HC transfers to CBI, probe on 3 complaints against co-op bank

The Madras High Court has transferred to CBI, the probe into three complaints of misappropriation, embezzlement and cheating on jewel loans involving Rs 20.69 crore against Central Cooperative Bank in Kanchipuram in 2011.

The division bench, comprising Justices M M Sundresh and M Nirmal Kumar, which disposed of the appeal from T K Balu, a retired employee of the bank, in its order said "It is a fit case where the CBI will have to be directed to conduct further investigation."

The appeal sought to quash the January 29, 2016 order of a single judge, dismissing his petition, seeking the same prayer.

 

Balu submitted that there had been three complaints of misappropriation, embezzlement and cheating on the jewel loans and money given for creation of fake groups, namely, joint liability group.

The alleged crimes took place in the branches in Pallavaram and Porur,.

While the Pallavaram branch case pertained to that of jewel loans, the case in the other branch was of both jewel loans and creation of fake groups and disbursement of money touching upon the joint liability groups, he said.

The accused persons have been specifically named.

The appelant submitted that the probe in the case in the Pallavaram branch was closed on flimsy grounds, that records had been destroyed in a fire and in the 2015 deluge.

Babu then filed a writ petition recently to transfer the cases to the CBI.

But Justice R Subbiah rejected the plea, citing a Supreme Court order, which had cautioned courts conferred with powers by Articles 32 and 226 of the Constitution, to bear in mind certain self-imposed limitations on exercising their powers and not pass orders, directing transfer of the probe to CBI from the other investigating agencies as a matter of routine or merely because a party has leveled some allegations.

Hence, the present appeal.

The bench pointed out that the Apex Court had also held that in exceptional situations, the extraordinary power of transferring the case to the CBI can be passed sparingly, and cautiously, to instill confidence in the minds of litigants.

It had also held that an order directing a CBI enquiry should be passed only when the High Court, after considering the material on record, concludes that such material does disclose a prima facie case, calling for a probe by CBI or any other similar agency.

Holding that the facts of the case would come within the parameters of the Apex Court and that the single judge order "requires interference at the hands of this court," the bench transferred the cases to the CBI.