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IN THE COURT OF SHRI DINESH DAYAL

SPECIAL JUDGE: DELHI.

CBI..VSCHANDRASWAMY ETC.

R.C. NO.1 (S)/1990 /CBI/SIG/ND.


CC NO. 146 of 1996.

JUDGMENT.

1. Saint Christopher and Nevis are small Caribbean Islands


having a total population of about 45000 and a total area of
approximately 261 Square Kilometers. Basseterre is the
administrative capital of the Federation of St. Kitts and Navis.
These islands are popularly known as St. Kitts. Late Mr. George
D. McLean was running a financial institution by the name of First
Trust Corporation Limited (FTCL) in St. Kitts.

2. It is alleged that the said bank was closed in the year 1988
and Mr. McLean left St. Kitts. without even paying his telephone
bills and rent etc.

3. It is alleged that during the period November 1988 to


October 1989 Shri P. V. Narasimha Rao was the External Affairs
Minister. Shri K.K. Tewari was Minister of State, External Affairs
Ministry. Accused Shri Chandraswamy was an associate of Shri
P. V. Narasimha Rao and Shri K. N. Aggarwal @ Mamaji was
Private Secretary to Shri Chandraswamy. It is alleged that Shri
K.K. Tewari the then Minister of State for External Affairs
verbally instructed Shri Shashank, the then Joint Secretary (CPV),
Ministry of External Affairs in the last week of November or early
December 1988 to collect the passport particulars of the sons of
Shri Vishwanath Partap Singh (Shri V. P. Singh). Shri K.K.
Tewari further instructed Shri Shashank to collect these particulars
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through telephonic instructions without saying anything in


writing. Accordingly the passport papers of Shri Abheya Singh
and Shri Ajeya Singh, sons of Shri V. P. Singh were collected
from Regional Passport Office, Lucknow and High Commission of
India, London, respectively. These passports were put up by Shri
Shashank before Shri K.K. Tewari and discussed with him. The
original papers of Shri Abheya Singh were returned to the
Regional Passport Office after retaining copies of the same. The
passport papers received from High Commission of India, London
remained in the Ministry till 15.4.89.

4. It is further alleged that the private passport of Shri V.P.


Singh had been deposited by him with Ministry of External Affairs
on 3.2.83 when a diplomatic passport was issued to him. The
same was kept in safe custody by PV-II Section of CPV Division.

5. It is further alleged that in the middle of 1989 accused Shri


Chandraswamy called Shri Arif Mohammad Khan, former
Member of Parliament at his residence and showed him a
document showing the existence of a bank account of Shri Ajeya
Singh in First Trust Corporation Limited, St. Kitts, with signatures
of Shri V. P. Singh as beneficiary. Shri Chandraswamy also told
Shri Arif Mohammad Khan that in case Shri V. P. Singh did not
want it to be made public, he should contact Shri Chandraswamy
accused. This was conveyed to Shri V. P. Singh by Shri Arif
Mohammad. Khan but Shri V. P. Singh declined to meet Shri
Chandraswamy in this connection. It is also alleged that around
the same period Shri Chandraswamy accused told Shri Raj Babbar,
a film actor/politician that Shri V. P. Singh was not an honest
person and the myth need of honesty that Shri Singh had created
for himself was going to be exploded very soon and Shri V. P.
Singh was going to be exposed very shortly.

6. It is also alleged that Shri Larry J. Kolb, who is the son-in-


law of Mr. Adnan Khushogi an international arms dealer managed
to get news item concerning certain allegations against Shri V. P.
Singh published in Arab Times dated 20.8.89 of Kuwait. Adnan
Khushogi is an associate of Shri Chandraswamy. The newspaper
reported that Shri V. P. Singh, Janta Dal Leader deposited US $ 21
millions in a secret bank account no.29479 held in the name of
Shri Ajeya Singh in the Caribbean Island of St. Kitts during his
tenure as Finance Minister in the Rajiv Gandhi Government.
Thereafter news reports were published in various newspaper on
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22.8.89 mentioning that there was a deposit of 21 million US $ in


FIRST TRUST CORPORATION LIMITED, St. Kitts. and the
beneficiary of said account is Shri V. P. Singh. On 24.8.89 The
Telegraph of Calcutta published an interview with George .D.
McLean, Managing Director of FIRST TRUST CORPORATION
LIMITED and also a copy of the statement and withdrawals in the
aforesaid account no.29479. Thereafter on 26.8.89 The
Telegraph further published copy of `Numbered Account
Agreement in respect of the said account allegedly containing the
signatures of Ajeya Singh as the account holder and the signatures
of Shri V. P. Singh as beneficiary. These news items adversely
affected the reputation of Shri V. P. Singh who at the relevant time
was emerging as a strong opposition leader and general elections
were likely to be held in November 1989.

7. It is alleged that after the publication of the said news item,


several directives were issued to Ajeya Singh and he submitted his
replies to the Directorate of Enforcement denying the existence of
any such account in his name with First Trust Corporation
Limited, St. Kitts.

8. It is alleged that while enquiries were being made by


Enforcement Directorate with Shri Ajeya Singh, Shri A. P.
Nanday, Deputy Director, Enforcement was asked to proceed to
St. Kitts. to make enquiries abroad. Shri Nanday was briefed
about assignment and journey by Shri K. L Verma and he was also
asked to meet Shri R. K. Dhawan, the then Officer on Special
Duty in Prime Ministers Office on 26.9.89. Shri A. P. Nanday
left New Delhi on 30.9.89, while Shri Chandraswamy and Shri
K.N. Aggarwal had already left on 22.9.89. Shri Nanday reached
Miami, where he was received by Shri Dev Ketu a disciple of Shri
Chandraswamy. He stayed in Hotel Airport Marriott, where
accused Shri Chandraswamy met him on 1.10.89. The accused
Shri Chandraswamy arranged the visit of Shri A. P. Nanday to St.
Kitts. in a chartered plane through Larry J. Kolb. Shri Nanday
accompanied by Shri K.N. Aggarwal, Shri Dev Ketu and Mr.
Larry .J. Kolb visited St. Kitts. in a private plane on 2.10.89 and
made enquiries and obtained letters from Mr. T. V. Byron the
nominee Director and Solicitor of FIRST TRUST
CORPORATION LIMITED and Ms. Anne Salvessen, the then
Secretary/Executive Assistant to George D. McLean and they
returned to Miami on 2.10.89 itself. On 3.10.89 Shri Nanday
along with Shri Dev Ketu went to New York and from there to
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Stamford, Connecticut. It is alleged that on 3.10.89 accused


contacted Shri P. V. Narasimha Rao who was staying in Hotel
United Nations Plaza over and telephone and informed him that
certain documents as collected by Shri A. P. Nanday should be got
attested through Consulate General of India, New York.
Thereafter on 4.10.89 Shri P. V. Narasimha Rao called Shri R.K.
Rai, Consul General of India in his hotel room and asked him to
personally attest the documents and further directed not to tell the
Ambassador Dr. Karan Singh about it. It is alleged that Shri P. V.
Narasimha Rao also enquired from Shri Prakash Shah, the
Additional Secretary, Ministry of External Affairs, who was
camping in New York about the mission, which was accredited to
St. Kitts. On coming to know that it was under the jurisdiction of
High Commission of India at Port of Spain. Shri Narasimha Rao
further told Shri Prakash Shah that some official documents would
be sent by Indian Consulate Office, New York through Indian
embassy to Indian High Commission at Trinidad for taking urgent
action and asked him to talk to Shri Shiv Kumar, the then High
Commissioner at Port of Spain and to get the action in the matter
expedited. He also told Shri Prakash Shah that Shri A.P Nanday
will be meeting him in this connection.

9. It is further alleged that on 4.10.89 photo copies of


`Numbered Account Agreement bearing no.29479 in the name of
Shri Ajeya Singh showing Shri V. P. Singh as the beneficiary and
`Safe Keeping Agreement of FIRST TRUST CORPORATION
LIMITED, St. Kitts, in the name of Shri Ajeya Singh and showing
Shri V. P. Singh as final beneficiary `deposit forms and
`instructions for withdrawal forms, `photo copies of statements of
accounts and `one statement of account in original of the said
account were handed over by George D. McLean to Shri A. P.
Nanday . In the account shown to have been opened on 16.9.86
total deposits of US $ 21 Million were made and the Account was
closed on 13.2.88 by its subsequent withdrawals on different
dates. On the aforesaid documents, the signatures of George D.
McLean were attested by Shri R. K. Rai, the then Consul General
of India.

10.. It is, further, alleged that the signatures of Shri Ajeya Singh
and Shri V. P. Singh on these documents were not genuine and
had been forged by using their signatures on their passport
applications as a model.
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11.The CBI had sent up Shri Chandraswamy, Shri K.N. Aggarwal,


Shri P.V. Narasimha Rao and Shri K.K. Tewari for trial. Shri P.V.
Narasimha Rao and Shri K.K Tewari were discharged by this court
vide order dated 4.6.97. Shri K. L. Verma, Shri Larry J. Kolb, Shri
A. P. Nanday and Shri George D. McLean were shown in Column
no.2 of the charge sheet as Shri A. P. Nanday and Shri George D.
McLean had died before filing of the charge sheet. Shri K.K.
Tewari and Shri Larry J. Kolb were not arrested by the C.B.I. and
have not been summoned for trial before this court.

12. Shri K.N. Aggarwal @ Mamaji died on 31.8.2004. The


only accused left before this court is Shri Chandraswamy @ Nemi
Chand Jain.

13. The charges framed by this court against Shri


Chandraswamy and Shri K.N. Aggarwal are Under Sections120-B
IPC read with Section 195 and 461 IPC read with 471 IPC.

14. Prosecution has examined 41 witnesses.

15. Accused has been examined U/s.313 Cr. P. C.

16. I have heard Learned Special Public Prosecutor for C.B.I.


and Shri Rajinder Singh, Learned Senior Advocate for accused
Shri Chandraswamy.

17 Shri N.K. Sharma, Learned Special Public Prosecutor has


argued that the forged documents are the `Numbered Account
Agreement Ex.P.W.16/C, the `Safe Keeping Agreement
Ex.P.W.16/D, `Withdrawal Slips Ex.P.W.16/E1 to E9, `Deposit
Forms Ex.P.W.16/F1 to F6 and the documents showing position
of credit balance Ex.P.W.16/G1 to G3. PW16 Shri Ajeya Singh
and PW19 Shri V.P. Singh have denied their signatures on the
`Numbered Account Agreement and the `Safe Keeping
Agreement. They have denied any connection with the account
in the FIRST TRUST CORPORATION LIMITED and this proves
that the documents are forged. These documents were also sent to
the handwriting expert at CFSL for comparison of the signatures
and writings of Shri Ajeya Singh and Shri V.P. Singh. The report
Ex.P.W.22/A of Shri T.R. Nehra proves that they do not bear the
signatures of Shri Ajeya Singh and Shri V.P. Singh.
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18. Learned Special Public Prosecutor further argued that PW12


Shri Suresh Chander Gupta was posted as Second Secretary in
Trinidad at Port of Spain. Shri Shiv Kumar, PW14 was the Indian
High Commissioner at Port of Spain. Shri Suresh Chander Gupta
has stated that he had visited St. Kitts. on 11.10.89 in connection
with the case of Shri Ajeya Singh. His instructions were to
procure the letters from Prime Minister of St. Kitts. and to convey
the contents thereof telephonically to High Commissioner Shri
Shiv Kumar and to Shri S. K. Singh, Foreign Secretary or Shri
Prakash Shah, the then Additional Secretary, Ministry of External
Affairs , Government of India. The Prima Minister of St. Kitts.
told him that there was no letter to be given in context of the
alleged account of Shri Ajeya Singh, son of Shri V. P. Singh in the
bank at St. Kitts. The Prime Minister, of St. Kitts. asked him as to
who was Chandraswamy and what post he was holding with the
Government of India. He replied that to the best of his knowledge
Shri Chandraswamy was not holding any post with the
Government of India. Learned Public Prosecutor has drawn my
attention to the statement of Shri Suresh Chander Gupta that on
12.10.89 Larry J. Kolb sent a long telex message asking mainly
about two things, firstly why Suresh Chander Gupta has not met
him, Shri K.N. Aggarwal and Shri Chandraswamy. He has
proved this telex message Ex.P.W.12/D, which is in five sheets.
He has stated that on 12.10.89 he received telephone call from
Larry J. Kolb. During this conversation Larry J. Kolb became
furious and enquired why he had not met him during his visit to St.
Kitts. On the same day, Shri K.N. Aggarwal telephoned him at
3.00 P.M. and told him that he was speaking from the room of Shri
P.V. Narasimha Rao, the then Minister of External Affairs. When
he asked about the status of Shri K.N. Aggarwal, Mr. Aggarwal
told him that he was popularly known as `Mamaji. Thereafter
Shri K. N. Aggarwal dictated to him a message which was
supposed to be sent to the Prime Minister of St. Kitts. Learned
Special Public Prosecutor pointed out that this statement of Suresh
Chander Gupta shows the involvement of accused Chandraswamy.
He, however, submitted that the travel documents of accused Shri
Chandraswamy do not show that he had traveled to St. Kitts.

19. Learned Special Public Prosecutor has drawn my attention


to the statement of Shri Shiv Kumar, PW14 Indian High
Commissioner, Trinidad who had stated that on 6.10.89 Shri K.N.
Aggarwal had called him on telephone in connection with this
case and asked him to assist in the investigation of this case. On
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the same day i.e. 6.10..89. he got a message through Shri A.P.
Nanday by fax. Shri A. P. Nanday told him that Mr. Larry J. Kolb
would call him regarding the case and that he should try to
coordinate with him. He also told this witness that Mr. Larry J.
Kolb was a friend of the then Prime Minister Shri Rajiv Gandhi.
Learned Special Public Prosecutor has pointed out that Shri K.N.
Aggarwal was Secretary of Shri Chandraswamy and from the
statement of Shri Shiv Kumar, it is apparent that they were playing
active role. Learned .Special Public Prosecutor pointed out that
the two other important witnesses namely Shri A. P. Nanday and
Shri HC Nahata have died, while Shri Raj Babbar, PW34 has not
supported the prosecution case.

20. Shri Rajinder Singh appearing for the accused Shri


Chandraswamy has argued that there is no evidence at all against
the accused and prayed for his acquittal.

21. Prosecution case as is revealed from the evidence produced


during the trial is that on 20.8.89 Arab Times (A Kuwaiti
Newspaper) carried a news item which was followed by almost all
the newspapers in India on 22.8.89 reporting that an account was
maintained in St. Kitts. by Shri Ajeya Singh, son of Shri V. P.
Singh. It was reported that the deposits amounting to US $ 21
millions were made in this account, which were subsequently
withdrawn. On 24.8.89 The Telegraph also published an
interview with George D. McLean , Managing Director , FIRST
TRUST CORPORATION LIMITED as also a copy of the
statement of deposits and withdrawal in the aforesaid account. On
26.8.89 The Telegraph published a Zerox copy of the
`Numbered Account Agreement in respect of the said account no.
29479, which contained signatures purportedly of Shri Ajeya
Singh (account holder) and also of Shri V. P. Singh as the
beneficiary. This issue continued to be covered from time to time
in different newspapers.

22 On 20.8.89 The Indian Express (copy of which is


Ex.P.W.7/A) also published a news item, which is marked as
P.W.7/D , wherein it was reported that there was a conspiracy to
malign and defame Shri V. P. Singh and investigations were
being done with respect to accounts of his sons, who lived abroad.
Efforts were being made to put some money in the account opened
in Shri V. P. Singhs name and to transfer the same into the
account of his sons. Thereafter a telegram Ex.P.W.10/A
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purportedly given by one Amarjit Singh from Norway was


received in the Directorate of Enforcement that some drama was
being enacted by opposition in the parliament i.e. shameful. We
are not aware because their leader Shri V. P. Singh, had
transactions worth 7.32 million US Dollars in a Swiss Bank and
that Mr. Amarjit Singh had proof of all these transactions.

23. PW.32 Shri K.L. Verma who was the Director in the
Directorate of Enforcement had received this telegram in office
on 25.8.89. It was marked to him from the Office of Finance
Secretary, Government of India. Shri Gopi Arora (PW10) had
marked this telegram to him. The matter was discussed by Shri K.
L. Verma with Shri Gopi Arora. PW10 directed PW32 to keep a
watch, but no action was proposed at the initial stage. Around
12/13.9.89 there was a news item in the local press indicating that
Shri Ajeya Singh had arrived in India. Thereafter P.W.32 K.L.
Verma received telephonic call from Shri R. K. Dhawan, the then
Additional Secretary in Prime Ministers Office for enquiring
whether the Directorate had started any investigation into the
matter relating to alleged bank account of Shri Ajeya Singh. P.W.
32 Shri K.L. Verma then informed Shri R. K. Dhawan that so far
no enquiry had been initiated. Shri Edwardo Faleiro the then
Minister of State ( Finance) also made enquiry from P.W.32
about the investigation in the matter. In September 1989 Shri
Gopi Arora had called P.W.32 Shri K.L. Verma to his office and
after discussions directive U/s. 33(2) FERA was issued to Shri
Ajeya Singh. Shri. Arun Kumar Sharma, PW 2, Chief
Enforcement Officer served the directive on Shri Ajay Singh. The
reply received from Shri Ajeya Singh was found to be incomplete
and he was required to furnish more and complete details. This
matter was discussed on various occasions by P.W.32 K.L. Verma
with Shri Gopi Arora PW10 and Shri Edwardo Faleiro.

24. P.W.32 Shri K.L. Verma has stated that Shri Edwardo
Faleiro desired that while the matter was being perused with Shri
Ajeya Singh , one or two officers of the Director of Enforcement
be sent to St. Kitts for knowing the truth regarding the alleged
bank account of Shri Ajeya Singh . PW32 Shri K.L. Verma had
sounded Shri S. P. Pundir Ranjan and Shri L.K. Singhvi, Special
Directors and they were ready to go to St. Kitts They were told to
get their official passports and visas ready. He forwarded their
applications to Ministry of External Affairs for the said purpose
and thereafter he decided to send Mr. A. P. Nanday (deceased) to
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St. Kitts. as Mr. Nanday was in-charge of Delhi Zone. Shri


Nanday returned back to India on 9.10.89 and submitted his report
including documents and statements to P.W.32. Shri A.P. Nanday
also informed Shri K.L. Verma that he had been able to contact the
relevant people with the help of one Shri Larry J. Kolb , Shri K.N.
Aggarwal (Mamaji) and Shri Chandraswamy. Shri Nanday also
submitted a letter Ex.P.W.4/A informing about the details.

25. The story which emerged from the investigations done by


Shri A.P. Nanday in St. Kitts. and documents obtained by him was
placed before both Houses of Parliament by the Minister of State
for Finance Shri Edwardo Faleiro , PW31. The story which
emerged was that Mr. George D. McLean was the Managing
Director of FIRST TRUST CORPORATION LIMITED , St. Kitts.
In the later part of 1986, a man of 25 years approached him
allegedly on behalf of a member of his family for opening a
numbered account in the said Corporation. The FIRST TRUST
CORPORATION LIMITED had offered a special investment
programme for Indian Nationals and others. This programme was
offered in the wake of restrictions imposed on Indians by several
countries in taking out funds they had earned and banked in the
countries, where they were residing. The funds deposited with the
FIRST TRUST CORPORATION LIMITED were to be utelised by
the foreign companies which will compensate them outside the
country in US Dollars. The person who approached Mr. George
D. McLean had indicated that considerable amount of money in
US Dollars will be put in the proposed numbered account.
However, the money was to be deposited not for a specified period
of time, but was to be kept on call so that any or all of it could be
paid out within a weeks notice. The interest rate of such a deposit
was to be of the order of 8 per cent per annum calculated on a
month to month basis. The confidentiality of this account was
assured. The person who had approached Mr. George D. McLean
was told to bring from the person seeking to open the account a
five digit number for the account and then he had to devise
method of signing those members so that they could be
recognizable by the owner of the funds and Mr. George McLean
being the Managing Director of the FIRST TRUST
CORPORATION LIMITED. The required forms were given to
the concerned person, who stated that he would have them signed
and give back within a couple of weeks.
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26 Approximately two weeks later the person who had seen


Mr. George McLean returned on a week end and met Mr. George
McLean at home and presented him with complete forms. Two
completed forms were brought which were duly signed by Shri
Ajeya Singh as the account holder and Shri Vishwanath Pratap
Singh as beneficiary. It was stated that investigation has
revealed that the names of Shri Ajeya Singh and Shri V. P. Singh
on the two forms were written by Mr. George D. McLean and Shri
V. P. Singh had signed on the forms where Mr. George D. McLean
had put an satiric marks. These two forms are Numbered
Account Agreement Ex.P.W.16/C and Safe Keeping Agreement
Ex.P.W.16/D. Mr. George D. McLean had also given photo copy
of passport of Shri Ajeya Singh and Shri V. P. Singh. The
passport of Shri Ajeya Singh was issued at New York on 3.6.86,
whereas the Passport of Shri V. P. Singh was issued at Delhi on
5.6.1978. It is alleged that on 16.9.1986 when the Account no.
29479 was opened, an amount of 2 million US Dollars was
deposited in cash by the person, who had brought the forms.
Subsequent deposits were made vide deposit forms, copies of
which have been proved vide Ex.P.W.16/F1 to F6. It was also
revealed that the entire amount was withdrawn through
withdrawal slips, copies of which are Ex.P.W.16/E1 to E9 and
the account was automatically closed due to withdrawal of the
entire amount.

27. PW26 Shri Shashank was working as Joint secretary, CPV


and Chief Passport Officer. Shri P.V. Narasimha Rao was the
External Affairs Minister in 1988-89 and Shri K.K. Tewari was
Minister of State for External Affairs. The evidence of PW26 Shri
Shashank and PW25 Shri P.L. Sinai shows that somewhere in
November and December 1988 Shri K.K. Tewari had called Shri
Shashank in his office and wanted the particulars of the passport
of the sons of Shri V.P. Singh. He asked Shri Shashank to collect
the information on telephone from the concerned quarters and did
not want him to send a communication in writing. Shri K.K.
Tewari directed Shri Shashank to do this personally. He had also
told Shri Shashank that such information could be collected from
passport office in Delhi or from the Missions in Washington or
London. PW26 Shashank spoke on this subject with Councilors
Officers in London and Washington and also Regional Passport
Officers, Delhi and Lucknow. The Passport Officer from Lucknow
sent him a letter, on which he made his endorsements
Ex.P.W.26/A and Ex.P.W.26/B. Initially, the Regional Passport
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Office, Delhi gave a negative report about the passport particulars


of Shri Ajeya Singh and Abhey Singh, sons of Shri V.P. Singh.
Later on, Regional Passport Officer had informed that Shri Abhey
Singh had applied for some additional visa sheets and change of
profession from student to doctor.

28. PW23 Shri Gyan Singh Mundari had stated that he was
working as assistant in PV-II Section of Ministry of External
Affairs. He was in-charge of safe custody of passports. A person
can possess only one passport at a time. Holder of a private
passport is required to surrender private passport in PV-II Section,
if he applies for diplomatic passport or official passport. Such
surrendered passports are kept in safe custody. The surrender of
such passport is entered in safe custody register in which a serial
number of surrendered passport is given. Such number is reflected
on the surrendered passport. The register is maintained calendar
year-wise, separately for private passport, official passport and
diplomatic passport. The private passport No. N.090997 dated
15.6.78 is in the name of Shri Vishwanath Partap Singh and the
same is Ex.P.W.19/A. This was kept in safe custody and serial
no.158 of 1983 was given in the register. The safe custody
register having this entry vide Ex.P.w.23/D is also proved by this
witness. This witness has also stated that this file shows that
passport of Shri V.P. Singh was requisitioned by Shri Diwakar
Prasasd , DIG of CBI on 21.11.88 and returned to PV II Section on
22.11.88. The requisition is contained in Ex.P.w.24/A and the
return is contained in ex.P.W.24/E. From the evidence of PW26
Shri Shashank, it also appears that the photo copy of the papers
relating to the passport of Shri Ajeya Singh were received by him
from the High Commission of India under the signatures of Shri R.
P. Joshi vide letter Ex.P.W.21/A . He left the documents in the
office of Shri P.L. Sinai (PW25) and he got them back under the
signatures of Shri I.P. Khosla, PW20 vide his note Ex.P.W.20/A.

29. This entire evidence was produced by the prosecution to


show that the photo copies of the passport of Shri V.P. Singh
Ex.P.W.30/H and the passport of Shri Ajeya Singh Ex.P.W.30/I
were obtained by getting the passports from the CPV Section and
from the Indian High Commission at London. This evidence also
shows that Shri V.P. Singh could not have given a copy of his
passport for opening of the numbered account because his
passport had been lying in safe custody since 1983. It also shows
that the copy of the passport of Shri V.P. Singh got attested by
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Shri Nanday had been made from the passport which had been
kept in safe custody as it bears the number of the safe custody
register 158/83. In the absence of the evidence of Shri A.P.
Nanday there is no evidence as to how these copies of the
passports of Shri V.P. Singh and Shri Ajeya Singh came to Shri
A.P. Nanday.

30. The evidence of Shri Ajeya Singh PW16, Shri V. P. Singh


PW19 and Shri T. R. Nehra PW22 proves the fact that the
`Numbered Account Agreement Ex.P.W.16/C and the `Safe
Keeping Agreement Ex.P.W.16/D do not bear the signatures of
Shri Ajeya Singh and Shri V.P. Singh. Similarly, the `withdrawal
slips Ex.P.W.16/E1 to Ex.P.W.16/E9 and `deposit forms
Ex.P.W.16/F1 to Ex.P.W.16/F6 do not bear the writings and
signatures of Shri Ajeya Singh or Shri V. P. Singh.

31. Investigation was directed to find out if the forged


signatures on the `Numbered Account Agreement and `Safe
keeping Agreement were made by using the signatures on the
passport as a model, but it was found that the signatures of Shri
V.P. Singh on the `Numbered Account Agreement Ex.P.W.16/C
are in Hindi, whereas the signatures on the passport are in English.
It could also not establish that the signatures of Shri Ajeya Singh
on the passport were used as a model for forging the signatures on
the `Numbered Account Agreement Ex.P.W.16/C and `Safe
Keeping Agreement Ex.P.W.16/D.

32. Shri A.P. Nanday was deputed to obtain these documents


from Shri George .D. McLean and to get them attested from the
Consul General of India in USA. Since Shri A.P. Nanday died
before he could be examined in the court, his son Shri Amit
Nanday PW4 was examined. He has stated that on 29.9.89 his
father had gone to Miami on duty. On 2.10.89 he received 2-3
telephone calls from his father from Miami. In the said calls, his
father expressed his fear about his well being and told him to look
after his sister and family as his father was not sure whether or not
he would come back alive to India. Shri Amit Nanday proved the
letters Ex.P.W.4/A and the written notes Ex.P.W.4/B1 to
Ex.P.W.4/B5, which are in the handwriting of Shri A.P. Nanday.
He also stated that his father had made his statement U/s.164 Cr.
P. C. before the Magistrate. Copy of which is Ex.P.W.4/C.
13

33. From the evidence of Shri K.L. Verma PW32 we are know
that Shri A.P. Nanday was deputed to make enquiries into the
matter of the numbered account of Shri Ajeya Singh.

34. PW5 Shri Rahul Dev Burman, Assistant Manager, Air India
was looking after the booking of Government officials. He has
stated that air tickets were booked for Shri A.P. Nanday through
his office. The request was made by Shri K.L. Verma.

35. PW8 Shri R.K. Sharma was called by Shri K.L. Verma to
his office on 20.9.89 and was directed to pick up Shri A.P. Nanday
from his residence in the same evening and drop him at Airport,
because Mr. Nanday was supposed to leave for London and St.
Kitts. He had picked Mr. Nanday and dropped him at the airport
at around 11.00 PM.

36. Shri N.K. Sengupta, Secretary (Revenue) had granted the


approval for the tour of Shri A.P. Nanday.

37. Shri Shiv Kumar PW14 was posted as High Commissioner


at Trinidad and Tobago in October 1989. He got a message that
Shri Prakash Shah, Additional Secretary, Ministry of External
Affairs was trying to contact him. Later when he talked to Prakash
Shah, he was told that one Shri A.P. Nanday from Enforcement
Directorate would send a message relating a case and he should
assist Mr. Nanday in his efforts as the case related to St. Kitts. On
6.10.89 he got a fax message from Shri A.P. Nanday. Shri Nanday
also called him on telephone and told him that Mr. Larry J. Kolb
would call him regarding the case and he should try to coordinate
with Larry J. Kolb. Mr. Nanday told that Larry J. Kolb was the
friend of the then Prime Minister Mr. Rajiv Gandhi. On 9.10.89 he
got a call from Additional Secretary, Ministry of External Affairs
and he was told to go to St. Kitts. or depute some other officer in
order to obtain a letter from the Government of St. Kitts relating to
the investigation into the case. He had deputed Shri Suresh
Chander Gupta, Second Secretary in the High Commission to visit
St. Kitts. Later Shri Suresh Chander Gupta told him that he had
gone St. Kitts., but there was no occasion from the Government of
St. Kitts.

38. PW30 Shri Deepak Sen Gupta was posted as Deputy


Council General at New York. He was for sometime In-charge of
the Counselors Affairs. Shri R.K. Rai was Council General in
14

1989. On 4.10.89 the Council General called him to his office and
introduced him to Shri. Nanday, who was Deputy Director on
deputation from New Delhi. On that day Shri. Rai himself
attested some documents submitted by Shri Nanday. As Shri. Rai
was leaving on tour on the same evening, he asked him to attest
the documents. .On 5.10.89 Shri Nanday came to the office with
some more documents for attestation. There were two statements
which Shri. Nanday had brought, one was of Mr. George D.
McLean. The statement is Ex.P.W.30/A, which runs into four
sheets and bears the signatures of Mr. George D. McLean. Mr.
Nanday told him that these are the signatures of Mr. George D
McLean and it had been signed before Shri. A. P. Nanday. Since
he had no reason to doubt, he attested the same. The other
statement was of Mr. Alen E. Tonks, which is Ex.P.W.30/D. It is
also signed by Shri Nanday as Ex.P.W.30/E and had been attested
by this witness. Besides the above two statements, Shri. Nanday
brought the copy of passport No. B-172230 of Shri Ajeya Singh.
Copy of the passport is Ex.P.W.16/I. It is in two sheets and bears
the signatures of Mr. George D. McLean on both sheets. It was
attested by him under his seal and signatures. Shri A. P. Nanday
also brought photo copy of passport No. N-090997, of Shri V. P.
Singh. Copy of the passport is Ex.P.W.30/H, which is in two
sheets. Both the sheets bear the signatures of Mr. George D.
McLean and also attested by this witness under the seal of his
office. He has also proved the register of the Council General
Office. The attestation number of the documents, attested by him,
is Ex.P.W.30/C.

39. PW33 Shri R. K. Rai has corroborated the version given by


PW30 and has stated that the documents Ex.P.W.16/C,
Ex.P.W.16/D, Ex.P.W.16/E1 to Ex.P.W.16/E9, Ex.P.W.16/F1 to
Ex.P.W.16/F6, and Ex.P.W.16/G1 to Ex.P.W.16/G5 were attested
by him.

40. The entire mischief of this case lay in the attestation of the
forged documents by the Indian Counsel. The unmindful act of
P.W.30 Deepak Sen Gupta and P.W.33 Shri R.K. Rai in attesting
the documents without following the proper procedures could
have had far reaching consequences and effected the entire
political scene. PW30 Deepak Sen Gupta attested two statements
of persons, who never appeared before him to make those
statements. Shri R.K. Rai attested copies of documents without
having seen the original documents. The power of attestation is
15

given to responsible senior officers who are supposed to exercise


the same with due care and caution. PW30 Shri Deepak Sen
Gupta and PW.33 Shri R.K. Rai attested documents under the seal
of the Council General of India in contravention of all established
norms. The attestation of statements by PW30 Shri Deepak Sen
Gupta meant that anyone before whom those statements were
produced would believe that the statements had been made before
P.W.30 Shri Deepak Sen Gupta. The authenticity of the statement
was proved because of the attestation made by P.W.30 Deepak
Sen Gupta. Similarly the attestation of documents by these two
witnesses meant that they were satisfied about the genuineness of
these documents after having seen the original documents. This
attestation could not have been made by these witnesses without
having seen the original documents which admittedly were never
produced before them. The false attestation of these documents by
such senior officers resulted in giving a colour of authenticity to
the whole story. We now know that the documents were forged
and the statements were false. The explanation given by Shri R.K.
Rai that he was asked to attest the documents which will be
brought by Shri A.P Nanday does not show that he had been
directed to make the attestation mindlessly.

41. The evidence against the only surviving accused Shri


Chandraswamy is contained only in the statement of PW12 Suresh
Chander Gupta, who has stated that he had gone to St. Kitts and
met the Prime Minister of St. Kitts. The Prime Minister asked him
as to who was Chandraswamy, and what post he was holding with
the Govt. of India. Further, the evidence of Shri Arif Mohd. Khan,
PW18 shows that he had received a call from Chandraswamy
accused. Chandraswamy showed him a paper which was printed
and appeared some bank account in the name of Shri Ajeya Singh,
S/o Shri V.P. Singh. Name of the place and the bank mentioned
on the printed paper shown by accused Shri Chandraswamy was
St. Kitts. He asked the permission of accused Shri Chandraswamy
to give the information about the said paper to Shri V. P. Singh.
Initially Shri Chandraswamy was reluctant, but then he agreed and
allowed Shri Arif Mohd. Khan to note down the details from that
paper. He later on handed over that paper to Shri V. P. Singh.
The other witness with whom Shri Chandraswamy had talked
about Shri V. P. Singh is Shri Raj Babbar, PW34. From his
statement, it appears that accused Chandraswamy had told Mr. Raj
Babbar that Shri V.P. Singh was not an honest person.
16

42. It appears from the evidence of Shri V.P. Singh that Shri
Arif Mohd. Khan had told him about his talks with Shri
Chandraswamy, but Shri V. P. Singh did not pay much heed to the
same and refused to meet Shri Chandraswamy. The evidence thus
only shows that at that particular time Shri Chandraswamy did not
think highly of Shri V. P. Singh. The question which was raised
by the Prime Minister of St. Kitts to PW Suresh Chander Gupta,
PW12 does not show that the accused Shri Chandraswamy was in
any manner instrumental in arranging the fictitious document or
was a part of the conspiracy. The question posed by Prime
Minister of St. Kitts may or may not have been related to this
transaction. He may have heard of Chandraswamy in any context
and may have raised the question when he met Shri Suresh
Chander Gupta.

43. The charges against the accused Shri Chandraswamy are of


Conspiracy. The essential ingredient of the offence of `Criminal
Conspiracy is the agreement to commit an offence. In a case In a
case where the agreement is for the accomplishment of an act
which by itself constitutes an offence , then in that event no overt
act is necessary to be proved by the prosecution because in such a
fact situation `Criminal Conspiracy is established by proving such
an agreement. In other words, where the conspiracy alleged is with
regard to commission of a serious crime of the nature as
contemplated in Sec. 120B read with sub section (2) of section
120A, then in that event mere proof of an agreement between the
accused for for commission of such a crime alone is enough to
bring about a conviction under section 120B and the proof of any
overt act by the accused or by any one of them would not be
necessary. The provisions in such a situation do not require that
each and every person who is a party to the conspiracy must do
some overt act towards the fulfillment of the object of conspiracy,
the essential ingredient being an agreement between the
conspirators to commit the crime and if these requirements and
ingredients are established, the act would fall within the trappings
of the provisions contained in Sec. 120B, since from its very
nature a conspiracy must be conceived and hatched in complete
secrecy, because otherwise the whole purpose may frustrate and it
is common experience and goes without saying that only in very
rare cases one may come across direct evidence of a criminal
conspiracy to commit any crime and in most of the cases it is only
the circumstantial evidence which is available from which an
inference giving rise to conclusion of an agreement between two
17

or more persons to commit an offence mat be legitimately drawn.


Suresh Chandra Bahri Vs. State of Bihar AIR 1994 SC 2420

44. In this case there is no direct evidence of the involvement of


the accused Shri Chandraswamy in the conspiracy. It is true that it
is difficult to support the charge of conspiracy with direct
evidence in every case but if the prosecution relies upon
circumstantial evidence, a clear link has to be established and the
chain has to be completed, otherwise it would indeed be hazardous
to except a part of the link as a complete one and on the basis of
such incomplete evidence, the allegations of conspiracy can not be
accepted. Param Hans Yadav and Sadanad Tripathi Vs. State
of Bihar AIR 1987 SC 955. In the absence of the evidence of Shri
A.P. Nanday it can not be said that the accused Shri
Chandraswamy had provided any assistance to him in going to St.
Kitts from Miami or even that the accused had met Shri A.P.
Nanday in Miami. The statement of Shri K.L. Verma PW 32 in
this respect is mere hearsay.

45. There is thus no evidence against the accused


Chandraswamy to prove the charges against him. He is acquitted.
Bail bond stands discharged.

File be consigned to record room.

Announced in open court.

(DINESH DAYAL)
Dated: 25.10.2004 SPECIAL JUDGE: DELHI.