CBI fails to trace accused in 1992 bank fraud case

BENGALURU: In an over three-decade-old case of public servants conniving with private persons to dupe Bank of India of Rs 45 lakh by releasing cash credit facility in the name of three non-existing firms owned by private persons, the CBI has failed to trace an accused and filed an application to withdraw prosecution of Hemanth Phalke, accused No.7, absconding since the case was filed in 1992. Manjunath Sangreshi, Principal Special Judge for CBI Cases, Bengaluru City, on October 6, allowed the application, noting that he is satisfied with the grounds made out by the public prosecutor. The CBI stated that the Centre has accorded it permission to withdraw the prosecution against the accused under Sec 321 of CrPC. The case was registered against KA Hegde, BK Nair, Manjunath Hegde and others. Phalke, was absconding since the time of investigation, and a split-up charge sheet was filed against him in 1996. The CBI stated before the special court that continued efforts to apprehend Phalke remained unsuccessful. Even non-bailable warrants were not executed. The proclamation was also not executed against him, as nothing in his name or belonging to him was found. Therefore, the special court transferred this case to the Long Pending Register (LPR). It was also stated by the CBI that the firm Nandi Trading Company, of which Phalke was shown to be a partner, was found to be bogus, and all its details were found to be fake. Phalke was last known to have stayed in Vasanthnagar, but had left without leaving any trace in 2006. The CBI has stated that the verifications were made with the office of Registrars in Karnataka, Madhya Pradesh and Maharashtra for ascertaining the details of Phalke, in case he indulged in any property transactions; but it did not yield any fruit. In March 2025, the CBI, Bengaluru, constituted a team headed by a DySP to trace the accused, but to no avail. It is stated that searches through Open Source Intelligence and National Intelligence Data Grid with regards to databases of Bureau of Immigration, CBDT, Central of Board of Indirect Taxes and Customs, Financial Intelligence Unit, ministries of Civil Aviation, External Affairs, Railways, Road Transport and Highways, and NCRB, NHAI, National Population Register were made on the basis of name and parentage of Phalke but no data could be found. Further, it is stated in the application that the charge sheet was filed on March 31, 1995, over 30 years ago. Every effort has been made to trace him for this lengthy period, given the lack of results. The remaining accused of the instant case have already been acquitted by the court vide order dated September 27, 2024.