In Brief
The Supreme Court allowed the CBI's appeal against the discharge of 13 accused persons charged with criminal conspiracy, cheating, and forgery involving fraudulent misuse of bank facilities. The accused had obtained a One Time Settlement (OTS) with Bank of Baroda after earlier civil proceedings. The trial court had discharged them based on the OTS and alleged absence of forged documents. The Court held that a civil settlement cannot extinguish criminal liability for serious offences. The modus operandi—involving fictitious companies, forged documents, and systematic siphoning of bank funds—constitutes fiscal fraud with immense societal impact, not a private dispute. The Court set aside the discharge orders and directed the trial court to frame charges and proceed with the trial expeditiously.
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