HC transfers fraud case on bank to CBI

The Madras High Court has transferred to the CBI a financial fraud case registered against officials of the National Bulk Handling Corporation Private Ltd, an agricultural commodity and collateral management services firm, for cheating Lakshmi Vilas Bank Ltd with fake documents.

The NBHC approached the court's Madurai bench for quashing the case pending before the Virudhunagar District Crime Bench.

According to the prosecution, the NBHC and its officials, including directors, conspired together with clients and created bogus documents to commit fraud on the bank, thus causing huge loss to it.

The case had been wrongly referred to the state police, though as per RBI guidelines, it should be referred to the CBI,the prosecution said.

Counsel for the CBI submitted that similar cases were being investigated by the agency and it had no objection to investigate the case.

Justice M Dhandapani ordered the case to be transferred to the CBI from Tamil Nadu police.