High Court summons officials who probed Rs 30 cr bank fraud

The bench has directed to produce the records of cases relating to alleged misappropriation of funds of Kancheepuram Central Cooperative Bank (KCCB) to the tune of over Rs 30 crore by the officials, adding that the investigating officers in the three cases must appear before it on June 12. 

Staying all further proceedings pending before the Judicial Magistrate-I, Poonamallee, the division bench directed the magistrate to forward the entire case file to the court immediately. 

Passing interim orders on an appeal filed by one TK Babu seeking CBI probe into the alleged loot, the bench said, “The material records were burnt in a fire. NABARD suspected that the fire accident was the creation of the accused for destroying the evidence. But the police appear to have investigated the case without showing any sense of seriousness.” 

“We are of the view that the entire records and the police reports must be verified before taking further action in the matter,” the bench observed, adding: “In the meantime, if the case is taken up for trial based on available materials and evidence collected by the police, interest of justice would suffer.” 

Babu had come on an appeal after a single judge had declined to order a CBI probe into allegations that KCCB officials had misappropriated more than Rs 30 crore and the authorities have failed to act. 

NABARD had also filed a counter contending that Rs 9.63 crore has been misappropriated by giving jewel loan. Similarly, large amount in respect of other transactions were misappropriated.