Kerala High Court Orders CBI Probe Into Alleged Embezzlement Of ₹12.5 Crore By PNB's Former Senior Manager

The Kerala High Court has directed the Central Bureau of Investigation (CBI) to take over the investigation of a case involving Punjab National Bank's former senior Manager, accused of cheating and defrauding the Bank of an amount of more than twelve and a half crore rupees. 

The present case was registered at the instance of the current Senior Manager of the Bank alleging the commission of offences under Sections 409 ('Criminal breach of trust by public servant, or by banker, merchant or agent') and 420 ('Cheating and dishonestly inducing delivery of property') of IPC against the former official. 

Justice Bechu Kurian Thomas relied upon Clause 6.1 of the Reserve Bank of India (Frauds Classification and Reporting by Commercial Banks and Select FIs) Directions, 2016, while issuing the above direction.  

Clause 6.1 of the RBI Directions, 2016 stipulate that financial frauds involving more than three crores rupees would have to be investigated by the Anti Corruption Branch of the CBI, if the involvement of the banking staff is evident and by the Economic Wing of the CBI if staff involvement is prima facie not evident.

"Admittedly, investigation conducted so far by the local police has revealed that the accused had cheated the 1st petitioner of an amount of more than twelve and a half crores of rupees. In view of the above circumstances and the regulations mentioned earlier, it is evident that Crime No.780/2022 of Kozhikode Town Police Station is required to be investigated by the Central Bureau of Investigation," the Court observed. 

It accordingly declared that the Inspector of Police, Kozhikode Police Station shall inform the crime to the CBI, who shall thereafter take over the investigation and complete the same as soon as possible. 

Advocate K.P. Sudheer appeared on behalf of the petitioners. The respondents were represented by Senior Public Prosecutor K.A. Noushad. 

Case Title: Punjab National Bank & Anr. v. Central Bureau of Investigation & Ors. 

Citation: 2023 LiveLaw (Ker) 361

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