ex- P172 : letter dated 09-01-2014 addressed by Manager, HSBC.

Ex- P173 : Cheque Br. No. 101904 along with the request form for Demand Draft prepa- ration.

115 CC.No. 05/2018 XXI ACJM Court, Hyderabad

Ex- P174 : Cheque Br. No. 101905 along with the request form for Demand Draft prepa- ration.

Ex- P175 : Cheque Br. No. 101906 along with the request form for Demand Draft prepa- ration.

Ex. P176 : Relevant portion of section 161 Cr.P.C. statement.

Ex. P177 : Relevant portion of Sec. 161 CrPC statement of PW-36.

Ex. P178 : Search List, dt. 28-08-2013.

Ex. P179 : Search Proceedings, dt. 28-08-2013

Ex. P180 : Search List, dt. 28-08-2013.

Ex. P181 : Search Proceedings, dt. 28-08-2013

Ex. P182 : Original Renewal of Certificate of Registration

Ex. P183 : Income Tax Returns for the Assessment Years 2007-2008 to 2010-2011

Ex. P184 : Search List, dt. 28-08-2013.

Ex. P185 : Letter dt. 03-04-2012, addressed to the DGM, IDBI Bank, Mumbai

Ex. P186 : Search List, dt. 28-08-2013.

Ex. P187 : Search Proceedings, dt. 28-08-2013.

Ex. P188 : Balance Sheet of Siva constructions as on March, 31, 2010

Ex. P189 : Profit and Loss Account of Siva Constructions as on March, 31, 2010

Ex. P190 :Statement of Account of Srikara Ganesh Infrastructure Pvt. Ltd., for the period from 12-08-2010 to 27-10-2010 116 CC.No. 05/2018 XXI ACJM Court, Hyderabad

Ex. P191 : Customer Account Ledger Report of Siva Constructions from 24-07-2010 to 31-03-2011

Ex.P192 : Letter, dt. 07-05-2014

Ex.P193 : Forwarding Note along with Annexures A, B, C, Comparison Chart

Ex.P194 : Specimen signatures of Sri. P.V. Ramanamurthy

Ex.P195 : Specimen signatures of K. Siva Ramakrishna

Ex.P196 : Specimen signatures of Suresh

Ex.P197 : Specimen handwriting of N. Mohan Reddy

Ex.P198 : Specimen handwriting of N. Mohan Reddy

Ex.P199 : Handwriting Examination Report dt. 23-05-2014

Ex.P200 : Letter dt. 23-05-2014

Ex. P201 : Registered Sale Deed, dt. 31-12-2010 bearing Doc. No. 48/2011

Ex. P202 : First Information Report.

Ex. P203 : Letter, Dt. 13-09-2013, addressed by Sarada Sundaram

Ex. P204 : Letter, Dt. 13-11-2013, addressed by Sarada Sundaram

Ex. P205 : Copy of e-mail dt. 14/09/2010 sent by Siva Rama Krishna, Proprietor of M/s Siva Constructions instructing IDBI Bank, Chappel Road Branch to transfer Rs.1 Crore 25 lakhs to the account of Srikara Ganesh Infrastructure

Ex. P206 : Visit Report, Dt. 21-09-2010 (1st page of Doc. No. 105).

Ex. P207 : Letter, Dt. 21-11-2013 117 CC.No. 05/2018 XXI ACJM Court, Hyderabad

Ex. P208 : Letter, Dt. 14-12-2013

Ex. P209 : Letter, Dt. 26-02-2014

Ex. P210 : Receipt Memo, Dt. 29-08-2013

Ex. P211 : Receipt Memo, Dt. 06-03-2014

Ex. P212 : Concurrent Audit Report, Dt. 03-10-2011

Ex. P213 : Letter, Dt. 22-11-2013

FOR DEFENCE

Ex. D1 : Relevant portion of Sec. 161 Cr.P.C. statement of PW-14.

Ex. D2 : Relevant portion of Sec. 161 Cr.P.C. statement of PW-14.

Ex. D3 : Relevant portion of Sec. 161 Cr.P.C. statement of PW-13.

Ex. D4 : Relevant portion of Sec. 161 Cr.P.C. statement of PW-19.

Ex. D5 : Relevant portion of Sec. 161 Cr.P.C. statement of PW-26.

XXI-Additional Chief Judicial Magistrate- cum- Spl. JMFC for trial of CBI Cases, Hyderabad.

1 OF 84 CC 38/2018

IN THE COURT OF XXI ADDL. CHIEF METROPOLITAN MAGISTRATE,

HYDERABAD

PRESENT:: P. SAI SUDHA,

XVII Addl. Chief Metropolitan Magistrate,

FAC. XXI Addl. Chief Metropolitan Magistrate,

Hyderabad.

MONDAY, THIS THE 31st DAY OF JULY, 2023

C.C. No. 38 OF 201 8

( old CC. N o.507 of 2004)

Between:

Inspector of Police, Special Police Establishments, Central Bureau Of Investigation, SPE, Hyderabad. …. Complainant.

And

A1.Sri M. Raghavendra Rao, S/o. Hanumantha Rao, Aged about 50 years, Occu: Managing Director of M/s. Srivastsa Ispat Pvt., Ltd., presently R/o. 2-2-1105/22/A, Tilak Nagar,Hyderabad.

A2.M/s Srivatsa Ispat Pvt., Ltd., Office at 2-2-1153, new Nallakunta, Hyderabad and represented by Its Managing Director i.e., A-1.

A3.Sri M.V.Ramana Rao, S/o: Hanumantha Rao, Aged about 51 years, R/o: 2-2- 1105/22/A, Tilak Nagar, Hyderabad.

A4.Sri M.Ravi Kumar, S/o: Hanumantha Rao, Aged about 48 years, R/o: Sanction Order 2-2-1105/22/A, Tilak Nagar, Hyderabad.

A5. Smt M. Padmaja, W/o: Sri M. Raghavendra Rao, Aged about 45 years, Occ: Director M/s Srivatsa Ispat Pvt., Ltd., R/o. 2-2-1105/22/A, Tilak Nagar, Hyderabd.

A6. Sri V. Seetharam, S/o: Sundara Ramana Rao, Aged about 55 years, R/o: Flat No. 203, Plot No. 163/1, Hari hara Sadan, Bhagyanagar colony, Opp: KPHB, Hyderabad. (Died)

...Accused.

2 OF 84 CC 38/2018

This case came before me on 31/7/2023 for final hearing in the presence of Sri. Vijay Kumar Dubey., Asst. Public Prosecutor for CBI and of Sri. N. Ramachander Rao, Advocate for Accused No. 1 to Accused No. 5 and the matter having stood over for consideration till this day, this Court delivered the following:

J U D G M E N T

1.The Deputy Superintendent of Police, C.B.I., SPE, Hyderabad filed Charge

sheet against A-1 to A-6 in R.C. No.08/2002.

2.The Case of the Prosecution in brief is as follows:

(a).A-1 is Managing Director of Srivatsa Ispat Private Limited having its

Registered Office at H.No.2-2-1153, New Nallakunta, Hyderabad. A-2 is a Private

Limited Company Incorporated under Companies Act, 1956 vide No.01-18736, dated

11-11-1994 with M. Raghavendra Rao and Padmaja as Directors. A-3 is brother of

M. Raghavendra Rao (A-1). A-4 is also brother of A-1 and A-4 is owner of M/s. Ravi

Steel Tubes and M/s. Satavahana Rolling Mills Pvt. Ltd., located at 168, I.D.A.,

Bollaram, Medak District. A-5 is wife of A-1 and she is also Director of M/s.

Srivatsa Ispat Private Limited. A-6 was working in that Company and he floated to

non-existent firms which is Kumud Steel Processors and Sri Sai Industries.

2(b). A complaint was lodged by the Deputy General Manager, Canara Bank, Circle

Office, Hyderabad and First Information Report (F.I.R.) was issued against A-1 and

A-2 and later a role of A-3 to A-6 came to light during the course of investigation. A- 1 who is Managing Director of A-2 M/s. Srivatsa Ispat Private Limited entered into

Criminal Conspiracy with M.V. Ramana Rao (A-3), M. Ravi Kumar (A-4), M.

Padmaja (A-5) and V. Seetharam (A-6) availed credit limits from Canara Bank, M.G.

Road, Secunderabad towards working capital limits for M/s. Srivatsa Ispat Private

Limited by submitting fake and forged documents towards colletaral security and

3 OF 84 CC 38/2018 diverted funds released from Canara Bank by floating non-existent firms and thus

cheated Canara Bank to the tune of Rs.2,02,57,623/-.

2(c). A-1, the Managing Director of A-2 firm submitted an application to the Canara

Bank, M.G. Road, Secunderabad for working capital limits and it was shown in the application that the firm has taken up its activities at 17, I.D.A., Patancheru in the

premises taken from one G.R. Reddy on lease. The Lease Deed dated 04-01-1995

executed by G.R. Reddy was submitted to the Canara Bank and the same turned out

to be a fake and forged document during investigation. A-1 applied for open Cash

Credit Limit of Rs.20,00,000/- and In-land Letter of Credit limit of Rs.20,00,000/- towards the working capital limits for A-2 firm, and offered 2,508 Sq. Yards of non-

agricultural land at Road No.12, Banjara Hills, Hyderabad valued nearly

Rs.60,00,000/- as collateral security. The application and relevant documents were

processed at Canara Bank, M.G. Road, Secunderabad and the Branch sanctioned the

limits of Rs.20,00,000/- each towards O.C.C. and I.L.C, limits. The documents

relating to collateral security land was submitted to Canara Bank by M.V. Ramana

Rao (A-3), brother of A-1 on the basis of which credit limits were sanctioned. A

General Power of Attorney dated 22-04-1994 executed in favour of M.V. Ramana

Rao (A-3) by L. Narasimha Rao and L. Raju, sons of late Smt. L. Mangamma was

submitted to Canara Bank by M.V. Ramana Rao (A-3) along with Sale Deed,

Document No.89/1968 dated 10-01-1968, extract of Register No.1 about mutation

issued by Tahasildar, Golkonda, Hyderabad and No Objection Certificate issued to L.

Narasimha Rao and L. Raju by Tahasildar, Golkonda and Encumbrance Certificate

issued by Sub-Registrar, Khairatabad, Hyderabad. But, one L. Venkateshwara Rao is the only son of Smt. L. Mangamma and G.P.A. dated 22-04-1994 is a fake and forged 4 OF 84 CC 38/2018

document. Further, the Sale Deed, Document No.89/1968, No Objection Certificate

which were submitted to the Canara Bank are also forged document. The Credit

Limits were enhanced and renewed to A-2 firm by Canara Band on the basis of above

securities in the year, 1996 and 1997.

2(d). During the year, 1996, A-1 has shown to Canara Bank that M/s. Srivatsa Ispat

Private Limited was shifted to a leased premises of Padmaja Industries located at 169,

I.D.A., Bollaram, Medak District. A Lease Deed dated 31-05-1996 executed by one

P.S.R. Murthy, owner of Padmaja Industries submitted to Canara Bank. A-1 also

submitted documents to Canara Bank in support of purchase of one sick unit,

‘Chawala Wires Private Limited’ located at 168, I.D.A., Bollaram, Medak District (which is adjacent unit to M/s. Satavahana Rolling Mills Pvt. Limited and M/s. Ravi

Steels Tubes located at 168, I.D.A., Bollaram which belongs to M. Ravi Kumar,

brother of A-1 from A.P. State Financial Corporation, R.C. Puram Branch in

1996-97). There is no such industry by name Padmaja Industries at 169, I.D.A.,

Bollaram and therefore, the Lease Deed is fake and forged document.

2(e). It is also revealed that M/s. Srivatsa Ispat Private Limited (A-2) never carried out its operational activities in the premises purchased from A.P.S.F.C. Further, A-1

showed the premises as well as machinery, stocks and raw material of M/s.

Satavahana Rolling Mills Pvt. Limited and M/s. Ravi Steels Tubes located at 168,

I.D.A., Bollaram which belongs to M. Ravi Kumar (A-4), brother of A-1 as that of

M/s. Srivatsa Ispat Private Limited and thereby availed working capital limits

sanctioned by Canara Bank without actually carrying out activities for which credit 5 OF 84 CC 38/2018 limits were sanctioned. A-1 in connivance with his brother Ravi Kumar (A-4) misled

the Bank Officials by erecting temporary name board showing as if A-2 firm was

functioning there.

2(f). V. Seetharam (A-6) opened two Current Accounts at Punjab National Bank,

Musheerabad Branch, Hyderabad in the names of Kumud Steel Processors and Sri

Sai Industries and the cheques issued by National Small Scale Industries Corporation

Limited (N.S.I.C.), Hyderabad for alleged supply of raw material to A-2 firm by the

above two firms were deposited in the above two Current A/cs., and amounts were

withdrawn, subsequently, on the basis of cheques signed by Sitaram (A-6). N.S.I.C.

Limited issued cheques to the above firms under raw material assistance scheme on

the basis of the Bank Guarantee executed by Canara Bank in favour of N.S.I.C.

Limited and on submission of same by A-1 to N.S.I.C. Limited. As amounts givent

to above two firms were not repaid, N.S.I.C. Limited invoked Bank Guarantees of

value Rs.1.5 Crores and as a result, the Canara Bank paid the amount to N.S.I.C.

Limited in the year, 1998. Both the above two firms, Kumud Steel Processors and Sri

Sai Industries are non-existent firms and amounts deposited in these accounts on the basis of Bank Guarantees executed by Canara Bank were diverted to the account of

Ravi Steel Tubes owned by M. Ravi Kumar (A-4), brother of A-1 and also to the

account of M/s. Srivatsa Ispat Private Limited (A-2). During the above process, an

amount of Rs.1,60,10,000/- was diverted from the account of Kumud Steel

Processors into the account of Ravi Steel Tubes. Further, an amount of Rs.4.09

crores were deposited in the account of M/s. Srivatsa Ispat Private Limited

maintained at Canara Bank, M.G. Road, Secunderabad. Besides, making kite flying

transactions in order to impress upon the Bankers for showing a live open cash credit

account at the Canara Bank, M.G. Road, Secunderabad, A-1 and A-5 issued cheques

6 OF 84 CC 38/2018

of value 2.25 crores in favour of Ravi Steel Tubes owned by M. Ravi Kumar (A-4)

and thus, diverted amounts from O.C.C. Account of A-2 during the year, 1996 and

1997 though, A-2 was not carrying out any operational activity either at Patancheru

or Bollaram, Medak District. The amount deposited in the account of M/s. Ravi

Steel Tubes have been withdrawn subsequently. A-1 also diverted an amount of

Rs.22.80 lakhs into the account of M/s. Mittal Ferro Re-rolling Private Limited

another firm represented by A-1.

2(g). The specimen writings/signatures of A-1, A-3, A-6, A-4, G.R. Reddy and

others were obtained and the same were sent to G.E.Q.D., Hyderabad for expert

opinion and he opined that A-1 signed as G.R. Reddy on Lease Deed dated 04-01-

1995 and that A-6 signed on the cheques of Panjab National Bank. A-6 in his

confessional statement recorded under Section-164 Cr.P.C. admitted that he signed on the current account opening forms of Panjab National Bank related to Kumud Steel

Processors and Sri Sai Industries, both non-existent firms and signed on blank

cheques at the instances of A-1 who was his employer and he did not take any

amount out of the above transaction. Thus, A-1 failed to repay working capital limits

which he availed from Canara Bank and cheated the bank to the tune of

Rs.2,02,57,263/- by submitting forged documents. The above acts of accused prima- facie disclose commission of offences punishable under Section-120-B I.P.C., R/w 420 I.P.C. and 471 R/w 468 I.P.C. During the course of investigation, statements of

witnesses were recorded and documents were collected. After completion of

investigation, charge sheet was filed against accused for offences referred above.

3.The Court of XXIII Metropolitan Magistrate, Hyderabad took cognizance of offences under Sections-120-B I.P.C., R/w 420 and 471 and 468 I.P.C. against A-1 to 7 OF 84 CC 38/2018

A-6 and the case was numbered as C.C. No.507/2004. Subsequently, the case was

transferred to the Court of XIV A.C.M.M., Hyderabad and the case was again

transferred to this Court as per orders of the Hon’ble Metropolitan Sessions Judge,

Hyderabad and re-numbered as C.C. No.38/2018.

4.On appearance of A-1, A-3 to A-6 and A-2 represented by A-1, copies of

documents are furnished as required under Section 207 Cr.P.C.

5.The accused were examined under Section 239 Cr.P.C., and after hearing,

charges are framed against them for offences under Sections-120-B, R/w 420, 468

and 471 I.P.C., read over and explained to them. They pleaded not guilty and claimed

to be tried.

6.In order to prove its case, the Prosecution has examined Pws-1 to 58 and

Exhibits P-1 to P-516 are marked.

7.After closure of Prosecution Evidence, the accused were examined under

Section 313 Cr.P.C. by explaining to them incriminating material appearing against

them. They denied it totally and reported no defense evidence.

8.During the pendency of the case, A-6 died and hence, the case against A-6

abated.

8 OF 84 CC 38/2018

9.Heard both sides. Written Arguments filed by the Prosecution and accused.

Perused the entire record and written arguments filed on both sides.

10.Now, the points that arise for determination are :

(i) Whether A-1, Managing Director of A-2 Firm, submitted fake and forged

Lease Deed, dated 04-01-1995 to the Canara Bank while applying for sanction of

loan?

(ii) Whether A-1, A-5 in conspiracy with A-3 fabricated General Power of Attorney

dated 22-04-1994 as if it was executed by the Legal Heirs, Smt. L. Mangamma

in favour of A-3?

(iii) Whether A-1 and A-5 representing A-2 firm had submitted a fake lease deed

dated 31-05-1996 in respect of Lease of Premises of located at 169, I.D.A.,

Bollaram, Medak District?

(iv) Whether A-1 in criminal conspiracy with A-4 had deceived the bank authorities

by showing to them the stock, machinery and raw material belonging to Ravi

Steel Tubes and M/s. Satavahana Rolling Mills Private Limited as the stock

and material of A-2 firm?

(v) Whether A-1, A-5 in criminal conspiracy with A-4 and A-6 floated two firms viz.

Kumud Steel Processors and Sri Sai Industries and diverted the amount granted by

N.S.I.C. to A-2 firm and Ravi Steel Tubes belonging to A-4?

(vi) Whether the prosecution established the guilt of A-1, A-2 r/by A1, A-3 to A-5 for

offences under Sections 120-B, 420, 468 and 471 I.P.C. beyond all reasonable

doubt ?

9 OF 84 CC 38/2018

11.P oint no. (i) :Whether A-1, Managing Director of A-2 Firm, submitted

fake and forged Lease Deed, dated 04-01-1995 to the

Canara Bank while applying for sanction of loan?

It is the case of the prosecution that A-1, who is Managing Director of A-2

Firm, availed credit limits from Canara Bank by submitting fake and forged

documents. It is also further case of prosecution that A-2 Firm has availed the

facilities by submitting fake documents along with loan application.

12.In order to prove its case, the prosecution has examined PW-1, the Branch

Manager, Canara Bank, Secunderabad who lodged Exhibit P-1 report with the police.

The evidence of PW-1 is to effect that he lodged complaint to S.P., C.B.I., Hyderabad on 17-01-2002 against accused in respect of irregularities noticed in the account of their company. According to him, the irregularities are that the accused did not submit

Stock Statement to the Bank regularly; they failed to produce Invoices with regard to

raw material purchased by the company; and E.M.T. submitted by accused to the

Bank is fictitious one. It is his further evidence that the accused hypothecated the raw material which was also under hypothecation to S.B.H., Pattargatti Branch in the

name of Satavahana Rolling Steels Private Limited and Ravi Steels and Tubes

represented by Ravi Kumar(A-4). In his cross-examination, PW-1 stated that his

evidence was based on the reports submitted by internal auditors and he does not have personal knowledge about alleged irregularities in the account of the accused.

As seen from the evidence of PW-1 coupled with Exhibit P-1 report lodged by him

with the C.B.I., Hyderabad it reveals that in the year 2002, he lodged a report stating

that A-2 firm availed credit facility from Canara Bank, Hyderabad and A-2 firm

submitted fake documents i.e., fake Lease Deed, dated 04-01-1995 and also furnished 10 OF 84 CC 38/2018 fake collateral security as if, M.V. Ramana Rao/A-3 who stood as Guarantor to the

loan transaction is having General Power of Attorney to deal with the property

situated Road No.12, Banjara Hills, Hyderabad.

13.The evidence of PW-2/K.P. Hegde, who worked as Chief Manager, Canara

Bank, M.G. Road, Secunderabad during the period from August, 2001 to July, 2002

relates to the kinds of loan that will be sanctioned to a manufacturing unit and about

the modus operandi followed for sanctioning the loan.

14.The evidence of PW-3/Satyanarayana, who worked as Senior Manager, Canara

Bank, Secunderabad from June, 1998 to March, 1999 shows that after sanction of

loan to A-2 firm, he gave interim report in the month of September, 1998 and final report in the month of December, 1998. Exhibit P-2 certified copy of report, dated

08-12-1998 and 03-09-1998, Exhibit P-3 Application submitted by A-2 company to

the Bank, Exhibit P-4 Photocopy of Lease Deed, dated 04-01-1995, Exhibit P-5

documents submitted by A-2 firm in favour of Bank, Exhibit P-6 copy of letter, dated

11-06-1996 and Exhibit P-7 copy of Lease Deed, dated 31-05-1996 are exhibited

through him. In his cross-examination, PW-3 stated that he conducted inspection as per the orders of their General Manager, and he did not hand over said order to C.B.I.

15.The evidence of PW-4/Udaya Bhaskaram, who worked as Officer, Canara

Bank, Central Office, Hyderabad during the period from 1992 to 2003 relates to

verification of recovery and advanced files and loan documents pertaining to A-2 firm. He further stated that he recommended their Bank to file suit against A-2 firm.

Exhibits P-8 to P-10 are exhibited through him.

11 OF 84 CC 38/2018

16.As seen from Exhibit P-4 copy of lease deed, dated 04-01-1995 which was said to be submitted along with Exhibit P-3 Application, dated 18-01-1995, it is apparent as seen from Exhibit P-3 that Application was submitted by A-2 firm seeking credit

facilities of over Rs.15,00,000/- from Canara Bank, M.G. Road Branch,

Secunderabad. As seen from the particulars mentioned in Exhibit P-3 Application

form, dated 18-01-1995, A-1 submitted said application form by stating that the firm

was run in a leased premises and photocopy of lease deed was enclosed to the

sanction application. As seen from recitals of Exhibit P-4 copy of lease deed, dated

04-01-1995 one G. R. Reddy, S/o Venkat Reddy had leased out plot No.17, I.D.A.,

Patancheru, Medak District consisting of an area of 5,000 Sq. yards for a period of 7 years on monthly rent of Rs.5,000/- per month and deposit of Rs.20,000/- towards advance to A2 firm. The original lease deed, dated 04.01.1995 was exhibited through

PW.21 as Ex. P25. As seen from Ex. P5 book containing copy of minutes of Meeting

of Board of Directors, it is clear that A-5 is Director of A2 firm and A1 was

authorized to deal with the affairs relating to A-2 firm.

17.In order to prove that lease deed, dated 04-01-1995 is a fake document, the

prosecution examined PW-6/G. Ram Narayan Reddy, S/o Venkat Reddy, who was

said to have executed lease deed in favour of A-2 firm. The evidence of PW-6 is to the effect that he is Managing Director of K.M. Power Private Limited and that he purchased M/s. Thethy Steels Private Limited in 1990-91 and the same is leased out

to A-1, who is Managing Director of A-2 company on monthly rent of Rs.25,000/-

and advance of Rs.1,50,000/- by way of Cheque which was cleared. He further stated

that a lease deed was executed between them in the month of February, 1995 and

Exhibit P-14 counter foil pertains to presentation of cheque issued by A-2 represented 12 OF 84 CC 38/2018 by A-1. He further stated that the signature on Exhibit P-4 copy of lease deed, dated 04-01-1995 is not his signature. In his cross-examination, PW-6 stated that C.B.I.

Officials obtained his specimen signature at their office and his specimen signature

was not obtained in the court.

18.The prosecution has also examined PW-21/Gnaneshwara Rao who worked as

Officer, Canara Bank, M.G. Road, Secunderabad and his evidence relates to the

accused no.1 submitting loan application on date 18-01-1995 along with copy of

lease deed, dated 04-01-1995. The original lease deed was again exhibited as P-25.

He also stated that at the time of opening the account, the accused no.1 submitted

Memorandum of Association and Articles of Association which is exhibited as P-27.

Exhibit P-28 is resolution of Board of Directors Meeting, dated 18-01-1995 relating

to A2 firm.

19.The prosecution has also examined PW-48/M.A. Nisthar, who worked as Chief

Manager, Andhra Bank, Mehditpatnam Branch from May, 2003 to December, 2003

and his evidence shows that he furnished account particulars of M/s. Thethy Steels

Private Limited represented by G. Ram Narayan Reddy to C.B.I. and on verification

of records, it was found that the company was operating a current account vide

No.566 in the Bank from 24th February, 1994 and the signatures of G. Ram Narayan

Reddy (PW-6) are available at their Bank Branch and when the C.B.I. Police showed him the copy of lease deed, dated 04-01-1995, he compared the signatures and found

that those signatures did not tally with specimen signatures available on their

application for opening current account. Exhibit P-288 copy of application for

opening current account bearing No.566 was exhibited.

13 OF 84 CC 38/2018

20.The prosecution also examined PW-49/A. Suryanarayana Murthy, who worked as Manager, Andhra Bank, Mehdipatnam Branch and his evidence also shows that the

C.B.I. Police asked him to furnish account particulars of M/s. Thethy Steels Private

Limited represented by G. Ram Narayan Reddy and when the C.B.I. Police enquired

him about deposit of Rs.1,50,000/- in the account of M/s. Thethy Steels, he verified the records and informed that an amount of Rs.1,50,000/- deposited by way of cheque

was withdrawn by G. Ram Narayan Reddy and that he has handed over Exhibit P-14

pay-in-slip dated 13-02-1995 through Exhibit P-289 covering letter dated 07-05-2003

to C.B.I. Police.

21.The evidence of PW-54/Ravindra Babu, is to the effect that he worked as

Associate Vice President and Branch Head, ING Vysya Bank, Banjara Hills Branch,

Hyderabad from 2002 to 2005. He further stated that in the year 2003, CBI police

examined him by showing him a copy of lease deed, dated 04-01-1995 said to be

executed by G. Ramnarayana Reddy and after verification he said that the signature is not tallying with the available signatures. He also stated that he handed over the

certified copy of specimen signature of G. Ramnarayana Reddy available at their

bank to CBI police. Ex. P370 certified copy of Specimen signature card of G.

Ramnarayana Reddy pertaining to account no. 97821 was exhibited through him.

22.The prosecution has examined PW-55/A. Balasami, Government Examiner of

Questioned Documents/Deputy Director and Scientist D in the office of Central

Forensic Science Laboratory, DFSS, MHA, GOI, Ramanthapur, Hyderabad. It is his

evidence that their office received the specimen signatures of G. Ramanarayana

14 OF 84 CC 38/2018

Reddy/PW-6 marked as S-33 and S-34 and his admitted signatures marked as A1 to

A3 totally on 5 sheets. The specimen signatures of M. Raghavendra Rao/A1 are

marked as S-11 to S-20, S-37 and S-38 on 12 sheets, S-47 to S-50, S-57 to S-62 and

Q19 to Q23 are signatures on photocopy of lease deed, dated 04.01.1995 said to be executed by G. R. Reddy in favour of M/s. Srivatsa Ispat Pvt., Ltd. PW-55 stated that

he checked the above disputed writings/signatures and the standard

writings/signatures/stamp impressions and found suitable for comparison and he used the hand writing comparison principle, scientific instruments for the purpose of

comparison and arrived at the conclusion for the remaining documents that “the

person who wrote the blue enclosed signatures stamped and marked as S-37, S-38, S- 47, S-48 and S-57 to S-62 also wrote the red enclosed writings whose photostatic reproductions are marked Q-19 and Q-21. He also stated that it was not possible to express any opinion on the writing whose photostatic reproduction marked as Q-23 as the visibility of the strokes is not clear. Ex. P-373 is the opinion vide No. CH-

57/2003/6047, dt. 18-11-2003 along with covering letter. He gave a detailed

reasoning as to the basis for his opinion given under Ex. P-373.

23.In his cross-examination, PW.55 admitted that lease deed, dt.04.01.1995 sent

for comparison is a photocopy of lease deed, dated 04.01.1995. He denied the

suggestion that opinion cannot be given basing on the photocopy of lease deed and that there is a possibility of expansion of writings on taking photocopy for several

times.

15 OF 84 CC 38/2018

24.The learned defense counsel argued that as seen from the evidence of PW.55, he admitted that photocopy of lease deed, dt. 04.01.1995 was sent for comparison and it is settled law that photocopy of a document cannot be sent for comparison and hence the opinion based on writings in photocopy of lease deed cannot be taken into

consideration.

25.Admittedly, as referred in Ex. P3 Application, dt. 18-01-1995, photocopy of lease deed, dt. 04.01.1995 was enclosed to the application. It is the case of the prosecution that A1 fabricated said lease deed in order to induce the Bank authorities to sanction loan to A2 firm stating that the firm was being run at Patancheru, Medak.

The evidence of PW.6/G. Ramnarayana Reddy, who was said to have leased out plot

no. 17, IDA Patancheru, Medak District to A2 firm, shows that it is his evidence that he purchased M/s. Thethy Steels Private Limited in 1990-91 and the same was leased out to A-1, who is Managing Director of A-2 firm on monthly rent of Rs.25,000/- and that lease deed was executed between them in the month of February, 1995 and the signature appearing on Ex. P4 photocopy of lease deed is not his signature. Though

PW-48/M.A. Nisthar, who worked as Chief Manager, Andhra Bank, Mehditpatnam

stated that the signatures of G. Ramnarayana Reddy/PW.6 was available at their bank

and he has given Ex. P288 copy of application for opening an account by G.

Ramnarayana Reddy and that signatures appearing on Ex. P4 lease deed is not

signature of G. Ramnarayana Reddy/PW.6, it cannot form a basis for coming to a

conclusion that lease deed, dated 04.01.1995 is a fake document.

26.Now it has to be seen as to whether the evidence of PW.55, handwriting expert relating to his opinion based on comparison of writings on photocopy of lease deed 16 OF 84 CC 38/2018

can be taken into consideration. The oral evidence of PW.6/G. Ramnarayana Reddy

that the signature appearing on copy of lease deed, dt. 04-01-1995 is not his signature

and oral evidence of PW-48, PW-49, PW-54 expressing their opinion basing on

signatures available with their bank to the effect that the signatures appearing on

lease deed, dt. 04-01-1995 are not signatures of G. Ramnarayana Reddy cannot be

taken into consideration to hold that the lease deed, dated 04-01-1995 submitted to the Canara Bank by A-1 is a forged document. As seen from evidence of PW-55, the

expert who compared the specimen signatures, admitted signatures/writings and

questioned signatures, gave his opinion which is based on comparison of photocopy

of lease deed, dated 04-01-1995. In Bheri Nageshwara Rao Vs Mavuri

Veerabhadra Rao, 2006 (4) ALD 295, the Hon’ble High Court observed at paragraph no.5 that “opinion of a hand writing expert involves the analysis of the slant, which a person uses in the matter of putting his signature, and in some cases, the point of time, at which it may have been subscribed. These analyses would become possible only vis-a-vis an original signature; and the signature mark on a xerox copy of a document can never constitute the basis”. In the case on hand, the Investigation

Officer did not take steps to obtain the specimen signatures of the accused in the

Court and those signatures were obtained at their office. Moreover, though, the

original lease deed was very much available, the photocopy of lease deed, dated 04- 01-1995 was sent for comparison for obtaining opinion of hand writing expert and

therefore, the opinion given by PW-55 is not acceptable. Therefore, on careful

consideration of evidence on record and in view of foregoing reasons, this Court holds that the prosecution failed to establish that A-1 submitted fake lease deed, dated

as 04-01-1995 along with the loan application. Accordingly, Point No.(i) is

answered.

17 OF 84 CC 38/2018

27.Point no. (ii) :Whether A-1, A-5 in conspiracy with A-3 fabricated General

Power of Attorney, dated 22-04-1994 as if it was executed by

the Legal Heirs, Smt. L. Mangamma in favour of A-3?

It is the case of the prosecution that the accused conspired and fabricated

G.P.A., Sale Deed, No Objection Certificate and used those documents as genuine

documents. On this aspect, the evidence of PWs-7 to 14 and PW-50 is material.

PW-50/M.V. Krishna Mohan, who dealt with the accounts of Srivatsa Ispat Private

Limited (A-2) deposed that A-2 firm applied for credit facilityfor Open Case Credit limit of Rs.20,00,000/- and Inland Letter of Credit limit of Rs.20,00,000/- under

Exhibit P-3 application and on such application, Office note was placed for sanction of working capital limit. Exhibit P-290 Office note along with Orders of the Chief

Manager sanctioning O.C.C. for Rs.20,00,000/- and I.L.C. for Rs.20,00,000/- and

Exhibit P-291, copy of Memorandum of Association and Article of Association of

M/s. Srivatsa Ispat Private Limited are exhibited. He further stated that A-2 firm furnished equitable mortgage of landed property of Survey No.31/129, Road No.12,

Banjara Hills,Hyderabad, belonging to L. Narasimha Rao and L. Raju by virtue of

mutation deed and G.P.A. Holder, being M.V. Ranga Rao and in addition to

hypothecation of existing machinery worth of Rs.16,00,000/- towards collateral

security of Loan availed under Exhibit P-290. Exhibit P-8 is legal scrutiny report and

Exhibit P-292 is Valuation Report, dated 22-01-1995 given by one M. Raja Rao,

Retired Chief Engineer of Railway and approved Valuer of the Bank. Exhibit P-293 is

extract of Minutes of Board Meeting of A-2 firm, dated 18-01-1995. He further

stated that A-2 firm submitted an application, dated 17-01-1996 under Exhibit P-39

seeking for Renewal of Working Capital and Enhancement and the same was

sanctioned under Exhibit P-44 Letter dated 04-04-1996. He further stated that he 18 OF 84 CC 38/2018

verified the stock in the factory premises on 10-03-1995 along with A-1 and he

identified the factory basing on the name Board and A-1 led him to the factory. In his cross-examination, he stated thattheir Branch Chief Manager visited the factory premises before processing the loan application. He admitted that enhancement of working capital will be basing on past performance of the factory and permissible

Bank Finance.

28.PW-7/K. Laxmaiah, who worked as Postman at Kukatpally Post Office stated that Phase-III of Kukatpally Housing Board Colony comes under the limits of Beat

No.1 and the address available on Registered Cover vide Registered No.4752

pertaining to L. Narasimha Rao, S/o Jaganmohan Rao, H.No.502, A.P.H.B. Colony,

Kukatpally does not come under Phase-III of Kukatpally Housing Board Colony and

the concerned Postman of Beat No.3,16 and17 made endorsement on the cover as

“Incomplete Address returned to Sender”. PW-7 further stated that the Registered

Cover vide No.4751 addressed to L. Raju, s/o Jaganmohan Rao, H.No.502, A.P.H.B.

Colony, Kukatpally does not come under Phase-III of Kukatpally Housing Board

Colony and the concerned Postman of Beat No.3,16 and17 made endorsement on the

cover as “Incomplete Address returned to Sender”. In his cross-examination, PW-7 stated that the address on the above Registered Covers does not contain the word ‘Third Phase of Balaji Nagar of K.P.H.B. Colony’ and it does not come under Beat

No.1, 3,16 and 17 of their Post Office.

29.The prosecution has exhibited the original General Power of Attorney dated

22-04-1994 as Exhibit P-22 and the Photocopy of the same document as Exhibit P-

19 OF 84 CC 38/2018

15. PW-8/K. Chenna Reddy, who worked as Joint Sub-Registrar, Office of District

Registrar, R.R. District during the year 2001-2002 stated that in the year 2002 C.B.I.

Police called him to their Office and enquired him by showing him Certified Copy of

G.P.A. vide Document No.968/1994 which was registered in the Office of District

Registrar, R.R. District and it was executed by one L. Narasimha Rao and L. Raju in favour of M.V. Ramana Rao (A-3). He further stated that the property mentioned in the schedule lies within the limits of Sub-Registrar Office, Banjara Hills, Hyderabad and there is no jurisdiction for execution of G.P.A. prior to 01-04-1995 and anyone can execute and get the G.P.A. registered in the Office of Sub-Registrar or District

Registrar in whose jurisdiction, his residence comes and need not get the G.P.A.

registered in the limits of schedule property. He also stated that at the time of the execution of G.P.A., the required Stamp was Rs.50/- and Registration Fee is Rs.20/-

and copying and enlargement fee was Rs.41/-. He further stated that as per the

amendment with effect from 01-04-1995 one has to execute G.P.A. at 5% of Market

Value of Property or consideration mentioned in G.P.A. Deed whichever is higher. In his cross examination, he admitted that Exhibit P-15 does not disclosed on how much

stamp paper the original was executed.

30.The prosecution has examined PW-11/Lingala Venkateshwara Rao, S/o

Jaganmohan Rao in order to prove that Exhibit P-22, G.P.A. was not executed by

Children of Mangamma in favour of M.V. Ramana Rao(A-3). The evidence of PW-

11 is to the effect that Jaganmohan Rao and Mangamma are his parents and he is

having three Sisters, namely, Ratna Kumari, Swarna Devi and Rekha Rani. He

further stated that his mother died on 27-12-1969 and his father died on 26-06-1994

and that there are no persons by name Lingala Narasimha Rao and Lingala Raju in

20 OF 84 CC 38/2018

their family. Exhibit P-18 Death Certificate of Mangamma and Exhibit P-19 xerox

copy of Death Certificate of Jaganmohan Rao are exhibited. He also exhibited P-20 certified copy of Succession Certificate dated 25-07-1987 issued by Mandal Revenue

Officer, Korutla, wherein Jaganmohan Rao, Venkateshwara Rao, Ratna Kumari,

Swarna Devi and Rekha Rani are shown as Legal Heirs of L. Mangamma. PW-11

further stated that his mother purchased land to an extent of 3497 Sq. yards at Road

No.12, Banjara Hills, in Survey No.129/31 under two Registered Sale Deeds in

December, 1967 and January, 1968 i.e., 989 Sq. yards and 2,508 Sq. yards

respectively. He further stated that after demise of his mother, his father and his

sisters gave General Power of Attorney under Registered Document bearing

No.887/1988 of Sub-Registrar Office, Chikkadapally, Hyderabad. He further stated

that Sale Deed, dated 10-01-1968 vide Document No.89/1968 of Sub-Registrar,

Khairatabad, Hyderabad which is part of Exhibit P-5 Book is not genuine sale deed of his mother L. Mangamma and the original sale deed in favour of his mother contains

6 pages excluding site plan whereas, the sale deed shown to him is only 3 pages

excluding site plan. He further stated that another reason is that the document shown

to him is on three Non-Judicial Stamp Papers of value 200, 50 and 50 i.e., for

Rs.300/- in total, whereas, the original sale deed is on 6 adhesive stamps of value

Rs.292-50 Ps. He stated that Exhibit P-21 registered sale deed vide document

No.89/1968 dated 01-10-1968 is a fake document and so also the registered General

Power of Attorney vide document No.968/1994 of District Registrar Office, R.R.

District dated 22-04-1994 which was alleged to be executed by L. Narasimha Rao

and L. Raju is also a fake document as there are no persons with such names in their family. He further stated that though it is mentioned in Exhibit P-22 G.P.A. that his mother Mangamma died on 27-07-1983, in fact his mother actually expired on 27-12- 21 OF 84 CC 38/2018 1969 and so also it is mentioned in the document that his father pre-deceased his mother, whereas, in fact his mother pre-deceased his father. He further stated that he

did not obtain encumbrance certificate vide Nos.980/94, 704/95, 1802/97 and

5155/98 in respect of land in Survey No.129/31 i.e., Exhibit P-23 bunch of

encumbrance certificates 4 in number. He also stated that No Objection Certificate

dated 18-01-1994 alleged to be issued by Tahasildar, Golkonda Taluq, Hyderabad

vide document No. D/6774/1983 is a false document. Exhibit P-24 No Objection

Certificate was exhibited through him.

31.In his cross-examination, PW-11 stated that he did not hand over documents pertaining to his parents’ plot to C.B.I. Officials and he sold plot to others. PW-11 further stated that he handed over the original documents of the plot in the name of his parents to his Vendee at the time of sale which was about 5 to 6 years prior to his examination by C.B.I. Officials. He admitted that his parents purchased number of plots in that Survey no. He denied the suggestion that he do not know the details of

owners of other plots in the said Survey number.

32.In order to establish that the sale deed, dated 10-01-1968, doc. No.89/1968 is a

fake registered sale deed, the prosecution has examined PW-55, Bala Swamy, the

expert who compared the signatures and gave his opinion. The evidence of PW-55 is to the effect that he compared the signatures Q-4 to Q-11, signatures on Exhibit P-22

G.P.A. and also Q-12 to Q-14 signatures on Letter Evidencing Deposit of Title Deeds,

Q-17 and Q-18 in Exhibit P-34 Letter, dated 13-06-1996 with the specimen writings

of M. Raghavender Rao (A-1) marked as S-47 to S-50, specimen writings of M.V.

Ramana Rao (A-3) marked as S-43 to S-46, specimen writings of M. Ravi Kumar (A-

22 OF 84 CC 38/2018

4) marked as S-51 to S-54 and specimen signatures of V. Seetharam (A-6) marked as

S-55 and S-56 with the questioned documents which were received by him by using

Comparison Principle and Scientific Instruments and arrived at a conclusion that the person who wrote signatures marked as S-55 and S-56 also wrote signatures marked as Q-34 to Q-80 and it was not possible to express any opinion on the rest of the items on the basis of material at hand. Therefore, as seen from the evidence of PW- 55 expert, he did not express any opinion regarding the questioned signatures marked

as Q-4 to Q-11 on G.P.A. which were compared with the specimen signatures

obtained from A-1, A-3, A-4 and deceased A-6. Therefore, no finding is given by

him with regard to genuineness of Exhibit P-22 G.P.A. (again marked as Exhibit P-78

through PW-23 Senior Manager, Canara Bank).

33.With regard to Exhibit P-21 Registered Sale Deed dated 10-01-1968, there is no cogent evidence let in by the prosecution except the oral version of PW-11/ L.

Venkateshwara Rao that the original sale deed in the name of his mother Mangamma

is in 6 pages excluding site plan, whereas, Exhibit P-21 is in 3 pages.

34.The prosecution has also examined PW-9/K. Raghu Babu who worked as Sub-

Registrar at Banjara Hills, Hyderabad and he stated that when the C.B.I. Officials

asked him to issue copy of document No.89/1968, he issued a copy along with

covering letter dated 03-08-2002 vide Exhibit P-16. He stated that as per Exhibit P-

16, the property admeasuring 2,508 Sq. yards covered by Survey No.129/31, Road

No.12, Banjara Hills, Hyderabad stands in the name of Mangamma, W/o Jaganmohan

Rao, Himayathnagar, Hyderabad. He further stated that when C.B.I. Officials

23 OF 84 CC 38/2018

showed him xerox copy of sale deed, vide No.89/1968 and asked him to verify

whether it was registered at the Office of Sub-Registrar, Banjara Hills, Hyderabad, he verified the records and informed the C.B.I. Officials that Exhibit P-16 did not tally

with their records. He further stated that Exhibit P-17 copy of Sale Deed vide

No.89/1968 dated 10-01-1968 shown by C.B.I. Officials is different from Exhibit

P-16. In his cross-examination, PW-9 admitted that there is no practice of keeping copies of Registered documents at the Office of Sub-Registrar during the year 1968.

He further stated that he verified Exhibit P-17 copy of Registered Sale Deed with

Book-I, Volume available in their office. He admitted that there is no discrepancy regarding the property covered by Copy of sale deeds under Exhibit P-16 and Exhibit

P-17. As seen from Exhibit P-16 copy of document No.89/1968 which was enclosed

to the letter, it shows that the sale deed was executed on 10-01-1968 by one A.

Dinakar in favour of Smt. L. Mangamma, W/o Jaganmohan Rao in respect of land in

Survey No.129/31 to an extent of 2,508 Sq. yards, Road No.12, Banjara Hills,

Shaikpet Village, Urban Taluq, Hyderabad.

35.Be that as it may, the prosecution has examined PW-16/P. Sai Baba, who

worked as Deputy Director, Survey and Land Records, Government of A.P.,

Hyderabad. PW-16 stated that he received Letter, dated 19-11-1998 from one K.

Subba Rao, Manager, Credit of Canara Bank, M.G. Road, Secunderabad requesting

him to furnish details of property in Survey No.129/31 Hyderabad and to identify the property and its existing and present position of the property vide Exhibit P-30 Letter.

He further stated that in response to the Letter dated 19-11-1998, he directed the

Surveyor to inspect the property and then the Surveyor inspected the spot along with

Bank Officials and reported that the Site is located in part of Town Survey No.1 and 3 24 OF 84 CC 38/2018

of Block-J, Ward-12 of Hakimpet Village, whereas, Survey No.129/31 is

corresponding to Town Survey No.2, Block-K, Ward-12 of Shaikpet Village. He

further stated that the property shown to Surveyor by the Bank Officials is not

situated in Survey No.129/31 and that it is located in part of T.S. No.1 and 3 of

Block-J, Ward-12 of Hakimpet Village. He further stated that he addressed Exhibit P-

31 Letter dated 23-12-1998 to K. Subba Rao, Manager, Credits, Canara Bank, M.G.

Road, Secunderabad. As seen from Exhibit P-30, which is letter dated 19-11-1998

addressed to the Deputy Director, Survey and Land Records, Hyderabad by the

Manager (Credit), Canara Bank, M.G. Road, Secunderabad and Exhibit P-31 is true

copy of letter, dated 23-12-1998 addressed by PW-16. In his cross-examination, PW-

16 admitted that he did not verify whether details and identity of the property

mentioned in the document and where it was located.

36.Admittedly, though, PW-16 stated that inspection was conducted by the

Surveyor and then he addressed the original of Exhibit P-31 Letter to the Branch

Manager, Canara Bank, no report said to be given by the Surveyor was enclosed to the Exhibit P-31 Letter in order to take into consideration the contents of Exhibit P- 31 Letter that too which is a true copy of the original. Therefore, on a careful

consideration of evidence adduced by the prosecution and in view of foregoing

reasons, this Court holds that the prosecution failed to establish that the accused no.1 in conspiracy with accused no.3 submitted fabricated documents which are Sale Deed

dated as 10-01-1968 and G.P.A. dated as 22-04-1994. The prosecution has also

examined PW-10/Ch. Vidyasagar Rao, brother of Mangamma whose evidence relates

to death of Mangamma in the year 1969 and death of Jaganmohan Rao in the year

1994. The prosecution has also examined PW-13/Mohammad Sirajuddin who

25 OF 84 CC 38/2018 worked as Muncipal Health Officer, Registrar of Births and Deaths, Nizamabad, from 2002 to 2003 and his evidence relates to issuance of Exhibit P-25 Letter dated 27-01- 2003 addressed by him to Inspector of Police, C.B.I., Special Police Establishment,

Hyderabad informing him about Death Certificate issued by the Office of Municipal

Health Officer.

37.The prosecution has examined PW-14/Mir Sujith Ali Khan, who worked as

Tahasildar, Golkonda and his evidence shows that he attested Exhibit P-26 copy of

Mutation Proceedings and the signature appearing on Exhibit P-24 dated 18-01-1984 also appears to be his signature. But, PW-11 stated that Exhibit P-24 is a false No

Objection Certificate. The prosecution did not adduce any evidence to show that

Exhibit P-24 is a false ‘No Objection Certificate’.

38.When it is the case of the prosecution that the accused fabricated Sale deed, dt.

10.01.1968 in the name of Mangamma and General Power of Attorney as if it was

executed by legal heirs of Mangamma in favour of A3 and the same was shown as

collateral security to the bank, the burden lies on the prosecution to prove to the hilt that those documents are fabricated by leading cogent evidence. In the case on hand,

the prosecution did not adduce any cogent evidence to prove said fact and oral

evidence cannot help to prove that the document is not genuine. Therefore, on careful consideration of evidence on record, this court holds that prosecution failed to establish that A-1, A-5 in conspiracy with A-3 fabricated General Power of Attorney,

dated 22-04-1994 as if it was executed by the Legal Heirs, Smt. L. Mangamma in

favour of A-3. Accordingly, point no. (ii) is answered.

26 OF 84 CC 38/2018

39.Point no. (iii) : Whether A-1 and A-5 representing A-2 firm had submitted a

fake lease deed, dated 31-05-1996 in respect of Lease of

Premises located at 169, I.D.A., Bollaram, Medak District?

The charge levelled against accused No.1 to 5 is that they submitted a forged

Lease Deed dated 31-05-1996 stating that A-2 firm was shifted to Leased premises of

Padmaja Industries located at 169, I.D.A., Bollaram, though Padmaja Industries was not in existence and that A-1 submitted documents to Canara Bank, showing purchase

of sick unit ‘Chawla Wires Private Limited’ located2 at I.D.A., Bollaram, Medak

District.

40.In order to prove the charge leveled against accused, the prosecution has

examined PW-22/K. Mohan Chandran, who worked as Chief Manager, Canara Bank,

M.G. Road Branch, during the period 1995-1998. PW-22 stated that A-2 firm availed open cash credit limit from their Branch to an extent of 20,00,000/- and Letter of

Credit of Rs.20,00,000/- against security of hypothecation of the stock and good debts and landed property at Banjara Hills standing in the name of M.V. Ramana Rao (A-3) and on personal guarantee of Directors of A-2 company. He further stated that

Exhibit P-54 Letter dated 12-02-1996 was sent by their Branch to Circle Office

recommending enhancement of O.C.C. Limit from Rs.20 to 25 Lakhs and L.C. Limit

from Rs.20 to 75 Lakhs and collateral security initially offered and hypothecation

machinery in the factory are recommended to D.C.M., Circle Office, Hyderabad on

19-03-1996. He further stated that then the Circle Office had sanctioned O.C.C.

Limit of Rs.25 Lakhs and L.C. Limit of Rs.50 Lakhs with terms and conditions vide

Exhibit P-44 Letter dated 04-04-1996. He further stated that Exhibit P-55 letter dated 27 OF 84 CC 38/2018

04-04-1996 was addressed to A-2 company informing about enhancement of O.C.C.

Limit and L.C. Limit.

41.PW-22 further stated that the accused addressed a Letter, dated 11-06-1996

stating that they have taken another premises on Lease at Plot No.169, I.D.A.,

Bollaram, by enclosing Exhibit P-7 copy of lease deed for the reason that existing

plot No.17 at Patancheru was under modernization and renovation. PW-22 further

stated that a Letter was addressed by P.S.R. Murthy of Padmaja Industries on date 13- 06-1996 by giving No Objection Certificate under Exhibit P-34 i.e., Letter dated 13-

06-1996. He further stated that their Branch has recommended guarantee of Rs.25

Lakhs in favour of N.S.I.C. vide Letter dated 10-06-1996 and then Letter, dated

08-08-1996 Exhibit P-56 was received from Circle Office, Hyderabad wherein the

remarks were mentioned. In his cross examination PW-22 stated that in the year

1996 he visited the premises of A-2 firm and he himself verified concerned Accounts

Books which is leased by Padmaja Industries. He further stated that Padmaja is wife

of A-1.

42.In order to prove that there does not exist any company with the name Padmaja

Industries, the prosecution has examined PW-15/G. Muralidhar, who worked as

Executive Officer at Bollaram Gram Panchayat, Jinnaram Mandal, Medak District

from 12-12-1997 to 2004. He stated that when the Inspector of Police, C.B.I.,

Hyderabad enquired him to furnish details of existing companies i.e., Srivatsa Ispat

Private Limited and Padmaja Industries at Gram Panchayat, Bollaram and their

existence, then he along with his staff and C.B.I. Inspector went to Survey No.168, 28 OF 84 CC 38/2018 169, 172 situated at Bollaram village and verified their records about existence of

these companies with their Survey Numbers and Door Numbers and found that

Srivatsa Ispat Private Limited and Padmaja Industries does not exist as per their site

inspection and verification by their team and also as per House Tax Assessment

Books and Demand Registers and he intimated the same to Inspector of Police C.B.I.

through Exhibit P-27 Letter No. GPB/145/2003 dated 04-02-2003, consisting of three sheets which include rough sketch of location of Industrial Area and Exhibit P-28

Page No.66 contains the Certificate of Collection of Tax and number of companies

and also Exhibit P-29 is Demand Register for the year 1998-99, Gram Panchayat,

Bollaram. The prosecution has exhibited Exhibit P-28 House Tax Assessment

Register for the year 1997-1998 relating to I.D.A., Bollaram and Exhibit P-29

Demand Register for the year 1998-99 relating to Bollaram to show that there are no companies in the name of Srivatsa Ispat Private Limited and Padmaja Industries. In his cross examination, PW-15 stated that he did not file the Letter addressed by C.B.I.

to their office. He further stated that Exhibit P-27 Letter to which rough sketch is enclosed does not contain Survey No.169. He admitted that Exhibit P-28 Register is

in respect of House Tax Assessment by Gram Panchayat. He also admitted that he

did not mention the names of members who assisted him at the time of Inspection.

He denied the suggestion that Srivatsa Ispat Private Limited and Padmaja Industries

were in existence in Survey No.169 and, therefore, it is not mentioned.

43.The prosecution examined PW-17/M. Raja Reddy who retired as Additional

Director of Industries, Hyderabad to prove that Srivatsa Ispat Private Limited and

Padmaja Industries were not in existence. PW-17 stated that after his retirement, he

became a Member in Sri Venkateshwara Co-Operative Industrial Estate situated at

29 OF 84 CC 38/2018

Bollaram village and he was elected as Vice-President and Executive Director of Sri

Venkateshwara Co-Operative Industrial Estate. He further stated that before he

joined as a Member in the above Society, the Society has allotted Plots to interested parties after preparations of Layout in Survey No.172 of Bollaram village, Medak

District. He further stated that C.B.I. Officials visited the Co-Operative Society

Office and requested him to furnish details pertaining to original owners of Plot

Nos.167 to 170 in Sri Venkateshwara Co-Operative Industrial Estate, I.D.A.,

Bollaram village and after verification of records, he furnished details of Plots allotted by the Co-Operative Society. He further stated that as per their records, there are no industries by names Srivatsa Ispat Private Limited and Padmaja Industries existed in Plot Nos.168 or 169 of Sri Venkateshwara Co-Operative Industrial Estates,

I.D.A.,Bollaram village and he addressed a Letter to Inspector of Police, C.B.I.,

Hyderabad vide Exhibit P-32 Letter dated 31-01-2003 by enclosing copy of layout.

He further stated that the layout plan contains only the Plot Nos. and the particulars of persons to whom Plots are allotted will be mentioned in the Allotment Register and it is after verifying the Allotment Register, he gave his statement. In his cross- examination, PW-17 stated that the Allotment of Plots was done in the year 1980 and subsequent sales were noted down in the Record. He further stated that he is not aware as to whether A.P. State Financial Corporation had sold Plot No.168 to the

accused in the Public Auction.

44.PW-18 Sunitha, who worked Postwoman, Hyderabad stated that as part of her duty, she went to Unit House 52 and 53 of Third Floor to deliver a Register Letter

No.3848 addressed to P.S.R. Murthy, Padmaja Industries, dated 28-01-2003 and

visited the above address and in that address there is no such industry or no such 30 OF 84 CC 38/2018 person with the name P.S.R. Murthy and hence, she endorsed on Exhibit P-33 Cover

No.3848 as “Left hence returned to Sender”.

45.PW-19/Sudheer Kumar Agarwal, Director of Archana Iron Traders Private

Limited was examined and he stated that he is Director of Satavahana Alloys Private

Limited from 1992 to 2003, which is situated at Plot No.168, I.D.A., Bollaram and he

purchased said company from one A.S. Rao, owner of Satavahana Ispat Limited in

the year 1992. He further stated the adjacent firm owned by A.S. Rao in Plot No.168,

I.D.A., Bollaram in the name of Satavahana Rolling Mills was purchased by Ravi

Kumar and he is not aware as to the existence of Srivatsa Ispat Private Limited in

Plot No.168, I.D.A, Bollaram and Padmaja Industries in Plot No.169, I.D.A,

Bollaram. He further stated that he is having one acre land in Plot No.169, I.D.A,

Bollaram just behind his firm.

46.On a careful consideration of above evidence adduced by the prosecution, it s crystal clear that though the prosecution has adduced evidence to establish that there does not exist Padmaja Industries and Srivatsa Ispat Pvt. Ltd in plot no. 169, IDA,

Bollaram, the oral evidence of PW18, post woman and PW.19, Former Director of

Satavahana Alloys Pvt. Ltd., cannot be relied upon. Though PW-15/G. Muralidhar,

who worked as Executive Officer at Bollaram Gram Panchayat, deposed that he

furnished the particulars to the C.B.I. stating that there does not exist Sri Vatsa Ispat

Pvt. Ltd., and Padmaja Industries at plot no. 169, IDA, Bollaram, Medak District, he admitted that Ex. P28 House Tax assessment register for the year 1997-98 pertains to house tax. Therefore, ExP28 cannot be relied upon to prove non existence of those

two firms. The evidence of PW-17, who worked as Vice-President and Executive

31 OF 84 CC 38/2018

Director of Sri Venkateshwara Co-Operative Industrial Estate relates to allotment of

plots in Survey no. 168 and 169. Though copy of layout plan was enclosed to the

letter addressed by him, said copy is not of much avail. Therefore, this court holds that prosecution failed to establish that the plots were allotted. The allotment register

which contains details as to allotment is not brought on to record. A-1 and A-5

representing A-2 firm had submitted a fake lease deed, dated 31-05-1996 in respect of

Lease of Premises located at 169, I.D.A., Bollaram, Medak District. Accordingly, the

point no. (iii) is answered.

47.Point no. (iv) : Whether A-1 in criminal conspiracy with A-4 had deceived the

bank authorities by showing to them the stock, machinery

raw material belonging to Ravi Steel Tubes and M/s.

Satavahana Rolling Mills Private Limited as the stock

and material of A-2 firm?

It is the case of the prosecution that the accused no.1 deceived the bank

officials by showing to them the stock, machinery and raw material belonging to Ravi

Steel Tubes and M/s. Satavahana Rolling Mills Private Limited as if the stock, raw

material pertains to A2 firm. In order to prove that A2 firm deceived the bank

authorities, the prosecution has examined PW-24/R.S. Ravi Kumar who worked as

Manager, Canara Bank, M.G. Road, Secunderabad from May, 1997 to August, 1998.

PW-24 stated that the Chief Manager used to allot stock/unit inspections to all the

Officers and Managers of the Branch and during March, 1998 he was asked to

conduct stock inspection of M/s. Srivatsa Ispat Pvt. Ltd., and on 04-03-1998 he

visited the premises of M/s. Srivatsa Ispat Pvt. Ltd., and conducted stock inspection.

He further stated that on that date, A-1 accompanied him at the time of inspection but

did not show books of Accounts of the company and promised to show book of

Accounts at a later date, but failed to do so and then he addressed a Letter, dated 16-03-1998 seeking information regarding books of Accounts and other information.

He further stated that even thereafter the company failed to respond to the Letter and hence he submitted his Inspection Report on date 20-03-1998 to the Chief Manager 32 OF 84 CC 38/2018 along with adverse remarks. He further stated that on 04-03-1998, A-1 took him to

I.D.A., Bollaram which is opposite to Sri Venkateshwara Medichem Private Limited and rear side of Satavahana Steels and Alloys Private Limited and informed that they

have taken adjacent premises on lease which has way from the backside of M/s.

Srivatsa Ispat Private Limited. The stock inspection report is exhibited as P-84. As seen from Exhibit P-84 Stock Inspection Report, it is mentioned therein that the date of inspection of the stock is 04-03-1998 at I.D.A., Bollaram and that the stock was physically verified subject to limitations and manual calculations. It is also mentioned therein that steps are taken to rectify adverse remarks and also an enclosure is made to the inspection report stating that on verification, January, 1998 Purchase Invoices

are not available and the management informed that the same are with Excise

Department and will be returned to them in due course and also the party could not produce Cash Register/Bank Book, Creditors Register and Sales Tax Return copies.

It is further mentioned that though they have specifically instructed the party to make necessary arrangements to provide other records, till date the party has not shown their co-operation and the party has not passed on the turn-over through O.C.C. In his cross-examination, PW-24 stated that he do not know whether the total extent of

Survey No.168, I.D.A., Bollaram is more than 5 acres and whether A-1 purchased the land in Survey No.168, I.D.A., Bollaram in the auction conducted by A.P.S.F.C. for establishment of A-2 firm. He also stated that the Chief Manager will finalized the schedule of stock inspection of units once in a quarter allotting Branch to different

Officials. His evidence shows that he verified the stock and that A1 did not produce

any register.

48.The prosecution has also examined PW.52/G. Srihari Naidu, and he deposed that he worked as Superintendent of Customs and Central Excise, Guntur/Hyderabad

Collectorates from 1992 to 2013 and on enquiry by CBI, he verified the records and 33 OF 84 CC 38/2018

as per the records, Srivatsa Ispat Pvt. Ltd., did not manufacture and clear any

excisable goods. He also stated that Srivatsa Ispat Pvt. Ltd., was registered with CER no. 16/1997, but not by CER number 3/1996. He also stated that CER no. 3/1996 was in fact allotted to Ravi Steel Tubes. Exs. P297 to 299 are office copy of invoices of

M/s. Srivatsa Ispat Pvt. Ltd. Though he stated as such, the oral evidence of PW-52 regarding registration number cannot be relied upon in the absence of production of

relevant records.

49.PW-25/M. Anantham, who worked as Chief Manager, Canara Bank, M.G.

Road, Secunderabad from 18-06-1998 to October, 1999 stated that as a Chief

Manager, he was In-charge of Branch affairs including Credit matters and during his tenure at M.G. Road Branch, Secunderabad, he handled the Credit file pertaining to

M/s. Srivatsa Ispat Pvt. Ltd. He further stated that A-2 firm was sanctioned working capital credit limit on 23-01-1995 under Exhibit P-10 Sanction Letter and the same was enhanced and renewed in the year 1996 under Exhibit P-44 and the limits were further enhanced and renewed in the year 1997 under Exhibit P-63. He further stated that the limits were extended by the Deputy General Manager, Circle Office, Canara

Bank, Hyderabad upto 30-06-1998 vide Exhibit P-85 extension of Credit limit

sanction order. He further stated that on 28-06-1998, A-2 firm submitted Exhibit P- 86 Letter for Enhancement of Working Capital Limits with Canara Bank, M.G. Road, for which the Branch has asked for details of unsecured loans vide Letter dated 09- 07-1998 under Exhibit P-87 and then they have intimated the same to their Circle

Office, Canara Bank, Hyderabad vide Exhibit P-88 Letter dated 17-07-1998 by

explaining the reasons for delay in submitting renewal report beyond extended time and intimated to the party to regularize over dues in the account and asked for further details. He further stated that on 10-08-1998, the Chief Manager and Technical Field 34 OF 84 CC 38/2018

Officer of S.B.H., City Branch, Pattargatti, Hyderabad came to their Branch and

enquired whether they gave any finance to Ravi Steels Tubes and Satavahana Rolling

Mills Private Limited situated at I.D.A., Bollaram and the same was informed to

Chief Manager, S.B.H., Pattargatti Branch that they did not give any financial

assistance to those two units. He also stated that it came to their notice that A-1 is

brother of A-4 who is Managing Director of above two units and a Letter was

addressed to the Circle Office intimating about the visit of S.B.H. Officials vide

Exhibit P-89 Letter dated 13-08-1998. He also stated that he visited the premises of

M/s. Srivatsa Ispat Pvt. Ltd., on date 05-08-1998 along with A-1 and that A-1 showed him the premises of Ravi Steel Tubes and Satavahana Rolling Mills Private Limited at Survey No.168, I.D.A., Bollaram financed by S.B.H. and the name board of M/s.

Srivatsa Ispat Pvt. Ltd., was displayed in the same premises and the name boards of

Ravi Steel Tubes and Satavahana Rolling Mills Private Limited were not seen during his visit. He further stated that he observed that records and the stock books were not properly maintained and report was submitted to the company. He further stated that after visiting the premises of M/s. Srivatsa Ispat Pvt. Ltd., he got suspicion over collateral security of the land and as such, he called a fresh Valuation Report from N.

Subba Rao, Approved Valuer and in response to his letter, N. Subba Rao submitted

Exhibit P-98 Valuation Report on date 27-10-1998. He further stated that as there is discrepancy with regard to sketch attached to Exhibit P-98 report and also valuation, they asked earlier Valuer Raja Rao, who submitted Exhibit P-30 Valuation Report to clarify and then Raja Rao gave a clarification on the location of the Plot and its valuation. He further stated that again they contacted Subba Rao and asked him to take affidavit from G.P.A. Holder or Original Owner of the Plot and then N. Subba

Rao submitted Exhibit P-99 Valuation Report dated 14-11-1998. Though, Exhibits P-

98 and P-99 Valuation Reports said to be given by N. Subba Rao are exhibited

through PW-25, those documents cannot be taken into consideration for the reason that N. Subba Rao was not examined by the prosecution in order to explain as to on 35 OF 84 CC 38/2018 what basis he addressed said Letters to the Chief Manager, Canara Bank, Hyderabad.

He further stated that he issued a Re-Call Notice under Exhibit P-65, dated 27-01-

1999 to A-1 representing A-2 company to clear its liabilities which was

acknowledged by the accused and then the accused addressed Exhibit P-66 Letter,

dated 19-03-1999 requesting time to rectify irregularities. In his cross examination,

PW-25 admitted that the loan sanctioned to A-2 firm in the year 1995 was renewed and enhanced from time to time and it was extended till 30-06-1998. PW-25 stated that in normal course, enhancement of credit limits and renewal of loans will be done after verification of documents and verification of stock in the factory and also

conduct of the Accountant. He further stated that one P. Satyanarayana, Senior

Manager of Credit Monitoring Cell conducted investigation by visiting the premises of A-2 firm and submitted his report through Circle Office of their Bank. He further

admitted that in Exhibit P-99 Valuation Report given by N. Subba Rao, it is not

mentioned that the land offered by A-2 company as collateral security is a

Government Land.

50. PW-30/Y. Ram Mohan Rao, who worked as Government Registered Valuer

for lands and buildings with Income Tax and for Banks which are S.B.I., Canara

Bank and Syndicate Bank stated that in the year 1997, A-1 approached him for

valuation report of his factory and then he personally visited the place shown by A-1 and gave a report under Exhibit P-107 valuation report, dated 13-02-1997. He further stated that no documents were produced by A-1 for his reference and assessment was based on physical observation and inspection and the same was mentioned by him in

Exhibit P-107 report. He further stated that he do not remember whether he observed any board of the firm. He denied the formal suggestions put to him that A-1 never approached him for valuation report and that it was given at the instance of Bank

Officials. As seen form Exhibit P-107, it is photocopy of valuation report dated 13- 36 OF 84 CC 38/2018

02-1997 said to be given by PW-30. As Exhibit P-107, is photocopy of valuation

report it cannot be taken into consideration.

51.PW-31/I.B.K. Prasad, who worked as Assistant Manager, A.P.S.F.C.

Ramachandrapuram Branch in the year 1997 stated that one ‘Chawla Wires Private

Limited’ was a sick unit financed by A.P.S.F.C. and in the public auction held in the

year 1995, A-2 firm represented by A-1 purchased land buildings of Chawla Wires

Private Limited for Rs.5.86 lakhs and A-1 paid 35% of down payment and the

balance amount of Rs.3.81 lakhs was treated as Loan and, thereafter, A-1 requested to hand over the land and buildings of Chawla Wires Private Limited to Vamshi Metals

Private Limited instead of M/s. Srivatsa Ispat Pvt. Ltd., stating that both the

companies were promoted by him. He further stated that considering the request, the land and buildings were handed over to M/s. Vamshi Metals Private Limited and Sale

Agreement was executed in the name of M/s. Vamshi Metals Private Limited. He

further stated that A-1 again requested to execute fresh Sale Agreement in the name of M/s. Srivatsa Ispat Pvt. Ltd., which has originally participated in the auction and

the machinery of M/s. Chawla Wires Private Limited was sold to M/s. Vamshi

Metals Private Limited in public auction and A-1 paid only earnest money deposit and failed to pay balance sale consideration for the machinery and also loan amount pertaining land and buildings. He further stated that the Corporation seized land and buildings along with machinery and subsequently sold to others in the public auction in the year 2000. He also stated that there was no industrial activities in the premises from the date of purchase of land and buildings by M/s. Srivatsa Ispat Pvt. Ltd. He

further stated that at the request of Canara Bank, they issued ‘No Objection

Certificate’ for creating charge on land and buildings purchased by M/s. Srivatsa

Ispat Pvt. Ltd., or Vamshi Metals Private Limited. Exhibits P-108 to P-121 are

exhibited through him. Exhibit P-108 is Branch Note, dated 28-10-1996 put up by

37 OF 84 CC 38/2018

Senior Assistant, A.P. S.F.C. for approval to transfer land and buildings of M/s

Chawla Wires Private Limited in the name of M/s. Vamshi Metals Private Limited

and Exhibit P-109 is Punchanama dated 16-12-1996 regarding handing over

possession of land and buildings to the purchasers. Exhibit P-110 is Letter, dated 17-

03-1997 from M/s. Vamshi Metals Private Limited regarding offer to purchase

machinery of Chawla Wires Private Limited, Exhibit P-111 is copy of Letter dated

26-05-1997 regarding approval for selling machinery pertaining to M/s. Chawla

Wires Private Limited to M/s. Vamshi Metals Private Limited. In his cross

examination, PW-31 stated that he did not file any authorization letter to show that he

was authorized to inspect the premises. He admitted that A.P.S.F.C. issued No

Objection to create second charge on the property to Canara Bank at the request of A- 1 and Canara Bank. He further admitted that everything was done as per prevailing

procedure and the property was seized by A.P.S.F.C. consequent of default in

payment of dues but not by Canara Bank.

52.It is further case of the prosecution that A-1 has availed loan from Canara

Bank, M.G. Road, Secunderabad by showing the stock relating to Ravi Steel Tubes

and Satavahana Rolling Mills Private Limited and thereby A-4 availed loan from

S.B.H., Pattargatti Branch, Hyderabad and A-1 availed loan from Canara Bank. The

evidence of PW-26/M. Mahadevaiah who worked as Manager, Scale-II, Canara Bank,

M.G. Road Branch, Secunderabad from 1994-1997 shows that during the period he

worked as Manager at Canara Bank, M.G. Road Branch, he dealt with Loan Account

of A-2 firm. PW-26 stated that he processed the loan application for renewal and

enhancement of Credit facilities of A-2 company during February, 1997 on the

38 OF 84 CC 38/2018

application submitted by said company under Exhibit P-60 by enclosing relevant

documents. It is his further evidence that the file was sent to Chief Manager for sanction under Exhibit P-61. He further stated that A-2 offered collateral security of

Rs.46 lakhs as second charge on land and building in Plot No.168, I.D.A., Bollaram

Industrial Estate, Hyderabad, belonging to M/s. Vamshi Metals Private Limited of which A-1 is Managing Director. He further stated that A-2 also continued equitable

mortgage of landed property at Survey No.31/129, Road No.12, Banjara Hills,

Hyderabad measuring 2,508 Sq. yards belonging to L. Narasimha Rao and L. Raju

which was valued at Rs.60.19 lakhs and continued collateral security of existing machinery valued at Rs.18.3 lakhs as per Audit Balance Sheet as at 31-03-1996. He further stated that he verified the Credit Report dated 03-02-1997 prepared by Loan

Officer, Vijay Reddy and Valuation Report dated 13-02-1997 given by the Approved

Valuer, Y.R. Rao at the time of processing the proposal for enhancement of Credit

Limits to A-2 firm. He further stated that he verified Exhibit P-101 copy of Invoice issued by M/s. Associated Steel Processing Industry, Hyderabad in favour of M/s.

Vamshi Metals Private Limited. He further stated that he did not physically verify the

existence of machinery supplied by M/s. Associated Steel Processing Industry,

Hyderabad before sending the proposal for enhancement of credit facilities to M/s.

Srivatsa Ispat Private Limited. He further stated that enhanced credit limits were sanctioned to A-2 firm under Exhibit P-63 sanction orders. He admitted in his cross-

examination that the working capital was renewed every year basing on the

performance of the unit and also the running condition of the unit. The Investigation

Officer was examined by the prosecution as PW-58 and Exhibits P-388 to P-516 are

marked through him. Out of the above documents, Exhibit P-392 to Exhibit P-411

relate to correspondence letters addressed among the Branch Managers and Office

39 OF 84 CC 38/2018

Notes put up by the Advances Section, Canara Bank, Hyderabad. Exhibits P-415 to

P-421 are Stock Inspection Reports submitted by the Officers of Canara Bank. As

seen from Exhibit P-415 Stock Report, K. Gnaneshwara Rao/PW-21 inspected the

stock at Go-down of A-2 firm at I.D.A., Bollaram on 17-01-1997 and submitted his report by referring the remark on the functioning of the unit as satisfactory and as ‘advised the party is declaring furnished goods at Sale Price and Cost Data to be

obtained’. So also Exhibit P-416 stock inspection report submitted by E. Vijay

Reddy shows that he inspected the stock on date 23-01-1998 with a direction to the party to produce Debtors/Creditors Record. Further Exhibits P-417, P-418, P-419, P- 420, P-421 are stock inspection reports relating to date of inspection of the stock

on 30-04-1998, 25-04-1997, 07-08-1997, 05-08-1998, 27-08-1998, 28-08-1998 and

01-09-1998 respectively. Though, it is alleged that A-1 has represented to the Bank

Authorities that he is running A-2 firm at Plot No.168, I.D.A., Bollaram by showing the stock belonging to A-4 company M/s. Satavahana Rolling Mills Private Limited and M/s. Ravi Steel Tubes, Bank authorities has enhanced the credit limit to A-2 firm

during the period from 1997 to 1998 after verification of stock by the Bank

authorities and at no point of time, they did not raise any objection stating that A-2

firm did not furnish the relevant records of A-2 firm. Therefore, on careful

consideration of evidence on record and in view of fore-going reasons, this Court holds the prosecution failed to establish that A-1 in conspiracy with A-4 cheated the

Bank. Accordingly, the Point No. (iv) is answered.

53.Point no. (v) : Whether A-1, A-5 in criminal conspiracy with A-6 floated two

firms viz. Kumud Steel Processors and Sri Sai

Industries and diverted the amount granted by N.S.I.C. to A-2

firm and Ravi Steel Tubes belonging to A-4?

40 OF 84 CC 38/2018

It is further case of the prosecution that the accused criminally conspired and

they diverted the funds into their accounts and thereby cheated the Bank by floating

two non-existent companies which are Kumud Steel Processors and M/s. Sri Sai

Industries. On this aspect, the evidence of PW-53/V. Arumugam who worked as

Deputy Manager in National Small Industries Corporation Limited, Hyderabad from

June, 1998 till 2012 is crucial. The evidence of PW-53 is to the effect that during his tenure, N.S.I.C. gave assistance to A-2 firm represented by its Managing Director

A-1. Exhibit P-300 to P-310 file relating to Bank Guarantees issued by Canara Bank

and which are submitted by A-2 firm are exhibited through him. PW-53 further

stated that the Small Scale Industries approach N.S.I.C. for raw material assistance and after considering the request, the facilities will be extended against security of

Bank Guarantee and a Letter of Credit. He further stated that the financial assistance

was granted to A-2 firm on submission of Proforma Invoice/Bills given by Kumud

Steel Processors and M/s. Sri Sai Industries and payments were made to those

companies by way of Exhibits P-193 to P-227 Cheques in favour of Kumud Steel

Processors and Exhibits P-279 to P-281, P-283 to P-285 Cheques in favour of M/s.

Sri Sai Industries. Exhibits P-312 to P-369 are Proforma Invoice/Bill said to be given by Kumud Steel Processors and M/s. Sri Sai Industries which were submitted by A-2 firm and payment vouchers of N.S.I.C. PW-53 further stated that N.S.I.C. invoked 8

Bank Guarantees and received payment of Rs.1.5 crores from Canara Bank as A-2

firm did not clear dues.

54.In order to show that Kumud Steel Processors and M/s. Sri Sai Industries are

not in existence, the prosecution has examined PW-32/K. Bhattacharya, R/o

Nallakunta, who stated that he is residing at Nallakunta for last 30 years and there is no firm or office in the name of Kumud Steel Processors at Nallakunta area. He stated that he did not file any document to show that there is no firm in the name of Kumud 41 OF 84 CC 38/2018

Steel Processors. Though it is suggested to him as such the fact remains that being a resident of Nallakunta area, he stated his version and he cannot be expected to file any document to show that there does not exist a firm in the name of Kumud Steel

Processors.

55.The prosecution has also examined PW-34/T. Ajith Kumar Singh who deposed

that he resided at H.no.2-2-1152/3, New Nallakunta, Hyderabad from 1976 to 2009

and when CBI police enquired him about existence of Kumud Steel Processors at

New Nallakunta, Hyderabad, he replied that no such firm is existing in the said

locality. The evidence of PW-35/K. Pandu is to the effect that CBI police never

examined him. Though the prosecution has cross-examined him nothing significant

could be elicited, except marking his section 161 CrPC statement recorded by the police as Ex. P125. PW-38 who is Managing Director of Yenplas Pvt. Ltd., at shed

no. 14, IDA, Charlapally stated that he do not remember whether CBI police

examined him about existence of Kumud Steel Processors at phase II, IDA,

Charlapally. His section 161 CrPC statement recorded by the CBI police is marked as

Ex. P126.

56.The evidence of PW-33/J.S.Prabhulingam, who worked as ACTO, Vidyanagar from 1999 to 2003 is to the effect that in the year 2003, CBI police examined him and enquired him about registration of firms in the name of M/s. Sri Sai Industries and

M/s. Kumud Steel Processors situated at Nallakunta and after verification of the records, he gave a report in writing stating that those two firms are not registered with their office since 1993 and till that date. Ex. P122 report given by their office along with the letter, dt. 28-04-2003 stating that M/s. Kumud Steel processors Pvt. Ltd., is not registered on rolls of CTO, Vidyanagar Circle, Ex. P123 report issued by the

office under Letter in RC.No.E/23/2003. Dt. 06.05.2003 stating that APGST No.

42 OF 84 CC 38/2018

SEC/09/02/2803/95-96 and CST No. SEC/09/02/2803/95-96 was not allotted to M/s.

Sri Sai Industries and as per their records they were allotted to M/S. Sudhakar Steel

Tubes, New Nallakunta and its factory is at IDA, Nacharam and Ex. P124 the report issued by their office under Letter RC.No.E/5/2003. Dt. 17/01/2003 stating that M/s.

Srivatsa Ispat Pvt. Ltd is registered dealer holding APGST No. SEC/09/02/2863/95- 96 with effect from 26/05/1995 and CST No. SEC/09/02/2543/95-96 with effect from

26/05/1995.

57.PW-41/M. Balaiah, who worked as Assistant Commercial Officer, Sanathnagar

Circle during the year 2000 stated that all the firms and shops where there is a business performed by them is required to register at Commercial Tax office and to file their returns with respect to taxes. He further stated that in the year 2003, CBI

police examined him about registration of firm M/s. Kumud Steel Processors with

their office and after verification of records, he reported that there is no such firm registered with their office since 1993 and Exhibit P-128 Letter, dated 30-04-2003 was issued to that effect. So also PW-43 A. Raghuveer stated that his father-in-law

Lakshma Chary purchased Plot No.206, Kubera Towers, Narayanaguda, Hyderabad

in or around the year 1990 and since the date of purchase he has been looking after

said Flat and to his knowledge, they never let-out said Flat to Kumud Steel

Processors. He denied the suggestion that one Sitharam was their first tenant and

rental agreement was also entered with him and that Sitharam used to attend his

office work as Proprietor of Kumud Steel Processors from Flat No.206.

58.With regard to Sri Sai Industries, the prosecution has examined PW-36/K.P.V.

Ramana, resident of Nallakunta area and he stated that he has been residing at

43 OF 84 CC 38/2018

Nallakunta for more than 25 years and when CBI police enquired him about existence of Sri Sai Industries at New Nallakunta, Hyderabad, he replied that no such firm or

office is existing in that locality. The evidence of PW-37/S.P. Koteshwar Rao,

resident of Nallakunta area is also to the similar effect.

59.PW-39/B. Vijay Kumar, who worked as Assistant Zonal Manager, APIIC,

Katedan, Hyderabad stated that APIIC was established for allotment of land to needy entrepreneurs and identification growth centers for development of industries and also providing infrastructure facilities to the industries. He further stated that the applicants have to submit applications with Earnest Money Deposit, project report,

Small Scale Industries registration for General Manager District Industries Centre, land use patterns, etc., and basing on the documents, APIIC will allot the land subject to certain terms and conditions. He further stated that the allottee should implement the project within two years from the date of taking physical position duly concluding

sale agreement, the allottee should implement the project within six months and

complete the same within two years i.e., bearing plan approval, commencement of

project for which it is allowed. He further stated that when CBI police asked him, he stated that as per their records Sri Sai industries is not registered with them at plot no.

103, IDA, Katedan, Hyderabad and it is allotted to and registered with Satyanarayana

Plastic Industry. Ex. P127 is the letter dt.28-04-2003, addressed by him to CBI stating that there is no firm by name Sri Sai industries existing in plot no. 103 at SEIE,

Katedan, Hyderabad. In his cross-examination, he stated that there is no facility to sub-lease the premises of M/s. Satyanarayana Plastic Industry. In order to show that

Plot No.103 was leased out to M/s. Satyanarayana Plastic Industry, the prosecution

has examined PW-44/Chetan who is looking after marketing aspect of M/s.

Satyanarayana Plastic Industry since 1992. He stated that the industry is situated at 44 OF 84 CC 38/2018

Plot No.103, Katedan Industries Estate and said plot no.103 was allotted to their industry by A.P.I.I.C., in the year 1978. He further stated that his father Radha

Krishna and one Satyanarayana are partners of said partnership firm. He also stated that they are doing manufacturing of household Plastic Articles and Plot No.103 was not leased out to any other firm since 1978 and there is no firm in the name of Sri Sai

Industries existing in Plot No.103, I.D.A., Katedan since 1978. In his

cross examination, he stated that he did not hand over any document to C.B.I. to show that they are running M/s. Satyanarayana Plastic Industry from 1978 in Plot

No.103. He denied the suggestion that Plot No.103, I.D.A., Katedan was leased out

to Sri Sai Industries.

60.PW-40/Shivraj Singh was examined to prove that there does not exist firm Sri

Sai Industries and he deposed that he is doing business in the name of Andhra Glass and Chemical works since 1983 at IDA, Katedan, Hyderabad and he is also President of Katedan Industries Association. He further stated that when CBI police enquired him, he stated that there is no firm in the name of Sri Sai Industries from 1993 to till that date at plot no. 103, IDA, Katedan, Ranga Reddy, but there is another firm and he do not know the name of the firm running at that place. In his cross-examination,

he stated that he do not know the name of firms existing in plot no. 103.

61.PW-42/Rameshwar Reddy deposed that he is running Suri Engineers Private

Limited at Plot No.4/4, I.D.A., Nacharam since 1984 and in the year 2003, he was

President of Nacharam Industries Association and as per his knowledge and records available, no firm in the name Sri Sai Industries existed during the period from 1993 to till date at Plot No.4/5, I.D.A., Nacharam. In his cross examination, he admitted 45 OF 84 CC 38/2018 that there are about 4 industries running in Plot No.4/4, I.D.A., Nacharam. He stated

that he do not know the number of industries existing in Plot No.4/5, I.D.A.,

Nacharam.

62.In order to show that the amount released by N.S.I.C. to Kumud Steel

Processors and Sri Sai Industries was diverted to A-2 firm and Ravi Steel Tubes run

by A-4 and to the account of M.V. Ramana Rao, the prosecution has exhibited as

referred earlier exhibits P-313, P-315, P-317, P-319, P-321, P-323, P-325, P-327, P- 329, P-331, P-333, P-335, P-337, P-339, P-341, P-343, P-345, P-347, P-349, P-351,

P-353, P-355, P-357, P-359, P-361, P-363, P-365, P-367 and P-369 which are

payment vouchers issued by N.S.I.C. on the basis of Invoice Bills given by Kumud

Steel Processors in favour of A-2 firm. Further, as per the evidence of PW-47 G.

Saibabu who worked as Manager at Punjab National Bank, Musheerabad Branch

from January, 2000 to May, 2005 shows that Exhibits P-193 to P-227 cheques along with cheque pay-in-slips were issued by National Small Scale Industries Corporation

Limited in favour of M/s. Kumud Steel Processors during the period from 27-09-

1996 to 27-03-1998. Exhibit P-189 is attested copy of account opening form dated

25-09-1996 in the name of M/s. Kumud Steel Processors and Exhibit P-192 is

attested copy of statement of account of M/s. Kumud Steel Processors for the

account No.2121 for the period from 25-09-1996 to 27-07-1998. These documents

clearly show that N.S.I.C. has issued cheques in favour of M/s. Kumud Steel

Processors thereby granting financial assistance to said company. These amounts

were withdrawn by M/s. Kumud Steel Processors and again transferred those

amounts to the Bank Account of M/s. Srivatsa Ispat Private Limited i.e., A-2 firm by

way of issuance of cheques drawn on Panjab National Bank. Exhibits P-232 to

Exhibit P-274 cheques which were issued in favour of A-2 firm by M/s. Kumud

46 OF 84 CC 38/2018

Steel Processors during the period from 09-10-1996 to 16-10-1997 which is also

reflected in Exhibit P-192 statement of account. PW-47 stated that Exhibit P-232 to

P-274 cheques were presented at their Bank for clearance and those cheques were

signed by V. Sitharam as Proprietor. He further stated that Exhibits P-275 to P-278

were issued by M/s. Kumud Steel Processors in favour of M. Ramana Rao, R. Rao.

63.On a careful consideration of the above documentary evidence, it is clinching that the amount released by N.S.I.C. in favour of M/s. Kumud Steel Processors who were said to have issued Purchase Invoices in favour of A-2 firm has diverted the funds received to the account of A-2 firm immediately. Further, the evidence of PW- 46, Assistant Manager at State Bank of Hyderabad, City Branch, Pattargatti shows that Ravi Steel Tubes represented by its Proprietor, M. Ravi Kumar (A-4) had held an account at their Branch and Exhibit P-132 is the statement of account of M/s. Ravi

Steel Tubes bearing Account No.21026 with new No.01650050008 for the period

from 20-12-1993 to 12-04-1999. Exhibit P-133 to P-142 are cheques issued by M/s.

Kumud Steel Processors in favour of M/s. Ravi Steel Tubes during the period from 16-06-1998 to 26-06-1998 and Exhibits P-143 to P-165 are pay-in-slips under which

Exhibits P-143 to P-165 were credited into the account of M/s. Ravi Steel Tubes.

These documents clearly establish that amounts released by N.S.I.C. in favour of

M/s. Kumud Steel Processors were diverted to M/s. Ravi Steel Tubes run by A-4 who is none other than brother of A-1. Further, A-2 firm has also diverted the amount to

the account of M/s. Ravi Steel Tubes which is clinching from Exhibits P-166 to

P-188. The above transactions reflected under Exhibits P-133 to P-188 clearly show that on receiving amount from N.S.I.C., M/s. Kumud Steel Processors diverted the

amount to the account of A-2 firm and M/s. Ravi Steel Tubes run by A-1 and A-2

47 OF 84 CC 38/2018 firm also diverted the funds to the account of M/s. Ravi Steel Tubes which is done in

conspiracy to do the above acts.

64.With regard to the amounts deposited to the account of M/s. Sri Sai Industries, the evidence of PW-47 shows that one V. Sitharam, Proprietor of Sri Sai Industries opened Current Account vide Account No.CA2191 in their Bank and Exhibit P-190 is attested copy of Account Opening Form dated 21-10-1997 in the name of M/s. Sri Sai

Industries and Exhibit P-191 is attested copy of statement of account of M/s. Sri Sai

Industries for the period from 21-10-1997 to 31-03-1999. Further, as seen from

Exhibits P-279 to P-281 and P-283 to P-285, it is evident that N.S.I.C. has issued those cheques in favour of M/s. Sri Sai Industries and these cheques were cleared on

presenting those cheques. PW-56, the Magistrate who recorded the confessional

statement of accused no. 6 was examined. But as the statement recorded under

Section 164 of CrPC is not substantive piece of evidence, much weight cannot be

attached to it.

65.Though the PW-58/Investigation Officer stated that he did not collect any

documents and did not examine any employees of M/s. Kumud Steel Processors, as

there does not exist firms with such names, it is not possible to examine said persons.

Further, it is for A-2 firm to explain the reason for deposit of amount by M/s. Kumud

Steel Processors from whom they were said to have received raw material and sought

financial assistance from National Small Scale Industries Corporation.

48 OF 84 CC 38/2018

66.The prosecution has also examined PW-45/P. Satyanarayana Rao, Manager of

Canara Bank to show that A-1 has diverted amount from the account of A-2 firm to

M/s. Mittal Ferro Re-Rolling Pvt. Ltd., of which, A-1 is Managing Director. Exhibits

P-129 and P-130 are drafts enclosed to cheques and Exhibit P-131 is current account

statement of Account No.73 and O.C.C. Account No.OD5042. PW-51, Senior

Manager, Central Bank of India, Chattabazar, Hyderabad stated that M/s. Mittal Ferro

Re-Rolling Pvt. Ltd., is having current account vide Account No.861, Central Bank of

India, Chattabazar Branch, Hyderabad which was operated by one Sayed Aliuddin

Akbar as Director of said company. Exhibit P-294 is copy of statement of account of

M/s. Mittal Ferro Re-Rolling Pvt. Ltd., for the period from 18-06-1998 to 10-09-

1998. Exhibit P-295 is Demand Draft bearing No.118198 dated 11-06-1998 drawn in

the name of M/s. Mittal Ferro Re-Rolling Pvt. Ltd., and Exhibit P-196 is pay-in-slip.

From a careful scrutiny of above evidence on record, it is evident that A1 in

conspiracy with A4 and A6 floated two companies M/s. Kumud Steel Processors and

Sri Sai Industries and diverted the funds into the account of A2 firm and Ravi Steel

Tubes and thereby committed the offence of cheating in criminal conspiracy with A4

and A5. Accordingly, point no. (v) is answered.

67.Point no.(vi):

Though the accused has placed reliance on case laws CBI Vs. Sadhu Ram

Singla and Ors, decided on 23.02.2017, the said order was passed in the matter where

the accused has approached the Hon’ble Supreme Court seeking quash of

proceedings and therefore, this court is of opinion that said case law is not applicable to the present case. So also, the decision of the Hon’ble High Court in K. Hari Hara 49 OF 84 CC 38/2018

Prasad Rao Vs. The State, SPE, CBI, decided on 02.08.2008 also relates to quashing

of proceedings under Section 482 of CrPC where inherent powers are exercised by

the Hon’ble High Court and hence said decision cannot be relied upon in this case.

On a careful consideration of evidence on record, this court holds that it is established

by the prosecution that A-1 and A-5, Managing Director and Director of A2 firm

conspired with A-4 to deceive the bank officials and received financial assistance from NSIC by floating two non-existent firms and diverted the funds deposited into the account of those non-existent firms into the bank account of A-2 firm and into the

account of Ravi steel Tubes belonging to A-4 and thereby deceived the bank and

thereby charge levelled against A-1, A-2 and A-5 for the offence under Section 420 of

IPC stands proved and charge levelled against A-1, A-4 and A-5 for the offence under

Section 120-B of IPC stands proved. This court holds that the prosecution failed to establish the guilt of A-1 to A-5 for offences under Sections 468, 471 IPC. Further the prosecution failed to establish the guilt of A-3 for offences under sections 420 and

120-B of IPC. Accordingly, the point is answered.

68.In the result, A1, A2 r/by A1, A5 are found guilty of offence under Section 420 of IPC. Further, A1, A4 and A5 are found guilty for the offence under Section 120-B of IPC. A1 to A5 are found not guilty for the offences under Sections 468 and 471 of

IPC. A3 is also found not guilty of offences under Sections 420, 120-B of IPC.

Hence, A1, A2 r/by A1 and A5 are convicted under Section 248 (2) CrPC for offence under Section 420 of IPC. Further, A1, A4 and A5 are convicted under Section 248(2)

CrPC for offence Section 120-B IPC. A3 is acquitted under Section 248(1) CrPC for the offences under Sections 420, 468, 471 and 120-B IPC. A1, A2 represented by A1,

A4 and A5 are acquitted under Section 248(1) Cr.P.C for offences under Sections 468 50 OF 84 CC 38/2018 and 471 of IPC. The bail bonds of A3 shall stand cancelled. A3 shall execute fresh

bond under Section 437-A CrPC.

69.Heard A1 with regard to quantum of sentence that may be imposed against

him. A1 submitted that he is aged 73 years and having health ailments and hence

requested to take a lenient view. Considering the nature of offences and the

submission made by A1 about his health condition, A1 is sentenced to undergo

Simple Imprisonment for a period of two years and to pay fine of Rs. 1,000/- for the offence under Section 420 of IPC. In default of payment of fine, A1 shall undergo

Simple Imprisonment for a period of one month. A1 is further sentenced to undergo

Simple Imprisonment for a period of two years and to pay fine of Rs. 1,000/- for the offence under Section 120-B of IPC. In default of payment of fine, A1 shall undergo

Simple Imprisonment for a period of one month. The remand period undergone by A1 shall be set off under Section 428 CrPC. The right of appeal is intimated to A1.

69.Heard A1 representing A2 firm with regard to quantum of sentence that

may be imposed against him. A1 representing A2 firm submitted that loan amount

was repaid and requested to take a lenient view. Considering the nature of offences,

A2 firm is sentenced to pay fine of Rs. 5,000/- for the offence under Section 420 of

IPC.

70.Heard A4 with regard to quantum of sentence that may be imposed against him. A4 submitted that he is aged 58 years and hence requested to take a lenient view. Considering the nature of offences, A4 is sentenced to undergo Simple 51 OF 84 CC 38/2018

Imprisonment for a period of two years and to pay fine of Rs. 1,000/- for the offence under Section 120-B of IPC. In default of payment of fine, A4 shall undergo Simple

Imprisonment for a period of one month. The remand period undergone by A4 shall

be set off under Section 428 CrPC. The right of appeal is intimated to A4.

71.Heard A5 with regard to quantum of sentence that may be imposed against him. A1 submitted that she is aged 65 years and having health ailments and hence

requested to take a lenient view. Considering the nature of offences and the

submission made by A5 about her health condition, A5 is sentenced to undergo

Simple Imprisonment for a period of two years and to pay fine of Rs. 1,000/- for the offence under Section 420 of IPC. In default of payment of fine, A5 shall undergo

Simple Imprisonment for a period of one month. A5 is further sentenced to undergo

Simple Imprisonment for a period of two years and to pay fine of Rs. 1,000/- for the offence under Section 120-B of IPC. In default of payment of fine, A5 shall undergo

Simple Imprisonment for a period of one month. The remand period undergone by A5 shall be set off under Section 428 CrPC. The right of appeal is intimated to A5.

72.In the result, A1, A2 r/by A1, A5 are found guilty of offence under Section 420 of IPC. Further, A1, A4 and A5 are found guilty for the offence under Section 120-B of IPC. A1 to A5 are found not guilty for the offences under Sections 468 and 471 of

IPC. A3 is also found not guilty of offences under Sections 420, 120-B of IPC.

Hence, A1, A2 r/by A1 and A5 are convicted under Section 248 (2) CrPC for offence under Section 420 of IPC. Further, A1, A4 and A5 are convicted under Section 248(2)

CrPC for offence Section 120-B IPC. A3 is acquitted under Section 248(1) CrPC for the offences under Sections 420, 468, 471 and 120-B IPC. A1, A2 represented by A1,

A4 and A5 are acquitted under Section 248(1) Cr.P.C for offences under Sections 468 and 471 of IPC. The bail bonds of A3 shall stand cancelled. A3 shall execute fresh 52 OF 84 CC 38/2018

bond under Section 437-A CrPC. A1 is sentenced to undergo Simple Imprisonment

for a period of two years and to pay fine of Rs. 1,000/- for the offence under Section 420 of IPC. In default of payment of fine, A1 shall undergo Simple Imprisonment for a period of one month. A1 is further sentenced to undergo Simple Imprisonment for a period of two years and to pay fine of Rs. 1,000/- for the offence under Section 120-B of IPC. In default of payment of fine, A1 shall undergo Simple Imprisonment for a

period of one month. The remand period undergone by A1 shall be set off under

Section 428 CrPC. A2 firm is sentenced to pay fine of Rs. 5,000/- for the offence

under Section 420 of IPC. A4 is sentenced to undergo Simple Imprisonment for a

period of two years and to pay fine of Rs. 1,000/- for the offence under Section 120-B of IPC. In default of payment of fine, A4 shall undergo Simple Imprisonment for a period of one month. A5 is sentenced to undergo Simple Imprisonment for a period of two years and to pay fine of Rs. 1,000/- for the offence under Section 420 of IPC. In default of payment of fine, A5 shall undergo Simple Imprisonment for a period of one month. A5 is further sentenced to undergo Simple Imprisonment for a period of two years and to pay fine of Rs. 1,000/- for the offence under Section 120-B of IPC. In default of payment of fine, A5 shall undergo Simple Imprisonment for a period of one month. The remand period undergone by A1, A4 and A5 shall be set off under Section

428 CrPC. The right of appeal is intimated to A1, A4 and A5.

Typed directly to my dictation by Typist, corrected and pronounced by me in the open court on this the 31st day of July, 2023.

FAC XXI ADDL. CHIEF METROPOLITAN MAGISTRATE,

HYDERABAD.

APPENDIX OF EVIDENCE

WITNESSES EXAMINED

FOR PROSECUTION :

53 OF 84 CC 38/2018

PW1:K.P. Kamath PW2:K.P. Hegde PW3:P. Satyanarayana PW4:D. Udaya Bhaskaram PW5:Madireddy Rajarao PW6:G. Ramnarayan Reddy PW7:K. Lakshmaiah PW8:K. Chenna Reddy PW9:K. Raghu Babu PW10:Ch. Vidya Sagar Rao PW11:Lingala Venkateshwar Rao PW12:P. Rajaiah PW13:Mohammed Sirajuddin PW14:Mir Sujath Ali Khan PW15:G. Muralidhar PW16:P. Sai Baba PW17:M. Raja Reddy PW18:P. Sunitha PW19:Sudheer Kumar Agarwal PW20:D. Sai Ram PW21:Ganeswara Rao PW22:K. Mohan Chandra PW23:Nithin Kumar PW24:R.S. Ravi Kumar PW25:M. Anantham PW26:M. Mahadevaiah PW27:Vishwaroopa Charyulu PW28:C. Anil Kumar PW29:C.J. Ananda Raju PW30:Y. Ram Mohan Rao PW31:I.B.K. Prasad PW32:K. Bhattacharya PW33:J. S. Prabhu Lingam PW34:T. Ajith Kumar Singh 54 OF 84 CC 38/2018

PW35:K. Pandu PW36:K.P.V. Ramana PW37:Halwardar S.P. Koteshwar Rao PW38:Ch. Jalander Reddy PW39:B. Vijaya Kumar PW40:Shivaraj Singh PW41:M. Balaiah PW42:Rameshwar Reddy PW43:A. Raghuveer PW44:Chetan Sirigiri PW45:T. Satyanarayana Rao PW46:K. Satyanarayana PW47:G. Sai Babu PW48:M.A. Nisthar PW49:Suryanarayana Murthy PW50:M.V. Krishna Mohan PW51:K. Jawahar Reddy PW52:G. Srihari Naidu PW53:E. Arumugam PW54:Ravindra Babu PW55:A.Balaswamy PW56:Mohd Samiuddin PW57:Ravi Suman Prasad PW58:K. Alwal Swamy

FOR DEFENCE : NONE

EXHIBITS MARKED

FOR PROSECUTION: EX.P1: Report dated 17/01/2002 given by PW1 to SP, CBI, Hyderabad. EX.P2: Certified copy of Canara Bank report dated 08/12/1998 & 03/09/1998. EX.P3: Application dated 18/01/1995 submitted by A2 company in the bank for sanction of OCC limit upto 20 lakhs and ILC limit upto 20 lakhs. EX.P4: Photo copy of Lease Deed dated 04/01/1995. EX.P5: Book containing documents viz a copy of minutes extract of the meeting of 55 OF 84 CC 38/2018

Board of Directors of A2 Company, application for enhancement of loan, copy of Balance sheet, etc., submitted by A2 to bank at the time of enhancement of Limits of OCC and ILC. EX.P6: Copy of Letter dated 11/09/1996 submitted by A1 to the bank intimating change of address of A2 factory activities. EX.P7: Copy of Lease Deed dated 31/05/1996 of Padmaja Industries Limited. EX.P8: Legal scrutiny report dated 06/01/1995. EX.P9: Current account opening form of M/s. Srivasta Ispat Private Limited. EX.P10 : Sanction letter dated 23/01/1995 sanctioning OCC limit of 20 lakhs and ILC limit of 20 lakhs in favour of M/s. Srivasta Ispat Private Limited. Ex.P11 &: Sanction letter dated 29/11/1996 sanctioning CDB limit of Rs.10 lakhs in favour Ex.P50of M/s. Srivasta Ispat Private Limited. Ex.P12: Sanction letter dated 10/12/1996 sanctioning bank guarantee (Single transaction) limit of Rs. 50 lakhs in favour of M/s. Srivasta Ispat Private Limited. Ex.P13 : Copy of letter dated 21-01-1995 along with enclosures (original marked as Ex.P292). Ex.P14: Counterfoil for presentation of cheque of Rs.1,50,000/- issued by A2 represented by A1. Ex.P15: Certified copy of registered GPA deed vide document No.968/94 dated 22/04/1994 (original of Ex.P15 marked as Ex.P22). Ex.P16: Copy of document vide No. 89/1968 along with covering letter dated 03/08/2002. Ex.P17: Photo Copy of Registered Sale Deed vide document No. 89/1968 dated 10/01/1968 (original of Ex.P17 is marked as Ex.P21). Ex.P18: Death Certificate of mother of PW11 by name Mangamma. Ex.P19: Photo copy of Death Certificate of father of PW11 by name Jaganmohan Rao. Ex.P20: Certified copy of Succession certificate dated 25/07/1987 issued by MRO Koratla showing the legal heirs of Mangamma.

Ex.P21: Fake Registered Sale Deed vide Document No. 89/1968 dated 01/10/1968 (Photo copy of it marked as Ex.P17). Ex.P22: Fake GPA vide Document No. 968/1994 of District Registrar office, Ranga Reddy District, Hyderabad dated 22/04/1994 alleged to be executed by L. Narsimha Rao and L. Raju in favour of N.B. Ramana (Certified copy of it marked as Ex.P15). Ex.P23: Bunch of Encumbrance Certificates (4 in number) vide No. 980/1994, 704/1995, 1802/1997 & 5155/1998 relating to land in Survey No. 129/31. Ex.P24: False No Objection Certificate dated 18/01/1994 for mutation of 2508 Sq.Yrds of land in Survey No. 129/31 alleged to have been issued by Tahasildar Golkonda Taluq, Hyderabad vide Document No. D/6774/1983 in the name of L.

56 OF 84 CC 38/2018

Narsimha Rao and L. Raju. Ex.P25: Letter dated 27/01/2003 issued by Deputy Civil Surgeon informing the the information in respect of death of Jaganmohan Rao, S/o. Ramgopal resident of Nizambad. Ex.P25 : Lease deed (marked through PW21 on 16/06/2017). Ex.P26: Copy of Mutation Proceedings issued by Tahasildar Golkonda, Hyderabad. Ex.P26 : Valuation Report against collateral security of the landed properties survey No. 31/129, extent to 2508 Sq.Yrds, Banjarahills showing the value of property as Rs. 60,19,000/- (marked as Ex.P292). Ex.P27: Letter No. GPB/145/2003 dated 04/02/2003 consisting of 3 sheets along with 2 rough sketch of the location of the industrial area.

Ex.P27 : Memorandum of Association and Articles of Association (marked as

Ex.P291). Ex.P28: House Tax assessment book register for the year 1997-98 for industries situated at IDA, Bollaram.

Ex.P28 : Resolution of Board of Directors meeting dated 18/01/1995 (marked as

Ex.P293) Ex.P29 : Demand Register for the year 1998-99 of Gram Panchayath, Bollaram for industries. Ex.P30: Letter dated 19/11/1998 addressed by K. Subbarao, Manager Credit of Canara Bank, MG Road, Secunderabad. Ex.P31: Letter dated 16/12/1998 addressed by PW16 P. Sai Baba to K. Subbarao, Manager Credit of Canara Bank, MG Road, Secunderabad. Ex.P32: Letter dated 31/01/2003 along with copy of layout addressed to Inspector of Police, CBI, Hyderabad. Ex.P33: Cover of Register letter No.3848 dated 28/01/2003 with endorsement that no such industry in the name of Padmaja and no such person in the name of P.S.R. Murthy in the given address. Ex.P34: Letter dated 13/06/1996 written on the letter head of Padmaja Industries. Ex.P35: Relevant red marked portion of 161 Cr.P.C. statement of PW20 D. Sai Ram. Ex.P36: No document is marked as P36 Ex.P37: No document is marked as P37 Ex.P38: No document is marked as P38 Ex.P39: Application dated 17/01/1996 submitted by accused for renewal of working capital and seeking enhancement. Ex.P40: Letter dated 25/10/1995 submitted by accused seeking discounting of bill. Ex.P41: Resolution of M/s. Srivasta Ispat Private Limited dated 17/01/1996 signed and submitted by accused to the bank. Ex.P42: Willingness letter dated 27/01/1996 submitted by accused for guarantor.

57 OF 84 CC 38/2018

Ex.P43: Letter of guarantee of willingness dated 13/01/1996 submitted by wife of accused. Ex.P44: Letter dated 04/04/1996 sanctioning revised OCC limits & ILC limits upto 20 lakhs. Ex.P45: Letter dated 13/04/1996 recommending for waiver of insurance. Ex.P46: Letter dated 10/06/1996 submitted by A2 company for bank guarantee for Rs. 25 lakhs. Ex.P47: Proposal dated 29/06/1996 for sanction of guarantee limit for Rs. 25 lakhs. Ex.P48: Sanction letter dated 08/08/1996 sanctioning the bank guarantee limit for Rs. 25 lakhs. Ex.P49: Requisition dated 26/11/1996 filed by M/s. Srivasta Ispat Private Limited for cheque discounting facility for Rs. 10 lakhs. Ex.P50: Sanction letter vide letter dated 29/11/1996 recommending for cheque discounting facility for Rs. 10 lakhs. Ex.P51: Letter dated 05/12/1996 given by accused showing sales projections and requested for temporary bank guarantee of Rs. 50 lakhs. Ex.P52: Letter dated 06/12/1996 addressed by Canara Bank to the circle office. Ex.P53: Letter dated 16/12/1996 sanctioning the temporary bank guarantee for Rs. 50 lakhs, Ex.P54: Letter dated 12/02/1996 sent by Canara Bank, MG Road Branch to circle office recommending enhancement of OCC limit from 20 to 25 lakhs and LC limit from 20 to 75 lakhs (3 pages). Ex.P55: Letter dated 04/04/1996 addressed to A2 company informing about enhancement of OCC and LC limits. Ex.P56: Letter dated 08/08/1996 from circle office, Hyderabad. Ex.P57: Letter of M/s. Srivasta Ispat Private Limited dated 03/09/1996 requesting the bank guarantee limit of Rs. 25 lakhs instead of LC for purchase of Raw material signed by A1. Ex.P58: Letter dated 13/09/1996 with recommendation to the circle office with reference to letter under Ex.P57. Ex.P59: Sanction proceedings of circle office vide letter dated 19/09/1996. Ex.P60: Letter dated 31/01/1997for enhancement of limit. Ex.P61: Renewal recommendation dated 12/02/1997 (marked through PW22 on 17/11/17). Ex.P62: Office Note of circle office dated 03/03/1997 Ex.P63: Letter of circle office dated 08/03/1997 for sanction of enhancement. Ex.P64: Letter dated 15/05/1997 addressed by Canara Bank, MG road branch asking accused the reason for non sales of to the joint stock company Ex.P65: Letter dated 27/01/1999 addressed by Canara Bank, MG Road Branch 58 OF 84 CC 38/2018 questioning the continuation of irregularities with state the same as agreed on 19/09/1998. Ex.P66: Letter dated 19/03/1999 (infact it is 03/03/1999) addressed by accused to the Chief Manager, Canara Bank, MG Road, Secunderabad requesting time to rectify the irregularities. Ex.P67: Letter dated 19/02/1999 (infact it is 17/02/1999) of Canara Bank, Head Office, Bangalore addressed to Canara Bank, MG Road, Secunderabad. Ex.P68: Letter of Chief Manager, SBH, dated 23/11/1998 addressed to Chief Manager, Canara Bank, MG Road, Secunderabad. Ex.P69: Stock inspection report dated 31/08/1996. Ex.P70: Stock inspection report dated 22/06/1996 (infact it is 24/06/1996). Ex.P71: OCC Stock Statement as on 31/06/1996 (infact it is 31/05/1996) of M/s. Srivasta Ispat Private Limited furnished to Canara Bank, MG Road, Secunderabad. Ex.P72: Statement of account of M/s. Srivasta Ispat Private Limited for the period from 01/01/1995 to 28/02/2003 issued by Canara Bank, MG Road, Secunderabad. Ex.P61: Hypothecation agreement of goods and book debts dated 20/12/1996 and counter indemnity dated 20/12/1996 for Rs.50 lakhs.

Ex.P62: Personal guarantee agreement dated 20/12/1996 executed by Smt. Padmaja Ex.P63: Guarantee covering letter dated 20/12/1996 executed by Smt. M. Padmaja. Ex.P64: Personal guarantee agreement dated 20/12/1996 along with guarantee covering letter dated 20/12/1996 executed by M.Raghavender Rao for Rs.1,60,00,000/-. Ex.P65: Letter of A2 dated 23/04/1997 addressed to Canara Bank, MG Road,

Secunderabad for enhancement of credit facility from 25 lakhs to 75 lakhs.

Ex.P66: Letter of renewal dated 22/04/1997 of M/s. Srivasta Ispat Private Limited. Ex.P67: Promissory note dated 23/04/1997 executed by A1 on behalf of A2 company. Ex.P68: A supplemental agreement dated 23/04/1997 executed by A1 on behalf of A2 company. Ex.P69: Cash credit agreement dated 23/04/1997 executed A1 on behalf of A2 company. Ex.P70: Hypothecation agreement of goods and book debts dated 23/04/1997 executed by A1 on behalf of A2 company. Ex.P71: Counter indemnity for the guarantee limit of Rs. 150 lakhs dated 23/04/1997 executed by A1 on behalf of A2 company. Ex.P72: Collateral security dated 23/04/1997 executed by A1 on behalf of A2 company. Ex.P73: List of machinery given as collateral security.

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Ex.P74: Personal guarantee dated 23/04/1997 along with guarantee covering letter dated 23/04/1997 for Rs. 235 lakhs given by A1. Ex.P75: Guarantee Agreement dated 23/04/1997 along with guarantee covering letter

dated 23/04/1997 for Rs. 235 lakhs given by Smt. M. Padmaja.

Ex.P76: Letter of extending/enhancing credit limits dated 22/10/1997 for enhancement from 75 lakhs to 84 lakhs, addressed by A1 on behalf of A2 company. Ex.P77: Promissory note dated 22/10/1997 executed by A1 on behalf of A2 company for

additional 9 lakhs.

Ex.P78: General Power of Attorney executed by L. Narsimha Rao and L. Raju who are original owners of property shown in the GPA and mortgaged to bank for credit facilities. Ex.P79: Letter dated 10/05/1995 showing deposit of title deeds of mortgage along with prescription of documents/title deeds. Ex.P80: Letter dated 06/04/1996 creating equitable mortgage containing schedule A & B submitted by A3. Ex.P81: Letter dated 20/12/1996 submitted by A3 M.V. Ramana Rao for Rs.160 lakhs credit limits along with schedule A & B. Ex.P82: Schedule B personal details of mortgaged property vide letter dated 23/04/1997. Ex.P83: Letter of APSFC dated 23/03/1997 addressed the Chief Manager, Canara Bank, MG Road Branch, Secunderabad ceding of second charge on the properties of A2 firm. Ex.P84: Stock Inspection Report dated 20/03/1998 along with remarks of Manager, Canara Bank submitted to Chief Manager, Canara Bank, MG Road, Secunderabad. Ex.P85: Extension of existing credit limits sanction order dated 22/05/1998 extended up to 30/06/1998. Ex.P86: Letter dated 28/06/1998 submitted by M/s. Srivasta Ispat Private Limited along with copy of credit report with its enclosures. Ex.P87: Office copy of letter addressed by the Credit Manager (infact it is Chief Manager), Canara Bank, MG Road, Secunderabad to M/s. Srivasta Ispat Private Limited dated 09/07/1998 (marked subject to objection that it is photo stat copy). Ex.P88: Intimation dated 17/07/1998 submitted by Chief Manager, Canara Bank to Circle Office, Canara Bank, Hyderabad. Ex.P89: Letter of Chief Manager, Canara Bank dated 13/08/1998 addressed to Circle Office, Canara Bank, Hyderabad. Ex.P90: Bank Guarantee executed by Canara Bank, MG Road, Secunderabad in favour of NSIC limited vide number 102/96 (9 sheets). Ex.P91: Bank Guarantee executed by Canara Bank, MG Road, Secunderabad in favour of NSIC limited vide number 104/96 (9 sheets). Ex.P92: Bank Guarantee executed by Canara Bank, MG Road, Secunderabad in favour 60 OF 84 CC 38/2018 of NSIC limited vide number 7/97 (12 sheets). Ex.P93: Bank Guarantee executed by Canara Bank, MG Road, Secunderabad in favour of NSIC limited vide number 48/97 (8 sheets). Ex.P94: Bank Guarantee executed by Canara Bank, MG Road, Secunderabad in favour of NSIC limited vide number 66/97 (6 sheets). Ex.P95: Bank Guarantee executed by Canara Bank, MG Road, Secunderabad in favour of NSIC limited vide number 78/97 (6 sheets). Ex.P96: Bank Guarantee executed by Canara Bank, MG Road, Secunderabad in favour of NSIC limited vide number 81/97 (8 sheets). Ex.P97: Bank Guarantee executed by Canara Bank, MG Road, Secunderabad in favour of NSIC limited vide number 100/97 (6 sheets). Ex.P98: Valuation Report submitted by N. Subba Rao dated 27/10/1998. Ex.P99: Valuation Report submitted by N. Subba Rao dated 14/11/1998. Ex.P100: Stock Inspection report dated 17/10/1997. Ex.P101: Attested true copy of invoice bearing No. 18 dated 14/01/1997 purportedly issued by M/s. Associated Steel Processing Industry, Hyderabad in favour of M/s. Vamshi Metals (P) Limited. Ex.P102: Letter No. AZM (D)/NRM/MISC/03 dated 01/05/2003. Ex.P103: Letter No. AZM (D)/NRM/MISC/03 dated 06/03/2003. Ex.P104: Letter No. B-3/MISC/2003 dated 06/03/2003. Ex.P105: Returned Postal Cover (with letter addressed to Associated Steel Proceedings Industry, 3-A, IDA Nacharam) with endorsement that “Company closed hence, return to sender” Ex.P106: Delivery slip dated 06/11/2003 issued by PW29 C.J. Ananda Rao. Ex.P107: Valuation report dated 13/02/1997 issued by PW30 Y. Mohan Rao

Ex.P108: Branch Note dated 28/10/1996 put up by Sri. CH.Nagarjuna Rao for seeking approval for transfer of sale of land and building of M/s. Chawla Wires Pvt. Ltd., in the name of M/s. Vamshi Metals Pvt. Ltd. Ex.P109: Panchanama dated 16/12/1996 for handing over of land and buildings of M/s. Chawla Wires Pvt. Ltd., to M/s. Vamshi Metals Pvt. Ltd., Ex.P110: Letter dated 17/03/1997 from M/s. Vamshi Metals Pvt. Ltd., regarding offer to purchase machinary of M/s. Chawla Wires Pvt. Ltd., Ex.P111: Sale Confirmation letter dated 26/05/1997 for plant and machinery of M/s. Chawla Wires Pvt. Ltd., in favour of M. Raghavender Rao of M/s. Vamshi Metals Pvt. Ltd., Ex.P112: Branch Note dated 19/08/1998 put up by PW31 for initiating recovery action for nonpayment of sale consideration of machinery and also loan dues. Ex.P113: Letter dated Nil received by the corporation on 19/10/1996 from M/s. Srivasta 61 OF 84 CC 38/2018

Ispat Pvt. Ltd., seeking approval for completing legal formalities in the name of M/s. Vamshi Metals Pvt. Ltd. Ex.P114: Letter dated 27/08/1998 from M/s. Vamshi Metals Pvt. Ltd., regarding purchase of machinery. Ex.P115: Letter dated 27/08/1998 from M/s. Srivasta Ispat Pvt. Ltd., requesting the corporation to shift the machinery from the premises of land and building of M/s. Chawal Wires Pvt. Ltd. Ex.P116: Panchanama dated 08/01/1999 conducted by the corporation at the time seizure of M/s. Vamshi Metals Pvt. Ltd. Ex.P117: Branch note dated 18/02/1999 on the request of M/s. Vamshi Metals Pvt. Ltd. for lifting of seizure on payment of the part of the dues. Ex.P118: Branch note dated 06/05/1999 seeking ratification of the action taken by the Branch Manager for lifting of seizure. Ex.P119: Branch note dated 06/11/1999 seeking order for the seizure of the unit for nonpayment of dues. Ex.P120: Agreement of Sale dated 23/03/1997 executed by the corporation in favour of M/s. Srivasta Ispat Pvt. Ltd., Ex.P121: Letter dated 29/03/1997 addressed by the corporation to the Chief Manager, Canara Bank, MG Road, Secunderabad regarding NOC for ceding of second charge on the request of Canara Bank. Ex.P122: Report issued by our office under letter dated 28/04/2003 stating that M/s. Kumud Steel Processors Pvt. Ltd., is not registered dealers on rolls of CTO, Vidyanagar Circle Ex.P123: Report issued by our office under letter in RC No.E/23/2003 dated 06/05/2003 stating that APGST No. SEC/09/02/2803/95-96 and CST No. SEC/09/02/2503/ 95-96 was not allotted to M/s. Sri Sai Industries Pvt. Ltd. by the office of CTO Vidyanagar Circle and as per records they were allotted to M/s. Sudhakar Steel Tubes, New Nallakunta and its factory at IDA Nacharam. Ex.P124: Report issued by our office under letter RC No.E/5/2003 dated 17/01/2003 with enclosures (total 3 sheets) stating that M/s. Srivasta Ispat Pvt. Ltd. is registered dealer holding APGST No. SEC/09/2/2863/95-96 with effect from 26/05/1995 and CST No. SEC/09/2/2543/95-96 w.e.f 26/05/1995. Ex.P125: Section 161Cr.P.C statement of PW35 K. Pandu. Ex.P126: Section 161Cr.P.C statement of PW38 Ch. Jalender Reddy. Ex.P127: Letter No. AZN(D)/221/SEIE/KTDN/03-04 dated 28/04/2003 addressed by B. Vijay Kumar, Assistant General Manager, APIIC, Katedain, Hyderabad to Inspector of Police, CBI stating that there is no firm by name M/s. Sri Sai Industries existed in Plot No. 103 at SEIE, Katedain, Hyderabad during the period from 1993 to till date. Ex.P128: Letter in RC No.B5/45/03-04 dated 30/04/2003 stating that since 1993 the whereabouts of firm M/s. Kumud Steel Processors at 7-2-1/B/2, Fathenagar Road, Sanathnagar, Hyderabad are not known.

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Ex.P129: Draft bearing No. 926254 dated 06-06-1998 by enclosing cheque No. 253945 dated. 06/05/1998 for Rs. 5,00,250/-. Ex.P130: Draft bearing No. 824198 dated 06-07-1998 by enclosing cheque No. 509614 dated. 06/07/1998 for Rs. 5,00,250/- . Ex.P131: Current Account Statement of A/C No. 73 and OCC A/C No. OD 5042. Ex.P132: Statement of Account of M/s. Ravi Steel Tubes, bearing A/c No.21026 (old) with new number 01650050008 for the period from 20-12-1993 to 12-04-1999. Ex.P133: Panjab National Bank cheque bearing No. 252248 dated 16-06-1998 for Rs. 18,30,000/- issued by Proprietor of M/s. Kumud Steel Processors in favour of M/s. Ravi Steel Tubes. Ex.P134: Panjab National Bank cheque bearing No. 252249 dated 17-06-1998 for Rs.18,40,000/- issued by Proprietor of M/s. Kumud Steel Processors in favour of M/s. Ravi Steel Tubes. Ex.P135: Panjab National Bank cheque bearing No. 252250 dated 17-06-1998 for Rs. 14,00,000/- issued by Proprietor of M/s. Kumud Steel Processors in favour of M/s. Ravi Steel Tubes. Ex.P136: Panjab National Bank cheque bearing No. 252251 dated 18-06-1998 for Rs. 12,00,000/- issued by Proprietor of M/s. Kumud Steel Processors in favour of M/s. Ravi Steel Tubes. Ex.P137: Panjab National Bank cheque bearing No. 252252 dated 18-06-1998 for Rs. 19,00,000/- issued by Proprietor of M/s. Kumud Steel Processors in favour of M/s. Ravi Steel Tubes. Ex.P138: Panjab National Bank cheque bearing No. 252253 dated 19-06-1998 for Rs. 18,55,000/- issued by Proprietor of M/s. Kumud Steel Processors in favour of M/s. Ravi Steel Tubes. Ex.P139: Panjab National Bank cheque bearing No. 252261 dated 23-06-1998 for Rs. 14,60,000/- issued by Proprietor of M/s. Kumud Steel Processors in favour of M/s. Ravi Steel Tubes. Ex.P140: Panjab National Bank cheque bearing No. 252262 dated 24-06-1998 for Rs. 13,25,000/- issued by Proprietor of M/s. Kumud Steel Processors in favour of M/s. Ravi Steel Tubes. Ex.P141: Panjab National Bank cheque bearing No. 252263 dated 25-06-1998 for Rs. 19,00,000/- issued by Proprietor of M/s. Kumud Steel Processors in favour of M/s. Ravi Steel Tubes. Ex.P142: Panjab National Bank cheque bearing No. 252264 dated 26-06-1998 for Rs. 13,10,000/- issued by Proprietor of M/s. Kumud Steel Processors in favour of M/s. Ravi Steel Tubes. Ex.P143: Pay-in-slip dated 03-12-1996 of SBH City Branch at Pattargatti for Rs.9,98,000/- (passed for Rs.9,94,958/- after deducting bank charges) Ex.P144: Pay-in-slip dated 06-12-1996 of SBH City Branch at Pattargatti for Rs.10,00,000/- (passed for Rs.9,97,530/- after deducting bank charges) 63 OF 84 CC 38/2018

Ex.P145: Pay-in-slip dated 09-12-1996 of SBH City Branch at Pattargatti for Rs.10,50,450/- (passed for Rs.10,47,889/- after deducting bank charges) Ex.P146: Pay-in-slip dated 04-11-1996 of SBH City Branch at Pattargatti for Rs.13,00,000/- (passed for Rs.12,96,830/- after deducting bank charges) Ex.P147: Pay-in-slip dated 19-11-1996 of SBH City Branch at Pattargatti for Rs.12,75,000/- (passed for Rs.12,71,070/- after deducting bank charges) Ex.P148: Pay-in-slip dated 10-10-1996 of SBH City Branch at Pattargatti for Rs.8,70,000/- (passed for Rs.8,67,879/- after deducting bank charges) Ex.P149: Pay-in-slip dated 22-10-1996 of SBH City Branch at Pattargatti for Rs.7,00,000/- (passed for Rs.6,98,293/- after deducting bank charges) Ex.P150: Pay-in-slip dated 24-10-1996 of SBH City Branch at Pattargatti for Rs.5,00,000/- (passed for Rs.4,98,450/- after deducting bank charges) Ex.P151: Pay-in-slip dated 29-07-1997 of SBH City Branch at Pattargatti for Rs.6,83,000/- (passed for Rs.6,81,779/- after deducting bank charges) Ex.P152: Pay-in-slip dated 31-07-1996 of SBH City Branch at Pattargatti for Rs.1,50,000/- (passed for Rs.1,49,634/- after deducting bank charges) Ex.P153: Pay-in-slip dated 02-08-1996 of SBH City Branch at Pattargatti for Rs.8,05,530/- (passed for Rs.8,03,075/- after deducting bank charges) Ex.P154: Pay-in-slip dated 16-08-1996 of SBH City Branch at Pattargatti for Rs.7,00,000/- (passed for Rs.6,97,866/- after deducting bank charges) Ex.P155: Pay-in-slip dated 20-08-1996 of SBH City Branch at Pattargatti for Rs.1,04,000/- Ex.P156: Pay-in-slip dated. 04-09-1996 of SBH City Branch at Pattargatti for Rs.8,05,000/- (passed for Rs.8,02,546/- after deducting bank charges) Ex.P157: Pay-in-slip dated 13-09-1996 of SBH City Branch at Pattargatti for Rs.1,70,000/- (passed for Rs.1,69,480/- after deducting bank charges) Ex.P158: Pay-in-slip dated 20-9-1996 of SBH City Branch at Pattargatti for Rs.7,45,000/- (passed for Rs.7,42,729/- after deducting bank charges) Ex.P159: Pay-in-slip dated 23-09-1996 of SBH City Branch at Pattargatti for Rs.13,09,500/- (passed for Rs.13,06,307/- after deducting bank charges) Ex.P160: Pay-in-slip dated 26-09-1996 of SBH City Branch at Pattargatti for Rs.2,50,000/- (passed for Rs.2,49,238/- after deducting bank charges) Ex.P161: Pay-in-slip dated 01-10-1996 of SBH City Branch at Pattargatti for Rs.12,75,500/- (passed for Rs.12,71,612/- after deducting bank charges) Ex.P162: Pay-in-slip dated 04-10-1996 of SBH City Branch at Pattargatti for Rs.7,80,000/- (passed for Rs.7,77,623/- after deducting bank charges) Ex.P163: Pay-in-slip dated 22-10-1996 of SBH City Branch at Pattargatti for Rs.2,00,000/- (passed for Rs.1,99,512/- after deducting bank charges) Ex.P164: Pay-in-slip dated 23-10-1996 of SBH City Branch at Pattargatti for Rs.7,50,000/- (passed for Rs.7,48,171/- after deducting bank charges) 64 OF 84 CC 38/2018

Ex.P165: Pay-in-slip dated 12-12-1996 of SBH City Branch at Pattargatti for Rs.8,75,000/- (passed for Rs.8,72,867/- after deducting bank charges) Ex.P166: Cheque bearing No. 201260 dated 09-10-1996 of Canara bank for Rs. 8,70,000/- issued by Managing Director/Director of M/s. Sri Vatsa Ispat Pvt., Ltd., in favour M/s. Ravi Steel Tubes (this cheque is in relation to pay-in-slip under Ex.P148). Ex.P167: Cheque bearing No. 201267 dated 21-10-1996 of Canara bank for Rs. 7,00,000/- issued by Managing Director/Director of M/s. Sri Vatsa Ispat Pvt., Ltd., in favour M/s. Ravi Steel Tubes (this cheque is in relation to pay-in-slip under Ex.P149). Ex.P168: Cheque bearing No. 201266 dated 23-10-1996 of Canara bank for Rs. 5,00,000/- issued by Managing Director/Director of M/s. Sri Vatsa Ispat Pvt., Ltd., in favour M/s. Ravi Steel Tubes (this cheque is in relation to pay-in-slip under Ex.P150). Ex.P169: Cheque bearing No. 201269 dated 31-10-1996 of Canara bank for Rs. 13,00,000/- issued by Managing Director/Director of M/s. Sri Vatsa Ispat Pvt., Ltd., in favour M/s. Ravi Steel Tubes (this cheque is in relation to pay-in-slip under Ex.P146). Ex.P170: Cheque bearing No. 201285 dated 27-11-1996 of Canara bank for Rs. 12,75,000/- issued by Managing Director/Director of M/s. Sri Vatsa Ispat Pvt., Ltd., in favour M/s. Ravi Steel Tubes (this cheque is in relation to pay-in-slip under Ex.P147). Ex.P171: Cheque bearing No. 201290 dated 30-11-1996 of Canara bank for Rs. 9,98,000/- issued by Managing Director/Director of M/s. Sri Vatsa Ispat Pvt., Ltd., in favour M/s. Ravi Steel Tubes (this cheque is in relation to pay-in-slip under Ex.P143). Ex.P172: Cheque bearing No. 156214 dated 28-07-1997 of Canara bank for Rs. 6,83,345/- issued by Managing Director of M/s. Sri Vatsa Ispat Pvt., Ltd., (this cheque is in relation to pay-in-slip under Ex.P151). Ex.P173: Cheque bearing No. 201206 dated 30-07-1996 of Canara bank for Rs. 1,50,000/- issued by Managing Director/Director of M/s. Sri Vatsa Ispat Pvt., Ltd., in favour M/s. Ravi Steel Tubes (this cheque is in relation to pay-in-slip under Ex.P152). Ex.P174: Cheque bearing No. 201209 dated 02-08-1996 of Canara bank for Rs. 8,05,530/- issued by Managing Director/Director of M/s. Sri Vatsa Ispat Pvt., Ltd., in favour M/s. Ravi Steel Tubes (this cheque is in relation to pay-in-slip under Ex.P153). Ex.P175: Cheque bearing No. 201219 dated 15-08-1996 of Canara bank for Rs. 7,00,000/- issued by Managing Director/Director of M/s. Sri Vatsa Ispat Pvt., Ltd., in favour M/s. Ravi Steel Tubes (this cheque is in relation to pay-in-slip under Ex.P154). Ex.P176: Cheque bearing No. 201221 dated 28-08-1996 of Canara bank for Rs. 1,04,000/- issued by Managing Director/Director of M/s. Sri Vatsa Ispat Pvt., Ltd., in 65 OF 84 CC 38/2018 favour M/s. Ravi Steel Tubes (this cheque is in relation to pay-in-slip under Ex P-155). Ex.P177: Cheque bearing No. 201229 dated 02-09-1996 of Canara bank for Rs. 8,05,000/- issued by Managing Director/Director of M/s. Sri Vatsa Ispat Pvt., Ltd., in favour M/s. Ravi Steel Tubes (this cheque is in relation to pay-in-slip under Ex P-156). Ex.P178: Cheque bearing No. 201241 dated 12-09-1996 of Canara bank for Rs. 1,70,000/- issued by Managing Director/Director of M/s. Sri Vatsa Ispat Pvt., Ltd., in favour M/s. Ravi Steel Tubes (this cheque is in relation to pay-in-slip under Ex.P157). Ex.P179: Cheque bearing No. 201244 dated 17-09-1996 of Canara bank for Rs. 7,45,000/- issued by Managing Director/Director of M/s. Sri Vatsa Ispat Pvt., Ltd., in favour M/s. Ravi Steel Tubes (this cheque is in relation to pay-in-slip under Ex.P158). Ex.P180: Cheque bearing No. 201246 dated 22-09-1996 of Canara bank for Rs. 13,09,500/- issued by Managing Director/Director of M/s. Sri Vatsa Ispat Pvt., Ltd., in favour M/s. Ravi Steel Tubes (this cheque is in relation to pay-in-slip under Ex.P159). Ex.P181: Cheque bearing No. 201249 dated 24-09-1996 of Canara bank for Rs. 2,50,000/- issued by Managing Director/Director of M/s. Sri Vatsa Ispat Pvt., Ltd., in favour M/s. Ravi Steel Tubes (this cheque is in relation to pay-in-slip under Ex.P160). Ex.P182: Cheque bearing No. 201255 dated 30-09-1996 of Canara bank for Rs. 12,75,500/- issued by Managing Director/Director of M/s. Sri Vatsa Ispat Pvt., Ltd., in favour M/s. Ravi Steel Tubes (this cheque is in relation to pay-in-slip under Ex.P161). Ex.P183: Cheque bearing No. 201259 dated 03-10-1996 of Canara bank for Rs. 7,80,000/- issued by Managing Director/Director of M/s. Sri Vatsa Ispat Pvt., Ltd., in favour M/s. Ravi Steel Tubes (this cheque is in relation to pay-in-slip under Ex.P162). Ex.P184: Cheque bearing No. 201262 dated 21-10-1996 of Canara bank for Rs. 2,00,000/- issued by Managing Director/Director of M/s. Sri Vatsa Ispat Pvt., Ltd., in favour M/s. Ravi Steel Tubes (this cheque is in relation to pay-in-slip under Ex.P163). Ex.P185: Cheque bearing No. 201265 dated 22-10-1996 of Canara bank for Rs. 7,50,000/- issued by Managing Director/Director of M/s. Sri Vatsa Ispat Pvt., Ltd., in favour M/s. Ravi Steel Tubes (this cheque is in relation to pay-in-slip under Ex.P164). Ex.P186: Cheque bearing No. 201298 dated 12-12-1996 of Canara bank for Rs. 8,75,000/- issued by Managing Director/Director of M/s. Sri Vatsa Ispat Pvt., Ltd., in favour M/s. Ravi Steel Tubes (this cheque is in relation to pay-in-slip under Ex.P165). Ex.P187: Cheque bearing No. 157044 dated 12-06-1997 of Canara bank for Rs.

66 OF 84 CC 38/2018 10,00,500/- issued by Managing Director /Director of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P188: Cheque bearing No. 201278 dated 20-11-1996 of Canara bank for Rs. 6,75,000/- issued by Managing Director/Director of M/s. Sri Vatsa Ispat Pvt., Ltd., in favour of M/s. Ravi Steel Tubes. Ex.P189: Attested copy of account opening form dated 25-09-1996 in the name of M/s. Kumud Steel Processors. Ex.P190: Attested copy of Account opening form dated 21-10-1997 in the name of M/s. Sri Sai Industries. Ex.P191: Attested copy of statement of account of M/s. Sri Sai Industries for the A/c No. 2191 for the period from 21-10-1997 to 31-03-1999. Ex.P192: Attested copy of statement of account of M/s. Kumud Steel Processors for the A/c No. 2121 for the period from 25-09-1996 to 27-07-1998. Ex.P193: Panjab National Bank cheque bearing No. 508190 dated 27-09-1996 for Rs. 9,75,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P194: Panjab National Bank cheque bearing No. 509403 dated 01-10-1996 for Rs. 9,75,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s Kumud Steel Processors along with cheque pay-in-slip. Ex.P195: Panjab National Bank cheque bearing No. 952695 dated 27-11-1996 for Rs. 9,74,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P196: Panjab National Bank cheque bearing No. 693120 dated 08-01-1997 for Rs. 22,15,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P197: Panjab National Bank cheque bearing No. 693127 dated 09-01-1997 for Rs. 19,55,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P198: Panjab National Bank cheque bearing No. 693133 dated 15-01-1997 for Rs. 18,60,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P199: Panjab National Bank cheque bearing No. 694015 dated 28-01-1997 for Rs. 9,78,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P200: Panjab National Bank cheque bearing No. 694035 dated 05-02-1997 for Rs. 9,78,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P201: Panjab National Bank cheque bearing No. 694048 dated 07-02-1997 for Rs. 9,78,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P202: Panjab National Bank cheque bearing No. 694049 dated 07-02-1997 for Rs. 7,20,000/- issued by the National Small Scale Industries Corporation Ltd., in 67 OF 84 CC 38/2018 favour of M/s. Kumud Steel Processors. Ex.P203: Panjab National Bank cheque bearing No. 200180 dated 15-02-1997 for Rs. 5,04,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P204: Panjab National Bank cheque bearing No. 200192 dated 18-02-1997 for Rs. 5,50,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P205: Panjab National Bank cheque bearing No. 242124 dated 27-02-1997 for Rs. 5,00,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P206: Panjab National Bank cheque bearing No. 242172 dated 10-03-1997 for Rs. 9,78,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P207: Panjab National Bank cheque bearing No. 242177 dated 11-03-1997 for Rs. 4,00,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P208: Panjab National Bank cheque bearing No. 242407 dated 18-03-1997 for Rs. 5,00,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P209: Panjab National Bank cheque bearing No. 201131 dated 09-04-1997 for Rs. 29,35,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P210: Panjab National Bank cheque bearing No. 201755 dated 08-05-1997 for Rs. 9,78,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P211: Panjab National Bank cheque bearing No. 201787 dated 23-05-1997 for Rs. 10,50,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P212: Panjab National Bank cheque bearing No. 243036 dated 09-06-1997 for Rs. 9,78,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P213: Panjab National Bank cheque bearing No. 243042 dated 10-06-1997 for Rs. 5,00,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P214: Panjab National Bank cheque bearing No. 243047 dated 13-06-1997 for Rs. 9,75,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P215: Panjab National Bank cheque bearing No. 203061 dated 26-06-1997 for Rs. 29,40,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P216: Panjab National Bank cheque bearing No. 246488 dated 09-08-1997 for Rs. 19,25,000/- issued by the National Small Scale Industries Corporation Ltd., in 68 OF 84 CC 38/2018 favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P217: Panjab National Bank cheque bearing No. 246619 dated 20-08-1997 for Rs. 19,25,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P218: Panjab National Bank cheque bearing No. 216641 dated 22-08-1997 for Rs. 11,55,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P219: Panjab National Bank cheque bearing No. 246803 dated 04-09-1997 for Rs. 18,90,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P220: Panjab National Bank cheque bearing No. 246660 dated 27-08-1997 for Rs. 4,90,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P221: Panjab National Bank cheque bearing No. 246661 dated 27-08-1997 for Rs. 9,40,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Kumud Steel Processors. Ex.P222: Panjab National Bank cheque bearing No. 248692 dated 19-12-1997 for Rs. 19,50,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P223: Panjab National Bank cheque bearing No. 207924 dated 18-03-1998 for Rs. 19,50,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P224: Panjab National Bank cheque bearing No. 207925 dated 19-03-1998 for Rs. 20,00,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P225: Panjab National Bank cheque bearing No. 207931 dated 24-03-1998 for Rs.20,00,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P226: Panjab National Bank cheque bearing No. 207933 dated 27-03-1998 for Rs.17,65,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P227: Panjab National Bank cheque bearing No.956572 dated 31-12-1996 for Rs.7,20,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P228: Panjab National Bank cheque bearing No. 251570 dated 19-06-1998 for Rs. 35,05,000/- issued by Proprietor Sri Sai Industries in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P229: Panjab National Bank cheque bearing No.251573 dated 23-06-1998 for Rs. 59,83,766/- issued by Proprietor Sri Sai Industries in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P230: Panjab National Bank cheque bearing No.251577 dated 27-06-1998 for Rs. 17,96,000/- issued by Proprietor Sri Sai Industries in favour of M/s. Kumud 69 OF 84 CC 38/2018

Steel Processors along with cheque pay-in-slip. Ex.P231: Panjab National Bank cheque bearing No.251578 dated 29-06-1998 for Rs. 32,45,000/- issued by Proprietor Sri Sai Industries in favour of M/s. Kumud Steel Processors along with cheque pay-in-slip. Ex.P232: Panjab National Bank cheque bearing No. 509256 dated 09-10-1996 for Rs. 8,70,000/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P233: Panjab National Bank cheque bearing No. 509258 dated 21-10-1996 for Rs. 7,00,000/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P234: Panjab National Bank cheque bearing No. 509259 dated 24-10-1996 for Rs. 5,00,000/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P235: Panjab National Bank cheque bearing No. 509262 dated 31-10-1996 for Rs. 13,00,200/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P236: Panjab National Bank cheque bearing No. 509276 dated 25-11-1996 for Rs. 9,75,000/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P237: Panjab National Bank cheque bearing No. 509279 dated 26-11-1996 for Rs. 8,50,000/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P238: Panjab National Bank cheque bearing No. 509282 dated 30-11-1996 for Rs. 5,30,000/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P239: Panjab National Bank cheque bearing No. 509286 dated 04-12-1996 for Rs. 10,00,000/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P240: Panjab National Bank cheque bearing No. 509289 dated 08-12-1996 for Rs. 10,02,000/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P241: Panjab National Bank cheque bearing No. 509284 dated 21-12-1996 for Rs. 6,75,000/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P242: Panjab National Bank cheque bearing No. 693304 dated 06-01-1997 for Rs. 21,50,000/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P243: Panjab National Bank cheque bearing No. 693306 dated 08-01-1997 for Rs. 20,00,000/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P244: Panjab National Bank cheque bearing No. 693310 dated 11-01-1997 for Rs. 19,50,000/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 70 OF 84 CC 38/2018 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P245: Panjab National Bank cheque bearing No. 693322 dated 27-01-1997 for Rs. 10,00,000/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P246: Panjab National Bank cheque bearing No. 693324 dated 27-01-1997 for Rs. 18,35,000/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P247: Panjab National Bank cheque bearing No. 693320 dated 04-02-1997 for Rs. 9,78,000/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P248: Panjab National Bank cheque bearing No. 693343 dated 14-02-1997 for Rs. 5,00,000/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P249: Panjab National Bank cheque bearing No. 693347 dated 17-02-1997 for Rs. 5,50,000/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P250: Panjab National Bank cheque bearing No. 693348 dated 27-02-1997 for Rs. 5,00,000/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P251: Panjab National Bank cheque bearing No. 200602 dated 06-03-1997 for Rs. 9,78,000/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P252: Panjab National Bank cheque bearing No. 693350 dated 11-03-1997 for Rs. 4,00,000/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P253: Panjab National Bank cheque bearing No. 200606 dated 17-03-1997 for Rs. 4,00,000/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P254: Panjab National Bank cheque bearing No. 200608 dated 17-03-1997 for Rs. 1,00,000/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P255: Panjab National Bank cheque bearing No. 200613 dated 03-04-1997 for Rs. 9,78,500/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s Sri Vatsa Ispat Pvt., Ltd., Ex.P256: Panjab National Bank cheque bearing No. 200614 dated 06-04-1997 for Rs. 19,50,500/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s Sri Vatsa Ispat Pvt., Ltd., Ex.P257: Panjab National Bank cheque bearing No. 200626 dated 06-05-1997 for Rs. 9,77,545-50 issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s Sri Vatsa Ispat Pvt., Ltd., Ex.P258: Panjab National Bank cheque bearing No. 200631 dated 21-05-1997 for Rs. 10,40,000/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 71 OF 84 CC 38/2018 in favour of M/s Sri Vatsa Ispat Pvt., Ltd., Ex.P259: Panjab National Bank cheque bearing No. 200640 dated 26-05-1997 for Rs. 8,35,000/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s Sri Vatsa Ispat Pvt., Ltd., Ex.P260: Panjab National Bank cheque bearing No. 200646 dated 06-06-1997 for Rs. 9,75,000/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s Sri Vatsa Ispat Pvt., Ltd., Ex.P261: Panjab National Bank cheque bearing No. 202654 dated 11-06-1997 for Rs. 5,12,450/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P262: Panjab National Bank cheque bearing No. 202655 dated 11-06-1997 for Rs. 4,50,325/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P263: Panjab National Bank cheque bearing No. 202659 dated 11-06-1997 for Rs.10,01,500/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P264: Panjab National Bank cheque bearing No. 202670 dated 24-06-1997 for Rs. 10,00,000/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P265: Panjab National Bank cheque bearing No. 202695 dated 12-07-1997 for Rs. 9,98,232/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P266: Panjab National Bank cheque bearing No. 203806 dated 23-07-1997 for Rs. 8,00,000/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P267: Panjab National Bank cheque bearing No. 203811 dated 26-07-1997 for Rs. 6,84,000/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P268: Panjab National Bank cheque bearing No. 203818 dated 06-08-1997 for Rs. 7,74,254/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P269: Panjab National Bank cheque bearing No. 203836 dated 24-08-1997 for Rs. 10,50,250/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P270: Panjab National Bank cheque bearing No. 205023 dated 24-09-1997 for Rs. 9,97,500/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P271: Panjab National Bank cheque bearing No. 205030 dated 27-09-1997 for Rs.9,75,500/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P272: Panjab National Bank cheque bearing No. 205039 dated 04-10-1997 for Rs. 9,51,500/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 72 OF 84 CC 38/2018 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P273: Panjab National Bank cheque bearing No. 205042 dated 12-10-1997 for Rs. 5,56,000/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P274: Panjab National Bank cheque bearing No. 205045 dated 16-10-1997 for Rs. 7,50,450/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M/s. Sri Vatsa Ispat Pvt., Ltd., Ex.P275: Panjab National Bank cheque bearing No. 209379 dated 07-04-1998 for Rs. 3000/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M.R.Rao. Ex.P276: Panjab National Bank cheque bearing No. 210238 dated 13-05-1998 for Rs. 17,25,000/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of R. Rao. Ex.P277: Panjab National Bank cheque bearing No. 252235 dated 06-06-1998 for Rs. 10,000/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M.R.Rao. Ex.P278: Panjab National Bank cheque bearing No. 252271 dated 01-07-1998 for Rs. 5,00,000/- issued by proprietor Kumud Steel Processors from its A/c No. 2121 in favour of M.Ramana Rao. Ex.P279: Panjab National Bank cheque bearing No. 251223 dated 27-04-1998 for Rs. 9,80,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Sri Sai Industries. Ex.P280: Panjab National Bank cheque bearing No. 251224 dated 27-04-1998 for Rs. 11,70,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Sri Sai Industries. Ex.P281: Panjab National Bank cheque bearing No. 251213 dated 17-04-1998 for Rs. 19,25,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Sri Sai Industries. Ex.P282: Pay-in-slip of Punjab National Bank dated 18-06-1998 for Rs. 17,40,000/- (Net amount Rs.17,37,354/-) Ex.P283: Panjab National Bank cheque bearing No. 251284 dated 29-06-1998 for Rs. 19,65,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Sri Sai Industries with pay-in-slip. Ex.P284: Panjab National Bank cheque bearing No. 251288 dated 29-06-1998 for Rs. 9,15,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Sri Sai Industries with pay-in-slip. Ex.P285: Panjab National Bank cheque bearing No. 251269 dated 22-06-1998 for Rs. 18,90,000/- issued by the National Small Scale Industries Corporation Ltd., in favour of M/s. Sri Sai Industries with pay-in-slip. Ex.P286: Panjab National Bank cheque bearing No. 251569 dated 15-06-1998 for Rs. 9,12,000/- issued by the Proprietor Sri Sai Industries, in favour of M.R. Foam Pvt., Ltd.

73 OF 84 CC 38/2018

Ex.P287: Panjab National Bank cheque bearing No. 251580 dated 25-06-1998 for Rs. 9,83,000/- issued by the Proprietor Sri Sai Industries, in favour of M.R. Foam Pvt., Ltd. Ex.P288: Copy of application for opening Current Account Bearing current account No. 566 opened by Managing Director of M/s Thethy Steels Pvt., Ltd., represented by G. Ramanarayana Reddy. (with certification under Bankers Book of Evidence Act). Ex.P289: Covering letter No. 854/11/66, dated 07-05-2003 through which pay-in-slip was handed over to CBI Police. Ex.P290: Office note along with orders of the Chief Manager sanctioning the OCC for Rs.20 lakhs and ILC for Rs.20 lakhs. Ex.P291: Copy of Memorandum of Association and Articles of Association of M/s. Srivatsa Ispat Pvt., Ltd. Ex.P292: Valuation report dated 22-01-1995 relating to the equitable mortgage property to the extent of 2508 square yards in survey no. 129/31 given by M. Raja Rao, Retd. Chief Engineer of Railway and approved valuer for banks. Ex.P293: Extract of minutes of the board meeting of M/s. Srivatsa Ispat Pvt. Ltd. held on 18-01-1995 at 11-00 AM. Ex.P294: Certified copy of statement of account of Mittal Ferro Rerolling Pvt. Ltd., for the period from 18-06-1998 to 10-09-1998. (With certification under Bankers Book of Evidence Act) Ex.P295: D.D bearing No. 118198 dated 11-06-1998 for Rs. 12,80,000/- in the name of Mittal Ferro Rerolling Pvt., Ltd., issued by Canara Bank, M.G.Road Branch, Secunderabd. Ex.P296: Pay-in-Slip dated 02-07-1998 relating to D.D. bearing No. 118198 dated 11-06- 1998. As per Ex.P294, on 04-07-1998 an amount of Rs.5,00,000/- was withdrawn by way of cheque bearing No. 52969 and amount of Rs. 5,00,000/- was withdrawn by way of another cheque bearing No. 52968. Ex.P297: Office copy Invoice/Delivery challan No.104 Dt. 23/06/1998 of M.S.Srivastsa Ispat pvt., Ltd., Ex P298: Office copy Invoice Delivery challan No.166 Dt. 11/11/1997 of M.S.Srivastsa Ispat pvt., Ltd., Ex P299: Office copy Invoice Delivery challan No.312 Dt. 04/03/1998 of M.S.Srivastsa Ispat pvt., Ltd., ExP300: NSIC Hyderabad file relating to Bank guarantee (B.G) No. 102/1996 dt. 01/08/1996 issued by Canara Bank, MG Road Branch, Secunderabad valued for Rs.10,00,000/- submitted by Srivasta Ispat pvt. Ltd., ExP301: NSIC Hyderabad file relating to Bank guarantee (B.G) no.103/1996 dt. 08/08/1996 issued by Canara Bank, MG Road Branch, Secunderabad valued for Rs.10,00,000/- submitted by Srivasta Ispat Pvt., Ltd. Ex P302: NSIC Hyderabad file relating to Bank guarantee (B.G) no.158/1996 dt. 13/12/1996 issued by Canara Bank, MG Road Branch, Secunderabad valued for 74 OF 84 CC 38/2018

Rs.30,00,000/- submitted by Srivasta Ispat Pvt., Ltd. Ex P303: NSIC Hyderabad file relating to Bank guarantee (B.G) no.104/1996 dt. 09/11/1996 issued by Canara Bank, MG Road Branch, Secunderabad valued for Rs.20,00,000/- submitted by Srivasta Ispat Pvt., Ltd. Ex P304: NSIC Hyderabad file relating to Letter of Credit (L.C) no.98/1995 dt. 22/12/1995 issued by Canara Bank, MG Road Branch, Secunderabad valued for Rs.10,00,000/- submitted by Srivasta Ispat Pvt., Ltd. Ex P305: NSIC Hyderabad file relating to Bank guarantee (B.G) no.7/1997 dt. 09/01/1997 issued by Canara Bank, MG Road Branch, Secunderabad valued for Rs.20,00,000/- submitted by Srivasta Ispat Pvt., Ltd. Ex P306: NSIC Hyderabad file relating to Bank guarantee (B.G) no.48/1997 dt. 16/05/1997 issued by Canara Bank, MG Road Branch, Secunderabad valued for Rs.12,00,000/- submitted by Srivasta Ispat Pvt., Ltd. Ex P307: NSIC Hyderabad file relating to Bank guarantee (B.G) no.66/1997 dt. 20/06/1997 issued by Canara Bank, MG Road Branch, Secunderabad valued for Rs.30,00,000/- submitted by Srivasta Ispat Pvt., Ltd. Ex P308: NSIC Hyderabad file relating to Bank guarantee (B.G) no.78/1997 dt. 14/07/1997 issued by Canara Bank, MG Road Branch, Secunderabad valued for Rs.18,00,000/- submitted by Srivasta Ispat Pvt., Ltd. Ex P309: NSIC Hyderabad file relating to Bank guarantee (B.G) no.81/1997 dt. 28/07/1997 issued by Canara Bank, MG Road Branch, Secunderabad valued for Rs.20,00,000/- submitted by Srivasta Ispat Pvt., Ltd. Ex P310: NSIC Hyderabad file relating to Bank guarantee (B.G) no.81/1997 dt. 28/07/1997 issued by Canara Bank, MG Road Branch, Secunderabad valued for Rs.20,00,000/- submitted by Srivasta Ispat Pvt., Ltd. Ex P311: NSIC, Hyderabad payment processing file related to correspondence pertaining to assistance provided to M/s Srivasta Ispat Pvt., Ltd. Ex P312: bill dt.. 16-12-1997 of Kumud Steel Processors for Rs. 20,70,000/- submitted by Srivasta Ispat Pvt., Ltd., Ex P313: payment voucher of NSIC dt. 19-12-1997 for Rs. 19,50,000/- in favour of Kumud Steel Processors, relating to Ex P-312 bill. Ex P314: proforma invoice/bill dt. 17-04-1998 of Sri Sai Industries for Rs. 20,40,000/- submitted by Srivasta Ispat Pvt., Ltd., Ex P315: payment voucher of NSIC dt. 17-04-1998 for Rs. 19,25,000/- in favour of Sri Sai Industries, relating to Ex P-314 bill. Ex P316: proforma invoice/bill dt. 27-04-1998 of Sri Sai Industries for Rs. 10,08,000/- submitted by Srivasta Ispat Pvt., Ltd., Ex P317: payment voucher of NSIC dt. 27-04-1998 for Rs. 9,80,000/- in favour of Sri Sai Industries, relating to Ex P-316 bill. Ex P318: proforma invoice/bill dt. 27-04-1998 of Sri Sai Industries for Rs.12,00,000/- submitted by Srivasta Ispat Pvt., Ltd., 75 OF 84 CC 38/2018

Ex P319: payment voucher of NSIC dt. 27-04-1998 for Rs. 11,70,000/- in favour of Sri Sai Industries, relating to Ex P-318 bill. Ex P320: proforma invoice/bill dt. 20-06-1998 of Sri Sai Industries for Rs. 24,00,000/- submitted by Srivasta Ispat Pvt., Ltd., Ex P321: payment voucher of NSIC dt. 22-06-1998 for Rs. 18,90,000/- in favour of Sri Sai Industries, relating to Ex P-320 bill. Ex P322: proforma invoice/bill dt. 26-06-1998 of Sri Sai Industries for Rs. 24,00,000/- submitted by Srivasta Ispat Pvt., Ltd., Ex P323: payment voucher of NSIC dt. 28-06-1998 for Rs. 19,65,000/- in favour of Sri Sai Industries, relating to Ex P-322 bill. Ex P324: proforma invoice/bill dt. 29-06-1998 of Sri Sai Industries for Rs. 10,20,000/- submitted by Srivasta Ispat Pvt., Ltd., Ex P325: payment voucher of NSIC dt. 29-06-1998 for Rs. 9,15,000/- in favour of Sri Sai Industries, relating to Ex P-324 bill. Ex P326: proforma invoice/bill dt. 02-12-1996 of Kumud Steel Processors for Rs. 10,00,000/- submitted by Srivasta Ispat Pvt., Ltd., Ex P327: payment voucher of NSIC dt. 03-12-1996 for Rs. 09,75,000/- in favour of Kumud Steel Processors, relating to Ex P-326 bill. Ex P328: proforma invoice/bill dt. 07-12-1996 of Kumud Steel Processors for Rs. 20,00,000/- submitted by Srivasta Ispat Pvt., Ltd., Ex P329: payment voucher of NSIC dt. 09-12-1996 for Rs. 19,51,000/- in favour of Kumud Steel Processors, relating to Ex P-328 bill. Ex P330: proforma invoice/bill dt. 07-04-1997 of Kumud Steel Processors for Rs. 30,00,000/- submitted by Srivasta Ispat Pvt., Ltd., Ex P331: payment voucher of NSIC dt. 09-04-1997 for Rs. 29,35,000/- in favour of Kumud Steel Processors, relating to Ex P-330 bill. Ex P332: proforma invoice/bill dt. 11-04-1997 of Kumud Steel Processors for Rs. 20,00,000/- submitted by Srivasta Ispat Pvt., Ltd., Ex P333: payment voucher of NSIC dt. 11-04-1997 for Rs 19,57,000/- in favour of Kumud Steel Processors, relating to Ex P-332 bill. Ex P334: proforma invoice/bill dt. 06-05-1997 of Kumud Steel Processors for Rs. 10,00,000/- submitted by Srivasta Ispat Pvt., Ltd., Ex P335: payment voucher of NSIC dt. 08-05-1997 for Rs. 09,78,000/- in favour of Kumud Steel Processors, relating to Ex P-334 bill. Ex P336: proforma invoice/bill dt. 21-05-1997 of Kumud Steel Processors for Rs. 12,00,000/- submitted by Srivasta Ispat Pvt., Ltd., Ex P337: payment voucher of NSIC dt. 21-05-1997 for Rs. 11,75,000/- in favour of Kumud Steel Processors, relating to Ex P-336 bill. Ex P338: proforma invoice/bill dt. 21-05-1997 of Kumud Steel Processors for Rs. 10,80,000/- submitted by Srivasta Ispat Pvt., Ltd., 76 OF 84 CC 38/2018

Ex P339: payment voucher of NSIC dt. 23-05-1997 for Rs. 10,50,000/- in favour of Kumud Steel Processors, relating to Ex P-338 bill. Ex P340: proforma invoice/bill dt. 08-06-1997 of Kumud Steel Processors for Rs. 12,00,000/- submitted by Srivasta Ispat Pvt., Ltd., Ex P341: payment voucher of NSIC dt. 09-06-1997 for Rs. 09,78,000/- in favour of Kumud Steel Processors, relating to Ex P-340bill. Ex P342: proforma invoice/bill dt. 08-06-1997 of Kumud Steel Processors for Rs. 5,40,000/- submitted by Srivasta Ispat Pvt., Ltd., Ex P343: the payment voucher of NSIC dt. 10-06-1997 for Rs. 05,00,000/- in favour of Kumud Steel Processors, relating to Ex P-342 bill. Ex P344: proforma invoice/bill dt. 13-06-1997 of Kumud Steel Processors for Rs. 10,20,000/- submitted by Srivasta Ispat Pvt., Ltd., Ex P345: payment voucher of NSIC dt. 13-06-1997 for Rs. 09,75,000/- in favour of Kumud Steel Processors, relating to Ex P-344 bill. Ex P346: proforma invoice/bill dt. 24-06-1997 of Kumud Steel Processors for Rs. 30,00,000/- submitted by Srivasta Ispat Pvt., Ltd., Ex P347: payment voucher of NSIC dt. 26-06-1997 for Rs. 29,40,000/- in favour of Kumud Steel Processors, relating to Ex P-346 bill. Ex P348: proforma invoice/bill dt. 13-06-1997 of Kumud Steel Processors for Rs. 4,20,000/- submitted by Srivasta Ispat Pvt., Ltd., Ex P349: payment voucher of NSIC dt. 04-07-1997 for Rs. 4,00,000/- in favour of Kumud Steel Processors, relating to Ex P-348 bill. Ex P350: proforma invoice/bill dt. 08-08-1997 of Kumud Steel Processors for Rs.19,80,000/- submitted by Srivasta Ispat Pvt., Ltd., Ex P351: payment voucher of NSIC dt. 09-08-1997 for Rs. 19,25,000/- in favour of Kumud Steel Processors, relating to Ex P-350 bill. Ex P352: proforma invoice/bill dt. 18-08-1997 of Kumud Steel Processors for Rs. 20,40,000/- submitted by Srivasta Ispat Pvt., Ltd., Ex P353: payment voucher of NSIC dt. 20-08-1997 for Rs. 19,25,000/- in favour of Kumud Steel Processors, relating to Ex P-352 bill. Ex P354: proforma invoice/bill dt. 22-08-1997 of Kumud Steel Processors for Rs. 12,00,000/- submitted by Srivasta Ispat Pvt., Ltd., Ex P355: payment voucher of NSIC dt. 22-08-1997 for Rs. 11,55,000/- in favour of Kumud Steel Processors, relating to Ex P-354 bill. Ex P356: proforma invoice/bill dt. 26-08-1997 of Kumud Steel Processors for Rs. 5,04,000/- submitted by Srivasta Ispat Pvt., Ltd., Ex P357: payment voucher of NSIC dt. 27-08-1997 for Rs. 4,90,000/- in favour of Kumud Steel Processors, relating to Ex P-356 bill. Ex P358: proforma invoice/bill dt. 26-08-1997 of Kumud Steel Processors for Rs. 10,08,000/- submitted by Srivasta Ispat Pvt., Ltd., 77 OF 84 CC 38/2018

Ex P359: payment voucher of NSIC dt. 27-08-1997 for Rs. 09,40,000/- in favour of Kumud Steel Processors, relating to Ex P-358 bill. Ex P360: proforma invoice/bill dt. 30-08-1997 of Kumud Steel Processors for Rs. 20,16,000/- submitted by Srivasta Ispat Pvt., Ltd., Ex P361: payment voucher of NSIC dt. 04-09-1997 for Rs. 18,90,000/- in favour of Kumud Steel Processors, relating to Ex P-360 bill. Ex P362: proforma invoice/bill dt. 26-09-1997 of Kumud Steel Processors for Rs. 30,00,000/- submitted by Srivasta Ispat Pvt., Ltd., Ex P363: payment voucher of NSIC dt. 26-09-1997 for Rs. 28,90,000/- in favour of Kumud Steel Processors, relating to Ex P-362 bill. Ex P364: proforma invoice/bill dt. 01-01-1998 of Kumud Steel Processors for Rs. 10,20,000/- submitted by Srivasta Ispat Pvt., Ltd., Ex P365: payment voucher of NSIC dt. 02-01-1998 for Rs. 09,60,000/- in favour of Kumud Steel Processors, relating to Ex P-364 bill. Ex P366: proforma invoice/bill dt. 31-12-1997 of Kumud Steel Processors for Rs. 12,00,000/- submitted by Srivasta Ispat Pvt., Ltd., Ex P367: payment voucher of NSIC dt. 02-01-1998 for Rs. 11,50,000/- in favour of Kumud Steel Processors, relating to Ex P-366 bill. Ex P368: proforma invoice/bill dt. 25-03-1998 of Kumud Steel Processors for Rs. 19,80,000/- submitted by Srivasta Ispat Pvt., Ltd., Ex P369: payment voucher of NSIC dt. 25-03-1998 for Rs. 19,70,000/- in favour of Kumud Steel Processors, relating to Ex P-368 bill. Ex P370: Certified copy of specimen signatures card of Sri G.Ramanarayana Reddy pertaining account No. 97821. Ex P371: Opinion vide no. CH-57/2003/2047 dt. 13-03-2003 along with covering letter. Ex P372: Opinion vide no. CH-57/2003/2320 dt. 13-05-2003 along with covering letter. Ex P373: Opinion vide no. CH-57/2003/6047 dt. 18-11-2003 along with covering letter. Ex P374: Specimen handwritings / signatures of M.V. Ramana Rao under S1 to S10 & S35 and S36 & S43 to S46 & S63 to S66. Ex P375: Specimen handwritings / signatures of M. Raghavender Rao under S11 to S20 & S37 and S38 & S47 to S50 & S57 to S62. Ex P376: Specimen handwritings / signatures of M. Ravi Kumar under S21 to S28 & S39 and S40 & S51 to S54 & S67 to S70. Ex P377: Specimen handwritings / signatures of D. Sai Ram under S29 and S30 Ex P378: Specimen handwritings / signatures of P. Sree Rama Chandra Murthy under S31 and S32. Ex P379: Specimen handwritings / signatures of G. Rama Narayana Reddy under S33 and S34. Ex P380: Specimen handwritings / signatures of Mir Shujat Ali Khan under S41 and S42.

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Ex P381: Specimen handwritings / signatures of V. Seetharam under S55 and S56. Ex P382: Admitted signatures of G. Rama Narayana Reddy on letter dated 01/06/1991 and on the letter dated 27/12/2002 under A1 to A3. Ex P383: Admitted signatures of Mir Sujat Ali Khan in the TSA D II register under A4, A6, A8, A12 and A14 & Admitted Rubber Stamp Impressions of Tahasildar Golconda in the TSA D II register under A5, A7, A9 to A11, A13 and A15. Ex P384: Admitted signatures of G. Rama Narayana Reddy on letters dated 10/11/1998, 26/10/1998, 28/10/1998 and on 22/09/1998 under A16 to A19. Ex P385: Disputed signatures of M. Raghavender Rao on Agreement dated 09/02/1995 under Q1, on collateral security format dated 09/02/1995 under Q2 and List of Machinery under Q3 dated Nil. Ex P386: CC of confessions statement of accused by name V. Seetharam.

ExP-387: FIR dated 04/02/2002.

Ex P388: Letter No. 4869/G1/2002, dated 03/10/2002 addressed by District Registrar, Ranga Reddy District. Ex P389: Receipt Memo dated 02/10/2002 issued by me showing receipt of documents mentioned in the memo. Ex P390: Covering letter No. E/492/2002-1, dated 19/12/2002issued by MRO, Korutla. Ex P391: Letter No. B/1182/2002, dated 14/02/2003 issued by MRO, Golconda. Ex P392: Letter No. 435CR, dated 17/02/1995 of Canara Bank, MG Road, Secunderabad. Ex P393: Office note No. NDGM/368/95, dated 14/03/1996 of Advances Section, Canara Bank, Hyderabad. Ex P394: Office note dated 01/08/1996 at Advance Section, Canara bank. Ex P395: Recommendation from Canara Bank, MG Road Secunderabad dated 26/11/1996 vide CR435/96-97. Ex P396: Letter dated 24/09/1997 from Canara Bank, MG Road, Secunderabad. Ex P397: Office note dated 07/11/1997 of Canara bank. Ex P398: Orders dated 18/11/1997 of Canara bank, MG road, Secunderabad. Ex P399: Note for MID Term review cum Health code confirmation dated 30/09/1997 of Canara Bank, Hyderabad. Ex P400: Manual of instructions of Canara bank. Ex P401: Letter dated 18/11/1997 issued by Chief Manager, Canara Bank to A2 company. Ex P402: Reply from A2 company dated 10/01/1998 to Canara Bank, MG road Branch, Secunderabad. Ex P403: Letter from Chief Manager, Canara Bank, MG Road, Secunderabad dated 79 OF 84 CC 38/2018 12/03/1998. Ex P404: Reply from A2 company dated 24/03/1998 to Chief Managar, Canara Bank. Ex P405: Letter dated 09/01/1998 from Manager, Canara Bank, Circle Office, Hyderabad to The Manager Credit, Canara Bank, MG Road Secunderabad. Ex P406: Letter dated 02/04/1998 from Manager, Canara Bank, Head Office, Banagalore to The Manager Credit, Canara Bank, MG Road Secunderabad. Ex P407: Letter dated 08/05/1998 from Sr. Manager, Canara Bank, MG Road, Secunderabad to Advances Section, Canara Bank, Circle Office, Hyderabad with enclosures 3 in sheets. Ex P408: Letter dated 11/05/1998 from Sr. Manager, Canara Bank, MG Road, Secunderabad to Advances Section, Canara Bank, Circle Office, Hyderabad. Ex P409: Office note dated 12/05/1998 from the Advances Sections, Canara Bank, Hyderabad submitted to DGM, Canara Bank. Ex P410: Office note dated 22/08/1998 from the Advances Sections, Canara Bank, Hyderabad submitted to DGM, Canara Bank. Ex P411: Letter dated 21/09/1998 of Canara Bank, MG Road, Secunderabad addressed to Recoveries and Legal Section, Circle Office, Hyderabad. Ex P412: Valuation report dated 28/10/1998 issued by M. Raja Rao & Co., approved valuer, Canara Bank. Ex P413: Registered Letter addressed to L. Narasimha Rao, dated 22/10/2002 with endorsement of Postman. Ex P414: Registered Letter addressed to L. Raju, dated 22/10/2002 with endorsement of Postman. Ex P415: Stock Inspection report dated 17/01/1997 submitted by K. Ganeshwar Rao, Canara Bank, MG Road, Secunderabad in 3 sheets. Ex P416: Stock Inspection report dated 23/01/1998 submitted by E. Vijaya Reddy, Canara Bank, MG Road, Secunderabad. Ex P417: Stock Inspection report dated 30/04/1998 submitted by E. Vijaya Reddy, Canara Bank, MG Road, Secunderabad. Ex P418: Stock Inspection report dated 25/04/1997 submitted by K. Mohan Chandran, Canara Bank, MG Road, Secunderabad. Ex P419: Stock Inspection report dated 07/08/1997 submitted by K. Mohan Chandran, Canara Bank, MG Road, Secunderabad Ex P420: Stock Inspection report dated 05/08/1998 submitted by K. Subba Rao, Canara Bank, MG Road, Secunderabad in 3 sheets. Ex P421: Stock Inspection report dated 27/08/1998, 28/08/1998 and 01/09/1998 submitted by K. Subba Rao, Canara Bank, MG Road, Secunderabad in 6 sheets. Ex P422: Current account pay in slip of Canara Bank, MG road, Secunderabad dated 10/10/1996 for Rs. 8,70,000/-. Ex P423: Current account pay in slip of Canara Bank, MG road, Secunderabad dated 80 OF 84 CC 38/2018 22/10/1996 for Rs. 7,00,000/-. Ex P424: Current account pay in slip of Canara Bank, MG road, Secunderabad dated 25/10/1996 for Rs. 5,00,000/-. Ex P425: Current account pay in slip of Canara Bank, MG road, Secunderabad dated 31/10/1996 for Rs. 13,00,200/-. Ex P426: Current account pay in slip of Canara Bank, MG road, Secunderabad dated 26/11/1996 for Rs. 9,75,000/-. Ex P427: Current account pay in slip of Canara Bank, MG road, Secunderabad dated 29/11/1996 for Rs. 12,75,000/-. Ex P428: Current account pay in slip of Canara Bank, MG road, Secunderabad dated 02/12/1996 for Rs. 4,45,000/-. Ex P429: Current account pay in slip of Canara Bank, MG road, Secunderabad dated 23/12/1996 for Rs. 6,75,000/-. Ex P430: Current account pay in slip of Canara Bank, MG road, Secunderabad dated 14/02/1997 for Rs. 4,99,850/-. Ex P431: Current account pay in slip of Canara Bank, MG road, Secunderabad dated 27/02/1997 for Rs. 5,00,000/-. Ex P432: Current account pay in slip of Canara Bank, MG road, Secunderabad dated 08/03/1997 for Rs. 9,77,707/-. Ex P433: Current account pay in slip of Canara Bank, MG road, Secunderabad dated 11/03/1997 for Rs. 4,00,000/-. Ex P434: Current account pay in slip of Canara Bank, MG road, Secunderabad dated 17/03/1997 for Rs. 4,00,000/-. Ex P435: Current account pay in slip of Canara Bank, MG road, Secunderabad dated 07/04/1997 for Rs. 19,50,500/-. Ex P436: Current account pay in slip of Canara Bank, MG road, Secunderabad dated 06/05/1997 for Rs. 9,77,545/50 paise. Ex P437: Current account pay in slip of Canara Bank, MG road, Secunderabad dated 07/06/1997 for Rs. 9,75,000/-. Ex P438: Current account pay in slip of Canara Bank, MG road, Secunderabad dated 11/06/1997 for Rs. 13,76,000/-. Ex P439: Current account pay in slip of Canara Bank, MG road, Secunderabad dated 12/06/1997 for Rs. 10,00,000/-. Ex P440: Current account pay in slip of Canara Bank, MG road, Secunderabad dated 24/06/1997 for Rs. 10,00,000/-. Ex P441: Current account pay in slip of Canara Bank, MG road, Secunderabad dated 14/07/1997 for Rs. 9,98,232/-. Ex P442: Current account pay in slip of Canara Bank, MG road, Secunderabad dated 24/07/1997 for Rs. 8,00,000/-. Ex P443: Current account pay in slip of Canara Bank, MG road, Secunderabad dated 81 OF 84 CC 38/2018 28/07/1997 for Rs. 6,84,000/-. Ex P444: Current account pay in slip of Canara Bank, MG road, Secunderabad dated 26/08/1997 for Rs. 10,00,000/-. Ex P445: Current account pay in slip of Canara Bank, MG road, Secunderabad dated 25/09/1997 for Rs. 9,97,500/-. Ex P446: Current account pay in slip of Canara Bank, MG road, Secunderabad dated 17/10/1997 for Rs. 7,50,450/-. Ex P447: Cheque bearing No. 201282 dated 26/11/1996 drawn on Canara Bank, MG road, Secunderabad for Rs. 9,96,469/- Ex P448: Cheque bearing No. 408571 dated 10/01/1997 drawn on Canara Bank, MG road, Secunderabad for Rs. 12,00,500/- along with DD Application. Ex P449: Cheque bearing No. 712952 dated 17/01/1997 drawn on Canara Bank, MG road, Secunderabad for Rs. 19,70,500/- along with DD Application. Ex P450: Cheque bearing No. 712954 dated 27/01/1997 drawn on Canara Bank, MG road, Secunderabad for Rs. 10,00,500/- along with DD Application. Ex P451: Cheque bearing No. 712961 dated 29/01/1997 drawn on Canara Bank, MG road, Secunderabad for Rs. 9,96,470/- along with DD Application. Ex P452: Cheque bearing No. 712963 dated 31/01/1997 drawn on Canara Bank, MG road, Secunderabad for Rs. 7,34,942.50 paise along with DD Application. Ex P453: Cheque bearing No. 712966 dated 06/02/1997 drawn on Canara Bank, MG road, Secunderabad for Rs. 9,96,470/- along with DD Application. Ex P454: Cheque bearing No. 712969 dated 14/02/1997 drawn on Canara Bank, MG road, Secunderabad for Rs. 20,00,500/- along with DD Application. Ex P455: Cheque bearing No. 712977 dated 28/02/1997 drawn on Canara Bank, MG road, Secunderabad for Rs. 9,98,472/- along with DD Application. Ex P456: Cheque bearing No. 712985 dated 08/03/1997 drawn on Canara Bank, MG road, Secunderabad for Rs. 9,98,293/- along with DD Application. Ex P457:Cheque bearing No. 712990 dated 17/03/1997 drawn on Canara Bank, MG road, Secunderabad for Rs. 5,14,458/- along with DD Application. Ex P458: Cheque bearing No. 712993 dated 24/03/1997 drawn on Canara Bank, MG road, Secunderabad for Rs. 7,97,697/- along with DD Application. Ex P459:Cheque bearing No. 712999 dated 07/04/1997 drawn on Canara Bank, MG road, Secunderabad for Rs. 29,92,072/- along with DD Application. Ex P460: Cheque bearing No. 157001 dated 10/04/1997 drawn on Canara Bank, MG road, Secunderabad for Rs. 19,95,066/- along with DD Application. Ex P461: Cheque bearing No. 157012 dated 09/05/1997 drawn on Canara Bank, MG road, Secunderabad for Rs. 12,00,600/- along with DD Application. Ex P462:Cheque bearing No. 156201 dated 14/07/1997 drawn on Canara Bank, MG road, Secunderabad for Rs. 10,00,500/- along with DD Application. Ex P463:Cheque bearing No. 156213 dated 24/07/1997 drawn on Canara Bank, MG 82 OF 84 CC 38/2018 road, Secunderabad for Rs. 10,00,500/- along with DD Application. Ex P464:Cheque bearing No. 156222 dated 07/08/1997 drawn on Canara Bank, MG road, Secunderabad for Rs. 8,40,420/- along with DD Application. Ex P465: Cheque bearing No. 156243 dated 25/09/1997 drawn on Canara Bank, MG road, Secunderabad for Rs. 18,09,500/- along with DD Application. Ex P466: Cheque bearing No. 156245 dated 29/09/1997 drawn on Canara Bank, MG road, Secunderabad for Rs. 9,94,500/- along with DD Application. Ex P467:Cheque bearing No. 156246 dated 06/10/1997 drawn on Canara Bank, MG road, Secunderabad for Rs. 9,50,475/- along with DD Application. Ex P468: Cheque bearing No. 253851 dated 17/10/1997 drawn on Canara Bank, MG road, Secunderabad for Rs. 6,50,325/- along with DD Application. Ex P469:Cheque bearing No. 253852 dated 17/10/1997 drawn on Canara Bank, MG road, Secunderabad for Rs. 1,00,200/- along with DD Application. Ex P470: Letter No. 502/T7/TC5/MCH/2003, dated 03/05/2003 addressed by Deputy Commissioner, Circle No. V, MCH, Kairatabad, Hyderabad. Ex P471: Cheque bearing No. 253947 dated 11/06/1998 drawn on Canara Bank, MG road, Secunderabad for Rs. 12,80,640/-. Ex P472: Application for DD dated 11/06/1998 of Canara Bank, MG Road, Secunderabad for Rs. 12,80,500/-. Ex P473: Pay in slip dated 08/06/1998 of Canara Bank, IFB, Basheerbagh, Hyderabad for Rs. 5,00,000/-. Ex P474: Pay in slip dated 08/07/1998 of Canara Bank, IFB, Basheerbagh, Hyderabad for Rs. 5,00,000/-. Ex P475: Letter No. CC/15069/SFS/2002, dated 21/03/2002 of ROC, Hyderabadin 24 sheets. Ex P476: Pay in slip dated 07/01/1997 of Canara Bank, IFB, Basheerbagh, Hyderabad for Rs. 21,50,000/-. Ex P477:Pay in slip dated 08/01/1997 of Canara Bank, IFB, Basheerbagh, Hyderabad for Rs. 20,00,000/-. Ex P478: Pay in slip dated 11/01/1997 of Canara Bank, IFB, Basheerbagh, Hyderabad for Rs. 19,50,000/-. Ex P479: Pay in slip dated 28/01/1997 of Canara Bank, IFB, Basheerbagh, Hyderabad for Rs. 18,35,000/-. Ex P480: Cheque bearing No. 408563 dated 27/12/1996 drawn on Canara Bank, MG road, Secunderabad for Rs. 10,00,000/- along with credit slip. Ex P481: Cheque bearing No. 157048 dated 21/06/1997 drawn on Canara Bank, MG road, Secunderabad for Rs. 30,26,965/- . Ex P482: Cheque bearing No. 156250 dated 13/10/1997 drawn on Canara Bank, MG road, Secunderabad for Rs. 5,60,000/-. Ex P483: Cheque bearing No. 828213 dated 02/05/1995 drawn on Canara Bank, MG road, 83 OF 84 CC 38/2018

Secunderabad for Rs. 1,60,000/- . Ex P484: Cheque bearing No. 828239 dated 30/06/1995 drawn on Canara Bank, MG road, Secunderabad for Rs. 2,00,000/- . Ex P485: Cheque bearing No. 828215 dated 03/05/1995 drawn on Canara Bank, MG road, Secunderabad for Rs. 1,00,000/- . Ex P486: Cheque bearing No. 828243 dated 11/07/1995 drawn on Canara Bank, MG road, Secunderabad for Rs. 1,00,000/- . Ex P487: Cheque bearing No. 297140 dated 21/10/1995 drawn on Canara Bank, MG road, Secunderabad for Rs. 3,00,000/- . Ex P488: Cheque bearing No. 297143 dated 30/10/1995 drawn on Canara Bank, MG road, Secunderabad for Rs. 2,00,000/- . Ex P489: Cheque bearing No. 297148 dated 09/11/1995 drawn on Canara Bank, MG road, Secunderabad for Rs. 2,00,000/- . Ex P490: Cheque bearing No. 353354 dated 24/11/1995 drawn on Canara Bank, MG road, Secunderabad for Rs. 2,00,000/- . Ex P491: Cheque bearing No. 353361 dated 28/11/1995 drawn on Canara Bank, MG road, Secunderabad for Rs. 3,50,000/- . Ex P492: Cheque bearing No. 353357 dated 01/12/1995 drawn on Canara Bank, MG road, Secunderabad for Rs. 1,00,000/- . Ex P493: Cheque bearing No. 353360 dated 06/12/1995 drawn on Canara Bank, MG road, Secunderabad for Rs. 4,00,000/- . Ex P494: Cheque bearing No. 353371 dated 13/01/1996 drawn on Canara Bank, MG road, Secunderabad for Rs. 4,00,000/- . Ex P495: Cheque bearing No. 353372 dated 16/01/1996 drawn on Canara Bank, MG road, Secunderabad for Rs. 2,30,000/- . Ex P496: Cheque bearing No. 353373 dated 16/01/1996 drawn on Canara Bank, MG road, Secunderabad for Rs. 2,40,000/- . Ex P497: Cheque bearing No. 353374 dated 17/01/1996 drawn on Canara Bank, MG road, Secunderabad for Rs. 2,25,000/- . Ex P498: Cheque bearing No. 353375 dated 17/01/1996 drawn on Canara Bank, MG road, Secunderabad for Rs. 2,00,000/- . Ex P499: Cheque bearing No. 353399 dated 04/04/1996 drawn on Canara Bank, MG road, Secunderabad for Rs. 1,75,000/- . Ex P500: Cheque bearing No. 353381 dated 13/02/1996 drawn on Canara Bank, MG road, Secunderabad for Rs. 5,00,000/- . Ex P501: Cheque bearing No. 245440 dated 18/06/1996 drawn on Canara Bank, MG road, Secunderabad for Rs. 5,00,000/- . Ex P502: Cheque bearing No. 245449 dated 10/07/1996 drawn on Canara Bank, MG road, Secunderabad for Rs. 3,00,000/- . Ex P503: Cheque bearing No. 201226 dated 22/08/1996 drawn on Canara Bank, MG road, 84 OF 84 CC 38/2018

Secunderabad for Rs. 6,85,000/- . Ex P504: Cheque bearing No. 253861 dated 24/10/1997 drawn on Canara Bank, MG road, Secunderabad for Rs. 5,00,000/- . Ex P505: NSIC Ltd,. voucher No. B/12/591, dated 31/12/1996 issuing cheque bearing No. 956572 dated 31/12/1996 for Rs. 7,20,000/-. Ex P506: Proforma Invoice of Kumud Steel Processors dated 28/12/1996 for Rs. 7,20,000/- in favour of M/s. Srivatsa Ispat Private Limited. Ex P507: NSIC Ltd,. voucher No. B/03/743, dated 19/03/1998 issuing cheque bearing No. 207925 dated 19/03/1998 for Rs. 20,00,000/-. Ex P508: Proforma Invoice of Kumud Steel Processors dated 17/03/1998 for Rs. 12,00,000/- in favour of M/s. Srivatsa Ispat Private Limited. Ex P509: Letter from M/s Srivatsa Ispat Private Limited to NSIC Ltd,.Acknowledging the material receipt. Ex P510: Proforma Invoice of Kumud Steel Processors dated 10/03/1998 for Rs. 18,00,000/- in favour of M/s. Srivatsa Ispat Private Limited. Ex P511: Letter from M/s Srivatsa Ispat Private Limited to NSIC Ltd,. Acknowledging the material receipt. Ex P512: NSIC Ltd,. voucher No. B/03/749, dated 24/03/1998 issuing cheque bearing No. 207931 dated 24/03/1998 for Rs. 20,00,000/-. Ex P513:NSIC Ltd,. voucher No. B/03/742, dated 18/03/1998 issuing cheque bearing No. 207924 dated 18/03/1998 for Rs. 19,50,000/-. Ex P514: Proforma Invoice of Kumud Steel Processors dated 17/03/1998 for Rs. 19,92,000/- in favour of M/s. Srivatsa Ispat Private Limited. Ex P515: NSIC Ltd,. voucher No. B/03/751, dated 27/03/1997 issuing cheque bearing No. 207933 dated 27/03/1997 for Rs. 17,65,000/-. Ex P516: Proforma Invoice of Kumud Steel Processors dated 25/03/1998 for Rs. 24,00,000/- in favour of M/s. Srivatsa Ispat Private Limited.

FAC XXI ADDL. CHIEF METROPOLITAN MAGISTRATE,

HYDERABAD.

Page No. 1 of 53 CC.No.16 of 2018

IN THE COURT OF XXI ADDL. CHIEF METROPOLITAN

MAGISTRATE, HYDERABAD

PRESENT:: P. SAI SUDHA, XVII Addl. Chief Metropolitan Magistrate, FAC. XXI Addl. Chief Metropolitan Magistrate, Hyderabad.

FRIDAY, DATED THIS THE 10TH DAY OF NOVEMBER, 2023

C.C. No. 16 OF 2018

Between: State Represented by Central Bureau Of Investigation, SPE, Hyderabad. …. Complainant.

And

A1. Arvind Kumar Gupta, S/o. Jagar Dev Gupta, R/o H.No.38-29-21, Telecom Colony, Sainikpuri, Secunderabad.

A2. Virender Kumar Roy, S/o Late Ganapati, R/o Plot No.240, 3rd Floor, Pocket-6, Site-3, MIG, DDA Flats, Sector-1A, Nasirpur, Dwaraka, New Delhi.

...Accused.

This case has come up before me on 13.10.2023 for final hearing in the presence of Sri. Vijay Kumar Dubey., Asst. Public Prosecutor for CBI and of Sri. Mohd. Saif Ali Khan, Advocate for Accused No. 1 and Sri. C. Dayakar, Advocate for Accused No. 2 and the matter having stood over for consideration till this day, this Court delivered the following:

J U D G M E N T

1.The Inspector of Police, C.B.I., SPE, Hyderabad filed Charge sheet against

A-1 and A-2 in R.C. No.04(A)/2016-CBI, Hyderabad for offences under Sections 120-B, 420 and 471 of Indian Penal Code (for short “IPC”).

Page No. 2 of 53 CC.No.16 of 2018

2.The Case of the Prosecution in brief is as follows:

(a).Aravind Kumar Gupta/A-1 is permanent resident of Dist. Jaunpur, Uttar

Pradesh but staying in Secunderabad since 1999 in a rented accommodation along with his family. Since 1999, most of the time he has resided at Sainikpuri,

Secunderabad only. Arvind Gupta/A-1 had completed High School from Yadvesh

Inter College, Jaunpur in 1998 and came to his maternal uncle Ramdhari Gupta who was working as a peon in railways at Secunderabad. Till 2001, he did some petty jobs in various departmental stores, etc. in Secunderabad. In 2003, he joined

Zonal Training Centre for Railways as a labour and worked there for approximately 2 years. During year 2003 or 2004, he joined Andhra Sub Area Officers Mess where he worked as a cook on casual basis and worked there till June, 2012. He was initially getting Rs.3000/- monthly salary which was subsequently enhanced to

Rs.7000/- during 2012.

2(b). Virender Kumar Roy/A-2 is permanently staying at New Delhi since childhood. He has done Intermediate. He has taken admission in graduation (B.A.) but could not complete it. Virender Kumar Roy/A-2 is having A/c

No.4047000100032821 maintained with Punjab National Bank, Mahavir Enclave,

New Delhi-110045.

2(c). Arvind Kumar Gupta/A-1 has conspired with Virender Kumar Roy/A2 and lured poor unemployed youth in garb of arranging them employment in government sector i.e. Railways and FCI and cheated them with several lakhs of rupees by showing them fake final results, fake and forged appointment/selection letters, etc. Arvind Kumar Gupta, A-1 had contacted several aspiring unemployed youth through his friends/acquaintances, etc. and managed to lure them and fall in his trap by giving them false assurances of providing employment in government

Page No. 3 of 53 CC.No.16 of 2018

sector including railway, FCI etc. However, none of them got any employment in any government sector. Thereby Arvind Kumar Gupta/A-1 cheated those poor youth in criminal conspiracy with other accused.

2(d). Arvind Kumar Gupta/A-1 entered into criminal conspiracy with Virender

Kumar Roy/A-2 and lured poor unemployed youth by giving false assurance of arranging employment in FCI. The accused Virender Kumar Roy/A-2, in furtherance of the said criminal conspiracy, presented himself to be officer of FCI (Field Officer/Supervisor) before the candidates and conducted the fake interview with the candidates to make them believe that their recruitment process has started.

Virender Kumar Roy/A-2 has opened one small office in Rohini and falsely pretended to few candidates that they have been employed/recruited in FCI, for several months to make them believe that they have been recruited in FCI. He had also paid them salaries ranging between Rs.10,000/- to Rs.21,000/- and later handed them fake transfer letter to Hyderabad and thus, cheated them. Arvind

Kumar Gupta/A-1 had obtained several lakhs from those unemployed youth in cash as well as through bank accounts also. He had given his bank account to some of the candidates/victims and directed them to deposit the amounts in his bank accounts maintained at State Bank of India, ICICI Bank, PNB etc.

2(e). Arvind Kumar Gupta/A-1 had lured Rambir Singh, Father of Gopal Singh (Complainant) by giving false assurance of arranging employment in railways.

Arvind Kumar Gupta/A-1 lured and assured Gopal Singh/defacto-complainant of getting employment in Railways in Group ‘C’ (Clerk) as he has contacts with higher officials in Railways. He further told Gopal Singh, defacto-complainant that there are vacancies in railways and he should apply for the same at the earliest and demanded Rs.5 lakhs for the said post. Initially he took Rs.1 lakh at the time of submission of application form. The transaction was done through NEFT on

Page No. 4 of 53 CC.No.16 of 2018

23/12/2013 from Bank of India account No.760310110004396 of Gopal Singh to the account of Arvind Gupta/A-1 maintained with SBI, Bhaskara Rao Nagar,

Secunderabad. Gopal Singh identified the NEFT form containing his handwriting and signature. Gopal Singh was further informed that rest of the amount should be arranged after declaration of result and was assured that Arvind Kumar Gupta/A-1 had good liason with senior officers of railways and that he will be directly appointed upon submission of application form and without appearing in any examination.

2(f).After few months Arvind Gupta/A-1 visited the house of Gopal Singh and gave him a print out of fake result. Thereafter he asked for further amount of Rs.2 lakhs to be paid within 7-8 days and the remaining Rs.2 lakhs (out of total Rs.5 lakhs as per mutual agreement) after his joining. The name of Gopal Singh was mentioned against Roll No.4055823 for the post – Gr.III, Scale – Rs.5500 – 9000 (RSRP). Railway – RRB Delhi, date of issue of panel – 03/07/2013. He also tried to contact on the numbers available in the said website. However, there was no response on those numbers. The said result was forged document and was not published by railways. This fact was confirmed by RRC Delhi vide their letter dt.

Dec., 2016. After about 7-8 days his father gave him Rs.2 lakhs in cash. After few months Arvind Kumar Gupta/A-1 again came and informed that he has been appointed in Railways and gave one ID card (date of issue 16/04/2014) purportedly issued by Bhartiya Railway Mall Godown Shramik Sangh and said that it is his ID for entry into the said office at New Delhi. The said ID is a fake document and never issued by Bhartiya Railway Mall Godown Shramik Sangh. This was confirmed by Manoranjan, In-charge, Bhartiya Railway Mall Godown Shramik

Sangh vide his email dt.30/12/2016. After few days Arvind Kumar Gupta/ A-1 took further Rs.1 lakh from Gopal’s father. After several months Arvind Kumar

Page No. 5 of 53 CC.No.16 of 2018

Gupta/A-1 again asked for Rs.1 lakh more which was paid to him within few days of his demand. However, Gopal Singh didn’t receive any appointment letter. When he contacted Arvind Kumar Gupta/A-1 and asked about his joining letter, Arvind

Kumar Gupta/A-1 said that due to some problem it is taking time for his joining. In total Arvind Kumar Gupta/A-1 took Rs.5 lakhs from Gopal/his father. Thereafter he never met or contacted them for arranging employment in Railways. Hence,

Gopal Singh lodged a complaint to DIG, CBI, Hyderabad.

2(g). In similar manner Arvind Kumar Gupta/A-1 had contacted several other persons directly and through his friends/acquaintances, by falsely claiming that he knows some senior officers of Railways and FCI and can arrange employment for them without appearing in any written examination. Those unemployed youth fell into his trap and parted with money. However, none of them get employed in any department through Arvind Kumar Gupta/A-1 and other accused. These accused have cheated them and not returned their money. After completion of investigation, the Inspector of police, CBI, SPE, Hyderabad filed charge sheet against the accused for the offences referred above.

3.This court took cognizance of offences under sections 120-B, 420 and 471 of

IPC against accused.

4.On appearance of accused before this court, copies of documents were furnished to them as required under Section 207 of Code of Criminal Procedure (for short “Cr.P.C”).

5.The accused/A1 and A2 were examined under section 239 Cr.P.C., and after hearing both sides, charges were framed for offences under sections 120-B, 420 and 471 of IPC, read over and explained to them in their vernacular language. They

Page No. 6 of 53 CC.No.16 of 2018

pleaded not guilty and claimed to be tried.

6.In order to prove its case, the prosecution has examined PWs.1 to 53 through whom Exs.P1 to P197, MO’s 1 and 2 are marked. During the cross-examination of

PW-12, Exs.D1 and D2 are marked and during the cross-examination of PW-22,

Ex.D3 is marked.

7. After closure of prosecution side evidence, the accused/A1 and A2 were examined under section 313 of Cr.P.C by explaining to them incriminating material appearing against them in prosecution evidence. They denied it totally and reported no defense evidence.

8.Heard both sides. Perused the entire record.

9. Now, the point that arises for determination is:

Whether prosecution established guilt of accused for offences under sections 120-B, 420 and 471 of IPC beyond all reasonable doubt?

10.It is the case of the prosecution that A-1 entered into criminal conspiracy with A-2 and lured unemployed youth by giving false assurance of arranging employment in Food Corporation of India and Railways and that A-2 presented himself to be Officer of Food Corporation of India (for short “SCI”) before the candidates and conducted fake interviews with the candidates in order to make them believe that the recruitment process has started. It is further case of the prosecution that A-2 opened a small office at Rohini and falsely pretended to few candidates that they have been employed in F.C.I. and paid them salaries ranging between Rs.10,000/- to Rs.21,000/- and handed over to them fake transfer letter to

Hyderabad and cheated them. It is further case of the prosecution that A-1 obtained several lakhs of rupees from unemployed youth and made them deposit amount in his bank accounts maintained at State Bank of India, I.C.I.C.I. Bank, Punjab

Page No. 7 of 53 CC.No.16 of 2018

National Bank, etc.. It is further case of the prosecution that the accused forged documents published by Railways and they deceived unemployed youth by receiving money on the pretext of arranging jobs to them.

11. Point :

In order to prove its case, the prosecution has examined the defacto- complainant/Gopal Singh who lodged the report with the C.B.I. as PW-1. The evidence of PW-1 shows that in the year 2013, one Ramdhani and A-1 came to his house and A-1 informed him that he is working as a Cook in the Army and as he is having contacts with the higher officials in Railways, he assured to provide employment in Group-C post in Railways and demanded Rs.5 Lakhs for arranging the post. His evidence is to the effect that on 23-12-2013, he deposited Rs.1 Lakh into his account of A-1 and also transferred Rs.1 Lakh to theaccount of A-1. His evidence further shows that A-1 told him that he will get appointment order, but later when his father went to RRB Office, Delhi and showed the ID Card, result sheet, the officials of RRB informed that those are fake documents. He further stated that though they tried to contact A-1, he did not respond and hence he gave complaint. Ex. P1 Report, Ex. P2 Voucher, dt. 23/12/2013, Ex. P3 Pay slip, Ex.P4

Photo ID dated 16/11/2014 in the name of Gopal Singh purportedly issued by

Bharathiya Railway Mall, Godown, Sharamik Sangh, Ex.P5: Copy of account opening form dated 17/05/2012 of Mr. Gopal Singh along with enclosures of Bank of India, Mohammedabad Branch, U.P., Ex.P6: copy of statement of account for account bearing No. 760310110004396 are marked.

12.In his cross-examination, PW-1 stated that he did not see ID proof of A-1 in order to know that A-1 is working as cook in the Army and he did not verify as to whether there are vacancies in Railways and notification for the post of Group-C (Clerk) and did not ascertain the qualifications required for such post. He admitted

Page No. 8 of 53 CC.No.16 of 2018

that he did not appear for exam to the post of Group-C and without writing the exam no one can get qualified or pass the exam. He stated that he did not hand over any document to CBI to show that his father has withdrawn amount from his GPF.

He admitted that Ex. P-4 photo ID discloses that it is Membership Card for Labour

Union, Bharatiya Railway Mall Go-down, Sramik Sangh. Several other formal suggestions were put to PW-1 regarding his statement given before the CBI.

13.The prosecution has examined PW-25/Nek Ram, Senior Branch Manager,

Bharka Branch, Farukbad to show that PW-1 transferred amount through NEFT to the account of A1 under Ex.P2 Voucher. The evidence of PW-38/Raghubeer Singh,

Senior Branch Manager, Bank of India, Mohammadabad Branch shows that he furnished account opening form for account of PW-1 under Exhibit P-5 on the basis of Exhibit P-174 covering letter, dated 08-03-2016 received from CBI. His evidence shows that Exhibit P-5 copy of account opening form and Exhibit P-6 copy of statement of account of PW-1 along with the certificates were furnished by him.

14.In order to prove the charges levelled against A-1 and A-2 that they induced unemployed youth on the pretext of providing job in Railways and FCI and A-2 represented himself that he is an Officer at FCI and paid salaries to some persons for few months and also issued transfer orders, the prosecution has examined PW- 2, PW-5, PW-6, PW-9, PW-12, PW-14 and PW-20. The evidence of PW-2/Chanda

Devi shows that A-1 promised her to provide employment in Group-C post Kalasi in Railways and demanded Rs.5 Lakhs and that she gave Cash of Rs.1 Lakh to A-1 and deposited Rs.40,000/-, Rs.30,000/- and transferred Rs.1 Lakh to the account of

A-1 through the account of her brother PW-22/Vijaya Shankar Pal. Her evidence also shows that she was asked by A-1 to come to Delhi to sign on some papers and

Page No. 9 of 53 CC.No.16 of 2018

when she went to Delhi, she signed on some papers and A-1 asked her to wait for about 2 or 3 months. Her evidence also shows that after some days, A-1 called her and informed her that he is unable to provide job in Railways and he will arrange another job and asked her to come to Delhi. Her evidence further shows that A-1 had shown results of Railway Recruitment Board which consists her name and number and later A-1 failed to respond to her phone call. Exhibit P-7 photo ID and

Exhibit P-8 appointment order are exhibited. In her cross-examination, PW-2 stated that she did not handover counter-foils or Bank Statements to the Police to show deposit of Rs.40,000/- and Rs.30,000/- in the account of A-1 and also she did not hand over tickets to show her journey from Hyderabad to Delhi. She explained that she availed Gold Loan to give Rs.1 Lakh to A-1.

15.To support the version of PW-2 on the aspect of transfer of amount to the account of A-1 from the account of her brother Vijay Shankar Pal , the prosecution examined her brother as PW-22. The evidence of PW-22/Vijay Shankar Pal shows that in the year 2013, he came to Hyderabad and stayed at the house of his brother- in-law and at that time A-1 came to the house of his brother-in-law and told the he can arrange Railway job to him. His evidence further shows that he handed over photocopies of his educational certificates to his brother-in-law who handed over them to A-1. His evidence shows that when A-1 asked him to check the results in the website, he searched the website and found that he was declared pass and he deposited Rs.25,000/- for seven times in the account S.B.I. of A-1 and out of

Rs.1.75 Lakhs, his sister PW-2 arranged Rs.1 Lakh and the remaining amount of

Rs.75,000/- was paid by him. Though, PW-22 deposed that his brothers Har

Shankar Pal deposited Rs.2.75 Lakhs on four occasions on his behalf and his another brother, Uma Shankar Pal deposited Rs.1 Lakh in the account of A-1 from

Page No. 10 of 53 CC.No.16 of 2018

Mauritius, they were not examined by the prosecution. Exhibits P-131 to P-141 pay-in-slips pertaining to deposit of amount in the account of A-1 during the period from 02-12-2013 to 20-05-2014 and Exhibit P-142 Seizure Memo dated 28-11- 2016 were exhibited.

16.In his cross-examination, PW-22 admitted that A-1 never asked money from him and that he never applied for any Government Job nor written any examination. He also stated that he did not give pay-in-slip showing deposit of amount by his brother Uma Shankar Pal. He also stated he never appeared for any examination or faced any interview. Ex.D3 relevant portion of Section 161 Cr.PC statement of PW-22 was marked.

17.In order prove that account bearing No.3295788935 is in the name of A-1 and that the transactions under Exhibits P-131 to P-141 done by PW-22 relate to the account of A-1, the prosecution has examined PW-19/Usha Rani, Branch Manager,

S.B.I., Bhaskar Rao nagar Branch, Sainikpuri, Secunderabad. The evidence of PW- 19 shows that on the request of CBI Police to furnish certain documents relating to the customer Arvind Kumar Gupta/A-1, she furnished Exhibit P-116 account opening form for account bearing No. 3295788935 which shows that the account bearing No. 3295788935 is in the name of Arvind Kumar Gupta/A-1 and Mangala

Devi Gupta. Exhibit P-117 which is statement of account for the account No.

3295788935 for the period from 01-04-2013 to 31-03-2014 and Exhibit P-118 and

P-119 statement of accounts show that on 23-12-2013 a sum of Rs.1 Lakh was transferred to the above said account in the name of A-1 through NEFT Transfer.

Exhibits P-120 to P-124 pay-in-slips relating to deposit of cash into the account bearing No. 3295788935 were exhibited through her to show deposit of various amounts to the account held by A-1 and Mangala Devi Gupta. The statement of

Page No. 11 of 53 CC.No.16 of 2018

accounts were furnished along with the certificates under Section-2A of Bankers’

Book of Evidence Act and Section-65B of Indian Evidence Act and therefore they are admissible in evidence. Further, Exhibit P-125 is the covering letter addressed by PW-19 to Inspector of Police, CBI, Hyderabad by enclosing the documents and

Exhibit P-126 is the Receipt Memo acknowledging Receipt of Documents by

Inspector of Police, CBI, Hyderabad. The evidence of PW-53 /Investigation

Officer shows that he examined PW-19/Usha Rani and collected documents under

Exhibits P-116 to P-119 from her.

18.The oral evidence of PW-22 and PW-19 Bank Manager coupled with documentary evidence under Exhibits P-116 to P-119 and Exhibits P-131 to P-141 clearly establish that PW-22 deposited amount in the account bearing

No.32957889935 which is jointly held by A-1 and Mangala Devi Gupta. Though

PW-22 stated that A1 never asked him money, these documents clearly reveal that amounts were deposited in the account of A-1 and the version of PW-22 is supported by the documentary evidence i.e., the statement of accounts reflecting deposit of amount.

19.It is also case of prosecution that A-1 lured unemployed youth that he is having contacts with higher officials at Railways and he will arrange for jobs in

Railways and received amount from the candidates and deceived them. The prosecution examined PW-3/Ramana Srikanth, PW-4/Sathish, PW-5/Suresh

Dharamkar, PW-7/P. Srinivas, PW-8/Jerard, PW-9/Mahesh and other prosecution witnesses to prove the same. The evidence of PW-3/R. Srikanth shows that in the year 2012, he worked at Army Canteen on contract basis and he got acquaintance with A-1 and when A-1 visited their canteen. His evidence further shows that A-1 informed him that there are vacancies in Railways and asked him whether he is

Page No. 12 of 53 CC.No.16 of 2018

interested for such jobs. PW-3 further deposed that A-1 told them that he can help in getting employment in Railways and asked them to pay Rs.1 Lakh initially and his father arranged said amount by availing loan and A-1 gave a blank signed

Cheque and blank signed Promissory Note towards security. His evidence further shows that when A-1 asked for another Rs.1 Lakh, said amount was arranged by sale of gold of his mother and in the month of March, 2016, he received a letter issued by Railway’s Department inviting him for interview for the post of Cabin- men and on enquiry, A-1 told him that there is no need to attend interview and he can manage it. He further stated that in the month of April, he received another letter that he passed interview and on enquiry, A-1 told him that he will receive joining letter and after receiving joining letter, he went to Delhi to meet A-1 and

A-1 took him to one room in Delhi and on the next day, the CBI Police came to the room and enquired him. Exhibit P-9 photocopy of letter dated 08-03-2016, Exhibit

P-10 photocopy of letter dated 07-04-2016 and Exhibit P-11 photocopy of letter

dated 05-05-2016 were exhibited. Exhibit P-12 blank signed Cheque said to be

issued by A-1, Exhibit P-13 blank signed Promissory Note executed by A-1 are exhibited. In his cross examination suggestions were put to PW-3 about the salary of his father and about the bank statement showing transfer of amount to the account of A-1. The Learned Counsel for A-1 argued that PW-3 did not hand over any bank statement to show that amount was deposited to the account of A-1 and he did not hand over Postal Cover to CBI through which, he received Exhibits P-9 to P-11 and hence, the evidence of PW-1 is not credible.

20.The evidence of PW-4 also shows that A-1 promised to arrange employment for him in Railways and that PW-3 gave Rs.50,000/-, deposited Rs.1 lakh,

Rs.50,000/- in ICICI Bank Account of A-1 and also deposited Rs.50,000/- in the

Page No. 13 of 53 CC.No.16 of 2018

SBI Account of A-1. His evidence also shows that he went to Delhi to meet A-1 and A-2 interviewed him and verified the certificates and later he did not get any appointment order. In his cross examination, suggestions were put to him about the mode of securing amount which was said to be transferred to the account of A-1.

21.The evidence of PW-8 shows that in the month of August, 2014, his friend

Mahesh Kumar told him that A-1 will help in arranging T.T.E. job in Railways on giving money and on being asked by A-1 to come to Lucknow, he went there and met A-1 at Railway Station. His evidence also shows that he gave Rs.25,000/- to

A-1 and deposited Rs.50,000/- in the account of A-1 at Punjab National Bank and also deposited Rs.55,000/- and Rs.l,05,000/- in the bank accounts of A-1 at ICICI bank and State Bank of India. His evidence also shows that he deposited Rs.2

Lakhs in the ICICI Bank account of A-1 and paid cash to A-1. Exhibits P-44 to P- 48 Bank Deposit Slips showing deposit of amount in the accounts held at ICICI

Bank, Punjab National Bank and State Bank of India were exhibited. These documents show that amounts were deposited in the account of A-1. The prosecution has examined PW-26/Padmasri Kulkarni, Computer Operator, Punjab

National Bank, A.S. Rao Nagar Branch and her evidence shows that in the year 2016, CBI Police came to their Bank by showing Exhibit P-146 pay-in-slip dated 25-08-2014 and asked her to identify the handwriting and she identified that the entry was made by her on the Exhibit P-146 pay-in-slip. Her evidence further shows that Exhibit P-146 was sent to CBI Police through Exhibit P-147 covering letter dated 23-12-2016 signed by T.V. Rao. The evidence of PW-31/T.

Venkateshwara Rao, Senior Manager, Punjab National Bank, A.S. Rao Nagar

Branch, Hyderabad shows that he has handed over Exhibit P-146 pay-in-slip dated 25-08-2014 through covering letter under Exhibit P-147 and also furnished Exhibit

Page No. 14 of 53 CC.No.16 of 2018

P-161 account opening form of A-1 and Exhibit-P-162 copy of statement of account for the period from 16-12-2013 to 05-12-2016 pertaining to the account of

A-1 were furnished to CBI under Exhibit P-163 covering letter.

22.The documentary evidence under Exhibit P-44, dated 25-08-2014, P-47,

dated 17-09-2014 along with Exhibit P-146 and P-162 shows that Rs.50,000/- and

Rs.49,000/- respectively were deposited to the account of A-1 held by him at

Punjab National Bank, A.S. Rao Nagar Branch, Hyderabad. The oral evidence of

PW-8 about deposit of amounts in the account of A-1 at Punjab National Bank is well corroborated by the contents of Exhibits P-44, P-47, P-146 and P-162.

Though, it is argued by Learned Counsel for A-1 that PW-8 admitted that the amount covered under Exhibits P-44 to P-48 is not totaling to Rs.6,25,000/-, the fact remains that as PW-8 deposed that he gave amount to A-1 in cash besides, depositing amount in the bank account of A-1, the amount shown to be deposited under Exhibits P-44 to P-48 will not come to a total sum of Rs.6,25,000/-. Further,

PW-8 gave explanation that he pledged gold ornaments of his wife and children for acquiring the amount.

23.The evidence of PW-9/V. Mahesh Kumar shows that his friend Sandeep told him that A-1 will arrange job on payment of amount and he contacted A-1 and told

A-1 that he applied for the post of Lab-Attendant in Military College of

Electronics, Mechanical and Engineering and he also got call letter for written examination. PW-9 further deposed that he will arrange job for him in MCEME as he knows Senior Officers of MCEME and asked him to pay Rs.5.5 Lakhs for arranging the job and when he expressed his inability to arrange such huge amount,

A-1 asked him to deposit atleast Rs.1 Lakh for arranging job and gave SBI Account

Number of his brother-in-law, Sarvesh Kumar Gupta. His evidence further shows

Page No. 15 of 53 CC.No.16 of 2018

that he deposited Rs.99,000/- in the last week of May, 2014 in the account of

Sarvesh Kumar Gupta/PW-18 maintained at SBI. His evidence further shows that

A-1 asked him to write the exam on 08-06-2014 and the result was declared on the next day including his name in the list. His evidence further shows that on 10-06- 2014, he attended the interview and met A1, who asked him to deposit another Rs.

1,00,000/- in his account maintained in ICICI Bank, A.S. Rao Nagar, Branch and furnished his account particulars of such bank. He further deposed that he pledged the gold of his sister and deposited Rs. 1,00,000/- in the account of A1 maintained in ICICI bank. His evidence further shows that he deposited Rs. 1,00,000/-, Rs.

50,000/- and Rs. 90,000/- in the 3rd and 4th week of June, 2014 in the ICICI account of A1 and also deposited Rs. 49500/- in the bank account of A1’s brother-in-law by name Sarvesh Kumar Gupta and paid Rs. 5,500/- in cash to A1.

24. His evidence further shows that even after depositing amount, he did not receive any appointment letter and on questioning A1 used to say that the file is under process and later A1 gave him one dispatch Number and asked him to confirm the same from Post Office, Thirumalgerry but on enquiry, he found that no such letter was issued in his name. His evidence further shows that A1 prolonged the matter and on being asked by A1, he went to Delhi along with certificates of his sister, but A1 did not arrange for any job. His evidence further shows that A1 induced him that he will arrange job in Railways, FCI. PW.9 gave his evidence by narrating the facts minutely and as to the manner in which A1 induced him to arrange for job and deceived him. Exs.P49 to P57 are marked through him to show that he deposited amount in the accounts of PW-18/Sarvesh Kumar Gupta and A-1 and that A-1 gave appointment letters.

Page No. 16 of 53 CC.No.16 of 2018

25.The prosecution has examined PW-27/T. Raja Anand, who worked as

Deputy Branch Manager, ICICI Bank, A.S. Rao Nagar Branch to prove transactions under which PW-9 deposited amount in the account of A-1. The evidence of PW-27 shows that at the request of CBI Police, he furnished Exhibit P- 148 copy of account opening form along with Bank Statement of PW-9 and Exhibit

P-149 copy of account opening form along with Bank Statement of A-1. He stated that there are about 17 transactions relating to A-1 and 3 transactions relating to

PW-9 and the documents were furnished under Exhibit P-150 covering letter. As seen from Exhibits P-51 to P-54 Bank Deposit Slips of ICICI Bank, A.S. Rao

Nagar Branch,dated 10-06-2014, 17-06-2017, 25-06-2014 and 26-06-2014 along with Exhibits P-148 and P-149 account statements of PW-9 and A-1, it is evident that the amounts deposited by PW-9 were clearly reflected in the bank transactions which establish that PW-9 deposited amounts at different spells in the account of

A-1 maintained at ICICI Bank, A.S. Rao Nagar Branch. So also, the evidence of

PW-18/Sarvesh Kumar Gupta, brother-in-law of A-1 also shows that A-1 operated the account of PW-18 maintained at SBI Bank, Tirumalagiri Branch vide Account

No:30597871688. Exhibits P-49 and P-50 bank deposit slips also show that PW-9 deposited Rs.99,000/- into the account of PW-18 on 28-05-2014 and Rs.49,500/- deposited on 18-06-2014. PW-9 admitted that he never met, saw PW-18/Sarvesh

Kumar Gupta and also admitted that there is no involvement of A-1 in declaring the results of written test of MCEME.

26.PW-14/A. Sridhar, victim was examined by the Prosecution and his evidence shows that he got acquaintance with one Hari through his friend Nagaraju and that

Hari informed him that A-1 can arrange for job in Railways. His evidence further shows that A-1 asked him to arrange Rs.7 Lakhs for the purpose of job and his

Page No. 17 of 53 CC.No.16 of 2018

father gave Rs.3 Lakhs to A-1 at his house at the end of 2012. His evidence further shows that in the year 2014 that A-1 informed through Nagaraju that results were declared and to check the same on internet and Nagaraju has shown the result of

Website in which his name was shown in passed candidates. He further stated that as per the instructions of A-1, he along with his father went to Kolkata and stayed there in a hotel for 3 days and A-1 did not respond to their phone calls for 3 days and finally A-1 stated that the recruitment is cancelled and called them to Delhi for attending Railway Interview. His evidence shows that in the year 2016 he went to

Delhi and A-1 took him to one place and introduced one Sharma and said Sharma gave bio-data form to him and asked him to fill the bio-data and he gave photocopies of his certificates to Sharma and A-1. He further stated that on repeated requests A-1 returned Rs.3 Lakhs to his father and did not returned remaining amount of Rs.2 Lakhs. He further stated that later A-1 stopped responding to the phone calls and he handed over copies of call-letters and interview letter issued by A-1 to him to the CBI under Exhibit P-89 seizure memo.

Exhibit P-87 copy of call-letter, Exhibit P-88 copy of interview letter are exhibited.

In his cross examination, he admitted that he did not negotiate or met A-1 for arranging job. He denied the suggestions put to him that he had no capacity of giving Rs.3 Lakhs or Rs.5 Lakhs and that Exhibit P-87 hall-ticket has to be filled by the candidate at the time of filing application. PW-14 identified A-2 in the court as Sharma who was introduced to him

27.The evidence PW-15/B. Nagaraju also shows that A-1 was introduced to him by his friend Hari and A-1 took Rs.2.6 Lakhs cash from him and gave copy of appointment letter of Railways and suspecting genuineness of said letter, he met father of PW-14, who confirmed it. His evidence shows that one Sharma

Page No. 18 of 53 CC.No.16 of 2018

conducted interview at the place where A-1 took him and he received Exhibit P-94 appointment letter through post. He further stated that when he contacted one

Rama Swamy, there was no response and later he did not get any job. Exhibit P-90

Cheque bearing No:350290, Exhibit P-91 Cheque bearing No:350291, Exhibit P-92 copy of letter of interview, Exhibit P-93 copy of letter dated 21-04-2016 and

Exhibit P-95 seizure memo were exhibited. In his cross examination, PW-15 admitted that he did not apply any job and A-1 gave cheques as security towards the amount paid by him. He also stated that he do not know even a single person to whom Hari and A-1 arranged Government job. He admitted that Hari negotiated with A-1 for arranging Government job for him and he did not directly speak with

A-1.

28.The evidence of PW-16/Anthony Das Harry @ Hari shows that during the period he worked as Waiter in Andhra Sub Area Officers Mess, he got friendship with A-1 in the year 2011 and A-1 told him that he will arrange job. His evidence shows that he informed to PW-15/Nagaraju and PW-12/Rajesh about the offer given by A-1 and on one day, they gathered at one place and A-1 promised to arrange Railway job to PW-15/Nagaraju and PW-14/A. Sridhar on giving money and in his presence PW-15/Nagaraju and PW-14/A. Sridhar gave Rs.1.2 Lakhs each to A-1 for processing jobs and A-1 gave cheques and bond papers to them towards security. His evidence further shows that PW-14 and PW-15 gave Rs.1 Lakh each to A-1 and A-1 came to Hyderabad after 2 or 3 months with appointment letters in

Railways to PW-14 and PW-15. He further stated after verifying the appointment letters, it was found that the appointment letters are not genuine and then father of

PW-14 scolded A-1 and asked him to return the money. In his cross-examination,

Page No. 19 of 53 CC.No.16 of 2018

he denied the suggestion that the amount of Rs.1.2 Lakhs was given as a hand loan and hence, cheques were issued by A-1 towards security for repayment.

29.The prosecution has examined PW-28/Surender Rao who worked as Chief

Manager, Punjab National Bank, Lal Bazar, Secunderabad to show deposit of amount in the account of A-1bearing No:4565000100019131. His evidence shows that on receiving Exhibit P-151 letter, dated 19-12-2016, he furnished the documents Exhibits P-152 to Exhibit P-154 through Exhibit P-155 covering letter.

30.In order to show that A1 was in possession of fake call letters, medical fitness certificates and other documents, the prosecution has examined PW-17/B.

Suresh and PW-23/C.K. Ravi Kumar, mediators to seizure panchnama in whose presence documents which are alleged to be fake call-letters, blank signed cheques, counter foils, photocopies of exam results, medical fitness certificates, bio-datas of candidates, photocopies of provisional certificates i.e., Exhibits P-96 to P-114 were seized from the house of A-1. The evidence of PW-17 and PW-23 shows that the

CBI Police seized Exhibits P-96 to P-114 under Exhibit P-115 search list, dated 08- 11-2016 at the house of A-1 in their presence. Though, PW-17 and PW-23 were cross-examined by the Counsel for A-1, nothing significant could be elicited to discredit their testimonies. Therefore, it is established from the above evidence adduced by the prosecution that A1 used fake letters and deceived the victims.

31.In order to show that the appointment letters and call-letters issued by A-1 and A-2 are fake, the prosecution has examined the Officials of Railway

Recruitment Board and Railway Department who were enquired regarding genuineness of seized documents at the house of A1 and that they issued letters

Page No. 20 of 53 CC.No.16 of 2018

stating that the documents sent to them for verification are not genuine. The evidence of PW-21/R.K. Malhothra, who worked as Chairman, Railway

Recruitment Cell, Northern Railways, Lajpath Nagar, New Delhi shows that on receiving letters from CBI to confirm genuineness of Admit Card in the name of one Karan Kumar Yadav, he verified the documents and gave reply that the documents are fake. So also, the evidence of PW-39/Raman Kumar Sharma,

Deputy C.P.O. Recruitment, Northern Railway, Head Quarters, Baroda House,

New Delhi shows that on being asked by the CBI to verify the documents, he verified them with their records and gave reply that those letters were not issued by them. So also, PW-41/Dr. K. K. Roy, Chief Medical Superintendent, Eastern

Railways, Howrah Orthopedic Hospitals also relates to issuance of Exhibit P-181 letter, dated 07-12-2016 to CBI regarding Medical Examination Fitness

Certificates.

32.The evidence of PW-42/G. Sridhar, who worked as Asst. Personnel Officer,

Recruitment, Railway Recruitment Cell, South Eastern Railways, Kolkata shows that he issued Exhibit P-182 reply letter to CBI stating that their Department did not issue any offer letter in the name of PW-15/B. Nagaraju and PW-14/A. Sridhar for appointment to Group-C Posts in Railways. The evidence of PW-44/A.K. Singh, who worked as Chairman, Railway Recruitment Cell, Northeastern Railways and

PW-45/Sameer Biswas, who worked as Asst. Secretary, RRB, Kolkata and PW- 47/Dhano Hansda, Divisional Personnel Officer, Eastern Railway, Sealdah

Division shows that on the enquiry made by the CBI regarding genuineness of offer letter and call-letters, medical examination letters, they issued reply under

Exhibits P-183 to Exhibit P-187 issued those letters to CBI. Ex. P96 is joining letters along with envelops which are purported to be issued by Assistant Secretary,

Page No. 21 of 53 CC.No.16 of 2018

Railway Recruitment Board, Chitpur, Kolkata in the name of one Sunil Kumar,

Vinay Kant Singh, Shah Alam, Mahesh Kumar, Sanjay Kumar, Sarvesh Kumar

Gupta, Videsh Kumar, Nilesh Kumar Sahani, Ex. P97 is call letters purported to be issued by Railway Recruitment Board, Kolkata, Ex. P98 is documents issued by the

Railway Recruitment Board, Kolkata.

33.When the above evidence adduced by prosecution is carefully analyzed, it is evident that PWs-1 to PW-4, PW-8, PW-9, PW-14,15 and PW-22 were lured by A- 1 that he will arrange jobs to them in Railways and that A-1 received amount from them in the form of cash, by way of deposit to his bank accounts maintained by him at Punjab National Bank and ICICI Bank and State Bank of India which corroborated by the evidence of the Bank Officials by virtue of their oral evidence of PW-19 coupled with documentary evidence under Exhibits P-116 to P-126, PW- 26 coupled with Exhibits P-146, P-147 and PWs-27 and 28 under Exhibits P-148 to

P-155.

34.It is clinching from oral evidence of above witnesses coupled with documentary evidence that A1 induced the victims on the pretext of arranging jobs in Railways, received amount from the victims, issued fake call letters, medical certificates. It is also established from the evidence of railway officials PW.21,

PW.39, PWs 41, 42, PWs 44, 45 and 47 that no offer letters, call letters, appointment letters were issued by Railway Recruitment Cell. Though the learned defense counsel argued that the prosecution did not adduce cogent evidence and photocopies of documents were collected, the fact remains that the documentary evidence under Pay-in slips, Bank statements furnished by the bank officials clearly establish deposit of amount in the bank accounts of A1 for which no plausible

Page No. 22 of 53 CC.No.16 of 2018

explanation is offered by A1. Though it is suggested to witness PW.15 that A1 obtained loan from him, no evidence is let in by A1 to prove his defense that he obtained hand loan from PW.15.

35.In order to prove that A1 lured the victims that he will arrange job in FCI and that A2 represented himself as an officer at Food Corporation of India and conducted interviews, the prosecution has examined Pws 5 to 7, 10 to 13. The evidence of PW.5 shows that on coming to know that A1 will arrange jobs, he contacted A1 and agreed to give Rs. 8,00,000/- for arranging job. His evidence further shows that he secured amount by pledging gold of his mother and deposited

Rs. 1,00,000/- in the ICICI bank account of Sarvesh Kumar Gupta/PW.18 which was furnished by A1 and that Accused has issued 3 post dated cheques towards security of above Rs. 1,00,000/-. His evidence further shows that he deposited Rs.

1,00,000/-, Rs. 90,000/-, Rs. 8,000/- and Rs. 2,000/- amounts in the SB accounts of

A1 maintained in SBI Bank and he was informed by A1 that he got job in FCI but not in Railways and he met A2 who introduced himself stating that he is FCI Field

Officer of Delhi and that he received all his certificates. His evidence further shows that in June, 2015 as per instructions of A1, he went to Delhi and met A2 who was sitting in a car shed gave appointment letter and he was informed that he has to work in Delhi for 3 to 4 months. His evidence also shows that he attended Field work for 2 days at FCI and as he was unable to work at Delhi and requested him to transfer to Hyderabad and after one week he met A1 and gave salary of Rs. 5,600 and odd. Exs.P14 to P32 which are counterfoils relating to deposit of amount in the

ICICI Bank and SBI Bank account of A-1, cheques issued by A1, appointment letter, transfer letter were exhibited. His cross-examination went in formal lines.

Page No. 23 of 53 CC.No.16 of 2018

36.The evidence of PW-6/O. Mahesh Bhanu Chander also shows that A-1 informed him that he will arrange jobs in FCI and that he deposited Rs. 1 Lakh in the bank account of A-1 maintained at ICICI Bank, AS Rao Nagar Branch, and Rs.

1,50,000/- in the account of Mahesh as per the instructions of A-1. His evidence also shows that on being asked by A-1 to come to Delhi, he went there and introduced A-2 as FCI Officer and that A-2 issued appointment letter to him and took him to one place and asked him to work there. His evidence also shows that he worked for 2 months and A-2 paid salary of Rs. 21,000/- and odd to him and on coming to know that a fraud was done, he asked A-1 to return money and his certificates and A-1 returned certificates and deposited Rs.55,000/- and

Rs.45,000/-. Exs.P33 to P43 which are counterfoils relating to deposit of amount in the ICICI Bank and SBI Bank account of A-1 and Mahesh, cheques issued by

Mahesh, appointment letter, seizure memo were exhibited. In his cross- examination, he stated that he did not submit his bank statements and travel documents to the CBI. He admitted that A-2 paid salary to him for 2 months and A- 1 returned Rs.95,000/- by depositing amount in the account of his mother.

37.The evidence of PW-7/P. Srinivas also shows that A-1 informed him that he will arrange jobs in Railways and received Rs.1 lakh in cash and later A-1 informed him that jobs in railways were canceled and he will provide job in FCI. His evidence also shows that on being asked by A-1 to come to Delhi, he went there and introduced A-2 as FCI Officer and that A-1 handed over appointment letter to him and demanded to give Rs.30,000/- and he paid said amount to A-1. His evidence also shows that A-1 took back the appointment order stating that it will be sent through post and later A-1 stopped responding to his phone calls. In his cross- examination, formal suggestions were put to him and he denied those suggestions.

Page No. 24 of 53 CC.No.16 of 2018

38.The evidence of PW-10/Rameshwari shows that A-1 lured her that he will arrange jobs in Railways and instructed her husband to deposit Rs. 50,000/- in his account maintained at ICICI Bank and said amount was deposited. Her evidence also shows that on being asked by A-1 to come to Delhi, she went there along with

PW-9 and met A-1 at railway station and he took them to Sharma Dharmashala and asked them to fill bio data form. Her evidence also shows that A-1 introduced A-2 as FCI Officer and A-2 conducted interview by sitting in a car and later she received an appointment letter and on enquiry they came to know that the appointment letter is not genuine. Exs.P58 to P61 cash deposit slips, Exs.P62 to

P65 letters and Ex.P66 seizure memo were exhibited. In her cross-examination, she stated that she do not remember the dates mentioned in the letter received by her.

She admitted that she did not handover travel documents to the CBI and that

Exs.P62 to P64 are photocopies.

39.The evidence of PW-11/Ch. R. Sandhya shows that A-1 informed her and her brother that he will arrange jobs in FCI at Delhi and on being asked by A-1 to come to Delhi, herself, her brother and father went to Delhi and he took their original certificates. Her evidence also shows that A-1 introduced A-2 and they took them to a car shed situated in the out skirts of Delhi and stated that it is FCI office and appointment letter will be issued on the next day. Her evidence also shows that on the next day, appointment letter were issued and stating that they were appointed in FCI and they paid Rs. 1.5 lakhs and Rs. 2 lakhs through online transfer to the account of PW-18/Sarvesh Kumar Gupta and they came to know that appointment letters issued by A-1 are fake. Her evidence also shows that she recorded the video clippings through her apple I-phone and copied the same to the pen drive and handed over the pen drive to CBI. She identified A-1 and A-2 to be

Page No. 25 of 53 CC.No.16 of 2018

the persons who collected amount from him and who conducted interview at Delhi.

In her cross-examination, she stated that she did not state before CBI the name of the hotel where they stayed at Delhi and also that she signed the documents in the details of those documents she do not remember the dates mentioned in the letter received by her. She also stated that she could not produce the phone as it was outdated and damaged.

40.The evidence of PW-12/C.R. Rajesh, brother of PW-11 is in similar lines of evidence of PW-11.His evidence also shows that they paid Rs. 2.58 lakhs to A-1 by way of transfer of amount and Rs. 1 lakh cash. His evidence also shows that A-1 and A-2 told him to join in the job after receiving original appointment letter and that A-2 introduced himself as FCI Officer. Exs.P67 to P71 and P.75 cash deposit slips, Ex.P72 to P74 cheque deposit slips, Exs.P76 to P78 blank cheques issued by

A-1, Ex.P79 blank promissory signed by A-1, Exs.P80 to P82 letters and Ex.P83 seizure memo were exhibited. He identified A-1 and A-2 to be the persons who collected amount from him and who conducted interview at Delhi. In his cross- examination, he admitted that he did not state before CBI that Hari never told him that he can arrange job in defence on giving Rs.3.5 lakhs. Exs.D1 and D2 relevant portion of Section 161 Cr.PC statement of PW-12 were marked.

41.The evidence of PW-13/M. Vinod Kumar shows that A-1 informed him that he will arrange jobs in FCI and that in the month of May, 2015 he deposited Rs.2 lakhs and in the month of July, 2015 he deposited another Rs.2 lakhs in ICICI bank account of A-1. His evidence also shows that on being asked by A-1 to come to

Delhi, he went there and A-1 introduced A-2 and they gave him an appointment letter in which he noticed some mistakes and A-2 gave him salary of Rs. 3,000/- for working for 5 days. His evidence also shows that he paid Rs. 10,30,000/- and he

Page No. 26 of 53 CC.No.16 of 2018

did not receive his original certificates. Exs.P84 and P85 appointment order and transfer order and Ex.P86 seizure memo were exhibited. In his cross-examination, he stated that he did not know the names of the person through whom his uncle was arranging job. He also stated that he do not remember the date and month when he met A-1 and A-2 at Delhi. He admitted that he did not state before CBI the name of hotel where he stayed at Delhi and the mode of travel from Hyderabad to Delhi.

42.The prosecution has examined PW-18/Sarvesh Kumar Gupta, brother-in-law of A-1 and his evidence shows that his bank account bearing No. 30597871688 maintained at SBI Thirumalgiri Branch was operated by A-1. His evidence also that

A-1 called him to Kolkata to arrange TC job in Group-C post of Railways, but A-1 did not arrange any job. His evidence also shows that A-1 had done the entire transactions using his ATM card. In his cross-examination, he maintained his stand that he never operated his SBI bank account and he denied the suggestions that all the transactions were done by him and he implicated A-1 in this case.

43.The prosecution has examined PW-40/Harivansh Kumar Gupta, brother of

A-1 and his evidence shows that on 24-11-2016, wife of A-1 received phone call from CBI to submit driving license, voter ID of A-1 and then he handed over documents to CBI. Exs.P176 to P188 are marked. In his cross-examination, he stated that the police did not examine him and did not record his statement.

44.The prosecution has examined PW-24/D. Sridhar who worked as Assistant

Vice President, Axis bank, Diamond point branch, Secunderabad and he deposed that he handed over original voucher to CBI under Ex.P144 Covering letter pertaining to account of PW-18/Sarvesh Kumar Gupta. Exs.P143 Original pay-in-

Page No. 27 of 53 CC.No.16 of 2018

slip and Ex.P145 Seizure memo are exhibited. Though it is suggested to him in his cross-examination that those transactions under Ex.P143 are much prior to his joining in the bank, it will not take away the evidentiary value of the documentary evidence.

45.The prosecution has examined PW-29/ Rammohan Venu Gopal who worked as Branch Manager, Axis bank, Thirumalgiri branch, Secunderabad and he deposed that he handed over original deposit slip to CBI under Ex.P158 Covering letter pertaining to account of PW-18/Sarvesh Kumar Gupta. Exs.P156, P157 Original pay-in-slips and Ex.P159 Seizure memo are exhibited.

46.The prosecution has examined PW-30/B. Jayanth Rao Khanna who worked as Chief Manager, SBI, Thirumalgiri branch, Secunderabad and he deposed that he handed over account opening form under Ex.P160 Covering letter pertaining to account of PW-18/Sarvesh Kumar Gupta to CBI .

47.PW-53/Investigation Officer deposed that he filed a petition seeking permission for collection of specimen signatures of A-1 and basing on the orders of the court, the specimen signatures of A-1 were collected and he received report from PW-48. Further, the prosecution has examined PW-32/Ghan Shyam and PW- 33/T. Srinivasa Rao in whose presence specimen signatures of A-1 were obtained and sent to FSL for comparison. Their evidence shows that the specimen signatures of A-1 were collected in the court in their presence and they acted as attestors.

Ex.P164 specimen signatures of A-1 marked as S1 to S9 were exhibited.

48.The prosecution has examined PW-37/M.K. Tiwary and he stated that on 08- 11-2016 he went to CBI office, Lodhi road, New Delhi and they were taken to

Page No. 28 of 53 CC.No.16 of 2018

house of A-1 situated at Uttam Nagar and after serving search proceedings on A-1, search was conducted in their presence and 13 items were seized. In his cross- examination he admitted that he do not know the contents of search proceedings and that the police did not collect any document relating to ownership and possession of house where search took place. Ex.P166 Copy of RTGS payment instructions and 3 Blank cheques bearing Nos. 072700, 072701 and 072702 signed by V. Mahesh Kumar,Ex.P167Bunch of papers containing fake interview letters from SC Railways, Fake Employment letter of FCI, Fake Appointment letter of

Eastern Railways, Fake Medical Fitness Certificate from Orthopedic hospital fro

Howrah, Fake Appointment letter of N W railways, proforma of Bio Datas,

Ex.P168Copy of Air Ticket of A1, Siyaram Sharma, Radheshyam Yadav and copy of Medical Examination letter of S.H. Mahesh Kumar from RRB, Kolkatta in TWO sheets, Ex.P169 Bunch of papers containing application forms of various candidates, copies of Certificates of the candidates, copies of forged interview and appointment letters, Ex.P170 One ICICI Debit Card VISA No. 4693 7502 4405 6473, Ex.P171 One ICICI Prudential Diary of the year 2008 containing names of various candidates, amounts received from them and amounts transferred to other co accused, Ex.P172 Seizure Memo dated 08/11/2016 and Ex.P173 Search Report

dated 09/11/2016 are exhibited.

49.The prosecution has examined PW-48/Bala Swamy, handwriting expert and his evidence shows that on receiving questioned writings and specimen signatures of A-1 and A-2, he compared the questioned writings with specimen signatures of

A-1 and A-2 and expressed his opinion under Ex.P189 expert opinion stating that the person who wrote blue enclosed writings stamped and marked as S-1 to S-9 also wrote the red enclosed writings stamped and marked as Q-1 to Q-9 and it was

Page No. 29 of 53 CC.No.16 of 2018

possible to express any opinion regarding authorship of questioned writing marked as Q-10. Q-1 to Q-9 are questioned writings in Ex.P171 One ICICI Prudential

Diary of the year 2008 seized during search at the house of A-1 at Delhi. Ex.P171 contains entries recording amount received from various persons, their phone numbers and bank account details.

50.The prosecution has examined PW-20/Saurabh Kumar Chaurasia, who worked as Deputy General Manager, establishments, FCI, New Delhi and his evidence shows that on being asked by CBI, he verified copies of appointment letters, transfer orders, and replied to CBI that all the 17 letters forwarded to their office were never issued by FCI. He stated that Ex.P8 letter in the name of PW-2,

Ex.P25 selection letter, P26 transfer order, P27 letter in the name of D.L. Suresh,

Exs.P40 to P42 transfer letters in the name of Bhanu Chander, Exs.P55 and P56 letters in the name of Mahesh Kumar, Exs.P81 and P82 in the name of C.R. Rajesh and Exs.P84 and P85 in the name of Vinod Kumar never issued by their office.

51.During the course of investigation as PW-11 handed over pen drive containing video clippings to CBI, the voice samples of A-2 were collected in the presence of PW-34 and PW-43. PW-53/Investigation Officer deposed that he filed a petition seeking permission for collection of specimen voice of A-2 and basing on the orders of the court, the specimen voice samples of A-2 were collected in the presence of PW-34 and PW-43 and the specimen voice and questioned voice were sent to CFSL, Chandigarh and he received opinion from PW-50 vide Ex.P190. The evidence of PW-34 shows that on 13-03-2017 at the request of CBI he went to

Chanchalguda Jail and there the voice specimen of A-2 was collected in MO1 Sony micro SD card under Ex.P165 voice specimen panchanama. The evidence of PW- 43 another panch witness to voice specimen panchanama is in similar lines of

Page No. 30 of 53 CC.No.16 of 2018

evidence of PW-34. The evidence of PW-36/B. Jalandhar, Jailor, Chanchalguda

Jail, Hyderabad shows that on 13-03-2017 at the request of CBI he made arrangements at Chanchalguda Jail for collection of voice sample of A-2 and that the voice sample of A-2 was collected at jail. The evidence of

PW-50/D.P.Gangwar, Senior Scientific Officer, CFSL, Chandigarh shows that on 10-10-2017 he received two sealed parcels along with the letter of DIG, CBI, ACB,

Hyderabad requesting for examination of exhibits in the parcel and after examining the recordings, he prepared Ex.P190 report by expressing his opinion that accoustic features, linguistic and phonetic cues of the questioned sample voice marked as QV/1 are found to be similar with the specimen sample voice marked as

SV/1 and MO2 micro SD card contained questioned conversation.

52.The evidence of PW-35/T.D Dinakar who worked as Deputy Chief Personal

Officer, R&D, Southern Railways, Headquarters Chennai shows that on receiving letter dated 16-12-2016 asking to confirm genuineness of letters dated 22-03-2016 and 21-04-2016, he sent a reply letter dated 03-01-2017 stating that those letters were not issued by Recruitment and Training Section, Southern Railways,

Headquarters Chennai.

53.PW-46/Siaram Sharma was examined by the prosecution to show that he was deceived by A-1 as A-1 told him that he will arrange job to his elder son in

Railways and received Rs. 2 lakhs cash. His evidence shows that A-1 returned Rs.

1 lakh cash and issued Ex.P176 joining letter. His cross-examination went in formal lines. The evidence of PW-51 relates to registration of the case and issuance of

Ex.P191 FIR, issuance of notice Ex.P192 to Branch Manager, Bank of India,

Mohammedabad Branch and receiving Ex.P193 receipt memo date 05-07-2016. So

Page No. 31 of 53 CC.No.16 of 2018

also the evidence of PW-52/Investigation Officer relates to examining the witnesses and collecting documents.

54.On careful scrutiny of evidence of prosecution witnesses more in particular the victims who were deceived by A-1 and A-2, it is clinching that during the period between 2012 to 2015, A-1 induced the victims that he will arrange jobs to them in Railways and Food Corporation of India made the victims to give amount to him in the form of cash, by depositing amount in his bank accounts maintained at

SBI, ICICI bank, Punjab National Bank and issued fake appointment letters as if those persons were selected to the posts in Railways. The evidence of PW-21, PW- 39, PW-41, PW-42, PW-44, PW-45 and PW-47 who are officials of Railways makes it specifically clear that the Railways Recruitment Board did not issue any offer letters, Appointment letters, Medical certificates. Though the learned counsel for A-1 argued that there are several omissions in the evidence of prosecution witnesses regarding the dates on which they met A-1 and that the victims gave amount to A-1 knowing very well that the amount is given for bribing officials, the fact remains that though the amount was given by victims to get the job, A-1 made the victims believe that he will arrange jobs to them on account of his acquaintance with higher officials. Though the victims did not handover any document to CBI to show that they went to Delhi on being called by A-1, there are no infirmities in the evidence of prosecution witnesses to disbelieve their versions that as A-1 informed them that he will arrange jobs, they paid cash and deposited amount in his bank account and later A-1 failed to respond to their calls. The victims identified in the court A-1 to be the person who collected amount from them on the pretext of arranging jobs to them and A-2 to be the person who conducted interviews and who

Page No. 32 of 53 CC.No.16 of 2018

represented himself to be an officer at FCI. There is no reason for victims to implicate A-1 and A-2 in the case.

55.Moreover, the entire evidence adduced by the prosecution clearly establish the modus operandi adopted by A-1 and A-2 which shows that A-1 used to ask the candidates to come to Delhi and there he used to introduce A-2 as Field Officer at

FCI and conduct interviews to the candidates and made them believe that they will be receiving appointment letters in a short period. A-1 and A-2 with an intention to deceive victims and receive money from the victims made the victims believe that the procedure of getting the jobs is under process. Furthermore, in order to make the candidates believe that they were appointed in FCI Department, the victims were made to work at Delhi for some time and salaries were also paid to those persons. The guilty intention of A-1 and A-2 to deceive the victims can be gathered from the above circumstances. There is overwhelming evidence adduced by the prosecution to establish the conspiracy of A-1 and A-2 and the manner in which A- 1 and A-2 deceived victims and used forged documents which are appointment letters, offer letters, and medical certificates. Hence, on careful consideration of entire evidence adduced by the prosecution this court holds that the prosecution established the guilt of A-1 and A-2 for offences under Sections 120-B, 420 and 471 of IPC beyond all reasonable doubt. Accordingly, the point is answered.

56.In the result, A1 and A2 are found guilty of offences under Sections 120-B, 420 and 471 of IPC. Hence, A1 and A2 are convicted under Section 248 (2) CrPC.

Typed directly to my dictation by Typist, corrected and pronounced by me in the open court on this the 10th day of November, 2023.

FAC XXI ADDL. CHIEF METROPOLITAN

MAGISTRATE, HYDERABAD.

Page No. 33 of 53 CC.No.16 of 2018

57.Heard A1 with regard to quantum of sentence that may be imposed against him. A1 submitted that lenient view maybe taken. Considering the nature of offences, A1 is sentenced to undergo Simple Imprisonment for a period of two years and to pay fine of Rs. 100/- for the offence under Section 120-B IPC. In default of payment of fine, A1 shall undergo Simple Imprisonment for a period of one week. A1 is further sentenced to undergo Simple Imprisonment for a period of two years and to pay fine of Rs. 100/- for the offence under Section 420 IPC. In default of payment of fine, A1 shall undergo Simple Imprisonment for a period of one week. A1 is further sentenced to undergo Simple Imprisonment for a period of two years and to pay fine of Rs. 100/- for the offence under Section 471 IPC. In default of payment of fine, A1 shall undergo Simple Imprisonment for a period of one week. All the sentences shall run concurrently. The remand period undergone by A-1 shall be set off under Section 428 CrPC. The right of appeal is intimated to

A1.

58.Heard A2 with regard to quantum of sentence that may be imposed against him. A2 submitted that lenient view maybe taken. Considering the nature of offences, A2 is sentenced to undergo Simple Imprisonment for a period of two years and to pay fine of Rs. 100/- for the offence under Section 120-B IPC. In default of payment of fine, A2 shall undergo Simple Imprisonment for a period of one week. A2 is further sentenced to undergo Simple Imprisonment for a period of two years and to pay fine of Rs. 100/- for the offence under Section 420 IPC. In default of payment of fine, A2 shall undergo Simple Imprisonment for a period of one week. A2 is further sentenced to undergo Simple Imprisonment for a period of two years and to pay fine of Rs. 100/- for the offence under Section 471 IPC. In default of payment of fine, A2 shall undergo Simple Imprisonment for a period of

Page No. 34 of 53 CC.No.16 of 2018

one week. All the sentences shall run concurrently. The remand period undergone by A-2 shall be set off under Section 428 CrPC. The right of appeal is intimated to

A2.

59. In the result, A1 and A2 are found guilty of offences under Sections 120-B, 420 and 471 of IPC. Hence, A1 and A2 are convicted under Section 248 (2)

CrPC.A1 is sentenced to undergo Simple Imprisonment for a period of two years and to pay fine of Rs. 100/- for the offence under Section 120-B IPC. In default of payment of fine, A1 shall undergo Simple Imprisonment for a period of one week.

A1 is further sentenced to undergo Simple Imprisonment for a period of two years and to pay fine of Rs. 100/- for the offence under Section 420 IPC. In default of payment of fine, A1 shall undergo Simple Imprisonment for a period of one week.

A1 is further sentenced to undergo Simple Imprisonment for a period of two years and to pay fine of Rs. 100/- for the offence under Section 471 IPC. In default of payment of fine, A1 shall undergo Simple Imprisonment for a period of one week.

All the sentences shall run concurrently. A2 is sentenced to undergo Simple

Imprisonment for a period of two years and to pay fine of Rs. 100/- for the offence under Section 120-B IPC. In default of payment of fine, A2 shall undergo Simple

Imprisonment for a period of one week. A2 is further sentenced to undergo Simple

Imprisonment for a period of two years and to pay fine of Rs. 100/- for the offence under Section 420 IPC. In default of payment of fine, A2 shall undergo Simple

Imprisonment for a period of one week. A2 is further sentenced to undergo Simple

Imprisonment for a period of two years and to pay fine of Rs. 100/- for the offence under Section 471 IPC. In default of payment of fine, A2 shall undergo Simple

Imprisonment for a period of one week. All the sentences shall run concurrently.

Page No. 35 of 53 CC.No.16 of 2018

The remand period undergone by A-1 and A-2 shall be set off under Section 428

CrPC. The right of appeal is intimated to A-1 and A-2. MO’s 1 and 2 shall be destroyed after lapse of appeal time or appeal is over.

Typed directly to my dictation by Typist, corrected and pronounced by me in the open court on this the 10th day of November, 2023.

FAC XXI ADDL. CHIEF METROPOLITAN

MAGISTRATE, HYDERABAD

APPENDIX OF EVIDENCE

WITNESSES EXAMINED

FOR PROSECUTION:

PW1 : Gopal Singh

PW2 : Chanda Devi

PW3 : Ramana Srikanth

PW4 : B. Satish

PW5 : S.D. Lakshman Rao

PW6 : O. Mahesh Bhanuchander

PW7 : T. Srinivas

PW8 : J. Majella

PW9 : V. Mahesh Kumar

PW10 : Smt Rameshwary Battu

PW11 : Smt. Ch. Ramesh Sandhya

PW12 : C.R.Rajesh

PW13 : M. Vinod Kumar

PW14 : A. Sridhar

PW15 : B. Naga Raju

Page No. 36 of 53 CC.No.16 of 2018

PW16 : Anthony Das Hary @ Hari

PW17 : B. Suresh

PW18 : Sarvesh Kumar Guptha

PW19 : Smt P.S.Usha Rani

PW20 : Sourab Kumar Chaurasia

PW21 : R.K. Malhothra

PW22 : Vijayashankar Pal

PW23 : C. K. Ravi Kumar

PW24 : D. Sridhar

PW25 : Nek Ram

PW26 : Smt Padmasri Kulkarni

PW27 : T. Raja Anand

PW28 : B. Surender Rao

PW29 : Rammohan Venu Gopal

PW30 : B. Jayanth Rao Khanna

PW31 : T. Venkateshwar Rao

PW32 : Ghanshyam Gulechha

PW33 : T. Srinivasa Rao

PW34 : V. Gangadhar Rao

PW35 : T.D. Dinakar

PW36 : B. Jalandhar

PW37 : M.K.Tiwari

PW38 : Raghubir Singh

PW39 : Raman Kumar Sharma

PW40 : Harivansh Kumar Guptha

PW41 : Dr. K.K.Roy

PW42 : G. Sridhar

PW43 : Praveen Kumar

PW44 : A.K.Singh

PW45 : Samir Biswas

PW46 : Siaram Sharma

Page No. 37 of 53 CC.No.16 of 2018

PW47 : Dhano Hansda

PW48 : A. Bala Sami

PW49 : Rabindra Padhan

PW50 : D.P. Gangwar

PW51 : V. Srinivasa Rao

PW52 : Harish Singh

PW53 : Ashok Kumar Mahail

FOR DEFENCE:

-Nil-

EXHIBITS MARKED

For PROSECUTION:

Ex P1: Report dt. 02/02/2016

Ex P2: Voucher Dt. 23/12/2013 depositing Rs.1 lakh in account bearing No. 760310110004396 of bank of India, Mammadabad Branch.

Ex P3: Pay slip Dt. 23/12/2013 of Bank of India showing transfer of Rs.1 lakh through NEFT/RTGS from account bearing No. 760310110004396 to the account of you/Mr. Aravind Kumar Gupta.

Ex P4: Photo ID dated 16/11/2014 in the name of Gopal Singh purportedly issued by Bharathiya Railway Mall, Godown, Sharamik Snagh

Ex P5: Copy of Account opening form dated 17/05/2012 of Mr. Gopal Singh along with enclosures of Bank of India, Mohammedabad Branch, U.P.

Ex.P6: Copy of statement of account for account bearing No. 760310110004396 of Mr. Gopal Singh issued by Sr. Branch Manager, Bank of India, Mohammedabad branch, U.P.

Ex.P7 :Photo ID, dated 16/04/2014 in the name of Chanda Devi purportedly issued by Bharathiya Railway Mall Godown Sharamik Sangh, Delhi.

Ex.P8 : Appointment order dated 26/06/2015 in the name of Chanda Devi purportedly issued by Administrative Officer, Department of

Page No. 38 of 53 CC.No.16 of 2018

Food Supplies, Weights, Measures and Consumer Affairs, Government of India for the post of LDC.

Ex.P9 : Photo copy of letter dated 08/03/2016 purportedly issued by SHP Kumar , Kurt Mandal, Rail Prabhandhak, Bareilly, UP.

Ex.P10 :Photo copy of letter dated 07/03/2016 purportedly issued by Adarsh Srivatsava, Maha Prabhandak, Bareilly Mandal, UP.

Ex.P11 :Photo copy of letter dated 05/05/2016 purportedly issued by Kumar Goutham, Krit Mandal, Rail Prabjhak, Bareilly Mandal, UP.

Ex.P12 : Blank signed cheque bearing No. 350285 of Canara Bank, Sainikpuri Secunderabad branch issued by you/Aravind Kumar Gupta.

Ex.P13 : Blank signed promissory note issued by you/Aravind kumar Gupa.

Ex.P14 :Counter foil of ICICI bank dated 09/11/2013 showing deposit of Rs.50,000/- in the account No. 024401518399 of Mr. Aravind Kumar Gupta.

Ex.P15 :Counter foil of ICICI bank dated 13/10/2014 showing deposit of Rs. 1,50,000/- in the account No. 024401518399 of Mr. Aravind Kumar Gupta.

Ex.P16 : Counter foil of ICICI bank dated 13/10/2014 showing deposit of Rs. 1,50,000/- in the account No. 024401518399 of Mr. Aravind Kumar Gupta.

Ex.P17 : Counter foil of ICICI bank dated 14/10/2014 showing deposit of Rs. 60,000/- in the account No. 024401518399 of Mr. Aravind Kumar Gupta.

Ex.P18 : Counter foil of SBI bank, Bhaskar Rao Nagar Branch, dated 14/11/2013 showing deposit of Rs. 50,000/- in the account No. 32957889935 of Mr. Aravind Kumar Gupta.

Ex.P19 : Counter foil of SBI bank, Bhaskar Rao Nagar Branch, dated 14/08/2014 showing deposit of Rs. 90,000/- in the account No. 32957889935 of Mr. Aravind Kumar Gupta.

Page No. 39 of 53 CC.No.16 of 2018

Ex.P20 : Counter foil of SBI bank, Bhaskar Rao Nagar Branch, dated 22/08/2014 showing deposit of Rs. 8,000/- in the account No. 32957889935 of Mr. Aravind Kumar Gupta.

Ex.P21 :Counter foil of SBI bank, Bhaskar Rao Nagar Branch, dated 28/08/2014 showing deposit of Rs. 2,000/- in the account No. 32957889935 of Mr. Aravind Kumar Gupta.

Ex.P22 : Crossed cheque bearing No. 967107 dated 04/04/2014 for Rs. 1,00,000/- issued by Mr. Aravind Kumar Gupta for account No. 32957889935.

Ex.P23 : Crossed cheque bearing No. 967108 dated 09/05/2014 for Rs. 1,00,000/- issued by Mr. Ara

Ex.P24 : Crossed cheque bearing No. 967109 dated 07/06/2014 for Rs. 1,00,000/- issued by Mr. Aravind Kumar Gupta for account No. 32957889935.

Ex.P25 : Appointment letter (with envelope) alleged to be issued by Department of food Supplies, Weights and Measures and Consumer affairs with reference No. FOB/7214/14 in the name ofSuresh D.L. for the post of LDC.

Ex.P26 : Transfer letter dated 11/12/2015 issued from the Department of food Supplies, Weights and Measures and Consumer affairs alleged to be signed by Sh Parb Chopda, Asst. Secretary.

Ex.P27 : Photo copy of appointment letter dated 23/06/2015 alleged to be signed by Sh Sk Jain, Administrative Officer, Department of food Supplies, Weights and Measures and Consumer affairs with reference No.FOB/7214/14 in the name of Suresh D.L. for the post of LDC. (marked subject to objection that it is a photo copy).

Ex.P28 : Counter foil of SBI, Thirumalgerry branch, dated 24/10/2013 showing deposit of Rs. 1,00,000/- in the account of Survesh Kumar Gupta bearing account No. 30597871688.

Ex.P29 : Counter foil of SBI, ECIL branch, dated 09/11/2013 showing deposit of Rs.25,000/- in the account of Survesh Kumar Gupta bearing account No. 30597871688.

Page No. 40 of 53 CC.No.16 of 2018

Ex.P30 : Counter foil of SBI, AS Rao Nagar Branch, dated 09/11/2013 showing deposit of Rs.25,000/- in the account of Survesh Kumar Gupta bearing account No. 30597871688.

Ex.P31 : Counter foil of ICICI Bank, AS Rao Nagar Branch, dated 14/11/2013 showing deposit of Rs. 45,000/- in the account of Aravind Kumar Gupta bearing account No. 024401518399.

Ex.P32 : Seizure memo dated 25/11/2016.

Ex.P33 : Counter foil dated 28/10/2014 of ICICI bank of AS Rao Nagar branch, showing deposit of Rs. 2,00,000/- in the account of V. Mahesh vide account No. 024401521413.

Ex.P34 :Counter foil dated 10/11/2014 of ICICI bank of AS Rao Nagar branch, showing deposit of Rs. 1,50,000/- in the account of V. Mahesh vide account No. 024401521413.

Ex.P35 : Counter foil dated 09/02/2015 of ICICI bank of AS Rao Nagar branch, showing deposit of Rs. 15,000/- in the account of V. Mahesh vide account No. 024401521413.

Ex.P36 : Counter foil dated 09/02/2015 of Punjab National Bank of Lad bazar branch, showing deposit of Rs. 35,000/- in the account of Aravind Kumar Gupta vide account No. 4565000100019131.

Ex.P37 :Counter foil dated 02/05/2015 of ICICI bank of AS Rao Nagar branch, showing deposit of Rs. 1,00,000/- in the account of Aravind Kumar Gupta vide account No.024401518399. Ex.P38 : Blank signed cheque bearing No. 072698, of ICICI bank, AS Rao Nagar, issued by V. Mahesh from his account No. 024401521413.

Ex.P39 :Blank signed cheque bearing No. 072699, of ICICI bank, AS Rao Nagar, issued by V. Mahesh from his account No. 024401521413.

Ex.P40 : Copy of appointment letter dated 22/06/2015 purportedly signed by one SK Jain, Administrative Officer, Government of India, Department of Food Supplies, Weights, Measures and Consumer affairs, Delhi. (marked subject to objection that it is photocopy)

Page No. 41 of 53 CC.No.16 of 2018

Ex.P41 :Alleged original joining letter dated NIL, purportedly signed by one Siddharth Patel, Administrative Officer, Government of India, Department of Food Supplies, Weights, Measures and Consumer affairs, Delhi.

Ex.P42 : One letter purportedly signed by one Parb Chopda, Assistant Secretary, Food and Supplies, Circle No. 68, dated 30/11/2015.

Ex.P43 : Seizure memo dated 16/11/2016.

Ex.P44 : Bank deposit slip of Punjab National bank, dated 25/08/2014 showing deposit of Rs. 50,000/- in the account of Aravind Kumar Gupta vide account No.4565000100019131

Ex.P45 : Bank deposit slip of SBI, dated 25/08/2014 showing deposit of Rs. 55,000/- in the account of Aravind Kumar Gupta vide account No.32957889935.

Ex.P46 :Bank deposit slip of ICICI bank, AS Rao Nagar branch, dated 15/09/2014 showing deposit of Rs. 2,00,000/- in the account bearing N. 024401518399.

Ex.P47 :Bank deposit slip of Punjab National bank, Lalbazar branch, dated 25/08/2014 showing deposit of Rs. 49,000/- in the account of Aravind Kumar Gupta vide account No. 4565000100019131.

Ex.P48 :Bank deposit slip of ICICI bank, dated 17/10/2014 showing deposit of Rs. 2,40,000/- in the account of Aravind Kumar Gupta vide account No.024401518399.

Ex.P49 : Bank deposit slip of SBI Thiurumalghery Branch, dated 28/05/2014 showing deposit of Rs.99,000/- in to the account of Sarvesh Kumar Gupta vide account No.30597871688.

Ex.P50 :Bank deposit slip of SBI Thiurumalghery Branch, dated 18/06/2014 showing deposit of Rs.49,500/- in to the account bearing No. 30597871688.

Ex.P51 : Bank deposit slip of ICICI, AS Rao Nagar Branch, dated 10/06/2014 showing deposit of Rs.1,00,000/- in to the account of Aravind Kumar Gupta vide account No.024401518399.

Page No. 42 of 53 CC.No.16 of 2018

Ex.P52 : Bank deposit slip of ICICI, AS Rao Nagar Branch, dated 17/06/2014 showing deposit of Rs.1,00,000/- in to the account of Aravind Kumar Gupta vide account No.024401518399.

Ex.P53 : Bank deposit slip of ICICI, AS Rao Nagar Branch, dated 25/06/2014 showing deposit of Rs.50,000/- in to the account of Aravind Kumar Gupta vide account No.024401518399.

Ex.P54 : Bank deposit slip of ICICI, AS Rao Nagar Branch, dated 26/06/2014 showing deposit of Rs.90,000/- in to the account of Aravind Kumar Gupta vide account No.024401518399.

Ex.P55 : Appointment order purportedly issued by Administrative Officer, Department of Food and Supplies vide ref: FOA/1044/14.

Ex.P56 : Transfer Order dated 11/12/2015 purportedly issued by Asst. Secretary, Food and Supplies, Circle No. 68.

Ex.P57 : Photocopy of RRB, call letter for Medical Examination for Group -C post purportedly issued by Asst. Secretary, RRB, Kolkatta, Chipur.

Ex.P58 : Cash deposit dated 08/07/2014 deposing Rs. 50,000/- in the ICICI account No. 024401518399 of Sri. Aravind Kumar Gupta deposited at ICICI Bank, AS Rao Nagar Branch, Secunderabad.

Ex.P59 : Cash deposit KIOSK receipt of PNB, dated 13/08/2014 deposing Rs. 30,000/- in the account no. 4565000100019131 of Sri. Aravind Kumar Gupta deposited at PNB, LAL Bazar Thirumalgherry, Secunderabad.

Ex.P60 : Cash deposit slip dated 13/08/2014 for depositing Rs. 49,900/- in the account no. 4565000100019131 of Sri. Aravind Kumar Gupta deposited at PNB, LAL Bazar Thirumalgherry, Secunderabad.

Ex.P61 :Cash deposit slip dated 23/08/2014 for depositing Rs. 2,00,000/- in the ICICI account no. 024401518399 of Sri. Aravind Kumar Gupta deposited at ICICI Bank, AS Rao Nagar, Branch, Secunderabad.

Page No. 43 of 53 CC.No.16 of 2018

Ex.P62 : Copy of Call letter for Medical Examination for Group C post purportedly issued by Asst. Secy. RRB, Kolkatta.

Ex.P63 : Copy of letter dated 22/03/2016 purportedly signed by Mahboob Alam, Sachiv Pramukh Mukhiya Civil Prashasan, Southern Railway, Hyderabad.

Ex.P64 : Copy of letter dated 21/04/2016 purportedly signed by Arjun Dus, Asst. Secy., Rail (Baroda House) Southern Railway, Hyderabad.

Ex.P65 : Appointment cum joining letter No. E/Kalyan/1210/2(Group -D)

Dated 20/05/2016 purportedly signed by P. Das, Sachiv Pramukh,

Southern Railway, Hyderabad.

Ex.P66 : Seizure Memo dated 28/11/2016.

Ex.P67 : Cash deposit slip dated 20/07/2015 for depositing Rs. 2,00,000/- in the ICICI account no. 024401518399 deposited at ICICI Bank, AS Rao Nagar, Branch, Secunderabad.

Ex.P68 : Cash deposit slip dated 03/06/2015 for depositing Rs.1,60,000/- in the ICICI account no. 024401518399 of Sri. Aravind Kumar Gupta deposited at ICICI Bank, AS Rao Nagar, Branch, Secunderabad.

Ex.P69 : Cash deposit slip dated 19/05/2016 for depositing Rs. 2,00,000/- in the ICICI account no. 024401518399 of Sri. Aravind Kumar Gupta deposited at ICICI Bank, AS Rao Nagar, Branch, Secunderabad.

Ex.P70 : Cash deposit slip dated 05/10/2012 for depositing Rs. 25,000/- in SBI Account no. 113800935109 in SBI of Thirumalgherry branch, Secunderabad.

Ex.P71 : Cash deposit slip dated 17/09/2012 for depositing Rs. 40,000/- in the SBI account no.30597871688 of Sarvesh Kumar Gupta in SBI, Thirumalgherry, Secunderabad.

Ex.P72 : Cheque deposit slip dated 13/09/2012 for depositing Rs. 49,000/- in the account No. 910010006477609 of Sarvesh Kumar Gupta deposited at Axis Bank, Thirumalgherry, Secunderabad.

Page No. 44 of 53 CC.No.16 of 2018

Ex.P73 : Cheque deposit slip dated 13/09/2012 for depositing Rs. 49,000/- in the account No. 910010006477609 of Sarvesh Kumar Gupta deposited at Axis Bank, Thirumalgherry, Secunderabad.

Ex.P74 : Cheque deposit slip dated 13/09/2012 for depositing Rs. 80,000/- in the account No. 30597871688 of SBI, Thirumalgherry, Secunderabad.

Ex.P75 : Cash deposit slip dated 05/10/2010 for depositing Rs. 15,000/- in the account No. 910010006477609 of Sarvesh Kumar Gupta deposited at Axis Bank, Thirumalgherry, Secunderabad.

Ex.P76 : Blank cheque bearing Cheque No. 002928 of ICICI bank, New Delhi Palam Branch signed by Aravind Kumar Gupta for account No. 024401518399.

Ex.P77 :Blank cheque bearing Cheque No. 350288 of Canara bank for Rs. 50,000/- signed by Aravind Kumar Gupta for account No. 1976101008167.

Ex.P78 : Blank cheque bearing Cheque No. 350289 of Canara bank for Rs. 50,000/- signed by Aravind Kumar Gupta for account No. 1976101008167.

Ex.P79 :Blank promissory note duly signed by Aravind Kumar Gupta with receipt.

Ex.P80 : Appointment letter with reference No. 427/SDMN/Group -D, SC, 2011- 2012 purportedly issued by K. Rao, Asst. Secretary, RRB, SCRLY, Secunderabad.

Ex.P81 :Copy of appointment letter dated 05/06/2015 purportedly signed by one S.K. Jain, Admin Officer, Government of India, Department of Foods and Supplies, Weights, Measures and Consumer Affairs, Delhi.

Ex.P82 : Appointment cum Joining letter dated 26/06/2015 purportedly signed by one Siddarth Patel, Admin Officer, Government of India, Department of Foods and Supplies, Weights, Measures and Consumer Affairs, Delhi.

Page No. 45 of 53 CC.No.16 of 2018

Ex.P83 : Seizure Memo dated 01/12/2016.

Ex.P84 : Appointment order vide reference No. FSO/372/B, dated 26/06/2015 purportedly issued by Siddharth Patel, Admin Officer, Department of Food Supplies, weights, Measures and Consumer Affairs, Government of India.

Ex.P85 : Transfer order dated 09/11/2015 purportedly issued by PARB CHOPDA, Asst. Secretary, Food Supplies Circle No. 68.

Ex.P86 : Seizure Memo dated 02/12/2016.

Ex.P87 : Copy of Call letter for medical examination purportedly issued by Asst. Secy. RRB, Kolkatta.

Ex.P88 : Copy of interview call letter purportedly signed by V.K. Sukala, Secy. Central Railway Office, Main Barodha House, New Delhi.

Ex.P89 : Seizure memo dated 01/12/2016.

Ex.P90 : Canara bank blank cheque bearing No. 350290 dated nil,for Rs. 60,000/- pertaining to account No. 1976101008167 signed by Aravind Kumar Gupta.

Ex.P91 : Canara bank blank cheque bearing No. 350291 dated nil,for Rs. 60,000/- pertaining to account No. 1976101008167 signed by Aravind Kumar Gupta.

Ex.P92 : Copy of letter for interview dated 22/03/2016 purportedly signed by Krishna R Reddy, Dy. Secy. Southern Zone Rail, Southern Railway.

Ex.P93 : Copy of letter dated 21/04/2016 purportedly signed by Arjun Dus, Asst. Secy. Rail (Baroda House), Southern Railway, Hyderabad.

Ex.P94 : Appointment cum joining letter No. E/Kalyan/1210/2(Group -D),

dated 20/05/2016, Letter No. 3214/16, purportedly signed by P.

Das, Sachiv, Pramukh, Southern Railway, Hyderabad.

Ex.P95 :Seizure Memo dated 15/12/2016.

Page No. 46 of 53 CC.No.16 of 2018

Ex.P96 : Fake joining letters along with envelops for Group C post in 15 sheets in the names of various persons.

Ex.P97 : Fake call letters for Medical Examination in 7 sheets in the names of various person.

Ex.P98 : Documents in the name of not eligible for free travel in 7 sheets.

Ex.P99 : Bank of Baroda blank signed cheque bearing No. 000014 vide account No. 37630100000636 of S.R. Sharma.

Ex.P100 : Bank of Baroda blank signed cheque bearing No. 000013 vide account No. 37630100000636 of S.R. Sharma.

Ex.P101 : Photocopy of cheque bearing Nos.967107 dated 04/04/2014, 967108,

dated 09/05/2014 and 967109, dated 07/06/2014 each of Rs. 1 lakh

pertaining to Account No. 32957889935 of Mr. Aravind Kumar Gupta and Mangaladevi Gupta.

Ex.P102 :Counter foil of SBI dated 02/05/2012 for Rs. 25,000/- in the name of Sarvesh Kumar Gupta bearing Account No. 30597871688.

Ex.P103 :Counter foil of SBI dated 21/09/2011 for Rs.25,000/- in the name of Radhe shyam Zadav bearing Account No. 20017422211.

Ex.P104 :Counter foil of SBI dated 12/09/2011 for Rs.25,000/- in the name of Radhe shyam Zadav bearing Account No. 20017422211.

Ex.P105 :Counter foil of SBI dated 09/09/2011 for Rs.25,000/- in the name of Radhe shyam Zadav bearing Account No. 20017422211.

Ex.P106 :Counter foil of SBI dated 14/09/2011 for Rs.20,000/- in the name of Radhe shyam Zadav bearing Account No. 20017422211.

Ex.P107 :Counter foil of SBI dated 22/09/2011 for Rs.15,000/- in the name of Radhe shyam Yadav bearing Account No. 20017422211.

Ex.P108 :Counter foil of SBI dated 26/04/2012 for Rs.25,000/- in the name of Sarvesh Kumar Gupta, Account No. 30597871688.

Page No. 47 of 53 CC.No.16 of 2018

Ex.P109 :Counter foil of SBI dated 30/04/2012 for Rs.25,000/- in the name of Sarvesh Kumar Gupta, Account No. 30597871688.

Ex.P110 :Blank cheque bearing No. 270229 vide account No. MSB20017422211 of SBI, Hussain Ganj Luknow issued by Radhe Shyam Yadav.

Ex.P111 :Counter foil of SBI dated 16/09/2011 for Rs.15,000/- in the name of Radhe shyam Yadav bearing Account No. 20017422211.

Ex.P112 :Counter foil of SBI dated 26/09/2011 in the name of Radhe shyam Zadav bearing Account No. 20017422211. ( in torn condition).

Ex.P113 : Photocopies of Exam results, Medical Fit Certificates, Bio Datas of Candidates, Photocopies of provisional Certificates (in total 66 sheets)

Ex.P114 : I.D card and service certificate along with Civilian Temporary Pass of HQ, Andhra Sub Area Officers Mess in the name of Aravind Kumar Gupta (A1). ( total 3 in number)

Ex.P115 : Search List dated 08/11/2016 conducted at the house of Smt. Mangaladevi.

Ex.P116 : Account opening form for account bearing No. 32957889935 jointly in the name of Aravind Kumar Gupta and Mangala Devi Gupta along with ID proof.

Ex.P117 : Statement of account for account bearing No. 32957889935 for the period from 01/04/2013 to 31/03/2014.

Ex.P118 : Statement of account for account bearing No. 32957889935 for the period from 02/04/2014 to 31/03/2015.

Ex.P119 : Statement of account for account bearing No. 32957889935 for the period from 01/04/2015 to 04/12/2016.

Ex.P120 : Pay in slip dated 14/11/2013 for deposit of Rs. 50,000/- in the account bearing No. 32957889935.

Ex.P121 : Pay in slip dated 14/08/2014 for deposit of Rs. 90,000/- in the account bearing No. 32957889935.

Page No. 48 of 53 CC.No.16 of 2018

Ex.P122 : Pay in slip dated 22/08/2014 for deposit of Rs. 8,000/- in the account bearing No. 32957889935.

Ex.P123 : Pay in slip dated 25/08/2014 for deposit of Rs. 55,000/- in the account bearing No. 32957889935.

Ex.P124 : Pay in slip dated 28/08/2014 for deposit of Rs. 2,000/- in the account bearing No. 32957889935.

Ex.P125 : Covering letter dated 28/12/2016.

Ex.P126 : Receipt memo dated 28/12/2016.

Ex.P127 : Letter No. 32(7) 2016 -E1,dated 08/12/2016.

Ex.P128 : Copy of Admit Card in the name of Karan Kumar Yadav.

Ex.P129 : Copy of final result for the post of Grade – III & Grade – IV.

Ex.P130 : Covering letter No. 220-E/Open MKT/RRC/ 2015 /FIR.

Ex.P131 : Pay in slip dated 02/12/2013 for deposit of Rs. 25,000-/ in the account of A1 bearing No. 32957889935.

Ex.P132 : Pay in slip dated 02/12/2013 for deposit of Rs. 25,000-/ in the account of A1 bearing No. 32957889935.

Ex.P133 :Pay in slip dated 03/12/2013 for deposit of Rs. 25,000-/ in the account of A1 bearing No. 32957889935.

Ex.P134 : Pay in slip dated 02/01/2014 for deposit of Rs. 25,000-/ in the account of A1 bearing No. 32957889935.

Ex.P135 : Pay in slip dated 02/01/2014 for deposit of Rs. 25,000-/ in the account of A1 bearing No. 32957889935.

Ex.P136 : Pay in slip dated 20/05/2014 for deposit of Rs. 25,000-/ in the account of A1 bearing No. 32957889935.

Page No. 49 of 53 CC.No.16 of 2018

Ex.P137 : Pay in slip dated 20/05/2014 for deposit of Rs. 25,000-/ in the account of A1 bearing No. 32957889935.

Ex.P138 : Pay in slip dated 14/12/2013 for deposit of Rs.1,00,000-/ in the account of A1 bearing No. 32957889935.

Ex.P139 : Pay in slip dated 02/12/2013 for deposit of Rs.1,00,000-/ in the account of A1 bearing No. 32957889935.

Ex.P140 : Pay in slip dated 03/01/2014 for deposit of Rs.50,000-/ in the account of A1 bearing No. 32957889935.

Ex.P141 : Pay in slip dated 03/12/2013 for deposit of Rs.25,000-/ in the account of A1 bearing No. 32957889935.

Ex.P142 : Seizure Memo dated 28/11/2016.

Ex.P143 : Original pay in slip dated 13/09/2012 pertaining to Sarvesh Kumar Gupta for account bearing No. 910010006477609, for Rs.49,000/-.

Ex.P144 : Covering letter with reference No. Axissb/1456/02/16-17, dated 28/12/2016.

Ex.P145 : Seizure memo dated 28/12/2016.

Ex.P146 : Pay in slip dated 25/08/2014 for Rs. 50,000/- deposited into the account of Aravind Kumar Gupta bearing No. 4565000100019131.

Ex.P147 : Covering letter dated 23/12/2016 signed by Sri. T.V. Rao. CBI police examined me and recorded my statement.

Ex.P148 : Copy of account opening form along with bank statement of V. Mahesh Kumar for account bearing No. 024401521413 along with Certificate under 2 A of Banker Book of Evidence Act, 1891.

Ex.P149 : Copy of account opening form along with bank statement of Aravind Kumar Gupta for account bearing No. 024401518399 along with Certificate under 2 A of Banker Book of Evidence Act, 1891 and Section 65 (B) (4) of Indian Evidence Act, 1872.

Ex.P150 : Covering letter dated 23/12/2016.

Page No. 50 of 53 CC.No.16 of 2018

Ex.P151 : Copy of letter vide RC. No. 04(A)/2016 – CBI / Hyd / 5245, dated 19/12/2016 addressed by Inspector of Police, CBI Hyderabad.

Ex.P152 : Pay in Slip dated 09/02/2015 for Rs. 35,000/- deposited in the account of Aravind Kumar Gupta vide account bearing No. 4565000100019131.

Ex.P153 : Pay in Slip dated 13/08/2014 for Rs. 49.900/- deposited in the account of Aravind Kumar Gupta vide account bearing No. 4565000100019131.

Ex.P154 : Pay in Slip dated 17/09/2014 for Rs. 49,000/- deposited in the account of Aravind Kumar Gupta vide account bearing No. 4565000100019131.

Ex.P155 :Covering Letter Dt. 22/12/2016.

Ex.P156 : Original pay in slip / deposit slip dated 05/10/2012 for Rs. 15,000/- relating to Account of Mr. Sarvesh Kumar Gupta bearing account No.910010006477609.

Ex.P157 : Original pay in slip / deposit slip dated 13/09/2012 for Rs. 49,000/- relating to Account of Mr. Sarvesh Kumar Gupta bearing account No.910010006477609.

Ex.P158 : Covering letter vide No. AXISB/TIR/13/2016-17, dated 28/12/2016.

Ex.P159 :Seizure memo, dated 28/12/2016.

Ex.P160 : Covering letter dated 05/01/2017.

Ex.P161 : Account opening form of Mr. Aravind Kumar Gupta along with copies of KYC documents.

Ex.P162 : Copy of statement of account of Mr. Aravind Kumar Gupta for account bearing No. 4565000100019131 for the period from 16/12/2013 to 05/12/2016.

Ex.P163 : Covering letter dated 05/12/2016.

Ex.P164 : Specimen Signatures of Mr. Aravind Kumar Gupta obtained on 16/03/2017 in XIV ACCM, Court under S1 to S9.

Page No. 51 of 53 CC.No.16 of 2018

Ex.P165 : Voice specimen panchanama dated 13/03/2017.

Ex.P166 : Copy of RTGS payment instructions and 3 Blank cheques bearing Nos. 072700, 072701 and 072702 signed by V. Mahesh Kumar.

Ex.P167 : Bunch of papers containing fake interview letters from SC Railways, Fake Employment letter of FCI, Fake Appointment letter of Eastern Railways, Fake Medical Fitness Certificate from Orthopedic hospital fro Howrah, Fake Appointment letter of N W railways, proforma of Bio Datas

Ex.P168 : Copy of Air Ticket of A1, Siyaram Sharma, Radheshyam Yadav and copy of Medical Examination letter of S.H. Mahesh Kumar from RRB, Kolkatta in TWO sheets.

Ex.P169 : Bunch of papers containing application forms of various candidates, copies of Certificates of the candidates, copies of forged interview and appointment letters.

Ex.P170 : One ICICI Debit Card VISA No. 4693 7502 4405 6473.

Ex.P171 : One ICICIPrudential Diary of the year 2008 containing names of various candidates, amounts received from them and amounts transferred to other co accused.

Ex.P172 : Seizure Memo dated 08/11/2016.

Ex.P173 : Search Report dated 09/11/2016.

Ex.P174 : Covering letter dated 08/03/2016.

Ex.P175 : Letter No. 220-E/MISE/Fake/APPTT/RECTT/2015, dated 05/12/2016 signed by the on 06/12/2016.

Ex.P176 : Original Joining letter for Group-C post in the name of Subhash Shamra.

Ex.P177 : Notice under section 91 Cr.P.C issued by Sub Inspector of Police, PS Thirumalgheery.

Page No. 52 of 53 CC.No.16 of 2018

Ex.P178 : Original blank promissory note for Rs. 3,00,000/- executed by Satish Kumar Mishra.

Ex.P179 : Blank paper duly signed by Satish Kumar Mishra on Revenue Stamp.

Ex.P180 : Receipt memo dated 24/11/2016.

Ex.P181 :Letter No. H/ME/CORS/HWH/Investigation, dated 07/12/2016.

Ex.P182 :Reply letter No. SER/P-HQ/RRC/100/Staff matter/ 2016, dated 21/12/2016.

Ex.P183 : Offer letter with reference No. 427/SDMN/Group -D/2011- 2012.

Ex.P184 : Reply letter dated 07/02/2017 addressed to Deputy Inspector General of Police, CBI, ACB, Hyderabad.

Ex.P185 : Reply Letter No. RRB/KOL/AS/CONFDL./4, dated 05/12/2016 in respect of 17 documents.

Ex.P186 : Reply Letter No. RRB/KOL/AS/CONFDL./4, dated 05/12/2016 in respect of 11 documents.

Ex.P187 : Reply letter No. E890/R&R/RECTT./Fake Apptt, dated 05/12/2016 issued by me to CBI police.

Ex.P189 : Expert opinion dated 21/11/2017 in 3 sheets.

Ex P-190 :Report of Pw50 bearing No. CFSL-2193/17/PHY/844/17/417, dated 28/03/2017.

Ex P-191 :FIR in RC No. 4(A)/2016-CBI Hyderabad.

Ex P-192 : Notice U/Sec 91 of Cr.P.C dt. 30/03/2016 issued to Branch Manager, Bank of India, Mohammedabad Branch.

Ex P-193 : Receipt Memo Dt. 05/07/2016.

Ex P-194 :Bunch of papers containing handwritten information of candidates, payments received from them along with various departments vide document No. 3© (6 in number).

Page No. 53 of 53 CC.No.16 of 2018

Ex P-195 :Appointment letter dt. 26/06/2015 from Pw-7 T.Srinivas.

Ex P-196 :Seizure Memo dt. 02/12/2016.

Ex P-197 :Letter No.P(RT) 563/LDCE/OS Dt. 03/01/2017 from Pw-35 T.D.Dinakar.

FOR DEFENCE:

EX D1 :Relevant Portion of Section 161 Cr.P.C statement of Pw-12

EX D2:Relevant Portion of Section 161 Cr.P.C statement of Pw-12

EX D3::Relevant Portion of Section 161 Cr.P.C statement of Pw-22.

MATERIAL OBJECTS MARKED

FOR PROSECUTION

MO1: Sealed envelope containing Sony Micro SD Card containing specimen voice of Sri. Veerender Kumar Roy (A2).

MO2: Micro SD card (Xtreme of 2 GB) containing questioned conversation.

FOR DEFENCE: NIL

FAC XXI ADDL. CHIEF METROPOLITAN

MAGISTRATE, HYDERABAD.

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IN THE COURT OF THE XVII ADDL. CHIEF METROPOLITAN

MAGISTRATE HYDERABAD.

PRESENT:P.Sai Sudha, XVII Addl. Chief Metropolitan Magistrate, Hyderabad.

FRIDAY, DATED THIS THE 26 th DAY OF APRIL, 2024

CC.No.366 of 2018

Between:- The State of Telangana., Through Sub-Inspector of Police,

P.S. Musheerabad....Complainant

AND

A1-Pattipati Nagaraju @ Nagaraju, S/o late Yalla Chary, Age 54 years, Occ: Gold Smith, R/o H.No.8-3-228/483, Rahmath nagar, Yousufguda, Hyderabad. N/o Nandyala, Kurnool District.

A2-Pattipati Prabhakar @ Prabhakar, S/o late Gopal Chary, Age 29 years, Occ: Gold Smith, R/o H.No.SF-18, Site-3, Shilpi Nagar, Borabanda, Hyderabad. N/o Nandyala, Kurnool District.

A3-Kandukuri Shiva Krishna @ Krishna, S/o K.Srinivas Chary, Age 36 years, Occ:Wall Painter, R/o H.No.SF-17, Shilpi Nagar, Borabanda, Hyderabad. N/o Ongole, Prakasham District.

A4-Kandukuri Satyanarayana Chary @ Satyanarayana, S/o late Subbaraidu, Age 48 years, Occ: Polish work for furniture, R/o H.No.8-3-162/A/45, 2 of 16 XVII ACMM,

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Sanjeev nagar, Yousufguda, Hyderabad. N/o Darsi, Ongole of Prakasham District. (A4 died. Death Certificate of A4 filed. Hence, the case against A4 abated on 02- 06-2023)

...Accused/A1 to A4

This case is coming before me on 18-04-2024 for final hearing in the presence of Learned Asst. Public Prosecutor for the State and Sri.U.Venu Gopal, Counsel for the Accused and after perusing the entire case record and after having stood over the matter for consideration, this court made the following:

::JUDGMENT::

1.The Sub-Inspector of police, PS Musheerabad, Hyderabad filed charge sheet against the accused in Cr.No.350/2017 for offences under Sections 420 and 379 of

Indian Penal Code (for short ‘IPC’).

2.The averments of the complaint, in brief, are as follows:-

(a).On 09-12-2017 at about 11:30 am, while the defacto-complainant/Racharla

Aruna was at her house ie.,H.No.1-7-909, New Brahamamgari Temple, Ramnagar,

Musheerabad, Hyderabad, two persons came there stating that they will tangle

Pusthelathadu with copper wire. Then the defacto-complainant gave her 2 tulas of gold Pusthelathadu(gold chain) for entangling with copper wire. Those two persons/accused No.1 and 2 after entangling the copper wire to Pusthelathadu they burnt the edges of the chain and dipped the chain in a bowl containing water and 3 of 16 XVII ACMM,

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returned the chain to her. Further they asked the defacto-complainant to apply turmeric to the chain and then to wear it. After when the defacto-complainant took her

Pusthelathadu/gold chain, she noticed that the weight of her Pusthelathadu was reduced.

2(b). On the same day i.e., on 09-12-2017, A1 and A2 went to the house of Tallapalli

Manasa/victim, neighbor of defacto-complainant and they took her Pusthelathadu for entangling with the copper wire and they have dipped the gold chain in a bowl containing liquid and returned the chain to her. Then, Manasa/victim also noticed that the weight of her Pusthelathadu chain reduced to 11 grams. Then, the defacto- complainant/Aruna and other victim Manasa went to the Police Station and lodged a report with the police to take action against those persons who came to their house and deceived them. On its basis, a case in Cr.No.350/2017 for offences under

Sections 420 and 379 of IPC was registered and First Information Report was issued.

2(c). During the course of Investigation, the police apprehended A1 who confessed in the presence of mediators that he along with A2 to A6 hatched a plan to deceive innocent public and took gold chains from women and extracted gold from the gold chains by diverting the attention of women. The police seized raw gold, other material objects from the possession of A1 to A4 under the cover of Confession-cum-

Seizure Panchanama. After completion of investigation, Charge Sheet was filed 4 of 16 XVII ACMM,

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against A1 to A4 for the offences referred above by stating that A1 and A2 deceived innocent public and that A3 to A6 followed A1 and A2 by watching the situation and movements of the police from some distance and thereby A3 to A6 assisted A1 and

A2 in commission of offences. A5 and A6 are shown as absconding.

3.This court took cognizance of offences under Sections 420 and 379 of IPC against A1 to A4 and issued summonses to A1 to A4.

4.On appearance of A1 to A4 before this court, copies of documents were furnished to them as required under section 207 of Code of Criminal Procedure (for short ‘Cr.P.C’). During the pendency of the case, it is reported that A4 died. The prosecution filed copy of Death Certificate of A4. Hence, the case against A4 abated on 02-06-2023.

5.A1 to A3 were examined under section 239 Cr.P.C and after hearing both sides, charges were framed for offences under Sections 420 and 379 of IPC against A1 to

A3, read over and explained to them in their vernacular language. They pleaded not guilty and claimed to be tried.

6.In order to prove its case, the prosecution has examined PW’s 1 to 7, through whom Exs.P1 to P11 are marked.

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7.After closure of prosecution side evidence, A1 to A3 were examined under section 313 Cr.P.C by explaining to them incriminating material appearing against them in prosecution evidence. They denied it totally and reported no defence evidence.

8.Heard both sides. Perused the entire record.

9.Now the point that arises for determination is:

Whether prosecution established the guilt of A1 to A3 for offences under

Sections 420 and 379 of IPC beyond all reasonable doubt?

10.It is the case of prosecution that on 09-12-2017 at about 11:30 am, A1 and A2 went to the locality near New Brahmamgari Temple, Ramnagar, Musheerabad,

Hyderabad and induced the defacto-complainant/Racharla Aruna and one Manasa/ victim that they will entangle copper wire to the Pusthelathadu and after receiving

Pusthelathadu from them A1 and A2 have dipped the gold Pusthelathadu in solution and as a result the weight of gold chains was reduced.

11. POINT:

In order to prove its case, the prosecution has examined the defacto- complainant/R.Aruna as PW.1. In her evidence, PW.1 reiterated the contents of Ex.P1 6 of 16 XVII ACMM,

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CC.No.366/2018

report. Her evidence is to the effect that on 09-12-2017 at 11:30 am, two persons came to her house stating that they will tangle copper wire to Pusthelathadu and after tangling copper wire to Pusthelathadu those two persons asked her to put her chain in the turmeric water for some time and then to see the chain. She further stated that after five minutes when she took the chain from water, she noticed that her gold

Pusthelathadu became very thin and the length increased due to decrease of weight.

She further stated that originally her Pusthelathadu weighed about 2 and ½ thulas and after placing the chain in the water and tangling the copper wire to the chain the weight reduced to 11 grams. She also stated that then she went to Musheerabad police station and lodged Ex.P1 is Report. PW.1 identified A1 and A2 to be the persons who came to her house, took her gold Pusthelathadu and melted the gold chain.

12.In her cross-examination, PW.1 stated that her gold Pushelathadu was prepared to order in the year 2000 at the time of her marriage. She further stated that there is no document to show that her gold Pusthelathadu weighed 2 and ½ thulas before the chain was handed over to the offenders. She also stated that she did not hand over her chain to the police at the time of lodging the complaint and also the police did not ask her and collect the chain from her. She admitted that there is no document to show that the chain weighed 11 grams only at the time of lodging the complaint. She stated 7 of 16 XVII ACMM,

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that she did not state before the police that even prior to the occurrence of the alleged incident, A1 and A2 came to their locality for ear boring as the police did not ask her.

13.The evidence of PW.2/T.Manasa, another victim is in similar lines of evidence of PW.1. Her evidence is to the effect that on 09-12-2017 at 11:30 am, two persons came to their house stating that they will tangle copper wire to Pusthelathadu. She also stated that then herself and PW.1 gave their Pusthelathadu to them by reposing faith in them and after tangling the copper wire to the pusthelathadu, those persons told her that as the edges of gold chain were burnt, they will wash the gold chain and give it to them. She also stated that in her absence they dipped gold chains in a bowl of water brought with them. She further stated that after those two persons left the place, they dipped the chains in water and then the chain looked like a spring. She stated that immediately she went to gold shop in the next lane of her house and when the gold chain i.e., pusthelathadu was weighed it was less than 11 grams though the actual weight was 2 thulas. PW.2 also identified A1 and A2 to be the persons who came to her house, took her gold Pusthelathadu and melted the gold chain.

14.In her cross-examination, she also stated that her gold chain was prepared at the time of her marriage in the year 2008 and there is no document to show that her

Pusthelathadu weighed 2 thulas before the chain was handed over to the offenders.

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She also admitted that there is no document to show that the chain weighed 11 grams only at the time of lodging the report. She admitted that there is no document to show that her Pusthelathadu weighed 2 thulas before the chain was handed over to the offenders and that her Pusthelathadu weighed 11 grams only, at the time of lodging the complaint.

15.The prosecution has examined PW.3/D.Shekar, one of mediators to Scene

Observation Panchanama and Rough Sketch. The evidence of PW.3 shows that in the year 2017, on one day in the morning hours, the police of Musheerabad Police Station came to his house bearing No.1-7-909, Ramnagar and the police have drawn the

Rough Sketch in his presence and obtained his signature. He also stated that the contents of Scene Observation Panchanama were read to him and he signed on it.

Ex.P2 Scene Observation Panchanama and Ex.P3 Rough Sketch are exhibited through him. His cross-examination went in formal lines.

16.The prosecution has examined PW.4/V.Sadanand, one of mediators to

Confession-cum-Seizure Panchanama. The evidence of PW.4 is to the effect that he accompanied one Anand, husband of PW.1 to Musheerabad Police Station at the time of lodging the complaint and after two days of lodging the complaint, the police informed them that offenders are apprehended at YSR Park, Musheerabad, 9 of 16 XVII ACMM,

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Hyderabad and he was called by Musheerabad Police to come to YSR Park. He also stated that the police showed him two persons at YSR Park and on enquiry those two persons told them that on account of their financial position, they committed said offence. He stated that his signature was obtained on some papers at police station.

He identified Prabhakar/A2 as Nagaraju/A1. Ex.P4 is Signature of PW4 on

Confession-cum-Seizure panchanama was exhibited. In his cross-examination, PW.4 stated that he was not present at the time the accused were alleged to have visited the house of PWs 1 and 2. He admitted that it is on being told by the police by pointing towards accused that they are the offenders, he came to know that the accused are offenders.

17.The prosecution has examined PW.5/A.Brahmam, another mediator to

Confession-cum-Seizure panchanama. He deposed that in the year 2017, on one day two persons came to the house of PWs 1 and 2 stating that they will entangle copper wire to gold pusthelu and saying so those persons took their Gold Chains, dipped them in Acid and applied turmeric. He also stated that PWs 1 and 2 found that the weight of their chains were reduced and then they went to police station and lodged the report. He also stated that on the next day of lodging the complaint, the police called him and asked him to come to YSR Park, Musheerabad, Hyderabad and he enquired four persons. He also stated that those four persons told them that on 10 of 16 XVII ACMM,

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account of their financial position, they committed said offence. Ex.P5 Signature of

PW.5 on confession-cum-seizure panchanama was exhibited. In his cross- examination, PW.5 also stated that he was not present at the time of accused were alleged to have visited the house of PWs 1 and 2. He also admitted that on being told by the police by pointing towards accused that they are the offenders, he came to know that the accused are offenders. He stated that the contents of Panchanama were not read over to him, but the police stated that they have reduced into writing the incident that happened on that day.

18.The evidence of PW.6/L.Samya, Investigation Officer relates to registration of the case in Cr.No.350/2017 and issuance of Ex.P6 First Information Report. In his cross-examination, PW.6 admitted that in Ex.P6 First Information Report, in Column

No.14, the signature of T.Ashok is obtained.

19.The prosecution has also examined PW.7/R.Bal Raju, Investigation Officer, whose evidence is crucial. The evidence of PW.7 is to the effect that he recorded the statements of PWs 1 and 2 at Police Station on 09-12-2017 and also he visited the place of occurrence and drafted Scene Observation Panchanama and Rough Sketch.

His evidence further shows that on 18-12-2017, he received information that some persons came to MCH colony stating that they will polish gold ornaments and there is 11 of 16 XVII ACMM,

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suspicion over those persons. His evidence also shows that he along with his staff proceeded to MCH Colony and found six persons moving on three bikes and they apprehended those persons and enquired them. He also stated that on enquiry those persons admitted their guilt in the presence of mediators and their confessional statements were recorded. He also stated that in pursuance of their confession, they seized melted Gold, one Plastic Mug, two Acid Bottles, one Honda Duo Vehicle, one

Splendor Bike. Exs.P7 to P9 Relevant Portion of Confession-cum-Seizure

Panchanamas of A1 to A3, Ex.P10 Form No.60 are marked. He also stated that he filed a requisition before the court for conducting Test Identification Parade in respect of A1 and A2 and on 27-01-2018 Test Identification Parade was conducted. Ex.P11

Proceedings of Test Identification Parade, dated 27-01-2018 are exhibited.

20.In his cross-examination, PW.7 stated that he did not collect any document from PW.1 and PW.2 relating to date of purchase of gold chain i.e., Pusthelathadu, weight and value of the chains. He admitted that he did not collect any document from PW.1 and PW.2 about the weight of their gold chains before and after alleged incident. He also admitted that the gold in its raw form will be available at any gold shop and with gold smith. He admitted that there is no proof to show that the gold which was said to be seized from the possession of A1 and A2 is the gold formed by melting gold chains of PWs. 1 and 2.

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21.On a careful scrutiny of evidence of PWs.1 and 2, it is evident that on 09-12- 2017 at 11:30 am, A1 and A2 came to their locality stating that they will tangle copper wire to gold Pusthelathadu. The evidence of PWs.1 and 2 further shows that

A1 and A2 took their gold Pusthelathadu and dipped and kept in a bowl of water and asked them to apply Turmeric and then to see the chains. It is also evident from the evidence of PWs.1 and 2 that after A1 and A2 left the place, they took their chains and noticed that the weight of the chain reduced to 11 grams. The evidence of PWs.1 and 2 shows that PW.1 purchased the gold chain at the time of her marriage in the year 2000 and PW.2 purchased her gold chain at the time of her marriage in the year 2008. The learned defence counsel argued that there is no evidence to show that the chains of PWs.1 and 2 weigh about 2 and ½ tulas before they handed over the chains to A1 and A2 and the chains weighed 11 grams after A1 and A2 gave chains to PWs.1 and 2.

22.Admittedly, there is no evidence adduced by the prosecution to establish that gold Pusthelathadu of PWs.1 and 2 weight about 2 and ½ tulas before they handed over the chains to A1 and A2. Generally, one cannot expect a person to retain the bills relating to the gold for a long period that too when the gold chain was said to be purchased by PW.1 in the year 2000 and by PW.2 in the year 2008. There is no 13 of 16 XVII ACMM,

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evidence adduced by the prosecution to show that as on the date of lodging the complaint, the gold Pusthelathadu chains of PWs.1 and 2 weighed only 11 grams. It is for the Investigation Officer to weigh the gold Pushelathadu/chains of PWs.1 and 2 when they lodged the complaint. The evidence of PW.7/Investigation Officer shows that he did not get weighed the gold chains of PWs.1 and 2 in order to show that the weight of gold chains was only about 11 grams.

23.The learned Assistant Public Prosecutor argued that identification of A1 and A2 in the open court by the PWs.1 and 2 who are victims is suffice to establish that A1 and A2 committed the alleged offence. Though it is argued as such, it is for the prosecution to establish as to what is the nature of solution said to have been used by the accused for melting gold by dipping gold chains in solution. Though PWs.4 and 5, mediators of Confession-cum-Seizure Panchanama were examined, their evidence is of no avail as they deposed that they identified the accused to be the offenders on being stated so as such by the police. There is no admissible evidence adduced by the prosecution in order to establish that the raw gold which was said to be seized from the possession of accused is the gold formed by melting chains of PWs.1 and 2. There is no cogent evidence adduced by the prosecution to prove the manner in which the accused melted the gold chains and formed the gold extracted into the raw gold.

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There is also no evidence adduced by the prosecution to prove the charges levelled against A1 to A3. In order to constitute the offence under Section 420 IPC, the prosecution has to establish that A1 and A2 cheated and induced PWs.1 and 2 to deliver gold pusthelathadu/chains and extracted gold from those chains. Except oral version of PWs.1 and 2 that A1 and A2 melted gold chains of PWs.1 and 2 by dipping gold chains in a solution and extracted gold, there is no cogent evidence adduced by the prosecution to prove the same. There is also no evidence adduced by prosecution to prove that A3 assisted A1 and A2. Hence, on a careful consideration of evidence on record and in view of foregoing reasons, this court holds that the prosecution failed to establish the guilt of A1 to A3 for the offences under Sections 420 and 379 of IPC.

Accordingly, the point is answered.

24.In the result, A1 to A3 are found not guilty for offences under Sections 420 and 379 of IPC. Hence, A1 to A3 are acquitted under section 248(1) of Criminal

Procedure Code. The bail bonds of A1 to A3 shall stand canceled. A1 to A3 shall execute fresh bonds under section 437-A Cr.PC. The unmarked case property i.e., gold returned to PW.1 and PW.2 shall be made absolute after lapse of appeal time or appeal is over. The unmarked case property i.e., one hand bag containing plastic acid bottles, one Kerosene bottle, one jug and one bowl shall be destroyed after lapse of 15 of 16 XVII ACMM,

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appeal time or appeal is over. The unmarked property ie., unclaimed gold shall be confiscated to the State after lapse of appeal time or appeal is over.

Dictated to the Stenographer, transcribed and typed by her, corrected and pronounced by me in the

open court, on this the 26 th day of April, 2024.

// Sd/- // XVII Addl. Chief Metropolitan Magistrate Hyderabad :APPENDIX OF EVIDENCE: : WITNESSES EXAMINED:

FOR PROSECUTION: FOR DEFENCE:

PW.1:R.ArunaNone PW.2:T.Manasa PW.3:D.Shekar PW.4:V.Sadanand PW.5:A.Brahmam PW.6:L.Samya PW.7:R.Bal Raju

EXHIBITS MARKED

FOR PROSECUTION:FOR DEFENCE:

Ex.P1: Report - Nil - Ex.P2: Scene Observation Panchanama Ex.P3: Rough Sketch Ex.P4: Signature of PW.4 on Confession-cum-Seizure Panchanama Ex.P5: Signature of PW.5 on Confession-cum-Seizure Panchanama Ex.P6: First Information Report Ex.P7: Relevant portion of Confession-cum-Seizure Panchanama of A1 Ex.P8: Relevant portion of Confession-cum-Seizure Panchanama of A2 Ex.P9: Relevant portion of Confession-cum-Seizure Panchanama of A3 Ex.P10: Form No.60 Ex.P11: Proceedings of Test Identification Parade, dated 27-01-2018 16 of 16 XVII ACMM,

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MATERIAL OBJECTS MARKED

-Nil- //Sd/- //

XVII ADDL. CHIEF METROPOLITAN MAGISTRATE

HYDERABAD

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IN THE COURT OF THE XVII ADDL. CHIEF METROPOLITAN

MAGISTRATE HYDERABAD

PRESENT:P.Sai Sudha, XVII Addl. Chief Metropolitan Magistrate, Hyderabad.

THURSDAY, DATED THIS THE 25 th DAY OF APRIL, 2024

CC.No.998 of 2016

Between:- The State of Telangana., Through Sub-Inspector of Police,

P.S.Musheerabad....Complainant.

AND

A1-Valasani Suresh, S/o V.Mallaiah, Age 30 years, Occ:Private Job, R/o H.No.102-151, First Floor, HMT Apartments, Road No.4, Bhavani colony, Nacharam, RR District, N/o Motlapally(V), Mogulapally(M), Warangal District.

A2-Sakarman Madhukar, S/o S.Agaiah, Age 25 years, Occ: Private Job, R/o H.No.4-20, Srinivas Colony, Near Post Office, Sarror Nagar, RR District, N/o Motlapally(V), Mogulapally(M),

Warangal District....Accused/A1 and A2

This case is coming before me on 22-04-2024 for final hearing in the presence of Learned Asst. Public Prosecutor for the State and Sri.B.Sridhar Goud, Counsel for A1 and A2 and after perusing the entire case record and after having stood over the matter for consideration, this court made the following:

::JUDGMENT::

1.The Sub-Inspector of police, PS Musheerabad, Hyderabad filed charge sheet against the accused/A1 and A2 in Cr.Nos.176/2016, 177/2016 and 180/2016 for 2 of 14 XVII ACMM,

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offences under Sections 420, 465, 471 and 506 r/w 34 of Indian Penal Code (for short ‘IPC’).

2.The case of the prosecution, in brief, is as follows:-

(a).A1 and A2 induced the victim/K.Saramma that they will provide her employment in Railway Nilayam. On 20-05-2016, A1 took Saramma to Railway

Nilayam and introduced Madhukar/A2, then A2 told her that he is providing Attender

Job to her in Railway Nilayam and asked her to give Rs. 50,000/-, for which she agreed. On 24-05-2016, A1 and A2 went to the house of Saramma and gave her

Railway Appointment letter and ID card and received Rs.50,000/- from her in the presence of her mother and her neighbour Ramesh. After one week, when she went to

Railway Nilayam by taking her Appointment letter, on enquiry she came to know that the Appointment letter issued to her is fake letter and when she enquired about A2, she came to know that there is no person working in the name of Madhukar at

Railway Nilayam. After trying to contact A1 over the phone, but he did not answer the call. On 20-06-2016 she went to the house of A1 and there she asked A1 and A2 about the cheating her and requested them to return the money. But A1 and A2 refused to return the money and threatened her with dire consequences. Hence, she lodged a report at Musheerabad Police Station to take action. On its basis, the police registered the case in Cr.No.176/2016 for offences under Sections 420, 465, 471 and 506 r/w 34 IPC and issued First Information Report.

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2(b). On 18-05-2016, Suresh/A1 went to the house of the victim Sashikala situated at

Bapuji Nagar, Musheerabad, Hyderabad and informed her husband Ramesh that there is a Government land at Cherlapally and his friend Madhukar/A2 is intending to sell the property admeasuring 200 Sq.Yards for Rs.25,000/-. On 21-05-2016 Sashikala and her husband went to Cherlapally along with Suresh/A1, there Suresh/A1 introduced Madhukar/A2 stating that one Vishal Sharma is working as Chief

Engineer at GHMC is intending to sell the plot at a low rate. Believing the words of

A1 and A2, on 15-06-2016, Sashikala gave an amount of Rs.25,000/- to A1 and A2 at her house towards purchase of the plot shown by them. She was told by A1 and A2 that plot was registered in her name. After some days when she went to said land for making enquiries, the local persons told her that said land is Government land and the plot was not sold by anyone. Then, Sashikala went to the office of Sub-Registrar,

Keesara and showed the Sale Deed executed in her favour and then she was informed that the Sale Deed shown by her is a fake document and there is no office of Sub-

Registrar at ECIL area. Immediately, Sashikala called A1 and A2, but they did not answer her call. Later on one day, when her husband saw A1 and A2 at Ramnagar X roads and questioned them for cheating, A1 and A2 threatened her husband to see his end. Then, Sashikala lodged a report with the police to take action against A1 and A2.

On its basis, the police registered the case in Cr.No.177/2016 for offences under

Sections 420, 465, 471 and 506 r/w 34 IPC and issued First Information Report.

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2(c). On 22-05-2016, when Mogalaiah went to the house of his sister Sashikala and brother-in-law Ramesh situated at Bapuji Nagar, his sister told him that they got purchased land to an extent of 200 Sq.Yards at Cherlapally through Suresh and

Madhukar/A1 and A2. When, Mogalaiah/victim stated that he also intends to purchase the land, his sister Sashikala and brother-in-law Ramesh called A1 and A2 to their house and took Mogalaiah to Cherlapally and showed the land. On 16-06- 2016, Mogalaiah gave an amount of Rs.25,000/- to A1 and A2 in the presence of his sister Sashikala and brother-in-law Ramesh towards purchase of the plots and A1 and

A2 gave Sale Deed to Mogalaiah stating that the plot was registered in his name.

After some days, when Sashikala went to said land for making enquiries, the local persons told her that said land is Government land and the plot was not sold by anyone. Then, Sashikala went to the office of Sub-Registrar, Keesara and showed the

Sale Deed executed in her favour and then she was informed that the Sale Deed shown by her is a fake document and there is no office of Sub-Registrar at ECIL area.

Immediately, Sashikala called A1 and A2, but they did not answer her call. Later on one day when Mogalaiah saw A1 and A2 at Ramnagar X roads and questioned them for cheating, A1 and A2 threatened him to see his end. Then, Mogalaiah lodged a report with the police to take action against A1 and A2. On its basis, the police registered the case in Cr.No.180/2016 for offences under Sections 420, 465, 471 and 506 r/w 34 IPC and issued First Information Report.

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2(d). After registering the cases in Cr.Nos.176/2016, 177/2016 and 180/2016, the

Investigation Officer took up investigation in the above three registered cases. On 27- 06-2016, the Investigation Officer received information about the presence of A1 and

A2 near Sadguru Tent House, Parsigutta, Hyderabad and then he along with his staff rushed there and apprehended A1 and A2. On enquiry, A1 and A2 disclosed their identity particulars and admitted in the presence of mediators that they have prepared fake Appointment Letters and fake Sale Deeds and deceived public. The police seized rubber stamps, Appointment Letters, Sale Deeds from the possession of A1 and A2.

After completion of investigation, the police filed Charge Sheet against A1 and A2 for offences under Sections 420, 465, 471 and 506 r/w 34 IPC.

3.This court took cognizance of offences under Sections 420, 465, 471 and 506 r/w 34 of IPC against A1 and A2 and issued summonses to A1 and A2.

4.On appearance of A1 and A2 before this court, copies of documents were furnished to them as required under section 207 of Code of Criminal Procedure (for short ‘Cr.P.C’).

5.A1 and A2 were examined under section 239 Cr.P.C and after hearing both sides, charges were framed for offences under Sections 420, 465, 471 and 506 r/w 34 6 of 14 XVII ACMM,

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of IPC against A1 and A2, read over and explained to them in their vernacular language. They pleaded not guilty and claimed to be tried.

6.In order to prove its case, the prosecution has examined PWs.1 to 9, through whom Exs.P1 to P31 and MOs.1 to 3 are marked.

7.After closure of prosecution side evidence, A1 and A2 are examined under section 313 of Cr.P.C by explaining to them incriminating material appearing against them in prosecution evidence. They denied it totally and reported no defense evidence.

8.Heard both sides. Perused the entire record. Memorandum of written arguments filed by the counsel for A1 and A2. Perused the written arguments.

9.Now the point that arises for determination is:

Whether prosecution established the guilt of A1 and A2 for offences under

Sections 420, 465, 471 and 506 r/w 34 of IPC beyond all reasonable doubt?

10.It is the case of the prosecution that A1 and A2 induced the victim Saramma that they will provide her job in Railway Nilayam, received cash of Rs.50,000/- from her and issued fake Appointment Letter and Identity Card to her. It is further case of the prosecution that A1 and A2 deceived Sashikala and her brother Mogalaiah by receiving amounts from them and giving fabricated Sale Deeds to them.

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11.POINT:

In order to proveits case, the prosecution has examined the victim Saramma as

PW.3. The evidence of PW.3 is reiteration of contents of Ex.P5 Report lodged by her.

Her evidence shows that she gave cash of Rs.50,000/- to A1 and A2 on 24-05-2016 for providing employment and then Ex.P6 Identity Card and Ex.P7 Appointment

Letter are issued in her name. Her evidence further shows that when she went to

Railway Nilayam carrying Ex.P6 Identity Card and Ex.P7 Appointment Letter, the police stopped her stating that there is no job at Railway Nilayam and she was deceived. She further stated that then she lodged Ex.P5 Report, dated 24-06-2016 with the police. Her cross-examination went in formal lines and when PW.3 was again recalled for cross-examination, she stated that the matter was settled with the accused and she is not interested to contest the case.

12.In order to prove the case, the prosecution has examined PW.4/Seethamma, mother of PW.3. The evidence of PW.4 is to the effect that A1 promised to provide a job to her son and she gave an amount of Rs.25,000/- to A1. She also stated that A1 told her that he will get a plot in her name and asked her to give Rs.10,000/- for that purpose and later the whereabouts of A1 are not known for some time. She also stated that after A1 was traced out, they took him to Musheerabad Police Station and handed over him to the police. Even in her cross-examination, she denied the suggestion that 8 of 14 XVII ACMM,

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she did not give amount to A1. But PW.4 stated that the matter is settled with the accused and she is not interested to contest the case.

13.The prosecution has examined PW.6/V.Rama Devi, who is cited as another victim. But PW.6 turned hostile and she did not support the case of prosecution in material particulars. Ex.P9 Section 161 Cr.P.C statement of PW.6 was exhibited.

14.The evidence of PW.8/B.Bhaskar, Investigation Officer shows that basing on the report lodged by PW.3/Saramma, he registered a case in Cr.No.176/2016 and issued Ex.P11 First Information Report. He stated that after apprehension of A1 and

A2, he seized one polythene cover containing fake rubber stamps, fake Appointment

Letters and land registration documents. He also stated that on 29-07-2016 he addressed a letter to the officials of Railway Department under Ex.P14 enquiring whether the Appointment Letters were issued by them or not, for which Ex.P15

Letter, dated 04-08-2016 said to be addressed by the Chairman, Railway Recruitment

Board, Secunderabad stating that those Appointment Letters were not issued by them.

15.Admittedly, PW.3 to whom Ex.P6 Identity Card and Ex.P7 Appointment Letter were said to be issued by A1 and A2, stated that the matter was settled with the accused. Though, Ex.P15 Letter, dated 04-08-2016 said to be addressed by the

Chairman, Railway Recruitment Board, Secunderabad was exhibited, but the contents 9 of 14 XVII ACMM,

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of said letter cannot be considered as the author of said letter was not examined by the prosecution. Moreover, PW.7/C.Vishwanath, one of the mediators to Confession- cum-Seizure Panchanama also turned hostile and did not support the case of prosecution on the aspect of seizure of Rubber Stamps, Appointment Letters and Sale

Deeds from the possession of A1 and A2. Ex.P10 Signature of PW.7 on Confession- cum-Seizure Panchanama was exhibited, which is of no avail.

16.On a careful scrutiny of above evidence adduced by the prosecution, it is evident that PW.3 who lodged Ex.P5 Report with the Police against A1 and A2 stated that the matter was settled with the accused. Though, PW.4/Seethamma, mother of

PW.3 stated that she gave amount of Rs.25,000/- to A1 in order to provide job to her son and a sum of Rs.10,000/- for registering a plot in her name, she did not lodge any report with the police against A1. Moreover, PW.4 did not state before the police in her statement that she gave Rs.25,000/- to A1 to provide job to her son. Even PW.4 also deposed that the matter was settled with the accused and she is not interested to contest the case. Though, Ex.P6 Identity Card and Ex.P7 Appointment Letter and

Ex.P14 and Ex.P15 Letters are exhibited along with MO.1 Stamps, they are in no way helpful to prove the charges levelled against A1 and A2 for offences under Sections 420, 465 and 471 r/w 34 IPC for the reason that the Chairman of Railway

Recruitment Board was not examined by the prosecution. Moreover, seizure of

Rubber Stamps and Appointment Letters is also not proved. PW.3 did not depose in 10 of 14 XVII ACMM,

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her evidence that A1 and A2 threatened her with dire consequences. Hence, the charge for the offence under Section 506 IPC also stands not proved.

17.With regard to the charges levelled against A1 and A2 basing on the allegations made by PW.1/Sashikala and PW.2/Mogalaiah that A1 and A2 have created fake documents as if the Sale Deeds were registered at ECIL, Kapra, the prosecution has examined PW.1/Sashikala, her husband Ramesh as PW.5 and her brother

PW.2/Mogalaiah. The evidence of PW.1 shows that A1 approached them in the month of June, 2016 and took them to Chengicherla village and showed one open plot admeasuring 200 Sq.Yards and told them that he is intending to sell them the plot for

Rs.25,000/-. She further stated that on 21-06-2016, she gave amount of Rs.25,000/- to

A1 and A2 at her house and then the accused gave property documents. She further stated that they made phone calls to the accused, but the accused did not respond and on suspicion they went to the plot and caused enquiries. She further stated that they came to know that the plot is Government land which cannot be sold, they called the accused over phone, but the accused did not respond. She further stated that when her husband questioned the accused, they threatened her husband with dire consequences and then they went to the Police Station and lodged the complaint. Ex.P1 Complaint,

Ex.P2 Sale Deed, dated 10-05-2016 are exhibited.

18.In her cross-examination, PW.1 stated that prior to the date of purchase, she did not enquire about the plot with neighbors or at Registration Office. She admitted that 11 of 14 XVII ACMM,

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Ex.P2 Sale Deed does not contain the signature of any witnesses. Thereafter, PW.1 was recalled by the learned counsel for the accused for further cross-examination.

During further cross-examination, PW.1 stated that no document was executed in her favour and she cannot identify the persons who deceived them.

19.PW.5/P.Ramesh, husband of PW.1 turned hostile and did not support the case of prosecution in material particulars. Ex.P8 Section 161 Cr.P.C Statement of PW.5 was exhibited.

20.So also PW.2/Mogilaiah, brother of PW.1, deposed that in the month of May- 2016, A1 and A2 showed them 200 Sq.Yds of land situated at Cherlapally Village and on 16-06-2016, A1 and A2 came to the house of PW.1 and gave bond papers. He further stated that he paid an amount of Rs.25,000/- to A1 in the presence of PW.1 and PW.5. He also stated that on 19-06-2016, he went to Cherlapally and on enquiry at Sub-Registrar Office, ECIL, he came to know that the documents handed over to him by A1 and A2 are fake. He also stated that when he questioned A1 and A2 for handing over those documents, A1 and A2 threatened him with dire consequences and then he lodged Ex.P3 Report with the police. Ex.P4 Original Sale Deed, dated 03-06- 2016 was also exhibited. Even after cross-examination of PW.2, he was recalled for further cross-examination and at that time PW.2 deposed that he cannot identify the persons who deceived him and also no document was executed in his favour.

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21.The prosecution has examined PW.9/S.Laxma Reddy, Sub-Registrar. His evidence shows that ECIL is the place which falls within the limits of Sub-Registrar

Office, Kapra and there is no separate Registration Office at ECIL. He also stated that the seals affixed on Ex.P2 and Ex.P4 Sale Deeds does not belongs to the office of

Sub-Registrar, Kapra.

22.As seen from the above evidence adduced by the prosecution, the evidence of

PW.1, PW.2 and PW.4 shows that Ex.P2 and Ex.P4 Sale Deeds are executed in their favour and on enquiry with the local people, they came to know that the land is

Government land and not offered for sale. Admittedly, the prosecution did not file any document to show that the land covered by Ex.P2 and Ex.P4 Sale Deeds is

Government land. Though, the prosecution has examined PW.9/Sub-Registrar, his evidence is not of much avail. Moreover PW.1, PW.2, who are victims deposed that they cannot identify the persons who deceived them. More in particular they did not identify A1 and A2 to be the persons who cheated them by inducing to give money towards alleged sale transaction. Hence, on a careful consideration of above facts and circumstances, this court holds that the prosecution failed to establish the guilt of A1 and A2 for offences under Sections 420, 465, 471 and 506 r/w 34 IPC.

23.On totality of entire evidence on record and in view of foregoing reasons, this court holds that the prosecution failed to establish the charges levelled against the 13 of 14 XVII ACMM,

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accused for the offences under Sections 420, 465, 471 and 506 r/w 34 of IPC beyond all reasonable doubt. Accordingly, the point is answered.

24.In the result, A1 and A2 are found not guilty for offences under Sections 420, 465, 471 and 506 r/w 34 of IPC. Hence, A1 and A2 are acquitted under Section 248(1) of Criminal Procedure Code. The bail bonds of A1 and A2 shall stand canceled. A1 and A2 shall execute fresh bonds under section 437-A Cr.PC. MO.1 Ten

Rubber Stamps shall be destroyed after lapse of appeal time or appeal is over. MOs.2 and 3 Cell Phones shall be confiscated to the State after lapse of appeal time or appeal is over.

Dictated to the Stenographer, transcribed and typed by her, corrected and pronounced by me in the

open court, on this the 25 th day of April, 2024. // Sd/- // XVII Addl. Chief Metropolitan Magistrate Hyderabad

APPENDIX OF EVIDENCE

:WITNESSES EXAMINED:

FOR PROSECUTION: FOR DEFENCE: PW1: P.SashikalaNone PW2: K.Mogalaiah PW3: K.Saramma PW4: K.Seethamma PW5: P.Ramesh PW6: V.Rama Devi PW7: C.Vishwanath PW8: B.Bhaskar PW9: S.Laxmareddy

EXHIBITS MARKED

FOR PROSECUTION:FOR DEFENCE: Ex.P1: Complaint lodged by PW.1 - Nil- Ex.P2: Sale Deed, dated: 10.05.2016 14 of 14 XVII ACMM,

Hyderabad

CC.No.998/2016

Ex.P3: Report lodged by PW.2 Ex.P4: Original Sale Deed, dated: 03.06.2016 Ex.P5: Report lodged by PW.3 Ex.P6: Identity Card Ex.P7: Appointment Letter Ex.P8: Section 161 Cr.P.C. Statement of PW5 Ex.P9: Section 161 Cr.P.C statement of PW.6 Ex.P10: Signature of PW7 on Confession-cum-seizure panchanama Ex.P11: First Information Report in Cr.No.176/2016 Ex.P12: First Information Report in Cr.No.177/2016 Ex.P13: First Information Report in Cr.No.180/2016 Ex.P14: Letter, dated: 29.07.2016 Ex.P15: Letter, dated: 04.08.2016 Ex.P16: Letter, dated: 12.07.2016 Ex.P17: Letter, dated: 05.07.2016 Ex.P18: Letter, dated: 12.07.2016 Ex.P19: Appointment Order in the name of Dodla Ajay Ex.P20: Appointment Letter in the name of N. Gangadhar Ex.P21: Appointment Letter in the name of S. Madhu Ex.P22: Appointment Letter in the name of R. Ashok Ex.P23: Non Judicial Stamp Papers i.e., Sale Deeds in the name of Safia Begum Ex.P24: Non Judicial Stamp Papers i.e., Sale Deeds in the name of Safia Begum Ex.P25: One Non Judicial Stamp Paper Sale Deed in the name of Mohammed Rafiya Ex.P26: One Non Judicial Stamp Paper Sale Deed in the name of B. Krishna Ex.P27: One Non Judicial Stamp Paper Sale Deed in the name of Mohammed Mashu Bee Ex.P28: One Non Judicial Stamp Paper Sale Deed in the name of Farzana Begum Ex.P29: One Rental Agreement between Mohan Reddy and Agaiah Ex.P30: One Appointment Letter in the name of Narendra purported to be issued by authorities of Tech Mahindra Ex.P31: One Appointment Letter in the name of S. Sanjeeva

MATERIAL OBJECTS MARKED

FOR PROSECUTION:FOR DEFENCE: MO1: Ten Stamps- Nil - MO2: Samsung Dual Cell Phone MO3: Vellcom Cell Phone // Sd/- // XVII Addl. Chief Metropolitan Magistrate Hyderabad 15 of 14 XVII ACMM,

Hyderabad

CC.No.998/2016