Nearly two years after booking Mumbai-based Lakshan Sarada Textiles & Developers Ltd. in an alleged bank fraud case, the Central Bureau of Investigation (CBI) has closed its investigation after finding no prosecutable evidence.
A Special CBI Court in Lucknow accepted the agency's closure report on September 9, 2024, bringing the criminal proceedings to an end.
How the case began
The case dates back to September 23, 2022, when the CBI registered RC No. 0532022A0005 based on a complaint filed by Santosh Kumar Saraf, then Regional Manager of Bank of India, Lucknow.
The FIR named M/s Lakshan Sarada Textiles & Developers Ltd., Mumbai, along with its directors and unknown persons. The agency booked the accused under Sections 120B (criminal conspiracy), 420 (cheating), 406 and 409 (criminal breach of trust), 467, 468 and 471 (forgery-related offences) of the Indian Penal Code, as well as provisions of the Prevention of Corruption Act.
At the time, the CBI alleged that the company had secured bank credit facilities by submitting false information and forged documents, causing wrongful loss to Bank of India. The FIR also alleged the involvement of unknown public servants in the alleged conspiracy.
The case was widely reported after the CBI conducted searches at multiple locations linked to the company.
What did the CBI find?
Following the registration of the FIR, the CBI carried out a detailed investigation, examining loan records, banking documents, financial transactions and other evidence.
According to the closure report, investigators found that the allegations made in the complaint could not be substantiated.
The investigation did not find evidence that the company had submitted forged or fabricated documents to obtain credit facilities. It also failed to establish criminal conspiracy, cheating, forgery or criminal misconduct by the company's directors or any public servants.
After completing the probe, the agency concluded that there was insufficient evidence to prosecute the accused and filed a closure report before the Special CBI Court on June 25, 2024.
Court accepts closure report
The Special Judge (Prevention of Corruption Act), CBI Court, Lucknow, examined the closure report, case diary and all documents submitted by the investigating agency.
The court observed that the investigation had been conducted properly and that no material had emerged to establish the offences alleged in the FIR. Finding no reason to disagree with the CBI's conclusions, the court accepted the closure report on September 9, 2024, and directed that the case be consigned to the record room after completing the necessary formalities.
What does this mean?
The acceptance of a closure report means that the investigating agency did not find sufficient evidence to file a chargesheet or prosecute the accused. It does not amount to a judicial declaration that the allegations were false; rather, it reflects that the evidence collected during the investigation was inadequate to establish criminal liability.
Unless the closure order is challenged before a higher court or fresh evidence emerges, the criminal proceedings in the case stand concluded.
Timeline
- September 23, 2022: CBI registers FIR (RC No. 0532022A0005) against Lakshan Sarada Textiles & Developers Ltd., its directors and unknown persons on a complaint by Bank of India.
- 2022–2024: CBI investigates the allegations, examines financial records and other evidence.
- June 25, 2024: The agency files a closure report after concluding that the allegations could not be substantiated.
- September 9, 2024: The Special CBI Court accepts the closure report and formally closes the case.
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