- 1 - HC-KAR NC: 2025:KHC-D:10938 CRL.P No. 103303 of 2025 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 29TH DAY OF AUGUST, 2025 BEFORE THE HON'BLE MR. JUSTICE S.VISHWAJITH SHETTY CRIMINAL PETITION NO. 103303 OF 2025 (438(CR.PC)/482(BNSS)) BETWEEN: 1. BASAPPA S/O MALLAPPA MANTUR, AGE. 53 YEARS, OCC. AGRICULTURE, R/O. SHIRAGUPPI, TQ. JAMKHANDI, DIST. BAGALKOT-587 301. 2. SATYAPPA S/O. DEYAPPA B. PATIL, AGE. 53 YEARS, OCC. AGRICULTURE, R/O. MAIGUR, TQ. JAMKHANDI, DIST. BAGALKOT-587 301. … PETITIONERS (BY SRI. A.M. GUNDAWADE, ADVOCATE) AND: STATE OF KARNATAKA, BY STATE PUBLIC PROSECUTOR, HIGH COURT OF KARNATAKA, DHARWAD BENCH AT DHARWAD, THROUGH JAMAKHANDI RURAL POLICE STATION-580 001. … RESPONDENT (BY SMT. KIRTILATA R. PATIL, HCGP) THIS CRIMINAL PETITION IS FILED UNDER SECTION 438 OF CR.P.C. (UNDER SECTION 482 OF BNSS), PRAYING TO PASS AN ORDER, DIRECTING TO RELEASE THE PETITIONERS/ACCUSED NO.1 AND 2 ON ANTICIPATORY BAIL IN THE EVENT OF THEIR ARREST IN THE CASE BEARING JAMKHANDI RURAL P.S. CR.NO.79/2025, FOR THE ALLEGED OFFENCES UNDER SECTIONS 408, 409, 465, 468, 471, 420 OF IPC. THIS PETITION, COMING ON FOR ORDERS THIS DAY, ORDER IS MADE THEREIN AS UNDER: RAKESH S HARIHAR Digitally signed by RAKESH S HARIHAR Location: HIGH COURT OF KARNATAKA DHARWAD BENCH - 2 - HC-KAR NC: 2025:KHC-D:10938 CRL.P No. 103303 of 2025 ORAL ORDER (PER: THE HON'BLE MR. JUSTICE S.VISHWAJITH SHETTY) 1. Accused nos.1 & 2 in Crime No.79/2025 registered by Jamakhandi Police Station, Bagalkot District, for the offences punishable under Sections 408, 409, 465, 468, 471, 420 of IPC, are before this Court under Section 482 of BNSS, 2023, seeking anticipatory bail. 2. Heard the learned Counsel for the parties. 3. FIR in Crime No.79/2025 was registered by Jamakhandi Police Station, Bagalkot District, for the aforesaid offences against the petitioners herein based on the first information dated 30.06.2025 received from G.B.Nyamagoud, Incharge Chief Executive Officer of Primary Agricultural Credit Co-operative Society Ltd., Shiraguppi. Apprehending arrest in the case, petitioners had filed Crl. Misc. No.5147/2025 before the jurisdictional Sessions Court, which was rejected on 07.08.2025. Therefore, they are before this Court. - 3 - HC-KAR NC: 2025:KHC-D:10938 CRL.P No. 103303 of 2025 4. Learned Counsel for the petitioners having reiterated the grounds urged in the petition, submits that there is an inordinate delay in submitting the first information. For extraneous reasons, a false complaint has been made against the petitioners by the present management of the Society. He submits that petitioners have no criminal antecedents and they are ready and willing to cooperate with the police. All the allegations against the petitioners are based on documentary evidence which is in the custody of the Society. Accordingly, he prays to allow the petition. 5. Learned HCGP who has opposed the petition, submits that the allegation against the petitioners is that they have misappropriated more than one crore rupees while they were discharging duty in the Society. Accused nos.1 & 2 have not only availed huge loan in their name, but also have sanctioned loans to their relatives and known persons which could not be recovered. She submits that in the audit report, the alleged misappropriation was found out, and thereafter, in the surcharge proceedings there is a finding against the petitioners. Accordingly, she prays to dismiss the petition. - 4 - HC-KAR NC: 2025:KHC-D:10938 CRL.P No. 103303 of 2025 6. Perusal of the material on record would go to show that accused no.1 was the Chief Executive Officer of the Society and accused no.2 was the Branch Manager of the said Society. The allegation against them is that during the period from 31.03.2022 to 25.07.2023, they have misappropriated amount to the tune of Rs.1,01,01,982/-. Learned HCGP has brought to the notice of this Court that accused nos.1 & 2 had availed huge loan from the bank which is much more than the permissible limit that could have been availed by them and had defaulted in payment of the said loan. Necessary documents is produced in this regard by the learned HCGP. She has also brought to the notice of this Court that in addition, the petitioners have sanctioned loans to their relatives who also have defaulted in repaying the loan. The alleged misappropriation by the petitioners has come to light during the course of subsequent audit of the society and only after the audit report was received, proceedings have been initiated against the accused. Therefore, it cannot be said that there is any delay in initiating the proceedings against the accused in the present case. - 5 - HC-KAR NC: 2025:KHC-D:10938 CRL.P No. 103303 of 2025 7. Perusal of the material on record would go to show that surcharge proceedings under Section 64 of the Karnataka Co- operative Societies Act, 1959, has been initiated against the petitioners and a report adverse to the petitioners has been already filed in the said proceedings, and as per said report, total amount misappropriated is to the tune of Rs.1,96,80,699/-. Petitioners who were occupying responsible post have misused the post and have committed the alleged offences, thereby the public money has been misappropriated. 8. Considering the nature of allegations found against the petitioners, I am of the opinion that custodial interrogation of the petitioners becomes necessary, more so to find out the involvement of others in the alleged crime. Therefore, the petition is liable to be and is accordingly dismissed. Sd/- (S.VISHWAJITH SHETTY) JUDGE KK CT:BCK LIST NO.: 1 SL NO.: 28