C B I Vs. B RAGHUBIR ACHARYA

JUDGEMENT

(1.) ACCUSED Nos. 1 and 2 (A1 and A2) are the General Manager and Fund Manager of Canara Bank Mutual Fund Mumbai (CBMF Mumbai) which is a wholly owned subsidiary company of Canara Bank, a nationalized bank. Accused Nos. 5,6 and 7 (A5, A6 and A7) are the Executive Vice President and Assistant Vice Presidents of one "Canbank Financial Services Ltd., Bangalore (Canfina, Bangalore), which is also a wholly owned subsidiary of Canara Bank. Accused Nos. 3 and 4 (A3 and A4)are independent brokers.

(2.) THE essential prosecution case is of conspiracy between the accused to siphon off and misappropriate funds of CBMF, Mumbai and Canfina under their dominion, commit criminal breach of trust, and fabricate documents to camouflage their transaction by falsifying accounts, preparing false documents, committing forgery and using as genuine such forged documents by recording false transactions in the books of accounts of CBMF and Canfina. Consequently these charges are under Section 120B, r.w. Sections 409, 468, 471 and 477A of the IPC.

(3.) A 1 has been charged not only with the above criminal conspiracy but separately for criminal breach of trust in dishonestly entering into the transaction for purchase of 2.1L shares for Rs.6.93 Crores against his authority to transact up to 25 lakhs and dishonestly disposing off a part of this property being 10000 out of 2.1 L shares purchased. A1 is also charged with falsifying the accounts of CBMF, Mumbai showing an ostensible callmoney transaction which CBMF, Mumbai which A1 had no authority to enter into. A1 is also charged with dishonestly and fraudulently receiving and misappropriating 10000 shares of Hindalco. A2 is charged with abetting A1 in preparing false documents more specially a bank voucher, inter bank advice (IBA) and callmoney deal slip. A3 and A4 are charged with aiding and abetting A1 and A2 in misappropriating the property of CBMF, Mumbai and aiding and abetting them in committing criminal breach of trust of the property of CBMF, Mumbai and for receiving stolen property from A1 and A2. Consequently these charges are under Section 409 and 411 respectively of the IPC. A1 and A2 are charged with preparing false documents which are false to their knowledge and using them as genuine. A5, A6 and A7 are charged with preparing false documents at their end in Canfina, Bangalore. Consequently these charges are under Sections 468, 471 and 477A of the IPC.