Madras HC asks police, bank to attach jeweller's propery

Chennai: Cancelling the bail granted to a jewellery shop owner and his manager, who cheated a bank by pledging imitation jewels and obtained loans to the tune of Rs 20 crore, the Madras high court has directed the police and the bank to take steps to recover the dues by searching and attaching the properties of the duo.

Justice M. Dhandapani allowed the petition filed by Murthy. V.K, Senior Branch Manager of Karnataka Bank at Anna Nagar in the city and cancelled the bail granted to J. Sriram, owner of a jewellery shop in Redhills and his manager K. Padmanabhan.

According to petitioner, Sriram and Padmanabhan had availed jewellery loans to the tune of Rs 20.55 crore by pledging jewels from the year 2010 to 2015. While so, during the surprise inspection of jewels under the jewel loan accounts by the Vigilance department in 2016, it was found that the duo had availed 325 jewel loans through 180 fake persons by pledging imitation jewels and not real gold jewellery with the connivance of the jewel appraiser and the then two branch managers. Immediately, on a complaint given by the petitioner, a case was registered and the two were arrested. Though their bail applications were dismissed thrice, the Principal sessions judge had on October 12, 2017 granted bail to them on the basis of an undertaking given by them that they would settle the dues. However, even after a lapse of eleven months, they have not taken any steps to settle the amount, he added.

The judge said the PSJ considering the submission made by the accused that they were ready to settle the amount if they were released on bail, granted bail to them. However, even after a lapse of eleven months, the amount was not settled. In the recent days, these types of bank fraud scandals were increasing. The wrong doers through innovative method were approaching the bank without any security. In the present case, the accused approached the bank with the active help of the bank officials, introduced fake persons and obtained loan to the tune of Rs 20.55 crore, the judge added.

The judge said mere cancellation of bail will not solve this issue. Hence, liberty was granted to the law enforcing agency as well as the bank to take appropriate action against the persons to recover the loan amount. Hence, it was right time to curb the illegal enjoyment. It was just and necessary to prevent the accused from enjoying the crime proceeds. In the present case, the accused Sriram was running a gold and silver jewellery shop in the name and style of “Sri Lakshmi Thanga Maligai” in Red Hills and he was also doing real estate business, promoting lands in the name and style of M/s Sri Lakshmi Promoters. “In view of the above, liberty is granted to the law enforcing agency to secure the crime proceeds which were invested in different format. Accordingly, the Deputy Commissioner of Police, Chennai is directed to provide proper police protection to the bank officials for taking steps to recover the dues by searching and attaching the property”, the judge added.