High Court Quashes Charges Against Advocate - Lack of Concrete Conspiracy in Loan Fraud Case

On 04 Oct. 2023, In a significant legal development, the High Court of Judicature at Allahabad, Lucknow Bench, has quashed charges against Sri Ashok Kumar Garg, an advocate, who had been accused of providing a false opinion in a criminal conspiracy related to a loan fraud case. The judgment, delivered on October 4, 2023, highlights the importance of concrete evidence in establishing a criminal conspiracy.

The case, which revolved around allegations of cheating and criminal breach of trust under Sections 420 and 406 of the Indian Penal Code (IPC), was initiated following a complaint by a Deputy General Manager of the Small Industries Development Bank of India (SIDBI). The complaint alleged that M/s JML Marketing Pvt. Ltd. had obtained a loan from the bank by offering collateral security in the form of property, which could not be legally mortgaged.

The court observed that the charges against Sri Ashok Kumar Garg lacked specific details of a criminal conspiracy involving named individuals. The allegations were described as "bald and omnibus" and did not provide sufficient evidence of the advocate's involvement in a conspiracy. Notably, other valuers who had provided reports to the bank regarding the property's value were not implicated in the case.

The judgment emphasized the need for a clear connection between the accused and a criminal conspiracy, stating, "An offence of conspiracy cannot be deemed to have been established on mere suspicion and surmises or inference which are not supported by cogent and acceptable evidence."

Furthermore, the court cited the principle that the power to quash criminal proceedings should be exercised sparingly and with caution. It noted that the applicant, who was a practicing advocate aged about 71 years, should not be subjected to a trial that would result in an abuse of the legal process.

The decision in this case aligns with previous legal precedents, including CBI v. K. Narayana Rao (2012) 9 SCC 512 and Surendra Nath Pandey v. State of Bihar (2020) 18 SCC 730, which emphasize the need for concrete evidence in establishing criminal conspiracies.

Sri Rishad Murtaza, who represented the applicant, argued that the charges lacked merit, and the court ultimately accepted his arguments. The court's judgment serves as a reminder of the importance of a strong evidentiary foundation when pursuing criminal conspiracy charges.

Date of Decision: 04.10.2023

Sri Ashok Kumar Garg  vs Central Bureau Of Investigation