The former Minister and Muzrai Development Board Chairperson S.N. Krishnaiah Setty suffered a setback as the Karnataka High Court on Saturday permitted the Central Bureau of Investigation (CBI) to file charge sheet against him before the CBI special court in a bank fraud case.
Justice N. Ananda passed the order while hearing a petition filed by Mr. Setty, BJP MLA from Malur, challenging the registration of the First Information Report (FIR) by the CBI in 2008 based on a complaint from the Vigilance Officer of the State Bank of Mysore (SBM). The CBI had registered case under the provisions of the Indian Penal Code as well as the Prevention of Corruption Act.
The CBI had filed the final investigation report before the High Court on February 5, 2010 after which the court had ordered that the report be kept in a sealed envelope under the safe custody of the registrar of the court. Following a plea from Mr. Setty, the High Court on April 3, 2009, had stayed the CBI investigation. The court vacated the stay on December 17, 2009, and permitted the investigating agency to continue the probe and submit the final report by February 3, 2010.
The complainant alleged that Mr. Setty (through his firm M/s. Balaji Kripa Enterprises), along with M.T.V. Reddy, the then Chief Manager of the Specialised Personal Branch of SBM, and others, obtained crores of rupees as housing loans using bogus documents.
Justice Anand on Saturday directed the High Court's registrar to return the final investigation report in the sealed cover to the CBI's investigating officer (IO). The IO is directed to submit the charge sheet before the special court for CBI cases. Hearing has been adjourned to March 12.
Similar case adjourned
Meanwhile, the High Court adjourned to March 8 the hearing on the petitions filed by independent MLA from Hiriyur and the former Minister D. Sudhakar challenging the charge sheet filed in August 2009 by the CBI against him in a similar bank fraud case. He is facing charges of obtaining loans by submitting fake documents.
