CBI will challenge in Delhi High Court the dropping of charges of criminal conspiracy, cheating and criminal breach of trust under IPC by a Special court against two Bank of Baroda officials facing probe in Rs 6000 crore illegal remittances case.
On Tuesday, a Special CBI Judge Pawan Kumar Jain had refused to take cognizance of allegations of criminal conspiracy (120-B)), cheating (420) and criminal breach of trust (409) under IPC leveled by CBI in its charge sheet against Assistant General Manager SK Garg and Forex in-charge officer Jainis Dubey even as it retained allegations under Prevention of Corruption Act.
The court had held that the agency had not taken mandatory sanction from competent authority to prosecute them as per CrPC Section 197 for charges under the IPC whereas the agency pleaded that Bank officials do not come in the definition of public servants as far as taking sanction under the section is concerned.
The sources said the agency will be filing its appeal after going through the Special Court judgement as it is on a firm footing in the case and its arguments are backed by Supreme Court judgments wherein it is clearly held that section 197 of CrPC protection is not available to bank officials.
One of the cases being studied by the CBI legal team is Supreme Court verdict in K Ch Prasad vs J Vanalatha Devi and others which it has held that Bank officials do not hold a post where they cannot be removed from service "except by or with the sanction" of the Government.
"It was contended by the learned counsel that the competent authority who can remove the appellant from service derives his power under regulations and these regulations ultimately derive their authority from the Act of Parliament and therefore it was contended that the regulations are flamed with the approval of the Central Government but it does not mean that the appellant cannot be removed from his service by anyone except the Government or with the sanction of the Government," the apex court had held.
The sources said allowing protection under 197 CrPC to
bank officials would open pandora's box as all those who have been charge sheeted and convicted will challenge their respective orders in courts.
They said the agency has meanwhile kept its probe open against other officials of the bank and would be filing supplementary charge sheets.
CBI had alleged that 59 current account holders and unknown bank officials conspired to send overseas remittances, mostly to Hong Kong, of foreign exchange worth approximately Rs 6,000 crore in an illegal and irregular manner in violation of established banking norms under the garb of payments towards non-existent imports.
"The investigation revealed that both the accused (Dubey and Garg) had abused their official position and in conspiracy with each other and with the said account holders had allegedly cheated and misappropriated the bank funds to the tune of Rs 13.75 crores (approx), thereby causing alleged loss to Bank of Baroda," the official said.
The agency had alleged in its charge sheet that the accounts were allegedly opened either in fictitious names or in the names of persons who were employed in different companies.
"Forged and fake identity papers like PAN Cards, Voters ID cards, etc. Were allegedly used for opening the accounts" the spokesperson had said.
