The case has been taken up for hearing through video conferencing.

CRM-16573-2021

1. The application is allowed and affidavit of Mr. Dinkar Gupta, IPS, Director General of Police, Punjab, Chandigarh along with Standard Operating Procedure regarding investigation of bank fraud cases filed in compliance with order dated 09.02.2021 is taken on record.

CRM-22327-2021

2. The application is allowed and report filed in compliance of order dated 09.02.2021 along with Standard Operating Procedure regarding investigation of bank fraud cases on behalf of U.T., Chandigarh is taken on record.

CRM-22242-2021

3. The application is allowed and copy of report by way of affidavit of Virender Singh, Superintendent of Police, State Crime Branch, Headquarters, Panchkula along with copy of SOP filed in compliance with order dated 09.02.2021 is taken on record.

4. It is relevant to mention here that this Court had observed in para No.21 of its order dated 09.02.2021 as under:-

“As mentioned above, the Director General of Police, Punjab has already constituted a Committee for drafting SOP for investigation of cases involving Bank frauds. The Director Generals of Police, Haryana and U.T. Chandigarh are also directed to take appropriate steps for preparation of the SOPs for such cases. The Director Generals of Police, Punjab and Haryana and U.T. Chandigarh are directed to ensure that requisite SOPs are prepared and circulated within three months from the date of receipt of copy of this order.”

5. In compliance with directions for preparation and circulation of SOPs within three months from the date of receipt of copy of the order, above said affidavits/reports along with copies of the SOPs have been placed on record.

6. However, tone, tenure and purport of the order have not been understood in the right perspective by the special committee constituted by the Director General of Police, Punjab as the SOP prepared by the committee runs into about 300 pages. It appears that the said SOP has been prepared by compiling and adding to contents copied from various reports/documents available on the internet and the same is definitely valuable informative document but it is difficult to understand how an Investigating Officer deputed to investigate the financial and bank frauds would be able to remember salient procedural aspects of the SOP for compliance during such investigation. It may be observed here that SOP for investigation of designated category of criminal cases prepared earlier in the State of Punjab and also in neighbouring States including National Capital Territory of Delhi do not run into such length of pages. So the SOP prepared by the special committee constituted by the Director General of Police, Punjab will not be a quick handy guiding tool for the Investigating Officers at the time of investigation of the cases for requisite compliance. Therefore, the Director General of Police, Punjab is directed to refer to SOPs prepared and circulated by the Director General of Police, Haryana and the Director General of Police, U.T., Chandigarh or such similar SOPs issued by the Director General of Police of neighbouring States and direct the specially constituted committee to prepare SOP with checklist for the Investigating Officers and circulate the same.

7. So far as the SOP prepared by the Director General of Police, U.T., Chandigarh is concerned, undue emphasis has been placed therein on investigation of the role of the officers/officials of the bank by the Investigating Officers and compliance with the guidelines issued by the RBI and the policies adopted by the banks which matters will generally be covered by internal departmental proceedings, internal audit reports of the concerned banks and, therefore, investigation in this regard will be wastage of the valuable time of the Investigating Officers and will also shift focus and divert the attention to secondary matters instead of focusing and paying attention to the primary matter of investigation into offences of fraud/forgery and collecting valuable evidence in respect thereof. Therefore, the Director General of Police, U.T., Chandigarh is also directed to take appropriate action for review and modification of the SOP prepared.

8. The Director General of Police, Punjab, Haryana and U.T., Chandigarh respectively may also, if so desired, direct concerned committees/officers to have a joint meeting and prepare the concise SOP with common content and specific directions and checklist for the Investigating Officers.

9. The Director General of Police, Punjab, Haryana and U.T., Chandigarh respectively are also directed to evolve appropriate supervisory mechanism for implementation of the SOPs and also review and modification of the same.

10. The Director General of Police, Punjab, Haryana and U.T., Chandigarh respectively are directed to file affidavits giving information regarding following material aspects to this Court before the next date of hearing:-

(i) How many cases involving bank frauds are pending for investigation as on 30.06.2021 and what is the year-wise breakup of such cases

(ii) In the last 10 years ending 30.06.2021 in how many cases involving bank frauds, the accused were acquitted and in how many such cases accused were convicted by the trial Courts

(iii) Whether any study has been made by the concerned state committees into the reasons for acquittal in compliance with order passed by Hon'ble Superme Court in State of Gujarat Vs. Kishanbhai Etc. : 2014(1) R.C.R.(Criminal) 549 and whether any remedial measures have been suggested by the committee

11. The Director Prosecution, Punjab, Haryana and U.T., Chandigarh respectively are also directed to personally look into the matter as to whether any instructions have been issued to the Public Prosecutors for pointing out the defects in the charge-sheets at the time of filing of the same and taking appropriate remedial steps for remedying the same during trial by availing appropriate judicial remedies and whether appropriate training material has been included in their training/refresher courses and they are further directed to file their affidavits in this regard on the next date of hearing.

12. This Court had observed in para No.22 of order dated 09.02.2021 as under:-

“Since substantial number of such cases of Bank frauds in the States of Punjab and Haryana involve execution of mortgage deeds on the basis of forged revenue record or omission/deletion of the relevant entries regarding the earlier encumbrances, the Chief Secretaries, Punjab and Haryana and Home Secretary, U.T. Chandigarh are directed to examine the matter and issue appropriate instructions including instructions regarding production of the original record by the concerned revenue official at the time of registration of the mortgage deed and immediate sanctioning of mutation on the basis of such mortgage deeds. The requisite instructions be issued with in three months from the date of receipt of a copy of this order.”

13. However, the Chief Secretaries, Punjab and Haryana and Home Secretary, U.T., Chandigarh have not filed any report in compliance with the above said order.

14. Learned State Counsel for Punjab and Haryana and learned Additional Public Prosecutor, U.T., Chandigarh seek time for filing of report of the Chief Secretaries, Punjab and Haryana and Home Secretary, U.T., Chandigarh, respectively.

15. Case is adjourned to 12.08.2021.

16. To be shown in the urgent list.

17. Affidavits of the Director General of Police, Punjab, Haryana and U.T., Chandigarh and the Director Prosecution, Punjab, Haryana and U.T., Chandigarh respectively be also filed in the Registry before that date.

18. A copy of this order be supplied to learned State Counsel for Punjab and Haryana and Additional Public Prosecutor for U.T., Chandigarh for ensuring requisite compliance with this order.