THE HON’BLE SRI JUSTICE B. CHANDRA KUMAR CRIMINAL PETITION NOs.10404 AND 10485 OF 2009 ORDER: The Criminal petition No.10404 of 2009 is filed by the petitioners/A-3 and A-4 and the Criminal Petition No.10485 of 2009 is filed by the petitioner/A-1 under Section 438 of the Criminal Procedure Code seeking anticipatory bail in the event of their arrest in Crime No.150 of 2009 of Kalla Police Station, West Godavari District, registered for the offences punishable under Sections 420 and 406 read with Section 34 of the Indian Penal Code (Hereinafter referred to as ‘I.P.C.’). Heard the learned counsel for the petitioners and the learned Additional Public Prosecutor for the Respondent/State. The Chief Manager and Authorized Officer of Canara Bank, Overseas Branch, Visakhapatnam lodged a complaint to the police of Kalla Mandal, West Godavari District alleging that the bank has financed M/s. M.S.C. Marine Exporters, represented by its partners i.e. A-1/M. Seshaiah Chowdary, A-2/N. Srinivasa Kumar, A-3/Smt. M. Sreenu Kumari and A-4/Smt. N. Anuradha for their working capital of prawns export by way of PC/PCFC to a tune of Rs.8,40,00,000/- (Rupees eight crores forty lakhs only) on revolving basis. M/s. M.S.C. Marine Exporters had hypothecated the stock on trade (shrimp) available in the cold storage situated at Seesali, Kalla Mandal. It is also alleged that in spite of making repeated requests to the partners to arrange for gradation to enable the bank to arrive at the value of the stock but the petitioners herein and A-2 were avoiding the same and notice was issued on 19-02-2009 under Section 13 (2) of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security interest Act, (For brevity ‘SARFAESI Act’) 2002, to repay the amount and also not to meddle with the stocks kept in their possession. When the de-facto complainant along with one Sri C. Srinivas, Officer, visited the factory premises on 06-05-2009 to take possession of the stocks under the SARFAESI Act, no stocks were available there. On enquiry it is learnt that the stocks were sold. Thus, the entire stock hypothecated to the Bank worth of Rs.1120.79 lakhs is sold by the Managing Partners of M/s. M.S.C. Marine Exporters to some third parties without informing the said bank. Basing on the said complaint, the police registered a case in crime No. 150 of 2009 under Sections 420 and 406 read with Section 34 of I.P.C. on 23-11-2009. The learned counsel for the petitioners submits that there are other immovable properties hypothecated to the Bank and those properties can be sold for realization of the due amounts. It is also submitted that, the husband of the fourth petitioner/A-4 died on 22-09-2009 and that she is in grief and mental agony, and if she is arrested, she may become mentally depressed. It is also submitted that the first petitioner/A-1 has been suffering from lung cancer. The learned Additional Public Prosecutor submits that this is a major scam in which huge amounts have been defrauded. It is also submitted that the value of the immovable properties hypothecated is meager and Rs.50,10,000/- (Rupees fifty lakhs and ten thousand only) was realized by selling 3.19 acres of land which is a major property hypothecated. It is also submitted that the investigation is not yet completed and it is not desirable to grant anticipatory bail to the petitioners/A-1, A-3 and A-4. The nature of offence, its gravity and magnitude, the amount involved have to be taken into consideration while considering bail applications. Merely, because some properties have been hypothecated, it cannot be said that the petitioners had no intention to cheat the de-facto complainant. The very allegation of selling of the stocks worth of Rs.1120.79 lakhs secretly prima-facie show that, it is a case of pre-planned cheating. Having regard to the nature of allegations, the magnitude of the offence and in view of the submission of the learned Additional Public prosecutor that the investigation is not yet completed, I am of the view that the petitioners/A-1, A-3 and A-4 are not entitled to anticipatory bail. Hence, the Criminal Petitions are dismissed. _____________________ B. CHANDRA KUMAR, J Date: 18-12-2009. DSH