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HC cancels bail to loan defaulter

Written by: Staff

Chennai, Feb 24 (UNI) Madras High Court today cancelled bail granted to a loan defaulter Varadarajalu in two cases by the Special Court, trying CBI cases, in the Rs 30 crore Indian Bank scam case.

Mr Justice M Jeyapaul cancelled the bail granted to Varadarajalu while setting an order of the Special Judge for CBI cases dated August 18, 2005, granting him bail in two cases.

Varadarajalu was charged with offences under Section 120-B, read with Section 420 of IPC and Section 13 (2) read with Section 13 (1) (d) of Prevention of Corruption Act.

According to the CBI, Varadarajalu borrowed loans running to several crores from the bank by producing fake documents, for some fictitious firms to export cashew and failed to repay them. Several cases were filed against him.

The trial court granted him bail in two cases on the ground that the possiblity of absconding was bleak and there was no chance of tampering with witnesses. His ailment at the age of 67 years required consideration.

The judge allowed the CBI's petition seeking to cancel bail to Varadarajalu, stating that he was a citizen of France. The Government of India could not succeed in extradition proceedings against him, which were hotly contested by him in France. He remained a fugitive till he was arrested in Dubai by Interpol on February 6, 2005, based on tips given by the CBI. He was facing 12 other cases initiated by the Enforcement Directorate.

The trial court had unfortunately given credence to his age and illness. If at all he was ailing, jail authorities would have been directed to extend proper medical treatment. The CBI had filed an application before the trial court seeking permission to go ahead with further investigation. When this was contemplated, there was every possiblity of tampering with witnesses to be examined by the investigating agency.

It was unfortunate the trial court had come to a conclusion that such a person who had been a fugitive, giving tough fight to extradition proceedings, would not abscond. He would definitely slip away from this country and flee from justice and would never be available for trial in this case, if he was let out on bail. Hence bail had to be cancelled, the judge added.


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