Begin typing your search...
CPT wants bank to pay up for siphoned off Rs 107 cr
Taking stock of a fraud that had transpired in Indian Bank involving a fixed deposit of more than Rs 100 crore by the Chennai Port Trust (CPT), the Madras High Court sought the port to implead all involved to enable it to pass appropriate orders directing the bank to return of the money.
Justice R Mahadevan expressed shock on CPT’s submission that Rs 100.57 crore deposited in the Koyambedu branch of Indian Bank last year was transferred to another account on the basis of a request made by an impersonator.
The port trust had submitted that in March, 2020, it had transferred the money through electronic transfer to fixed deposits that could not be encashed till maturity. But within three days, the money was transferred to a current account in the name of Chennai Port Trust General Insurance Fund at the instance of Deputy Director (Finance), a non-existent post, the CPT said in its plea.
After the fraud came to light, a CBI investigation was ordered on August 6, 2020. But the bank was yet to pay Port Trust despite maturity of the fixed deposits citing pending instigation.
When a legal notice was issued, the bank sent a Format of Indemnity Bond to be executed by it and that too only for a sum of Rs 55.19 crore against the obligation to pay Rs 107.16 crore.
“The necessity of execution of an Indemnity Bond arises as the deposit receipts have been seized by the CBI for investigation on August 6 itself. The bank cannot now evade and deny their liabilities, as most importantly the deposits closed by them were made in the non-callable category,” the plea said.