Mr Avinash Aradhya vs. Central Bureau Of Investigation Anti Corruption Branch
Held
The Court held that the allegations of fabricating documents and engaging in sham transactions to obtain loans warranted investigation by the CBI. The approval of a resolution plan by NCLT and the bank's participation in it did not preclude the CBI from investigating the initial fraudulent inception of the loan.
Facts
The petitioner, Managing Director of a company, sought to quash an FIR registered by the CBI alleging criminal conspiracy and fraud in obtaining credit facilities. The allegations include suppressing facts, misutilizing funds, and creating fabricated documents for transactions that allegedly did not involve physical movement of goods.
Key Issues
Whether an FIR for alleged fraud in obtaining loans can be quashed when a resolution plan has been approved by NCLT and banks have voted in favour of it. Whether the CBI should be allowed to investigate allegations of fabricated documents and sham transactions.
Sections Cited
Section 482
AI-generated summary — verify with the full judgment below
1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4TH DAY OF DECEMBER, 2021 BEFORE THE HON’BLE MR. JUSTICE K.NATARAJAN CRIMINAL PETITION No.1427 of 2021 BETWEEN MR. AVINASH ARADHYA, S/O. MALLOK ARADHYA, AGED ABOUT 41 YEARS, No.5F, CRESCENT COURT, CRESCENT ROAD, BENGALURU - 560 001, ADDRESS AS PER FIR, No.26/9, GLENMORE, SANKEY ROAD, ABSHOT LAYOUT, BENGALURU URBAN.
... PETITIONER (BY SRI KIRAN JAVALI, ADVOCATE) AND 1. CENTRAL BUREAU OF INVESTIGATION, ANTI CORRUPTION BRANCH, No.36, BELLARY ROAD, GANGANAGAR, BENGALURU - 560 032, REPRESENTED BY SUPERINTENDENT OF POLICE, (ACB, BENGALURU).
PUTTA LAKSHMI NARAYANA, DEPUTY GENERAL MANAGER/ZONAL MANAGER, INDIAN BANK, ZONAL OFFICE, 4TH FLOOR, RAHEJA TOWERS, Nos.26, 27, M.G. ROAD, BENGALURU - 560 001. … RESPONDENTS (BY SRI P. PRASANNA KUMAR, ADVOCATE FOR R1 SRI U.S. YOGESH KUMAR, ADVOCATE FOR R2)
2 THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF THE CODE OF CRIMINAL PROCEDURE, PRAYING TO QUASH THE FIR BEARING No.RC0372021A0002 DATED 21.01.2021 AT ANNEXURE-B IN CASE No. RC No.02(A)/2021/CBI/ACB/Blr REGISTERED WITH THE 1ST RESPONDENT POLICE AGAINST THE PETITIONE
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