The Madras High Court has acquitted a 90-year-old former Bank of Baroda manager in a CBI corruption case dating back to the 1990s, ruling that the prosecution failed to prove the charges against him. Justice M. Nirmal Kumar of the Madras High Court allowed the criminal appeal filed by V.R. Narayanan, a former Chief Manager of Bank of Baroda's Industrial Finance Branch (IFB) in Chennai, setting aside his conviction by the trial court and acquitting him of all charges under the Prevention of Corruption Act.
Background of the Case
The case originated from a complaint filed by the vigilance officer of Bank of Baroda's Central Office in Mumbai with the CBI, which registered a case on October 31, 1996. Narayanan had joined as Chief Manager of the IFB Branch in November 1991 and served there until his superannuation on October 31, 1993. The prosecution alleged that Corium Crafts Private Limited, a borrowing company, availed packing credit and foreign bills purchase facilities totaling Rs 187.50 lakhs between 1991 and 1994 by submitting false stock statements. These statements claimed that large quantities of tobacco were stored in seven godowns in and around Anand and Baroda in Gujarat.
The CBI alleged that Narayanan, as Chief Manager, conspired with the company and submitted a false inspection report to the bank while favoring the borrowing company. A subsequent inspection conducted by the bank itself between November 24 and 30, 1994, found that no stocks existed at the declared locations. The addresses in Gujarat were fake and fictitious, no godowns existed, and in one instance, the location was found to be a potato field. The trial court convicted Narayanan in February 2015, sentencing him to one year of simple imprisonment with a fine of Rs 5,000 under Section 13(2) read with Section 13(1)(d) of the Prevention of Corruption Act.
Arguments by Narayanan
Narayanan argued that the loan facility was sanctioned well before he joined the branch in November 1991 and was sanctioned by the previous Chief Manager, T.N. Nagarajan, whose recommendation is on record. He added that none of the bank witnesses stated that he had flouted any rules, and that all loan enhancements were sanctioned by the Zonal Office, with the branch only acting as a conduit for disbursement. He further submitted that he personally conducted a detailed inspection of the godowns in Gujarat between February 20 and March 22, 1993, and submitted a detailed inspection report, finding the stocks to be insured. He also noted that he initially declined to release a Rs 2 lakh overdraft requested by the company, only releasing it after receiving oral directions from a superior officer. His counsel further submitted that the CBI's inspection report, which contradicted his findings, was prepared 22 months after his report, and that the investigating officer himself admitted Narayanan had not benefited from the transactions in any manner.
High Court's Observations
The High Court found that the loan was sanctioned by the Zonal Office well before Narayanan joined the branch, and that all Bank of Baroda witnesses confirmed that the loan was processed and proceeded as per procedure, with no deviation established. The court observed that "merely based on discrepancy in the inspection report given by the appellant and the inspection report given after 22 months cannot be a sole basis for conviction, more so for non-availability of address and persons not verified and proved in the manner known to law." The court also noted that the 1994 inspection report itself acknowledged that there had been a devastating flood in the region which changed the entire topography, and that tobacco stocks had moved out as a result. Noting that the prosecution failed to prove the case beyond all reasonable doubt, the court held that "the conviction of the appellant is not sustainable," and acquitted Narayanan of all charges.
