In Brief
The State of Madhya Pradesh challenged a High Court order that quashed criminal charges against two respondents (brothers) for obtaining fraudulent cash credit facilities from a cooperative bank. The brothers allegedly obtained loans of Rs. 25 lakhs each without proper procedures, mortgages, or documentation, while their father served as Bank President. The Supreme Court held that the allegations, taken together, prima facie constitute offences under Sections 420 and 120-B IPC. The Court found that Section 482 CrPC cannot quash proceedings at pre-trial stage when allegations require court proof. The appeal was allowed and charges reinstated for trial.
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