HC issues notices to CPI leader, CBI, IOB on plea

The Madras High Court today issued notices to CBI, Indian Overseas Bank and former Tamil Nadu state secretary of CPI D Pandian on a petition seeking a CBI probe into a loan of Rs 13 crore granted to him allegedly for construction of a multi-storeyed party office here.
Justice M M Sundresh, before whom the petition filed by P Jagaratchagan, a CPI member, came up, ordered issue of notices returnable by four weeks.
The petitioner alleged that Pandian had no legal right or authority to borrow loan on the property and also give the property of 'Janasakthi' (a party daily) as surety for the borrowing of the loan.

The borrowing came to be known only through newspapers about the case filed by IOB in the Debts Recovery Tribunal against CPI, the petitioner said.
The action of bank officials in granting the loan without verifying the legal status of Pandian in relation to the property clearly suggests connivance of the officials, the petitioner charged.
As no action was taken on his complaint to the vigilance department of the bank, he filed the present plea to direct the Bank to entrust his complaint to CBI for proper and fair investigation, the petitioner said.