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MEMORANDUM OF CRIMINAL PETITION

(Filed under Section.482 of Cr.P.C}

On the file of the Hon'ble VII Additional Metropolitan Magistrate,

Hyderabad

C.C. NO. 199 OF 2017

IN THE HIGH COURT OF FOR THE STATE OF TELANGANA

CRL. [Link]. OF 2019

Between:

Rishabh Jain Sio Ramesh B Jain

Aged about 38yrsOcc: Business
R/o 4th Floor, Eros Theatre Building, [Link] Road
Mumbai - 400 020 ..PETITIONER
ACCUSED 1
VERSUS

[Link] State of Telangana

Represented by the Public Prosecutor
High Court of Telangana
Through SHO,Kanchanbagh, Hyderabad

[Link] Nay Mohanty S/o late DebendranathMohanty

Aged 55 yrs, Addl. General Manager (Purchase)
MIDHANI, Kanchanbagh, Hyderabad
R/o Flat No.403 Prashant Residency
Vinay Nagar Colony, Saidabad, Hyderabad ...RESPONDENTS
COMPLAINANT

PETITION UNDER SECTION 482 OF THE CODE OF CRIMINAL

PROCEDURE, 1973 SEEKING QUASHING OF PROCEEDINGS
BEFORE LEARNED VII ADDITIONAL CHIEF METROPOLITAN
MAGISTRATE AT HYDERABAD, IN [Link]. 199 of 2017 ARISING OUT
OF FIR NO. 54 OF 2017 AND ALL OTHER CONSEQUENTIAL
PROCEEDINGS THERETO, REGISTERED AND INITIATED AGAINST
THE PETITIONER BY THE POLICE STATION, KANCHANBAGH
(HEREINAFTER REFERRED TO AS "FIR"), ON THE DIRECTIONS OF
THE COURT OF VII ACMM, HYDERABADCOURT.

MOST RESPECTFULLY SHOWETH:

1. The address for service of all notices, summons of the above

mentioned Petitioner is that of its Counsel, C. TULASI KRISHNA

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(10738), Apartment No.3, Sri . Nilayam, [Link]. 3-6-369/A/10, Street

No.1, Himayat Nagar, Hyderabad - 500 [Link] instant Memorandum

of Grounds of Criminal Petition is been filed UnderSection 482 of Cr.P.

C seeking quashing of charge sheet in [Link].199 of 2017 on the file

of the court of the Hon'ble VII Additional Metropolitan Magistrate,

Hyderabad.

2. The Hon'ble Court of VII Metropolitan Magistrate, Hyderabad,

has taken on file the above [Link]. 199 of 2017 for offences under
Section 406, 420 r/w Section 34 of IPC.

The petitioner is arrayed as accused No.1.

Brief facts of the case:

1. It is submitted that the 2nd respondent approached the Station

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House Officer, PS Kanchanbagh on 20.02.2015 and filed an FIR under

Section 406, 420, 468, 471 r/w Sec 34 of IPC against the petitioner
and others. The said FIR No.54 of 2015 was registered on 23.02.2015
by the 2nd respondent herein who was then working as Additional
General Manager (Purchase) in Mishra Dhatu Nigam Limited
(MIDHANI) which is a GovernMent of India enterprise.

2. It is submitted that MIDHANI called for a Global Tender for

supply of 1500 Kgs Ferro Tungsten Alloy with an intent to import the
same and M/s Speciality Chemicals UK Limited was adjudged as the
lowest bidder and a Purchase Order was raised on 28.07.2014 on the
said Company by MIDHANI. However, per the terms of the amended
Purchase Order the material was to be sourced from China for
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MIDHANI by way of an amendment dated 04 09.2014, as MIDHANI

had approved the source of material as China by way of email Dated
06.09.2014..

3. It is submitted that the petitioner herein is a business Director

of Mis Speciality Chemicals UK Limited and in due course of its

business had nominated M/s Rishabh Metals & Chemicals Pvt Limited

(an associate concern) for coordination and providing assistance to the

customer MIDHANI. MIDHANI had advised M/s Speciality Chemicals

UK Ltd to dispatch Ferro Tungsten manufactured/ supplied by M/S

Changsha Kangmei (supplier). M/s. Speciality Chemicals UK Ltd

advised the supplier to supply/ dispatch the Ferro tungsten directly to

1CD, Hyderabad, as 'per7the instructions of MIDHANI and accordingly

the goods were dispatched from Xingang Port, China to 1CD,

Hyderabad on 23.10.2014.

4. It is submitted that M/s Speciality Chemicals UK Limited in the

due course of its business made a market query in regard to the

availability and required quality of Ferro Tungsten Alloy for volume of

1500 Kgs for the purpose of procurement for Midhani. The said

market query was responded by M/s. Changsha Kangmei Mining Co.

Ltd. of China who used to supply the said material. It is submitted

that usually whenever chemicals are purchased on the International

Market, a quality specifications from an International Certifying

agency (specialised 3rd party) is the generally accepted norm to assure

maintenance of quality standards. In this case, the International

reputed and accepted agency by name M/s. SGS Ltd. was nominated

to certify the identity and quality of the material. The said services of

quality were duly issued by the agency -SGS [Link] was procured
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from Mfs Changsha Kangmei Mining Co. Ltd., China. The said

material was procured through a Company which is an associate

company of M/s Rishabh Metals & Chemicals Pvt Limited at Mumbai

i.e. M/s Siddharth Carbochem Products Ltd, which was then

nominated to carry out the said transaction as it had spare banking

Letter of Credit facilities available. It is further submitted that under a

High Seas Sale Agreement M/s Speciality Chemicals UK Limited

purchased the said material fi . .om M/s Siddharth Carbochem Products

Ltd. The said arrangement and the procedure being followed by M/s

Speciality Chemicals UK Limited through M/s Siddharth Carbochem

Products Ltd was duly explained to the officials of MIDHANI and were

agreed upon by the parties. It is further submitted that the officials of

MIDHANI were aware that M/s Siddharth Carbochem Products Ltd

was a closely held company for the purpose of better control and

competitive transaction and that the same was intimated to the

officials of MIDHANI.

5. It is submitted that the SGS certification, certifying the

authenticity of the material in the consignment confirming it to be

Ferro Tungsten Alloy was duly received by the Bank of India from the

Chinese Supplier Changsha Kangmei. The Bank of India, then upon

receipt of the payment from Siddharth Carbochem Products Ltd

stamped the said SGS certificate and handed over the same to

Siddharth Carbochem Products Ltd. This document was then

forwarded to M/s Speciality Chemicals UK Limited and was forwarded

to the officials of MIDHANI. It is submitted that the transaction of

procurement of the material was solely based upon certificate of

quality assurance that were issued by SGS China, which is a. reliable

and internationally accepted quality control and assurance agency.

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6. It is respectfully submitted that the shipment was dispatched

from China and arrived in India and was delivered directly to ICD at

Hyderabad by the shipping Line. Neither of the companies Rishabh

Metals and Chemicals Pvt Ltd, Siddharth Carbochem Products Ltd nor

Specialty Chemicals UK Ltd ever handled the product or saw the

product. The material was to be delivered sealed and packed directly

from the supplier (Changsha Kengmei China) to the Customer

(MIDHANI) at ICD Hyderabad. The officials of MIDHANI arrived to take

possession of the shipment and sought to take samples to ascertain

the identity and quality of the material. At this stage the seal of the

material was found broken and the bags appeared to be tampered

with. The representative of Rishabh Metals & Chemicals Pvt Ltd then

requested for photographs of the material and asked MIDHANI not to

take delivery of the material. The photographs of the material were

emailed to Changsha Kengmei, China who replied that the goods do

not seem to be the same which were shipped by them. Upon analysis

of the said sample it was found that the material in the consignment

was not Ferro Tungsten Alloy and was actually Limestone. The

petitioner herein was shocked and surprised to learn that despite

having an international certificate by a reputed agency, the

consignment turned down to be a fake and forged one. The Chinese

supplier suggested theft or tampering in transit. The representative of

Rishabh Metals and Chemicals Pvt Ltd then advised MIDHANI not to

clear the material. It was informed to the MIDHANI that Specialty

Chemicals UK Ltd are a procurement company who had placed an

order from the open market and made payment to the supplier basing

upon the validity of an International approved agency and that they