IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3RD DAY OF APRIL 2019 BEFORE THE HON’BLE MR.JUSTICE B.A. PATIL CRIMINAL PETITION NO.8529 OF 2018 BETWEEN:
1. Sri Venugopal S/o Sonne Gowda, Aged about 33 years, R/o No.244C, 9th Cross, 2nd Phase, Manjunath Nagar, Rajajinagar, Bengaluru-560 010.
2. Sri Rakesh S/o Sonne Gowda, Aged about 30 years, R/o Inorasahali, Bangarapete, Kolara District-563 114.
3. Sri Anil Kumar K.S S/o Shankara Naik.E, Aged about 32 years, R/o 274/117, 2nd Main, 5th Cross, Nittuvalli New Extension, Davanagere-577 001.
4. Smt. Sulakshana D/o Sonne Gowda, Aged about 35 years, R/o No.33, 11th Cross, Gangamma Layout, Ashok Nagar, Bengaluru-560 050. ...Petitioners (By Sri Yathish J Nadig, Advocate) AND:
The State of Karnataka Rept. by Sampigehalli Police Station, Sampigehalli, Bengaluru. Rept. by Its State Public Prosecutor, High Court of Karnataka. ...Respondent (By Sri Nasrulla Khan, HCGP) This Criminal Petition is filed under Section 438 of the Code of the Criminal Procedure praying to enlarge the petitioners on bail in the event of their arrest in Cr.No.96/2018 registered by Sampigehalli Police Station, Bengaluru for the offences punishable under Sections 419, 420 and 468 and 406 read with 34 of IPC.
This Criminal Petition coming on for Orders, this day, the Court made the following:
O R D E R The present petition has been filed by the petitioners-accused Nos. 1 to 4 under Section 438 of Cr.P.C to release them on anticipatory bail in Crime No.96/2018 of Sampigehalli Police Station for the offences punishable under Sections 419, 420, 468 and 406 read with 34 of IPC.
2. I have heard the learned counsel for the petitioners and the learned High Court Government Pleader for the respondent-State.
3. The gist of the complaint is that the complainant-Company is duly authorized by the Reserve Bank of India (RBI) to undertake banking business in India including issuance and serving of credit cards. In that light, American Express Corporate Cards are issued to employees of the company and the card applications being initiated by the employees of the company and approved by the authorized signatory of such company. Since Corporate Card Accounts are set up in favour of and on behalf of corporate entities and such corporate entities are primarily liable for the charges incurred on all the Corporate Cards issued under such accounts, as per their existing process. American Express Banking Corp. (“American Express”) process the Card Applications based on the approval accorded by the Authorized Signatories of such entities and no further physical verification on such card of the employees are undertaken by complainant-Company. By following the said procedure, the cards were issued.
4. It is subsequently noticed that petitioner No.1 in collision with the other accused persons have issued the Corporate Cards by using fake names and the cards thereby, they have misappropriated an amount of Rs.1,22,08,731.99 to the American Express. On the basis of the complaint, a case has been registered.
5. It is the submission of learned counsel for the petitioner that the alleged fraud has come to the notice of the complainant-Company on 22.06.2017 but the complaint was lodged before the police on 04.04.2018, there is a delay of nine months in filing the complaint. It is further submitted that the petitioner- accused No.1 was working for IBM India Pvt. Ltd., from 09.05.2007 to 05.12.2016 and last position held by him was CSP Bid Team Lead and petitioner Nos. 2 to 4 never worked for IBM India Pvt. Ltd., at any point of time. As such, creating the card and issuance of the American Express Banking Corp. Corporate Credit Cards to IBM employees does not arise at all. He further submitted that the American Express Corporate Credit Cards account was set up in the name of and on behalf of M/s IBM India Pvt. Ltd., and the complainant-Company has been issuing the Corporate Cards to the employees of the IBM. As per the process, to initiate the application, the employee of IBM has to click the link wwww.americaexpress.co.in/Corporateapplications and is required to enter a unique access key number known only to the internal IBM staff. Once the access key number and the email address are filled in, applicant/employee receives an email with the tracking number and a link. On clicking the link, the employee has to fill in his/her details about the name and address of the employee with ID Card and to upload his/her self-attested KYC documents are required such as, Voter ID Card/Driving license and other documents. Thereafter, automatically the application gets forwarded to the Authorized Signatory. After verification of the requisite details contained in the application, approves the same and the American Express Company issues the Corporate Card. The said process is a lengthy process and there is no possibility of tampering or fabricating the documents. He further submitted that a false and concocted case has been registered only with an intention to harass the petitioners. He further submitted that the petitioner-accused Nos. 1 to 4 are ready to abide by the terms and conditions imposed on them by this Court and ready to offer the sureties. On these grounds, he prayed to allow the petition and to release the petitioners-accused Nos. 1 to 4 on bail.
5. Per contra, the learned High Court Government Pleader vehemently argued and submitted that petitioner No.1 by using the employee ID Card and email has applied for the card and changed the identity of the card holder and thereafter, the card was used to incur the charges to the tunes mentioned therein and thereby, the amount has been transacted and the complainant-Company has been put to loss. He further submitted that the fraud came to be noticed on 22.06.2017 through proper channel. The said aspect has been verified and after coming to know that the fraud has occurred, the complaint has been registered. The delay in filing the complaint has been properly explained by the complainant. He also further submitted that the petitioners-accused Nos.1 to 4 have played fraud by creating the documents and misappropriated a huge amount of the complainant- Company. Under the said facts and circumstances, the petitioners-accused Nos. 1 to 4 are not entitled to be released on bail. On these grounds, he prayed to dismiss the petition.
6. I have carefully and cautiously gone through the submissions made by the learned counsel appearing for the parties and perused the records.
7. As could be seen from the contents of the complaint, the American Express Banking Corp., has filed a complaint alleging that the Company Proprietor used to supply the Credit Cards to their clients and Company Proprietors entrusted the work of distributing credit cards to IBM Company. Whether the accused persons by fabricating the cards have misappropriated an amount of Rs.1,22,08,731/- by creating false documents and cheated the Company, is a matter which has to be considered and appreciated only at the time of trial.
8. Contents of the complaint and other material discloses that a long process has also been stated regarding how the card has to be processed, how the amount has to be credited in this behalf and whether the access to the key number and other email address has also been strictly followed in order to create the said documents, which is a matter that has to be considered and appreciated only at the time of trial. The alleged offences are not punishable with death or imprisonment for life.
9. Under the said facts and circumstances of the case, I feel that by imposing some stringent conditions if the petitioners-accused Nos.1 to 4 are released on bail, it is going to meet the ends of justice.
In that light, petition is allowed. Petitioners- accused Nos. 1 to 4 are ordered to be released on anticipatory bail in Crime No.96/2018 of Sampigehalli Police Station for the offences punishable under Sections 419, 420, 468 and 406 read with 34 of IPC, subject to the following conditions:
1. In the event of their arrest, the Investigating Agency is directed to enlarge them on bail on they being executing a personal bond for a sum of Rs.5,00,000/- (Rupees Five Lakhs Only) each with two sureties each for the likesum to the satisfaction of the Investigating Officer.
2. They shall surrender before the Investigation Agency within 15 days from today.
3. They shall not tamper with the prosecution evidence in any manner.
4. They shall mark their attendance once in 15 days between 10.00 a.m., to 5.00 p.m., before the concerned police station till the charge sheet is filed.
5. They should be regular in attending the Court.
6. They shall not leave the jurisdiction of the Court without prior permission.
7. If petitioners-accused Nos.1 to 4 hold passport in their name, the same shall be surrendered to the jurisdictional police till the charge sheet is filed.
Sd/- JUDGE RB