CBI to probe Kanchi Coop bank loan fraud

The Madras High Court has ordered a CBI enquiry into the Rs20.89 Crore loan misappropriation at the Pallavaram and Porur branch of the Kancheepuram Central Cooperative bank and setting the records on fire in a bid to destroy evidence.

A division bench comprising Justice M M Sundresh and Justice M Nirmal Kumar on holding that one thing is certain, which is the misappropriation done, said “For the reasons known, the complaint given in the year 2011 has not been proceeded till now. We are in the year 2019. Secondly, the authorities of the cooperative department also have not proceeded further by accepting the stand of the police.”

“We also feel that there may be a case of involvement of the higher officials. Therefore, even here also further investigation is required. The case in C.No.3 of 2013 has not been proceeded based on the ground that the records were destroyed while there were enough records available. The investigating officer had taken the FIR (relating to fire accident) as a gospel truth with respect to the occurrence and the availability of the records,” the bench said.

Based on this, the bench on noting “Thus, we feel it is a fit case where CBI will have to be directed to conduct further investigation,” set aside the closure report in Cr.No.03 of 2013 and closed the pending case in C.C.No.06 of 2011 on the file of the Judicial Magistrate-I, Poonamalee.

The bench on directing the State Investigating Agency to hand over the entire records pertaining to the investigation of the above cases to the officer to be appointed by the Joint Director, CBI, said “No outer limit is fixed for the completion of the investigation as lot of investigation is required to be done in this case.”

“We also made it clear that the investigating officer of the CBI shall also go into the issue of the alleged fire accident in crime No.427 of 2011 said to have occurred leading to the destruction of records. We further clarify that it is for the appropriate officer of the CBI either to entrust the investigation to Anti-Corruption Branch or Economic Offences Branch,” the bench added.

As per the factual matrices of the case there were three complaints relating to misappropriation, embezzlement and cheating on the jewel loans given and the money given to the creation of fake groups namely joint liability group. The alleged occurrence took place in front of Pallavaram and Porur branch.

The appellant T K Babu had contended that what has been unearthed is only a tip of the iceberg and is a fit case for referring the matter to the CBI for investigation and the single judge had set aside the plea despite the complaint given in 2011 has not been proceeded till now.