On 1st May 2020 Central Bureau of Investigation (CBI) registered a case under sections 120- B r/w 420, 468, 471 and 406 of the IPC and Section 13(2) r/w 13(1)(d) of the Prevention of Corruption Act, 1988, against three directors of a private company Ram Dev International and others linked with the matter for a fraud of Rs. 173.11 crore and cheating the State Bank of India (Karnal) by way of unauthorised removal of plant and machinery from the factory premises which were hypothecated to the bank. It is also alleged that the directors showed disbursement of loan from the bank as capital infusion via circular movement of fund transfers.
Apart from this other banks namely Corporation Bank, Central Bank of India, IDBI, and Union Bank of India also alleged a fraud of Rs 411 crore.
It has also been alleged that some public servants and members of the bank were involved in the commission of the offence and trading with offices in Saudi Arabia and Dubai.
The agency will start summoning the accused and in case they do not join the investigation legal action can be taken against them under code of criminal procedure and issue Non- Bailable warrants. In case the accused still not appear the court under section 82 Crpc can declare the person as proclaimed offender by publishing a notice in the newspaper. The court can also direct attachment of the property of such persons (both movable and immovable).
Legal provisions attracted in this case:
Section 420 IPC: Cheating and dishonest delivery of property, punishable with imprisonment up to 7 years and fine.
Section 468 IPC: Forgery for the Purpose of cheating, punishable with imprisonment up to 7 years and fine.
Section 471 IPC: Using as genuine a forged document or electronic record which he knows or has reason to believe to be a forged , shall be punished in the same manner as if he had forged it.
Section 406 IPC: Commission of criminal breach of trust shall be punished with imprisonment which may extend to three years, or with fine, or with both.
Section 13(1)(d) r/w 13(2) of prevention of corruption act:
Any public servant who commits criminal misconduct shall be punishable with imprisonment for a term which shall be not less than one year but which may extend to seven years and shall also be liable to fine.
If he by corrupt or illegal means, obtains for himself or for any other person any valuable thing or pecuniary advantage; abuses his position as public servant or obtains for any person any valuable thing or pecuniary advantage without any public interest.
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