ORDER 1997 Supp 3 SCR 247 The following Order of the Court was delivered Leave granted.
Some persons were already arrested including one Sambasiva Rao, who was Director of M s. Sai Krishna Impex Ltd., Hyderabad.
A Single Judge of the High Court initially granted an interim order in his favour and finally passed the impugned order making the interim order absolute.
It was then that the Enforcement Directorate also came into the picture and started investigation into offences involving FERA.
The Chief Enforcement Officer, Directorate of Enforcement Enforcement Director for short has filed this special leave petition.
In the final order also learned Single Judge gave much leverage to the physical companydition of the respondent.
Learned Single Judge, who granted the order to the respondent, pointed out that interim order was passed on 16.3.1996 on medical grounds.
A fraud companyting a whopping sum of Rs.
It was later discovered that the siphoning of such a huge foreign exchange was the result of a well orchestrated companyspiracy hatched by some individuals in and out of India.
During investigation it appeared to the Enforcement Directorate that the respon dent is also involved in this fraud and hence efforts were made to question him but the respondent avoided such interrogation by the officials of the Directorate, on more than one occasion.
133 crores was perpetrated by some individuals after hatching a criminal companyspiracy.
The respondent apprehended that he would be arrested in companynection with Urea Scam.
In the meanwhile the respondent, on his own, approached the High Court with a petition for an order under Section 438 of the Code.
He approached the High Court of Andhra Pradesh for an order under Section 438 of the Code of Criminal Procedure for short the Code .
The recipients of such kickbacks included those in India and abroad.
A companypany by name M s. National Fertilizer Ltd. entered into a deal with a Turkish Company known as M s. Karsans Inc. for the supply of urea worth 38 million US Dollars.
The entire amount was paid to the Turkish companypany through the companyntrys foreign exchange reserve without getting even an ounce of urea in return.
The Turkish companypany in return paid a substantial amount to middlemen as kickbacks.
