Authority: Supreme Court of India, Criminal Appellate Jurisdiction
Order Date: 05 October 2026
Case Overview
- Parties: Appellant Dr. G.S.C. Rao versus Respondents Central Bureau of Investigation (CBI) and others.
- Background: An FIR registered in 2018 alleged that Oriental Bank of Commerce (now Punjab National Bank) was duped of Rs 110 crore through fraudulent loan accounts created in the names of fictitious farmers, which turned NPA on 29‑11‑2016.
- The appellant, who was the Chief Executive Officer of an unnamed company, was also a Director of M/s. Simbhaoli Sugars Ltd, through which loans amounting to Rs 150 crore to the fictitious farmers were approved and sanctioned.
- CBI lodged a complaint, searched the appellant’s house and lockers, and seized cash, jewellery and US$9,500. The appellant was directed to furnish security of Rs 1 crore, which he deposited as a fixed deposit.
- The Additional Solicitor General, on behalf of the CBI, informed the Court that the investigation remains incomplete.
Court Reasoning
- The Court observed that the seized movable assets are the appellant’s personal property and there is no allegation that they were derived from the alleged misappropriated amounts.
- It expressed concern that the investigation has been ongoing for an extended period without conclusion.
- Consequently, the Court found no justification for retaining the Rs 1 crore fixed deposit.
Final Outcome
- The impugned order of the Trial Court is set aside.
- The Court directs the Special Judge (Corruption) CBI, Court No.1, Ghaziabad, to release the fixed deposit of Rs 1 crore to the appellant immediately and to cancel any lien recorded on it.
- The appellant is entitled to encash the fixed deposit.
- The appeal is allowed; any pending applications, if any, are rejected.
Topics: Court Order, Banking Fraud, Asset Release