EOW officers should know accounts: HC

The EOW,that is conducting the probe into the matter,was hauled up by the court earlier for failing to take the necessary action in the case in which 16,000 investors had claimed to have been duped. The petitioners had alleged that the fraud was committed by former directors of the Veerashaiva Co-operative Bank,who were hand-in-glove with some borrowers.

Public prosecutor P A Pol informed the court on Monday that of the 17 former directors of the bank,six have been arrested while three had died. Pol added that seven of 24 borrowers,who were allegedly involved in the offence,have also been arrested and the accounts of all the arrested persons have been frozen. Pol informed the court that Rs 7 crore has been recovered from the arrested accused.

“What about the remaining Rs 53 crore?” Justice Khanwilkar asked. Dissatisfied by the answers given by the investigating officer,the court asked,“Why are you taking so long to scrutinise the accounts?” The court observed that a background in commerce or accounts would be helpful for the officers of the EOW.

Pol,however,told the court that the EOW was overburdened. Justice Khanwilkar and Justice R G Ketkar directed Pol to file a detailed report by January 17,giving reasons for not arresting the remaining directors and borrowers involved in the alleged fraud,accounts under the EOW’s scrutiny and attachment of property.

According to the petition,the Reserve Bank of India had conducted an inspection in which various illegalities were found after which an inquiry was initiated. The petitioners stated that the alleged malpractices revealed that the bank has not taken appropriate mortgage in 76 cases of granting loan amounting to a sum of Rs 62.53 crore.