Authority: High Court of Judicature at Madras

Order Date: 29 October 2026

Case Overview

  • Petitioners: Annapoorani (fourth accused) and Saira Banu (first accused) filed separate regular bail petitions, Crl.O.P.No.30883 and Crl.O.P.No.30868 respectively, under Section 483 of the BNSS.
  • Respondent: The State, represented by the Inspector of Police, Bank Fraud Investigation Wing, Central Crime Branch, Vepery, Chennai (Crime No.118 of 2026).
  • Arrest Details: Both petitioners were arrested on 07‑Oct‑2026 and have been in judicial custody since.
  • Underlying Fraud: M/s Atlas Fitness, a proprietary concern of Annapoorani, obtained a term loan of Rs 167.20 lakhs from UCO Bank, Chennai Main Branch, under the NEEDS scheme (sanctioned 25‑Sep‑2024, disbursed 30‑Sep‑2024). The loan was paid by demand draft to supplier M/s Energy Fitness & Sports (partnered with the second accused). Equipment worth Rs 176 lakhs was purportedly purchased.
  • Inspection Findings: On 18‑Jul‑2025 the bank inspected the premises and found no fitness centre operating on the second floor. Subsequent letters (28‑Aug‑2025, 30‑Aug‑2025, 19‑Sep‑2025) and a show‑cause notice (04‑Nov‑2025) were issued. The bank declared the account fraudulent on 26‑Dec‑2025, reported the loss of Rs 145.98 lakhs to RBI on 05‑Jan‑2026, and lodged the complaint that became Crime No.118/2026.
  • Alleged Diversion of Funds: The counter‑affidavit for Crl.O.P.No.30883 states that the third accused (husband of the fourth accused) opened an ICICI Bank account in the name of the supplier, received the full Rs 1.76 crore loan proceeds, and transferred Rs 46,94,078 in eight instalments (12‑Oct‑2024 to 02‑Nov‑2024) to a current account of F‑One Health Care held by the fourth accused at Karnataka Bank, Ambattur Branch.
  • Related Criminal Case: The fourth accused is also named in Crime No.383 of 2025 (D‑3 Ice House Police Station) under sections 329(3), 296(b), 115(2), 351(2) and 79 of the BNS and the Tamil Nadu Prohibition of Harassment of Women Act, alleging a Rs 1.75 crore loan for a non‑existent gym and intimidation of a complainant.
  • Petitioners’ Submissions: (a) Loan was disbursed directly to supplier; borrower received none. (b) Equipment was purchased, installed, and a tripartite agreement dated 14‑May‑2025 among the Regional Joint Director of Industries & Commerce, the bank, and the borrower confirmed operation; rental agreement and GST invoices were produced. (c) Borrower paid instalments until Dec‑2025; equipment is in safe custody at Oragadam, open to inspection (letter dated 12‑Aug‑2026). (d) Fourth accused’s only link is a franchise agreement; she had no role in the loan. (e) The dispute is a civil loan recovery; petitioners are women entrepreneurs with no antecedents.
  • State’s Counter‑Affidavits: Emphasise serious fraud with a loss of Rs 145.98 lakhs, ongoing investigation into fund movement, risk of witness tampering, and prior allegations against the fourth accused.

Final Outcome

  • Crl.O.P.No.30868 (Saira Banu): Bail allowed. She must execute a bond of Rs 25,000 with two sureties of equal amount, subject to conditions:
  • a) Sureties to affix photographs and left thumb impression; identity proof verification.
  • b) Daily reporting to respondent police at 10:30 a.m.
  • c) No foreign travel without magistrate’s permission.
  • d) Within one week, inform police in writing of the current location of the gym equipment; cannot remove, alienate, or encumber the equipment without magistrate’s leave; allow inspection on notice.
  • e) No absconding during investigation or trial.
  • f) No tampering with evidence or witnesses.
  • g) Breach may lead to further orders as per Supreme Court precedent (P.K. Shaji vs. State of Kerala).
  • h) If she absconds, a fresh FIR may be registered under Section 269 of the BNS.
  • Crl.O.P.No.30883 (Annapoorani): Bail dismissed; petitioner remains in custody.
  • The order was signed by Justice N. Ramesh on 29‑Oct‑2026, with directions to upload the order on the court’s official website, watermarked with QR code.

Topics: Bank Fraud; Bail