Nabarun Majumdar v. State of Maharashtra 
In the High Court of Bombay
B.A. 1746/2019
Before Justice Sandeep K Shinde
Decided on November 15, 2019

Relevancy of the case: Bail application in a case where a bank was defrauded of ₹2.94 crores

Statutes and Provisions Involved

• The Information Technology Act, 2000 (Section 66D)
• The Indian Penal Code, 1860 (Section 409, 420, 467, 468, 471)

Relevant Facts of the Case

• The applicant worked in the Union Bank of India and was posted in the Digital Banking Department to look after the credit card section.
• The applicant was responsible for credit card operations of the bank by reconciling the debit and credit transaction carried out by the card holders daily.
• As and when the customers paid their dues through a credit card, the payments were regulated and controlled in a centralised cccount through Core Banking Solutions (CBS). 
• It was alleged that, the applicant used to download the payment file from the CBS system and forward it to a third-party service vendor. 
• In doing so, the applicant allegedly inserted one or more “credit entries” against his own account without making actual payment to the bank. 
• It was alleged that, the applicant had defrauded Bank to the extent of Rs. 2,94,15,475/-

Opinion of the Bench

• The Court relied on the case, S. Jagan Mohan Reddy v. Central Bureau of Investigation and observed that the economic offences, having deep-rooted conspiracies and involving huge loss of public funds need to be viewed seriously and considered as grave offences which affect the economy of the country as a whole and thereby pose a serious threat to the financial health of the country. Further, considering the nature of accusations, the evidence, and the effect of economic offences to the financial health of the country, bail cannot be enlarged.

Final Decision

• Bail application rejected.

This case summary has been prepared by Nandini Gadgil, an undergraduate student at DES Shri Navalmal Firodia Law College, Pune, during her internship with The Cyber Blog India in January/February 2021.