Misappropriation of funds in Cooperative bank: Madras HC wants CBI probe

Chennai: The Madras high court has ordered a CBI probe into alleged misappropriation of funds in two branches of Kancheepuram Central Co-operative Bank.

A division bench comprising Justices M. M. Sundresh and M.Nirmal Kumar ordered a CBI probe while disposing of a petition from T.K. Babu, a retired employee of Kancheepuram Central Co-operative Bank, challenging an order of a single judge, which dismissed his petition, seeking CBI probe into the alleged misappropriation of funds.

The bench said there have been three complaints given with respect to misappropriation, embezzlement and cheating on jewel loans and loans given to fake groups namely, joint liability group. The alleged occurrence took place in two branches in Pallavaram and Porur. As far as the complaint with respect to Pallavaram branch, the investigating agency, for reasons best known to them, had not chosen to proceed further on a strange stand that as two complaints had been made no further progress could be made. "Such a stand, as we all know, is contrary to the settled principle of law that the second FIR for the same occurrence will have to be factored into the first one. After all a complaint given is the initiation of the process of criminal proceedings by asking the competent agency to start the investigation into a cognizable offence having been made," the bench added.

The bench said in respect of Porur branch, no progress has been made in one case and in another case investigation was pending. "The facts would speak for themselves. One thing is certain which is the misappropriation done. We do not really appreciate the stand taken by the police with regard to the non-progress of the investigation pursuant to the registration of the complaint", the bench added.

The bench said, "It is surprising to note that Commercial Crime Branch has taken a stand that the documents of the cases have been destroyed in December 2015 floods in their communication dated September 7, 2017 to the deputy registrar of Kancheepuram. There are traces of other similar cases involved as fairly submitted by the counsel for the Cooperative bank. Thus, we feel that it is a fit case where CBI will have to be directed to conduct further investigation".