RAMESHCHANDRA NANDLAL PARIKH Vs. CHARANJI SINGH

JUDGEMENT

(1.) By these special leave petitions, rameshchandra Nandlal Parikh (hereinafter "the Petitioner") has impugned the common judgment of the High Court of Gujarat (dated 7.5.2004) dismissing a series of criminal miscellaneous applications, which were intended to question the correctness of certain ongoing investigations into a large economic crime.

(2.) The Petitioner was the Managing director (between 1973 and 1991) and thereafter. Chairman of the Second respondent- Madhavpura Mercantile Co- operative Bank Limited (hereinafter "the bank") having its registered office at shahibaug, Ahmedabad, Gujarat. The Bank was operating under the provisions of the multi-State Cooperative Societies Act, 1984 (hereinafter "the Societies Act") and was also subject to other laws, such as the Banking regulation Act, 1949. On 13.3.2001, the reserve Bank of India, noticing the critical financial situation of the Bank, made a requisition to the Central Registrar under section 48 (7) of the Societies Act, to appoint an Administrator to manage the affairs of the Bank. Accordingly, an Administrator took over the management of the Bank. In the meanwhile, due to the inability of the bank to repay its depositors, there was a public outcry, and a Public Interest litigation (Special Civil Application No. 2617/2001) , was filed before the High Court of Gujarat. It prayed inter alia, for action being taken against those responsible for the adverse financial situation of the Bank, and also for, directions to the Bank to repay all the monies of the Bank's depositors, account holders, share holders etc. It was alleged in the Special Civil Application that the main branch at Shahibaug (Ahmedabad) and the Mandvi Mumbai Branch (Mumbai) were involved in a large economic scam, which involved inter alia, advancing large sums of money to persons of dubious antecedents without taking steps to verify their creditworthiness in violation of applicable banking procedures and regulations. It is pertinent to note that the petitioner was arrayed as a party (Respondent No. 8) in the said writ petition.

(3.) On 21. 04.2001, the Bank also filed a Criminal Complaint C. R. No. 67/2001, against the Petitioner and several others, for different offences under Sections 405, 406, 408, 409 and 120b of the Indian Penal code, 1860 (hereinafter "ipc") , read with section 35a of the Banking Regulation Act, 1949. Subse-quently, offences under Section 420, 468, 471 of the IPC read with Sections 18 and 24 of the Banking Regulation Act, 1949, were also added. The investigation of c. R. No. 67/2001 was transferred from madhavpura Police Station to State CID (Crime). The Petitioner was arrested and remanded to police custody for some time in connection with the said investigation.