No coercive action against SIS MD Sunil Kakkad: HC

The high court has directed the Central Bureau of Investigation (CBI) not to take any coercive action against IT firm Sai InfoSystem (SIS) managing director Sunil Kakkad as the accused appellant is in talks with banks and has offered to make a substantial payment. The accused has allegedly defrauded banks to the tune of Rs 918 crore.

Kakkad had approached HC with a prayer to protect him from CBI action. His contention is he is in negotiations with SBI other banks and has offered a substantial sum against the dues. He has agreed to pay SBI (International Bank Division) Rs2.76 crore. He is in talks with other banks too.  On June 7, HC directed the CBI’s counsel to convey to the agency that no coercive action be taken against him. But the agency interpreted the directive as being limited to only one complaint. 

The accused appellant drew the attention of the court to this and expressed apprehension that he could be arrested in connection with other complaints. The CBI has lodged nearly 11 complaints against him.  Last week, the single bench judge clarified that the directive pertained to all the cases. Employees of his company were the first to lodge a complaint after his failure to pay them salaries amounting to Rs14 crore for almost one year.  

Kakkad had gone underground as he had failed to repay loans. In March, city police had arrested him from the Liberian capital Monrovia.