Guj HC orders CID probe into Karamsad Cooperative Bank scam

By Staff
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Google Oneindia News

Ahmedabad, Sep 6 (UNI) The Gujarat High Court today directed the state government to transfer the investigation of embezzlement of large funds in the liquidated Karamsad Urban Co-operative Bank to CID crime from Anand police.

Directing the government, Justice M R Shah noted that the investigation report submitted by the police on the direction of the High Court clearly states that more than Rs 70 crore was siphoned off through advances and loans. According to the findings, advances and loans were given flouting RBI rules and regulations.

Sitting BJP MLA Dilip Manilal Patel incorporated the Karamsad Urban Cooperative Bank with Natubhai Patel, ex MP, as secretary.

The petitioner Rakesh Patel, in his petition, had sought CBI or independent agency inquiry as investigating officer had not filed a report in the case even four years after the complaint was registered.

The complaint was filed on May 9, 2003, with First Class Judicial Magistrate, Anand against Karamsad Urban Bank Chairman and BJP MLA Dilip Patel, managing director, directors and manager.

Mr Patel in his complaint, alleged that a loan of Rs 2.15 crore was given to the chairman's son Brijesh, director of Pooja Cold Storage. The guarantor, Hasmukh Patel was relieved from surety before the repayment of loan.

He said the police had conducted the investigation under the dictates and influence of the BJP MLA. The bank had also given loans to various parties who had produced false and forged documents.

Mr Patel submitted that the Magistrate should send the 2003 complaint to the police inspector, Anand for inquiry/investigation under Section 156(3) of the Criminal Procedure Code and the investigating officer submit his report within 30 days.

However, no action was taken and later the Bank went into liquidatation because of misappropriation, mismanagement and irregularities by the officers of the bank.

UNI

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