HC transfers fraud on bank case to CBI

MADURAI

The Madurai Bench of the Madras High Court has transferred the investigation into a bank fraud case reported from Virudhunagar district to the Central Bureau of Investigation.

The court was hearing a petition filed by K. Venkatesh of Rajapalayam, who alleged that National Bulk Handling Corporation and its executive officials, including Directors and Managers, conspired with their clients to create bogus documents to commit fraud on Lakshmi Vilas Bank, resulting in a huge loss to the bank.

Earlier in 2016, Lakshmi Vilas Bank had tied up with National Bulk Handling Corporation for collateral management and warehousing services to help farmers in their capital requirements.

Justice M. Dhandapani directed Virudhunagar police to hand over the documents in the case to the CBI, which should conduct a fresh investigation. The court said that it was appropriate to transfer the case to the CBI to conduct a preliminary investigation.

If the preliminary investigation revealed a prima facie case against the accused, the CBI could take appropriate action, the court said. The court took note of the fact that a similar bank fraud case was already transferred to the CBI for fresh investigation.