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2020 (12) TMI 1355 - TELANGANA HIGH COURTMoney Laundering - proceeds of crime - staff members accountable for procedural lapses - genuinty of purchase transactions under LC and corresponding sales transactions performed by the company - diversion of funds - abnormal delay in lodging the complaints by both the banks - alleged forensic audit alleged to have been conducted by M/s. S.P. Rungta and Associates is behind back of the petitioners and they have not given any opportunity to the petitioners - loan transaction can be converted into a criminal prosecution or not - Utilization of loan amount for a purpose other than for which it is sanctioned. HELD THAT:- In all the OTS, it has been found that all the banks were put to a total loss to a tune of Rs.182.99 Crores approximately. The Enforcement Directorate has initiated investigation/enquiry under the provisions of PMLA since the offences alleged against the petitioners are scheduled offences under the said Act. There are serious allegations against the petitioners. Bank loan frauds are a scourge on our economy and therefore it is the duty of the Enforcement Directorate to investigate all bank frauds in which there is loss of more than Rs.25.00 Crores to the banks. The present case is not falling in any of the exceptions mentioned by the Apex Court in State of Haryana v. Bhajan Lal [1990 (11) TMI 386 - SUPREME COURT]. The Apex Court in Parbatbhai Aahir alias Parbatbhai Bhimsinhbhai Karmur [2017 (10) TMI 1194 - SUPREME COURT] categorically held that economic offences involving the financial and economic well-being of the State have implications which lie beyond the domain of mere dispute between private disputants. The High Court would be justified in declining to quash where the offender is involved in an activity akin to a financial or economic fraud or misdemeanor. The consequences of the act complained of upon the financial or economic system will weigh in the balance. Similar principle was laid down by the Apex Court in GOPAKUMAR B. NAIR VERSUS C.B.I. AND ORS. [2014 (4) TMI 1291 - SUPREME COURT]. In the said judgment, it was further held that the offences are certainly more serious. They are not private in nature. The charge of conspiracy is to commit offence under the Prevention of Corruption Act. The accused has also been charged for commission of substantive offence under Section - 471 of IPC. Though the amounts due have been paid, the same is under private settlement between the parties. There is no acknowledgement on the part of the Bank of the exoneration of the criminal liability of the accused unlike the terms of compromise decree. There are serious allegations against the petitioners. M/s. S.P. Rungta and Associates has mentioned in its report about the lapses of the petitioners. The said lapses were specifically mentioned in the complaints dated 30.06.2018 and 29.02.2020. The account of petitioner No.4 in Central Bank of India was declared as fraud on 30.11.2016 and at paragraph No.14 of the complaint dated 30.06.2018, the Central Bank of India specifically mentioned the details of the same. There are serious allegations that the funds of petitioner No.4 were diverted by petitioner Nos.1 to 3 for their personal needs. Petitioner No.4 has not filed financial statements for the years 2013-14 and 2014-15. Petitioner Nos.1 to 3, being the Managing Director and Directors of petitioner No.4 respectively have not co-operated with the auditors in carrying the financial audit and also have not made available the books and records to assess the inventory position - It is a loan fraud which is a serious fraud and there are serious allegations against the petitioners. The Enforcement Directorate has initiated investigation under the provisions of the PMLA considering the fact that the offences alleged against the petitioners in both the FIRs registered by Central Bureau of Investigation are scheduled offences. The modus operandi adopted by the petitioners in availing the loans and getting the accounts NPA/fraud and availing OTS by paying meager amounts is specifically mentioned in the complaints dated 30.06.2018 and 29.02.2020. There are specific allegations against the petitioners herein. The modus operandi adopted by the petitioners is also specifically mentioned in the complaints - Petition dismissed.
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