Unnikrishnan P.P. vs State Of Kerala

Mohammed Nias C.P.J

This is an application filed under section 439 of the Code of Criminal Procedure seeking regular bail.

The petitioner is the second accused in Crime No.220/CB/EOW/KNR KSD/R 2022 of Crime Branch Economic Offences Wing (Kannur and Kasargode Unit) alleginG offences punishbale under Sections 406 and 420 of the Indian Penal Code.

The prosecution allegation is that the first accused who is a Class A Contractor in Kerala Public Works Department had obtained a loan of Rs.4,28,53,488/- from the defacto complainant society for the purpose of various construction works showing materials having been purchased from different entities including the petitioner's firm by name GEOMECH. The further allegation is that the first accused repaid only Rs.1,58,73,754/- and did not bother to repay the balance amount and also cheated the defacto complainant by fraudulently creating false documents showing receipts of materials purchased for works which cancelled. The specific allegation against the petitioner herein who is the second accused is that he issued a Tax Invoice to the defacto complainant society and collected money without supplying materials at sites awarded to the first accused which was cancelled later on. He thereby colluded with the first accused in committing the above crime.

The learned counsel appearing for the petitioner submitted that the petitioner is totally innocent of the allegations levelled against him and he was surrendered on 25-9-2023 and was remanded to judicial custody. The petitioner herein is a trader and he is running a trading firm in the name and style M/S. GEO MACH ETERPRIZES. His firm is registered under the Ministry of Micro, Small and Medium Enterprises, Government of India. The petitioner's firm GEO MACH Enterprizes is a consultancy and trading firm established in the year 2013. It is supplying vegetables to Horticorp and also the authorised sales agent of Dalmia cenemts. As trader M/S.GEO Mach ENTERPRIZES purchase materials and sell it to its customers. The petitioner herein is an absolute stranger as far as the agreement between the first accused and the defacto complainant society is concerned. The petitioner as a trader purchases the building materials required by the first accused from Vilskkumadam Constructions, Sreekailas, Parvachmabalam, Nemom and it is the said company which will deliver the materials at the sight of the first accused. The allegations against the petitioner is that is issued invoice to defacto complainant and collected money in connection with work which was initially granted to first accused and cancelled later on. The said allegation is baseless.

Learned Public Prosecutor objects to the application for bail contending that the investigation is going on and that the involvement of the owner of GEOMECH, the petitioner herein, is being investigated. He also raises an apprehension that if the petitioner is released now, the investigation could be adversely affected.

Having considered the rival submissions, I find the allegations against the petitioner are serious. The investigation revealed that the society which was granted the work had entrusted suppliers to supply the requisite materials to the accused. GEOMECH was the supplier of the major part of goods. The suppliers then sent bills to the society and as per the e-mail confirmation from the first accused, the society paid the bill amounts to the suppliers mainly to the petitioner's firm GEOMECH. The society did not physically examine the supply of materials on the site and this helped both the accused to cheat the society from 2021 March onwards. The investigation revealed that the accused who is the managing partner of GEOMECH had supplied steel to several sites and had conspired with the other accused to cheat the society through issuing invoices of building materials which include GST which were not actually supplied in the sites. It is also to be noted that the works include the renovation of Valiya Kalungu stadium at Aryanad, THQ Hospital Chavakkad, the Construction of the PHC Building at Kadanad, Kottayam, Construction of a New Building for the Vaccine Store at Kollam and New PHC at Iravipuram.

The allegation of the petitioner and A1 committing conspiracy and sending invoices of building materials to society, without supplying the goods in any sites and obtaining bill amounts from the society, thereby cheating the defacto complainant requires serious and in-depth investigation. I find force in the argument of the learned Public Prosecutor that the release of the petitioner at this stage would seriously affect the investigation. Under such circumstances, I am not inclined to grant bail to the petitioner. Accordingly, the bail application is dismissed.