Submit probe report in Rs 10.34 cr bank scam: HC to cops

A petition was filed in the HC by an Anand businessman,Hitesh Patel,against the office bearers of the liquidated Karamsad Cooperative Union Bank that included BJP legislator Dilip Patel. Earlier,the Anand District Court had directed the police to probe the misappropriation case in 2004,but they have not filed their report yet.

The PIL was filed in the court of acting Chief Justice M R Shah. Taking a note of the delay in investigation,Justice Shah on December 21 (SCA/10819/2009) said there was absolute non-compliance of the order passed by the court in 2007,which gave three months to the CID crime (economic offences) to investigate the case.

Shah said in his order that despite the court having ordered in September 2007 to complete the investigation and submit an appropriate report with respect to the FIR,there has been no progress in the case. It shows the total carelessness and negligence on the part of Economic Cell,CID Crime,Shah said in his order.

On December 23,the court passed an oral order asking the CID Crime (Economic Offences),to submit a progress report and lodge a departmental enquiry for the failure of the police department in investigating the case,by January 28,said sources in the court. The court,however,did not give any further extension to the department to submit the report.

In the PIL,it was stated that former MLA Dilip Patel along with six other office bearers had issued loans to various parties including a company owned by Patel’s son,Brijesh Patel. Later,even those who claimed surety of repayment of loans were relieved. The case filed in Vidyanagar police station of Anand district also states that the Reserve Bank of India cancelled the bank’s licence after Rs 10.34 crore was found missing in audits.

Timeline

May 9,2003: Vidyanagar police in Anand district start investigating the scam worth Rs 9 crore as alleged by one of the bank’s share holders and depositors,Rakesh Patel

September 17,2004: Investigating officers seek additional time to investigate the issue from Anand District Court for the 12th time. The court directs a police inspector from the Economic Cell of the Gujarat Police to investigate,and appoints an auditor as expert

December 5,2006: Reserve Bank of India cancels the licence of Karamsad Cooperative Union Bank following Rs 10.34 crore going missing in audit

September 9,2007: Anand District Court directs Criminal Investigation Department (Economic Offences) to probe matter

September 17,2008: Anand District Court says no arrests have been reported on the case after Anand-based businessman,Hitesh Patel demands answer to proceedings in an RTI reply. The court forwards the RTI to CID Crime

February 16,2008: Patel files first RTI application to CID Crime

March 5,2009: CID crime in its reply asks Patel to furnish court orders about investigation

April 1,2009: CID Crime in its last reply said that it is exempted from giving any information on RTI on this case

December 7,2009: Gujarat High Court grants time till December 21,2009 to file a progress report

December 21,2009: Gujarat High Court notes the non-compliance of CID (Economic Offences) in submission of the report. Asks Inspector-General (CID) to explain in court

December 23,2009: Court passes a verbal order demanding a departmental inquiry about why the arrests were not made. Also directs CID crime to file progress report without giving extension