The accused in the multi-crore Global Trust Bank fraud cannot be charged under the Prevention of Corruption Act, 1988 (PC Act), a special Central Bureau of Investigation (CBI) court held on Thursday.
Two bankers from the erstwhile Global Trust Bank — Ramesh Gelli, the former chairman and managing director of the bank, and Sridhar Subasri, the former executive director of the bank — moved the court contending that the special CBI court has no jurisdiction to take cognisance of the offence since they were not public servants.
Special judge SP Hayatnagarkar remanded the charge-sheet back to the CBI and ordered them to file it before the Esplanade magistrate court. The bankers are also booked for cheating.
The Bank Security and Frauds Cell of the CBI had already filed the charge-sheet in the case after which the two bankers moved the court for discharge from provisions of PC Act.
“CBI cannot book bankers from private banks. They can charge people from public sectors only,” said their lawyer, MV Kini.
The CBI took action against the bankers on the basis of a complaint by the central vigilance officer of Oriental Bank of Commerce (OBC). After the Reserve Bank of India (RBI) declared a moratorium against the GTB, the bank merged with OBC in 2004.
As per the CBI case, Gelli availed of personal favours from G K Rathi, the promoter of Geekay Exim India Ltd and, in return, indiscriminately sanctioned facilities to 7 companies including Geekay to the tune of Rs 203 crore of public money in 2001.
The judge held that since the alleged offence was committed in 2001, prior to the merger of the bank with OBC, the Prevention of Corruption Act is not applicable to them. The court also referred to a Bombay High Court decision last year on a similar subject.
Special public prosecutor A A Ansari argued that the accused persons were discharging public duty and therefore it is within the ambit of PC Act. Ansari said a petition that raises a similar legal point is under consideration in the Supreme Court.
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