The Bombay High Court quashed a First Information Report (FIR) filed against HDFC Bank’s Head of Retail Assets, Venkatesh Rajan, in a bribery case. The FIR, registered by the Economic Offences Wing (EOW) of Mumbai Police, alleged that Rajan accepted a bribe of ₹30 lakh from a real estate developer, Abhishek Lodha, of Lodha Group, to facilitate a loan of ₹400 crore to a Lodha Group company.
The court found the case lacked sufficient evidence to proceed. Justice Revati Mohite-Dere observed discrepancies in the statements of key witnesses, particularly Abhishek Lodha and his associate, Mahesh Menda. Lodha’s initial statements to the Income Tax Department differed significantly from those given to the police, raising doubts about his credibility. Menda’s statement also lacked corroborative evidence linking Rajan directly to the alleged bribe.
The prosecution’s case heavily relied on intercepted phone conversations between Rajan and Lodha. However, the court determined these conversations, even when considered in their entirety, did not establish a clear quid pro quo – a direct exchange of bribe for favour. The conversations were deemed to be general discussions regarding banking procedures and loan approvals, lacking explicit evidence of a criminal conspiracy.
Furthermore, the court noted that the loan in question was ultimately not disbursed, weakening the argument that Rajan had abused his position to influence the loan approval process. The EOW had alleged that Rajan pressured a bank official to approve the loan despite concerns about the borrower’s financial health.
The court highlighted the importance of protecting the reputations of individuals, especially those in responsible positions, from unsubstantiated allegations. It emphasized that an FIR should not be used as a tool for harassment or to tarnish someone’s image without concrete evidence. The quashing of the FIR effectively clears Rajan of the bribery charges. The court directed the release of any properties seized during the investigation related to Rajan.
