2014 (9) TMI 1295 - HC - Indian Laws

Seeking to issue a writ of mandamus commanding respondent nos. 1 to 4 to conduct a fair and speedy investigation - transfer of investigation to a different investigating agency - involvement of bank officers in fraudulent activities warrants further action or not - HELD THAT - All issues arising out of lapses in the functioning of the private sector banks relating to corruption malpractices frauds should be property investigated. Timely and appropriate action should be taken in the cases involving fraud. Instances of frauds such as unauthorized credit facilities extended by the bank for illegal gratification negligence and cash shortages cheating forgery etc. must be properly investigated. In dealing with the cases of fraud / embezzlement banks should not merely be actuated by the necessity of recovering expeditiously the amount involved but should also be motivated by public interest. In the instant case the allegation is that the amount to the tune of Rs. 34 crores was siphoned off fraudulently. Such perpetrators of fraud including Bank Officers should not be permitted to take everybody for a ride. The investigation pertaining to FIR no. 389 of 2012 lodged at police station Kotwali Dehradun is therefore handed over to CBI to ensure fair impartial and thorough investigation. Needless to say that if the Bank Officers / officials are also found guilty during the course of investigation CBI will be at liberty to proceed against them in accordance with law. The criminal writ petition thus stands disposed of.

Summary

**Issues Presented and Considered:**

The core legal questions considered in this case include whether a writ of mandamus should be issued to command a fair and speedy investigation in connection with a criminal complaint, whether the investigation should be transferred to a different investigating agency, and whether the involvement of bank officers in fraudulent activities warrants further action.

**Issue-Wise Detailed Analysis:**

**Fair and Speedy Investigation:**

The petitioner sought a writ of mandamus to direct respondent authorities to conduct a fair and speedy investigation into a criminal complaint filed by the bank. The court considered the seriousness of the allegations, including forgery and misappropriation of funds amounting to crores. The court emphasized the importance of proper investigation in cases of corruption and fraud, highlighting the need for timely and appropriate action. The key evidence presented included details of fraudulent transactions, transfers of funds to different accounts, and involvement of bank officers in the conspiracy. The court concluded that the investigation should be conducted expeditiously and impartially to ensure justice.

**Transfer of Investigation to CBI:**

The petitioner also sought to transfer the investigation to the Central Bureau of Investigation (CBI) or another impartial agency. The court referred to an earlier order highlighting the involvement of bank officers and the embezzlement of public money. Considering the complexity and magnitude of the case, the court opined that the civil police may not be equipped to handle the investigation adequately. Therefore, the court directed the investigation to be handed over to the CBI for a fair and thorough inquiry. The CBI accepted the responsibility, and the court emphasized that if bank officers were found guilty, appropriate legal action should be taken against them.

**Significant Holdings:**

The court established the core principle that cases of fraud and corruption, especially involving public funds, should be diligently investigated to uphold public interest and ensure accountability. The final determination was to transfer the investigation to the CBI for a comprehensive and unbiased probe. The court underscored that no perpetrators of fraud, including bank officers, should escape accountability, and if found guilty, they should face legal consequences.