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by sayum
01 October 2026 8:21 AM
"We are clear in our minds that the prosecution case set up is fabricated and has no legs to stand." Supreme Court, in a scathing judgment delivered on September 1, 2026, set aside the conviction of a former bank official, declaring that the prosecution’s case was entirely fabricated and lacked any legal standing.
A bench comprising Justice J.B. Pardiwala and Justice K. Vinod Chandran noted that the Central Bureau of Investigation had not only failed to prove its case but had also failed to properly frame the allegations.
Court Raps CBI For Fabricated Prosecution
The case involved an appellant, V. Balakrishnan, who had served as a Branch Manager at the Indian Bank, Anna Nagar Branch, in 1991. He was accused of conspiring with other individuals to sanction loans in favor of domestic help in an attempt to siphon funds. However, the bench observed that the entire premise of the prosecution was based on speculative theories rather than concrete evidence.
Supreme Court Criticizes Lack Of Evidence
The bench emphasized that there was no incriminating material brought forward against the accused to support the charges under Section 420 of the IPC, read with Section 120B of the IPC and Section 13(2) read with 13(1)(d) of the PC Act. The court observed that the lower courts had merely indulged in conjectures, failing to appreciate the lack of evidence regarding the alleged illegal appropriation of funds.
"Real Estate Business Is Not An Illegal Activity"
Justice K. Vinod Chandran, writing for the bench, pointed out that the prosecution’s attempt to paint legitimate real estate transactions as criminal acts was fundamentally flawed. The court observed that the mere assertion that the accused acted as a middleman or purchased properties in the name of others did not establish criminality. The judgment highlighted that witnesses had failed to identify signatures on critical documents, rendering the prosecution’s theory of collusion "inconsequential and irrelevant."
"That, A4 & A5 were domestic helps of A2, that the loans sanctioned were in fact appropriated by A2, that the mortgaged properties were overvalued, that A1 sanctioned the loans illegally are all just figments of imagination."
Proving The Failure Of The Investigating Agency
The court further noted that the loan amounts had long been satisfied, and the properties were auctioned by the bank to recover the dues. The bench expressed strong disapproval of the fact that the bank had retained excess money from the auction proceedings rather than disbursing the surplus to the legal heirs. The court described this behavior as "intriguing" and expressed surprise that no attempt had been made to locate the legal heirs to pass on the residual funds.
Court Orders Accountability From Bank
In a significant move to ensure justice beyond the criminal acquittal, the Supreme Court called for a report from the current Branch Manager of the Indian Bank, Anna Nagar Branch. The bench ordered the bank to produce title deeds and provide a detailed account of the satisfaction of the loans and the utilization of the surplus auction proceeds. The matter has been listed for further perusal on October 5, 2026.
Clean Acquittal Granted To The Appellant
Finding that the entire prosecution case was a "figment of imagination," the Supreme Court granted a clean acquittal to the appellant, V. Balakrishnan. The court ordered that the appellant be released from custody immediately if not required in other matters and directed the cancellation of all existing bail bonds. This ruling underscores the judiciary’s firm stance against state agencies pursuing frivolous or unsubstantiated criminal charges against public servants.
Date of Decision: 01 September 2026
