Court denies bail to TDP MLC Vakati Narayan Reddy in economic offence case

BENGALURU: The Special Court, constituted exclusively to deal with criminal cases related to the elected MPs/MLAs in Karnataka, has rejected the bail plea of TDP MLC Vakati Narayan Reddy in relation to a economic offence case registered by the CBI. Reddy is also the Managing Director of VNR Infrastructures. The court also rejected the bail plea of V C Ram Mohan, Deputy General Manager of Industrial Finance Corporation of India (IFCI) Ltd, a Government of India undertaking. Ram Mohan is currently under suspension.

According to CBI, on the basis of inflated value of collateral securities furnished by Reddy for the year 2014-15, Ram Mohan, who was then the Deputy General Manager of IFCI Ltd, Bengaluru, had sanctioned/released `190 crore loan amount in favour of VNR Infrastructures. The loan was allegedly not repaid causing wrongful loss to the tune of `205.2cr and corresponding gain for themselves, the CBI alleged.

Special Court Judge B V Patil passed an order rejecting the bail pleas of both the accused. The judge said that there is a genuine case against  Reddy and Ram Mohan who, along with other accused, conspired and got sanctioned/released `190cr to VNR Infrastructures.

There is a huge possibility of Reddy and Ram Mohan tampering with the evidence, when the case is set for further investigation, if they come out from the jail, court said.Reddy had applied for the bail on the grounds that as he is the sitting member of Legislative Council of Andhra Pradesh, he has to attend legislative sessions. Continuous absence would risk his appointment as member of the council. But court opined that no good grounds were made out to grant bail.

On the other hand, Ram Mohan cited medical grounds for bail. For this, the court said best treatment facilities are available both in Jayadeva and Bowring Hospitals, maintained by the government.

Rs 3 crore bribe to sanction loan
According to CBI (Bank Securities and Fraud Cell), Bengaluru, Ram Mohan received over `3 crore as bribe from TDP MLC Vakati Narayan Reddy to sanction the loan. CBI said, a huge amount was transferred Mohan’s and his wife’s bank account. During investigation, Ram Mohan did not come up with a satisfactory explanation about the huge amount to money credited into his account. Hence, the CBI
filed a chargesheet against him.

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