Bangalore District Court Cbi Bs And Fc Blr vs A1 Anil Kumar M. Sanghvi on 19 March, 2024 KABC010000422016 IN THE COURT OF THE XXXII ADDL. CITY CIVIL & SESSIONS JUDGE AND SPL. JUDGE FOR CBI CASES AT BENGALURU (CCH34) Dated 19th March, 2024 : PRESENT : Sri.H.A.Mohan, B.A.L., LL.B. XXXII Addl. City Civil & Sessions Judge and Spl. Judge for CBI Cases, Bengaluru Spl.C.C.No.3/2016 COMPLAINANT : Central Bureau of Investigation, BS & FC, Bengaluru (By Public Prosecutor Sri. Balaji Francis) vs ACCUSED NO.1 to 3 : 1. Anil Kumar M.Sanghvi S/o Sanghvi D.Moolchand Managing Director, M/s Nakoda India Refinery Pvt. Ltd., No.78/3, Mahadeshwara Swamy Complex, C.T.Street, Avenue Road, Bengaluru. R/at No.A1402, 4th Floor, Gokulam Apartments, 2 Spl.C.C.3/2016 Kanakapura Road, Doddakalsandra Bengaluru560 061 2. K.S.Acharya S/o Late Srinivasa Acharya Asst. General Manager (Retd.) Canara Bank, Avenue Road Branch, Bengaluru. R/at No.5/12/10, Shanthi Nagar, Padil Post, Mangalore576 007 South Kanara 3. M/s Nakoda India refinery Pvt. Ltd. Represented by Sri.Anil Kumar (Accused No.1) No.78/3, Mahadeshwara Swamy Complex, C.T.Street, Avenue Road, Bengaluru560 002. (A1 & A3 By Sri.Ramesh Chandra, Advocate A2 By Sri.M.N.Krishnamurthy, Advocate) 3 Spl.C.C.3/2016 Date of FIR : 23.03.2015 Date of Charge Sheet : 23.12.2015 Offences charged : U/S 120B r/w 409, 420, 468 & 471 IPC and Section 13(2) r/w 13(1)(c) & (d) of P.C.Act, 1988 Name of the Complainant: CBI, BS & FC, Bengaluru Date of commencement 26.02.2019 of the evidence : Evidence of prosecution 16.10.2023 closed on : Statement of accused 12.01.2024 u/S 313 of Cr.P.C. : Final Verdict : Accused No.1 to 3 are acquitted XXXII A.C.C.&S.J. and Spl. Judge for CBI Cases, B'luru JUDGMENT This case emanates from the charge sheet submitted by CBI, BS & FC, Bengaluru, against the Accused No.1 to 3 for the offence punishable under Section 120B r/w Section 409, 420, 468 and 471 of IPC and Section 13(2) r/w Section 13(1)(c) & (d) of 4 Spl.C.C.3/2016 Prevention of Corruption Act, 1988. 2. The case of the prosecution in brief is that, after registration of RC.3(E)/2015, on 23.03.2015 against Accused No.1 the Managing Director of Accused No.3 Company and Accused No.2, the then Asst. General Manager, Canara Bank, investigation has been conducted, based upon the written complaint dated 24.02.2015 submitted by Sri.K.Sathyanarayanan, Deputy General Manager, Canara Bank, Circle Office, Bengaluru. Investigation revealed that Accused No.1 being Managing Director of Accused No.3 company, in connivance with officials of Canara Bank, had fraudulently availed various credit facilities from Canara Bank, Avenue Road Branch, Bengaluru to the tune of Rs.29.70 crores for undertaking gold/silver bullion 5 Spl.C.C.3/2016 business. Accused No.2 the then AGM of Canara Bank permitted adhoc limits beyond his delegated powers, on regular basis. In earlier two occasions, Accused No.2 failed to get the ratification for his sanction from the competent authorities. On the third occasion, Accused No.1 and 3 failed to clear the adhoc limit sanctioned by Accused No.2. Till October 2012, Accused No.3 Company was maintaining its accounts in standard condition. But, suddenly during the month of November 2012, Accused No.1 removed all the stock of gold/silver etc., which was hypothecated to the Canara Bank without the knowledge of the Bank and thus cheated Canara Bank to the tune of Rs.35.13 crores as on 18.02.2014. It is further contended that Accused No.3 being represented by Accused No.1 engaged in manufacturing of gold coins and trading 6 Spl.C.C.3/2016 in gold and silver bullion. The Company was purchasing gold and silver from M/s MMTC Limited, M/s STC of India Ltd., Bengaluru.