Delhi District Court The First Step For Initiating ... vs Bhor Industries Ltd. And Anr. (2005) 10 ... on 6 June, 2018 IN THE COURT OF SH. ARUN BHARDWAJ, SPECIAL JUDGE (PC ACT), CBI05, PATIALA HOUSE COURTS, NEW DELHI CC No.05/16 (Old No. 13/10 & 04/12) RC No.BD.1/2009/E/0004/CBI/BS&FC/ND CNR No.DLND010000032010 Central Bureau of Investigation versus 1. Sh. Ashwani J. Verma (Borrower) S/o Late Sh. T. R. Verma, R/o D11, Aishwaryam Apartments, Plot No.17, SectorIV, Dwarka, New Delhi110078. ... Accused No.1 2. Sh. Mohan Lal Arora @ M. L. Arora (ExAGM, PNB, South Ex.) (Public Servant) S/o Late Sh. Khanda Ram, R/o H. No.5N/35A, New Industrial Town (NIT), Faridabad (Haryana) ... Accused No.2 3. Sh. Coduru Nagbhushan Rao @ C. N. Rao @ Konathala Mahalaxmi @ Mamu (Proclaimed Offender vide orders dated 13.10.2010) (Guarantor) R/o Flat No.F3, MIGII, Godavari Block (Block19), Vishweshwariya Nagar (near Flyover), Gajuwaka, Vishakhapatnam (AP) ... Accused No.3 4. Sh. P. V. Krishnaji @ Sh. P. V. Krishnajee (Govt. Approved Valuer) S/o Sh. Subba Rao R/o Second Floor, Door No.3992/6, Murlinagar, Vishakhapatnam7 (AP) ... Accused No.4 CBI v Sh. Ashwani J. Verma & Ors. Page No. 1/174 CC No.05/16 DL­0375 5. M/s. Nanak Steels Pvt. Ltd. (M/s. NSPL) (Borrower) (represented through A1) O/o 202, 2nd Floor, Sagar Deep, Plot No.11, LSC, Saini Enclave, Vikas Marg Extension, Delhi ... Accused No.5 6. Sh. Vinay Tyagi (Private Person) S/o Sh. Balraj Singh Tyagi R/o H. No.D312, Govind Puram, Ghaziabad (UP) Also at: Flat No.404, Sitaram Enclave, Street No.10, Himayat Nagar, Hyderabad29 (AP) ... Accused No.6 Date of Institution : 20.05.2010 Date of Arguments : 31.05.2018 Date of Judgment : 06.06.2018 JUDGMENT 1. The first step for initiating prosecution in this case was taken on 07.01.2009 when Sh. Shriman Narayan Sharma, the Chief Manager of Punjab National Bank (PNB), Branch Office: SouthExtension, New Delhi, gave a complaint to SP, CBI, Banking Security & Fraud Cell, New Delhi. 2. The gist of the said complaint is that: i. M/s. Nanak Steels Private Limited (hereinafter referred as M/s NSPL) through its director Sh. Ashwani J. Verma was sanctioned a CC (Hypothecation) limit of Rs.280.00 lacs, Term Loan of Rs.500.00 lacs, Inland Letter of Credit (ILC) limit of Rs.100.00 lacs and Bank Guarantee of Rs.20.00 lacs by the then Dy. General Manager (Sh. Satbir Singh Dabas), South Delhi Region, New Delhi on 26.09.2005. CBI v Sh. Ashwani J. Verma & Ors. Page No. 2/174 CC No.05/16 DL­0375 ii. The limits were secured by charge on Block Assets of the Company and primary security of hypothecation of raw material (billets/ingots, scrap, furnace oil, work in process), finished goods of TMT bars, machineries etc. and mortgage of factory land and building at A61/4, UPSIDC Industrial Area, Sikandrabad, Bulandshahar, UP. iii. Further, the limits were collaterally secured by way of equitable mortgage of three flats at THA residential colony, Ramprasth, Ghaziabad in the name of Sh. Ashwani Verma and Smt. Jyoti Verma, the Directors of the Company. iv. The personal guarantee of the Directors was also obtained in the account. v. Additionally, collateral security by way of creation of equitable mortgage of Plot No.51, situated at Raja Palem, Village Anakapalle, District Vishakhapatnam (AP) in the name of one Sh. Konathala Mahalaxmi S/o Sh. Konathala Rajayya, R/o 27248, 100 Feet Road, Gajuwaka, Vishakhapatnam (AP) was also taken. vi. The Branch officials released a sum of Rs.1,12,58,302/ upto 31.10.2005 in the Term Loan account even before the spot verification of the land contrary to the fact that the sanction stipulated that the property at Vishakhapatnam is to be spot verified by the Bank officials before release of the facilities and the Incumbent Sh. M. L. Arora had verified the spot only on 05.11.2005. vii. The Company during implementation of the project itself changed its project by adding certain machinery and by changing the technology of project and unit suffered time over run