Civil Decree For Loan Recovery Doesn’t Bar Criminal Liability Under PC Act: Kerala High Court

The Kerala High Court held that a civil decree for recovery of loan dues does not absolve accused persons from criminal liability for misappropriation and conspiracy under the Prevention of Corruption Act, 1988.

The case involved a bank official and a private contractor who fraudulently siphoned housing loan funds by misrepresenting to the borrower.

The Court noted that while the civil decree enforced recovery from the borrower, the accused gained illegally, making them liable for criminal prosecution.

The conviction was upheld, though the sentence was reduced from three years to one year rigorous imprisonment.

[PV Ravi v. SPE/CBI Kochi]