Chennai Hc Admits Petition On Indian Bank Scam

The Chennai High Court yesterday ordered issue of notices to the counsel for the Reserve Bank of India (RBI) and the Central Bureau of Investigation (CBI) on a writ petition seeking a direction to the CBI to place on file the records pertaining to its investigation into allegations of a multi-crore loan scandal in the Indian Bank.

Justice R Jayasimha Babu, before whom the public interest litigation initiated by a Chennai resident, R C Arumugam, came up for admission, posted it for further hearing on January 22.

The petitioner sought an interim injunction restraining Union finance minister P Chidambaram and Union minister of state for personnel S R Balasubramaniam from interfering with the investigation.

The petitioner said that he had given a complaint to the RBI and CBI on November 11 last year alleging a Rs 1,700-crore scandal in the Indian Bank, but had not received any reply from them on what action they had taken on the matter.

He said that he apprehended that due to the influence wielded by the Tamil Maanila Congress (TMC) leader G K Moopanar, and pressure from Chidambaram and Balasubramanian (who belong to TMC), the CBI was not taking cognisance of his complaint. Hence, the present petition. The petitioner had earlier filed a writ petition seeking a CBI investigation into the banks affairs, but it was dismissed on September 5 last year. On appeal, he failed once again before a division bench, but the court gave him liberty to refer a complaint before the appropriate authority.

Thereafter, he said, he gave the complaint to the RBI and CBI, presenting particulars regarding alleged irregular sanction of loans. However, as he had not heard from the CBI so far, he was filing the present petition, he said.

He alleged that the Rs 1,700-crore scam was committed in the bank by former chairman and managing director, M Gopalakrishnan, in collusion with Moopanar, benefiting almost all political leaders belonging to Moopanars party.

The petitioner has cited Gopalakrishnan, Chidambaram, Moopanar and Balasubramanian, as respondents, apart from the Union finance secretary, the banks present chairman and managing director, the RBIs executive director (department of supervision), and the CBI.