- (1.) A-1, who is the appellant in Crl. A. Nos. 724 and 725 of 1998, A-2, who is the appellant in Crl. A. No. 771 of 1998, A-2, who is the appellant in Crl. A. No. 823 of 1998, A-3, who is the appellant in Crl. A. No. 724 of 1998 and A-4, who is the appellant in Crl. A. No. 774 of 1998, have come forward with these appeals challenging their conviction and sentence passed by the learned III Additional District Judge/special Judge for C. B. I. Cases, coimbatore, in C. C. Nos. 13 and 14 of 1998 convicting A-1, in Crl. A. Nos. 724 and 725 of 1998, under Section 120-B r/w 420 IPC and under Section 5 (2) r/w 5 (1) (d)of Prevention of Corruption Act, 1947 (for short "the Act") and under section 5 (2) r/w 5 (1) (d) of the Act in each case and sentencing him to undergo rigorous imprisonment for a period of one year and to pay a fine of Rs. 1,000/-, in default, to undergo three months imprisonment for each offence in each case, convicting A-2, in Crl. A. No. 771 of 1998, under Section 120-B r/w 420 IPC and under Section 5 (2) r/w 5 (1) (d) of the Act and under Section 109 IPC r/w Section 5 (2) r/w 5 (1) (d) of the Act and sentencing him to undergo rigorous imprisonment for a period of one year and to pay a fine of Rs. 1,000/-, in default, to undergo three months imprisonment for each offence, convicting A-2, in crl. A. No. 823 of 1998, under Section 420 IPC and under Section 109 IPC and 5 (2)r/w 5 (1) (d) of the Act and sentencing him to undergo rigorous imprisonment for a period of one year and to pay a fine of Rs. 1,000/-, in default, to undergo three months imprisonment for each offence, convicting A-3 and A-4, in crl. A. Nos. 724 and 774 of 1998 respectively, under Section 120-B r/w 420 IPC and under Section 5 (2) r/w 5 (1) (d) of the Act and under Section 420 IPC and under section 109 IPC and 5 (2)r/w 5 (1) (d) of the Act and sentencing each one of them to undergo rigorous imprisonment for a period of one year and to pay a fine of rs. 1,000/-, in default, to undergo three months imprisonment for each offence.
(2.) THE case of the prosecution is that A-1 was working as a Manager, State Bank of Travancore, Ooty Branch, from 26. 07. 1985 to 09. 05. 1986. A-2 in Crl. A. No. 771 of 1998, was one of the account holders in the same branch and he used to visit the branch frequently and therefore he is having acquaintance with A-1. A-3 and A-4 are loanees. (a) The sum and substance of the prosecution case in crl. A. Nos. 724, 771 and 774 of 1998 is that A-1 to A-4 during the period between february 1985 and March 1986 at Ooty and other places conspired and A-3 and A-4 knowing fully well that both of them are not eligible for getting any loan under "self-Employment to Educated Unemployed Youth Scheme" by fraudulently and dishonestly submitted false declaration and information to the state Bank of Travancore and A-1 knowing fully well that A-3 and A-4 are not eligible for the said loan under the above said scheme fraudulently and dishonestly in pursuance of the conspiracy, by misusing or abusing his official position as Manager of State Bank of Travancore, Ooty, sanctioned a sum of rs. 20,000/- and Rs. 25,000/- in favour of A-3 and A-4 respectively for the purpose of setting up a knitting centre and cloth shop. It is also further alleged that a-1 was well aware that the said loan amounts will not be used by them for the purpose for which the loans are sanctioned. (b) The entire alleged fraudulent transaction for obtaining loan arising out of the Scheme called the "self-Employment to educated Unemployed Youth Scheme". P. W. 4, who was the Field Officer during the period from 1989 to 1992 in the State Bank of Travancore, has stated about the salient features of the above said scheme. According to him, the age of the applicants should be between 18 and 35 years and minimum educational qualification is S. S. L. C. The total annual income of the family of the loanee should not exceed to a sum of Rs. 10,000/ -. The District Industries Centre (hereinafter referred to as "dic") is the model agency for identification of the beneficiaries and the Manager of the District Industrial centre has to verify and scrutinize the applications and therefore the applicant should forward the application through DIC. After scrutinizing the loan application DIC will inform the concerned Bank Manager and the Bank manager, in turn, should conduct a pre-sanction inspection under the scheme. The Manager can grant loan to the extent of Rs. 35,000/ -. It is also stipulated under the scheme that the applicant should obtain a quotation and submit it along with his application in respect of the supply of required machineries and the payment would be made directly to the supplier concerned in respect of this loan. The applicant is entitled for the Government subsidy of 25% of the loan amount which will be held by way of term deposit by the Bank for repayment. It is also stipulated under the scheme that in the case of loanee failing to start the activity or diverting funds or abandoning the project, the amount of subsidy would be returned to the Reserve Bank of India and the borrower will be liable to repay the entire amount. (c) P. W. 2, the cashier of the State Bank of Travancore, has stated that under the above said scheme, A-3 has given the application under Ex. P. 4. The family income in respect of the A-3 is marked as Ex. P. 5. The true certified copy of the first page of S. S. L. C. and mark sheet in respect of a-3 is marked as Exs. P. 6 and P. 7. Proforma invoice of Variety Hall Agencies, coonoor, for purchasing a knitting machine for A-3 is marked as Ex. P. 8. The DIC recommended for financial assistance under the above said scheme to A-3 by letter dated 18. 03. 1986 which is marked as Ex. P. 9. The copy of the sanction order of loan by the Bank dated 26. 03. 1986 in favour of A-3 is marked as ex. P. 10. The letter of A-3 dated 26. 03. 1986 to Bank agreeing to forgo the benefits of or non-availability of the concessionary rate of interest and benefit of capital subsidy in the event of A-3 misusing the sanctioned loan under the "self-Employment to Educated Unemployed Youth Scheme" for rs. 20,000/- is marked as Ex. P. 11. In both Exs. P. 10 and P. 11, A-1 as the Branch manager of the Bank, initialled. Letter of undertaking of A-3 is marked as ex. P. 12. P. W. 2 also further deposed that A-3 agreed to discharge the loan within 40 consecutive monthly instalments under Ex. P. 12. Loan Agreement dated 26. 03. 1986 in respect of A-3 is marked as Ex. P. 13. Pay-in-slip and Pay Order for Rs. 20,000/- are marked as Exs. P. 14 and P. 15 and the Form for Advances against Stocks is marked as Ex. P. 16. Term Deposit Receipt is marked as Ex. P. 17. Draft Revival Letter by A-3 is marked as Ex. P. 18. Bank Pass Book of A-3 is marked as Ex. P. 19. (d) P. W. 2 also stated that the loan application of A-4 is marked as Ex. P. 20. The agreement for loan for a sum Rs. 25,000/- is marked as ex. P. 21. Debit Voucher for Rs. 25,000/- in respect of A-4 is marked as Ex. P. 22. Three letters said to have been written by A-1 to one Ramaiah, father of A-4, is marked as Exs. P. 23 to P. 25. P. W. 2 also stated about the credit voucher dated 19. 02. 1986 in respect of A-2, who was also holding an account in the very same branch of the bank and the same is marked as Ex. P. 26. Two self-cheques for rs. 3,000/- and for Rs. 7,000/- as drawn by A-2 from his savings account are marked as Exs. P. 27 and P. 28 respectively. These cheques were encashed by a third party as per the version of P. W. 2. (e) P. W. 3, a clerk of the Branch of the State Bank of travancore, deposed that A-1 had signed in Exs. P. 6, P. 23 to P. 25, the letters said to have been written by A-1 to one Ramaiah, father of A-4, and Ex. P. 4 is also written by A-1. P. W. 3 further stated that A-1 put his signature in Ex. P. 26 and signed in Exs. P. 10, P. 11 and P. 18. P. W. 3 claimed that he knows the signature of A-1. (f) P. W. 4, the Field Officer, as already stated, examined to speak about the salient features of the scheme viz. , "self-Employment to Educated Unemployed Youth Scheme". (g) P. W. 5, Executive Officer of Ketty Panchayat, stated that no licence was issued to A-4 to establish a cloth shop or any other business at Ellanhalli Village within the jurisdiction of Ketti Panchayat. Only on 31. 03. 1987, a licence was issued to A-4 for conducting cloth shop for the year 1987-1988 and the Licence Number is 128/87. It is also stated by P. W. 5 that A-4 never run any cloth shop business during the year 1987-88. (h) P. W. 6, Postman of Needle Industries Post Office, stated that the father of A-4 was the President of the Panchayat and A-4 at no point of time established any cloth shop business at the Village. (i) P. W. 7, the clerk of Indian Railways, deposed that on 06. 10. 1989 he accompanied the CBI Officer, P. W. 10, while P. W. 10 conducted the search at A-1's house. It is also stated by P. W. 7 that certain records (letters) were seized by P. W. 10 under Ex. P. 29. According to him, 6 letters covered under Exs. P. 30 to P. 35 recovered from A-1. (j) P. W. 8, the General Manager of District Industries centre, Ooty, stated to the effect that any loan application moved before his office would be forwarded to the Committee of his office formed in this regard. He has also stated that the loan application of A-3 under Ex. P. 4 and the loan application of A-4 under Ex. P. 20 were forwarded through his office to State bank of Travancore. (k) P. W. 9 claimed that A-2 is his friend. P. W. 9 has not supported the case of the prosecution and he has been treated as hostile. (l) P. W. 10, Investigating Officer, on information and upon the order of Superintendent, CBI, registered FIR under Ex. P. 40 and he sent the same to the Special Court, Coimbatore. He has also conducted search in the house of A-1, on the basis of the application under Ex. P. 41 before the Chief metropolitan Magistrate, Madras, and obtained the search warrant under Ex. P. 42. He has also obtained such search warrant in respect of the search in the house of the husband of A-3. On 06. 10. 1989, he searched the house of A-1 and secured documents under Ex. P. 29 in the presence of P. W. 7. Exs. P. 32 to 35 were seized and secured from the house of A-1. Mr. John, Inspector, CBI, had conducted the search process in the house of the husband of A-3 and secured certain documents under Ex. P. 43. P. W. 10 also examined the witnesses and recorded their statements under 161 (3) of Cr. P. C. He also obtained specimen signature of A-1 and secured other documents in which the signature of A-1 is found and sent the same to forensic Sciences Department at Chennai in order to obtain the opinion of handwriting expert. (m) P. W. 1, Chief General Manager of State Bank of travancore, on the basis of the materials produced before him and further perusing and verifying the records and after applying his mind accorded sanction under the Sanction Order, Ex. P. 3. Ex. P. 1 is the xerox copy of the resolution passed in the Board Meeting regarding the delegation of financial and administrative powers to the Chief General Manager. The Administrative order is marked as Ex. P. 2 regarding the communication sent about the delegation of financial and administrative powers consequent to the appointment of the chief General Manager. Ex. P. 1 was circulated to all the Branches of the Bank. (n) P. W. 10, after obtaining the Sanction Order, Ex. P. 3 from P. W. 1, filed the charge sheet against all the four accused under Section 120-B r/w 420 IPC and under Section 5 (1) r/w 5 (1) (d) of Prevention of corruption Act, 1947. The sum and substance of the prosecution case in respect of Crl. A. Nos. 725 and 823 of 1998 is as follows : (a) A-1 and A-2 during the period January and March 1985 at Ooty and other places agreed to do or caused to be done an illegal act and in pursuance of the conspiracy, A-2 knowing fully well that he is not eligible for getting any loan under the "self-Employment to Educated Unemployed youth Scheme" by fraudulently and dishonestly submitting false declaration and information to the State Bank of Travancore and in pursuance of the conspiracy, A-1, knowing fully well that A-2 is not eligible for the said loan under the above said scheme, by abusing his official position as Manager, State bank of Travancore, Ooty, sanctioned a sum of Rs. 25,000/- in favour of A-2 for the purpose of starting a coffee grinding business. (b) In these two appeals, the prosecution, in order to bring home the charges against the accused, examined P. Ws. 1 to 8. Among the witnesses, P. W. 1 is the witness who has accorded sanction to prosecute A-1, who is the Branch Manager of the Bank. P. W. 2, the Cashier of the Bank, stated about a-2 applying for loan under the scheme "self-Employment to Educated unemployed Youth Scheme". Ex. P. 4 is the loan application given by A-2. Ex. P. 5 is the Affidavit filed by A-2. After scrutinising the application, ex. P. 4, of A-2/the loanee, DIC forwarded it to the Bank for sanctioning the loan. P. W. 2 also stated that thereafter considering the application and other connected documents A-1 sanctioned loan for a sum of Rs. 25,000/- under Ex. P. 8 on 29. 03. 1985 with certain terms and conditions which was also signed by A-2. A-2 also submitted a quotation from the business concern of P. W. 5 for purchasing coffee grinder machine. The quotation is marked as Ex. P. 9. It is also specifically stated by P. W. 2 that an amount of Rs. 23,750/- was paid directly to P. W. 5 through Pay Order under Ex. P. 10. It is also stated by P. W. 2 that P. W. 5 also gave a receipt to the amount paid under Ex. P. 11. A-2 also consented for repaying the loan amount in instalments under Ex. P. 12, Composite term Loan Agreement. The very same witness, P. W. 2 was also examined in the earlier cases, as stated above, in order to speak about the submission of application and consideration and granting sanction of loan to the loanees. P. W. 3, the Field Officer, who is also examined as a witness in the earlier case, as stated above, as P. W. 4 stated and narrated the salient features of the scheme viz. , "self-Employment to Educated Unemployed Youth Scheme" and for according sanction of loans. (c) P. W. 4 is the General Manager, DIC who has spoken about the receipt of the application, Ex. P. 4, from A-2 for sanction of loan. He has stated that another officer by name Mr. Bellie has scrutinised the application and thereafter forwarded the same to the bank with a covering letter, Ex. P. 7. P. W. 5 has spoken about giving quotation Ex. P. 9 for the purchase of Coffee Grinder Machine. He has also stated that A-2 gave a cheque for a sum of Rs. 23,750/- dated 29. 03. 1985 under Ex. P. 10 and he has also given the acknowledgment, Ex. P. 11, for the receipt of the cheque. P. W. 6 is the Assistant commercial Tax Officer who has been examined to state that A-2 has not registered any business and he had issued a certificate, Ex. P. 16. P. W. 7 is the assistant Executive Engineer, Tamil Nadu Electricity Board and he has stated that the verification of records showed that A-2 was not given any electricity connection for the purpose of installing Coffee grinding machine in his shop. P. W. 8, the Inspector of Police, C. B. I. , who is the Investigating Officer in these cases, has spoken about registering the case under Sections 5 (2) r/w 5 (1) (d) of the Act in Crime No. 41 of 1989 on information. F. I. R. is marked as ex. P. 17 and the same was sent to Special Court, Coimbatore. He took up investigation in these cases and searched the house of A-1 and one Arjun. He has also stated that he has made recoveries of certain documents from the house of A-1. Thereafter P. W. 8 examined the witnesses on 07. 12. 1989 and 08. 12. 1989 including P. W. 5. After, completing investigation P. W. 8 filed the charge sheet against A-1 and A-2 for the offence under Section 120 (B) r/w 420 I. P. C. and under Section 5 (1) r/w 5 (1) (d) of the Act.
(3.) THE prosecution, in order to bring home the charges levelled against the accused in Crl. A. Nos. 724, 771 and 774 of 1998, examined p. Ws. 1 to 10 and filed Exs. P. 1 to 43 and in Crl. A. Nos. 725 and 823 of 1998, examined P. Ws. 1 to 8 and filed Exs. P. 1 to P. 17. When the accused were questioned under Section 313 of cr. P. C. in respect of incriminating materials appearing against them through the evidence adduced by the prosecution, all the accused have come forward with the version of total denial and they have stated that they have not committed any offence and they have been falsely implicated in these cases. The accused also examined D. W. 1, who is the Chief General Manager, State Bank of trivancore, Ooty, in respect of all these appeals and in Crl. A. Nos. 724, 771 and 774 of 1998, also marked Exs. D. 1 to 4 viz. , the Loan Scheme Book of State Bank of Travancore, the xerox copy of the extract for the ledger of State Bank of travancore, xerox copy of the extract for the composite loan and copy of the decree in O. S. No. 56 of 1989 of the District Court, Ooty.;