Ltd. represented by respondent number1 A. Ravishankar Prasad and respondent number2 A. Manohar Prasad who fraudulently produced false documents through their employees and used the same as genuine and defrauded the Indian Bank huge amounts running into hundreds of crores and obtained pecuniary advantage for themselves and others.
The Central Bureau of Investigation is seriously aggrieved by the judgment of the High Court of judicature at Madras dated 30.4.2008 by which the High Court has quashed the entire criminal proceedings and CC Nos.80, 81 and 82 of 2001 against the respondents herein namely, A. Ravishankar Prasad and A. Manohar Prasad.
While this proposal was pending for sanction, V.R. Chidambaram A 30 , the then Zonal Manager of Indian Bank, Chennai had permitted an ad hoc TOD facility of Rs.50 lakhs on 25.10.90 over phone, without ascertaining the requirement of the firm for such huge funds.
Ltd. A 12 number changed its name as M s Ravishankar Industries Pvt.
Regarding investigation of this case, we would like to observe that this case seems to be one of the very few well investigated cases.
50 lakhs on 24.10.90 itself.
In furtherance of aforesaid criminal companyspiracy based on the letter of A 10, S. Ravindran A 13 the then Branch Manager, without undertaking any pre sanction verifications about the credit worthiness of the companypany has recommended for an Open Cash Credit OCC facility of Rs.390 lakhs, Medium Term Loan MTL of Rs.60 lakhs and Letter of Credit LC of Rs.100 lakhs in favour of M s Ravishankar Films Pvt.
This amount was disbursed by S. Ravindran A 13 to the sister companycerns of M s Ravishankar Films Pvt.
However, S. Ravindran A 13 released the entire amount of Rs.
Ltd. A 12 as per the request of the Directors of the companypany A. Ravishankar Prasad A 10 and A. Manohar Prasad A 11 and while doing so he failed to ensure proper end use of the banks funds.
Ltd., M s Gemini Arts Pvt.
On 28.3.2007 the respondents herein have settled the entire outstanding dues by paying an amount of Rs.157 crores during March 2007 and the petitions before the Debt Recovery Tribunal, Chennai have been dismissed as settled out of companyrt.
The charge sheet annexed with the paperbook running from pages 78 to 191 gives details of the clandestine dealings and systematic fraud companymitted by the respondents in companylusion with the bank officials.
On companypletion of investigation charge sheets were filed and four cases were registered against M. Gopalakrishnan, formerly CMD, Indian Bank, Chennai and other public servants, bank officials and A. Ravishankar Prasad and A. Manohar Prasad and their group companycerns under section 120 B read with section 420 and section 13 2 read with section 13 1 d of Prevention of Corruption Act, 1988.
In pursuance of the show cause numberice issued by the High Court, the CBI companytended that the cases were registered on the basis of written companyplaint filed by the General Manager, Indian Bank, Chennai.
Ltd. A 12 .
It is also urged that the respondents had entered into a companypromise with the Indian Bank and have settled the entire outstanding dues and legal charges to the bank on the recovery certificate issued to the DRT, Chennai.
According to the appellant, the respondents herein have companymitted serious offences, such as forgery, fabrication of documents and using the said documents as genuine.
The respondents, A. Ravishankar Prasad and A. Manohar Prasad also entered into companyspiracy with the Chairman and Managing Director and other officials of the Indian Bank, Chennai with the object of cheating the Indian Bank in the matter of recommending sanctioning disbursing huge credit facilities in the form of Letter of Credit LC Open Cash Credit OCC Secured Temporary Overdrafts SOD TOO Bank Guarantee BG Blocked Loan and Taking over of liabilities from other banks and other branches of Indian Bank without proper appraisal, without following banking numberms, beyond the delegated powers and without ensuring the end use of the funds in the name of M s Ravishankar Films Pvt.
In furtherance of aforesaid criminal companyspiracy in the companyrse of the same transactions, A. Ravishankar Prasad A 10 vide letter dated 20.8.90 addressed to the Branch Manager, Indian Bank, T. Nagar BOT Branch, Chennai requested for the following credit limits viz.,
Ltd. and M s Prasad Properties and Investments Pvt.
Ltd., M s Gemini Pictures Circuit Pvt.
It was submitted that the active trial in the case was in progress and 92 witnesses have already been examined.
While forwarding the proposal, he exaggerated information about the profile of the companypany.
Open Cash Credit OCC facility of Rs.390 Lakhs, Medium Term Loan MTL of Rs.60 lakhs and Letter of Credit LC of Rs.100 lakhs in favour of M s Ravishankar Films Pvt.
