The Supreme Court has acquitted a jeweler, Nandkumar Babulal Soni, in a decades-old bank fraud case involving Vijaya Bank, pointing out critical flaws in the investigation conducted by the Central Bureau of Investigation (CBI). The court also ordered the return of 205 gold blocks previously seized from Soni, underscoring that the prosecution failed to establish the necessary elements of criminal possession under Section 411 of the Indian Penal Code.
A bench led by Justice Bhushan R Gavai criticized the CBI’s reliance on suspicion rather than concrete evidence to sustain the allegations. The ruling overturns a 2009 Bombay High Court verdict which had convicted Soni for criminal conspiracy and handling stolen property. “The prosecution has to prove its case beyond all reasonable doubts by positively completing the chain of circumstances against the appellant, which the prosecution has utterly failed in the present case,” the Supreme Court bench stated.
The case dates back to a 1997 complaint by Vijaya Bank’s Nashik branch, which reported fraudulent transactions totaling ₹6.70 crore facilitated by fake Telegraphic Transfers (TT) from its Delhi branch. The bank halted further transactions when the fraud was detected, leading to the CBI’s involvement.
During the trial, the prosecution alleged that Soni had dealings with Mukesh Shah of Globe International, who was implicated in the fraud but remains absconded. Despite initial suspicions, the Supreme Court found that there was no evidence to prove Soni had knowledge that the gold bars were procured through fraudulent means or that he was part of the conspiracy to commit fraud.
Justice Prashant Kumar Mishra, part of the bench, expressed surprise over the initial conviction, stating, “It is surprising as to how the appellant (Soni) can be convicted for committing offense under sections 120B and 411 of the IPC. Once the courts below have found that the seized gold bars are not the same gold bars, conviction under sections 120B and 411 of the IPC cannot be sustained.”
The court emphasized that for a conviction under Section 411 IPC, it is essential to prove that the accused knew the property in question was stolen, which was not established in this case. This acquittal not only relieves Soni of the charges but also highlights significant lapses in the investigative processes of high-profile financial crimes.
