Supreme Court cancels pre-arrest bail to director of firm accused of cheating African country

The accused S Rama Krishna Karuturi, director of M/s Karuturi Global Limited, has not been cooperating with the investigation, the court was told
Lawbeat News Desk | 06 Oct 2023

Supreme Court cancels pre-arrest bail to director of firm accused of cheating African country

Court was told that the accused-director of M/s Karuturi Global Limited had not been cooperating with the investigation

The Supreme Court has cancelled anticipatory bail granted to director of a firm which was accused of defaulting in repayment of US Dollor 6.5 Million loan amount taken by African country, Republic of Djibouti after entering into agreements for development of 15,000 hectares of agriculture lands.

A bench of Justices Aniruddha Bose and Bela M Trivedi has set aside the Delhi High Court's order of March 29, 2023.

The court passed its order on a special leave petition filed by the Government of Republic of Djibouti.

Additional Solicitor General Aishwarya Bhati submitted that accused S Rama Krishna Karuturi, director of M/s Karuturi Global Limited has not been cooperating with the investigation.

"On going through the nature of the allegations and the conduct of the respondent no 2, we do not think respondent no 2 ought to have been favoured with an order for anticipatory bail," the bench said.

The bench, however, granted four weeks’ time to Karuturi to surrender before the appropriate court.

The FIR, in the case, was registered with Delhi Police crime branch in 2018 under Sections 420 and 409 of the IPC on a complaint filed by H E Said Absieh Warsama, Ambassador of Republic of Dijbouti in India. It was alleged that S Rama Krishna Karuturi, the director of M/s Karuturi Global Limited entered into an agreement on September 10, 2011 through its sister concern, M/s Karuturi Overseas Limited, Dubai with the Government of Djibouti.

By virtue of the said agreement, KOL was supposed to provide 10,000 hectares of land in Ehiopia for agricultural purposes. It was further alleged that in the year 2012, KOL entered into a second agreement on February 23, 2012 with the Government of Djibouti for development of 5,000 hectares of land.

It was alleged that in order to assist KOL in performing its obligations, the Central Bank of Djibouti issued bank guarantee in the sum of USD 6.5 Million in favour of Bank of Africa. Accordingly, Bank of Africa issued a loan/credit of USD 6.5 Million to KOL. However, KOL allegedly failed to perform its obligations and repay the said loan. It is alleged that consequently, Bank of Africa insisted that the Government of Djibouti repay the loan amount of USD 6.5 Million.

It was further the case of the complainant that in the year 2013, the applicant issued a letter of 'Acknowledgment of Debt' to pay USD 5 Million along with interest to the Government of Djibouti. It was alleged that the obligations as undertaken by the applicant were not honored and thus, the present FIR came to be registered.

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