The High Court has refused to entertain a plea by the accused who managed to get Rs 80 crore in loan for properties that were worth only Rs 12 crore. The HC said that the accused should surrender first before seeking bail. For over a year, T Kanna Rao has allegedly managed to evade the authorities.
T Kanna Rao, the managing director of stock trading company, Sri Krishna Stockist & Traders Pvt Ltd, and other officials of the company, had approached the Bengaluru office of Industrial Finance Corporation of India (IFCI) for a loan. They pledged several properties as collateral.
The authorised evaluators of IFCI, Andhra Pradesh Industrial and Technical Consultancy Organisation Ltd (APITCO), MITCON Consultancy and Engineering Services Limited valued the properties at Rs 257 and Rs 206 crore respectively. Based on these evaluations, IFCI sanctioned a loan of Rs 80 crore in January 2015. The loan was to be repaid in 16 equal quarterly instalments starting from the 27th month of the loan disbursement.
The loan was defaulted upon and was classified under non-performing assets (NPA) by IFCI. It then got the properties offered as security valued again by two more consultancy firms. The first company valued the properties at Rs 14.37 crore and the distress sale value at only Rs 11.05 crore while the second company valued the properties at Rs 28.21 crore.
Rao approached the HC with a petition and his advocate argued that the valuation done by the two companies before the loan was granted was in consonance with law. Rao was not absconding and fleeing from justice, it was claimed.
THREAT TO COUNTRY
The High Court in its judgement rejecting the petition said, “If a lenient view is taken, then people will lose the trust and they will not come forward to invest in such institutions and thereby it is considered to be threat to the financial health of the country.” The HC cited the case of YS Jagan Mohan Reddy Vs CBI to augment this view.
Rejecting the anticipatory bail plea it said, “I am of the considered opinion that the petitioner-accused has not made out any case so as to grant him anticipatory bail, that too when he has remained silent in spite of service of repeated notices by the respondent-CBI.” The HC however said that if he surrenders before the CBI and is arrested, he can seek regular bail from the trial court.