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2023 DIGILAW 433 (KAR)

Madhuraja Rai v. State of Karnataka

2023-03-14

V SRISHANANDA

body2023
JUDGMENT/ORDER V Srishananda, J. - Heard Sri M. Devaraja, learned counsel for the petitioners and Sri V.S. Vinayaka, learned High Court Government Pleader for the respondent-State and perused the records. 2. This petition is filed under Section 438 Cr.PC, with the following prayer: 'WHEREFORE, the petitioner named above humbly pray that, this Hon'ble court be pleased to grant the anticipatory bail by directing the respondent police to release the petitioners forthwith in the event of their arrest in the case in Crime No.140/2022 registered by Basavanagudi police station for the offences punishable under section 109(12-A) of Karnataka Co-operative Societies Act, 1959 and Sections 420, 477(A) of the Indian Penal Code, pending on the file of learned XXXVII ACMM at Bengaluru city, on such terms and conditions deems fit to impose, under the circumstances of the case, in the ends of justice. 3. Brief facts of the prosecution case are as under: Upon the lodging of the complaint by Sri K. Sridhar S/o.B. Kondoji Rao, Basavanagudi Police, Bengaluru District, registered a case in Crime No.140/2022 on 5.9.2022 for the offence punishable under Sections 420 and 477A of IPC read with Section 109(12A) of the Karnataka Co-operative Societies Act, 1959. 4. The gist of the complaint averments reveal that the petitioners have worked as a Statutory auditors between the years 2014-15, 2015-16, 2016-17, 2017-18 and 2018-19 and did not properly audit the books of accounts of Sri Guru Raghavendra Sahakari Niyamita Co-operative Bank Ltd., Bengaluru, resulting in improper entries being made in the books of accounts. After registering the case, the police are investigating the matter. 5. The attempt made by the petitioners to seek an order of grant of anticipatory bail is turned down by the learned LXV Addl. City Civil & Sessions Judge, Bengaluru City, in Crl.Misc. No.557/2023 by order dated 31.01.2023. Subsequently, the petitioners are before this court. 6. Reiterating the grounds urged in the petition, learned counsel for the petitioners vehemently contended that the petitioners have carried out the statutory audit of different years and they have discharged their duties properly and they are innocent of the offences alleged against them and few of the petitioners were also victims of the alleged fraud in the bank and sought for grant of anticipatory bail. 7. Per contra, learned High Court Government Pleader opposes the bail grounds. 8. 7. Per contra, learned High Court Government Pleader opposes the bail grounds. 8. In view of the rival contentions of the parties, perused the materials on record meticulously. 9. Admittedly, in the case on hand, there is a fraud to the tune of Rs.800 crores. Books of accounts maintained by Sri Guru Raghavendra Co-operative Bank is not properly maintained and petitioners being the statutory auditors did not bestow their proper attention to the books of accounts, resulting in filing of a false balance sheet before the Reserve Bank of India. 10. Whether at all, the petitioners are responsible for the said act or not, cannot be gone into by this Court at this point of time. The same needs to be investigated by the investigating agency and appropriate report is to be filed against the petitioners. 11. Taking note of the fact that the accused/petitioners are not available to the investigating agency, directing the petitioners to join the investigation at the earliest, would meet the ends of justice. 12. Even assuming that the case of the prosecution stands proved, the same are not punishable either with death or life imprisonment and therefore, the gravity of the offence is to be reduced to a considerable extent and if the petitioners are directed to join the investigation and to undergo custodial investigation for a limited period would meet the ends of justice. Accordingly, following order is passed: ORDER The Criminal Petition is allowed subject to the following conditions: (i) The accused/petitioners are directed to join the investigation by appearing before the Investigation Officer on 25.03.2023 at 10.00 a.m., (ii) The Investigation Officer is at liberty to take the accused/petitioners to the custody and complete the custodial investigation on the same day before 6.00 p.m., (iii) The accused/petitioners shall co-operate with the investigating agency by furnishing specimen hand writing, signature, passwords etc. and any such others queries made by the Investigation Officer and thereafter, the accused/petitioners shall be enlarged on bail on taking a bond in a sum of Rs.5,00,000/- (Rupees Five lakhs) only with two sureties each to the satisfaction of the jurisdictional police/court. (iv) If any incriminatory material is elicited during the custodial investigation, the Investigation Officer is at liberty to utilize the same for filing appropriate report. (v) Further, the accused/petitioners shall not repeat the similar offence. (vi) The accused/petitioners shall not tamper the prosecution witnesses or hamper the investigation. (iv) If any incriminatory material is elicited during the custodial investigation, the Investigation Officer is at liberty to utilize the same for filing appropriate report. (v) Further, the accused/petitioners shall not repeat the similar offence. (vi) The accused/petitioners shall not tamper the prosecution witnesses or hamper the investigation. (vii) The accused/petitioners shall mark their attendance before the Investigation Officer on every alternate Sunday between 10.00 am., and 2.00 p.m., till the filing of the charge sheet. (viii) The accused/petitioners shall attend the court regularly. (ix) Ordered accordingly. Violation of any one of the conditions above, the prosecution is entitled to seek for cancellation of bail.