STATE OF KERALA Vs. DEPUTY DIRECTOR

JUDGEMENT

(1.) The challenge in this Cri.M.C. is to the order dtd. 12/1/2024 in Crl.M.P.No.1187 of 2023 in SC (PMLA) 04/2023 on the file of the Special Court for the trial of offence punishable under Sec. 4 of the Prevention of Money-Laundering Act, 2002, Ernakulam (the Additional Special Sessions Court (SPE/CBI)-III, Ernakulam). The State of Kerala challenges the order refusing the application filed under Sec. 91 Cr.P.C. by the Chief Investigating Officer of the Special Investigation Team constituted to investigate the financial/loan scam of Karuvannur Service Co-operative Bank Limited.

(2.) The Secretary-in-charge of the Karuvannur Service Co-operative Bank Ltd filed a complaint before the Irinjalakuda Police against six persons on 14/7/2021 alleging offences punishable under Ss. 406, 420, 409, 465 r/w 34 of IPC. The Police registered an FIR alleging the aforesaid offences. As per order No.D3- 108924/201/PHQ dtd. 21/7/2021, the investigation of the case was transferred to the Crime Branch, which registered Crime No. Cr.165/CB/TSR/R/21. During the investigation, offences under Ss. 13(1)(c) and 13(1) (d) r/w 13(2) of the Prevention of Corruption Act, 1988, (PC Act for short) were added. Accordingly, the case was transferred to the Court of the Enquiry Commissioner and Special Judge (Vigilance), Thrissur on 30/5/2022. The investigating agency found that the accused committed financial fraud and misappropriation with the connivance of the members of the Board of Directors of the Bank.

(3.) The Enquiry Commissioner and Special Judge, Thrissur, by order dtd. 30/1/2023, attached 58 items of immovable properties. The Court also ordered the seizure of a vehicle and sale of the same in public auction. The Investigating Agency also found that the accused abused their official position by conjointly conspiring to issue illegal loans with fake names and addresses by, creating forged documents in the name of 180 persons from 2011 to 2020, and obtained loans and misappropriated the same. The accused created fake loans without the knowledge and consent of the persons in the name of whom loans were sanctioned by forging their handwriting, signatures, fingerprints and creating false documents. They siphoned off the entire loan amount so disbursed for their own purpose.