‘OTS will not absolve petitioners of criminal action’

The judge was dealing with a batch of criminal petitions filed by Ishoo Narang and others seeking to quash criminal cases booked against them by the Enforcement Directorate and other agencies.

Hyderabad: In a judgment of far reaching import dealing with One Time Settlements and fraud, Justice K Lakshman of the Telangana High court ruled that the mere fact that banks which are already under stress to clear the NPAs from their books accepted the OTS, will not absolve the petitioners from criminal charges.

The judge was dealing with a batch of criminal petitions filed by Ishoo Narang and others seeking to quash criminal cases booked against them by the Enforcement Directorate and other agencies. The company engaged in procuring coal from Indonesia for selling the same in domestic market and iron ore in Chinese market. The complaints are based on a FIR registered at the instance of the Central Bank of India and others. It availed credit facilities from different banks including the Central Bank of India, the State Bank of India, the Bank of Baroda, ICICI Bank and the Bank of Maharashtra under multiple banking arrangements for the purpose of doing the business of trading of coal. According to the complaint the said company and its Directors committed fraud and cheated the Bank and on account of their deliberate act and omission, caused wrongful loss to a tune of Rs.60 crores approximately to the bank.

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Justice Lakshman pointed out that one of the conditions of the OTS was that it would not absolve the petitioners of criminal action and therefore it was not open to the petitioners to seek quashing of the case on the ground of OTS. “Such economic frauds adversely affect the financial and economic well-being of the Nation and have implications which lie beyond the domain of a mere dispute between petitioner and the above said banks including Central Bank of India and Bank of Maharashtra.” the judge reasoned.

“It is not a case of simple assault or a theft of a trivial amount; but the offence with which the Court concerned is a well-planned and was committed with a deliberate design with an eye on personal profit regardless of consequence to the society at large. To quash the proceeding merely on the ground that the accused has settled the amount with the bank would be a misplaced sympathy,” the judge said. “Defences that may be available, or facts/aspects which when established during the trial, may lead to acquittal, are not grounds for quashing the complaint at the threshold. At that stage, the only question relevant is whether the averments in the complaint spell out the ingredients of a criminal offence or not”, Justice Lakshman held while dismissing the petitions.
 

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