K'taka HC rejects Union Bank of India's plea seeking transfer of Valmiki scam probe to CBI
Bengaluru, Nov 13: The Karnataka High Court on Wednesday dismissed a petition by Union Bank of India seeking transfer of the investigation of the alleged scam involving the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd to the CBI.
The petition was heard by Justice M Nagaprasanna, who ruled that Section 35A of the Banking Regulation Act could not be used as grounds for such a transfer. He noted that allowing this could lead to an overreach by banking institutions, potentially undermining the Delhi Special Police Establishment Act (DSP Act).
The case, reserved for judgment on September 30, focused on two main questions: whether the petition should be referred to the Supreme Court under Article 131 of the Constitution, and if Section 35A of the Banking Regulation Act justified seeking a CBI investigation without invoking the DSP Act.
The Karnataka government, represented by senior advocate B V Acharya, argued against allowing the petition, stating that the state police have the statutory authority to investigate the case, and this authority should not be overridden by the central government.
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Acharya emphasised that any dispute between the central and state governments must be addressed by the Supreme Court, not the High Court, as per Article 131 of the Constitution. He added that the RBI's master circular does not grant CBI the power to register or investigate cases, and Section 35A of the Banking Regulation Act does not extend such authority.
Senior Advocate Professor Ravivarma Kumar, representing the state-run Corporation, supported the state's stance.
He argued that the CBI's authority is limited to investigating crimes that are specifically notified and that the bank's plea to transfer the case to CBI was unfounded as the issue lies within the state's jurisdiction.
Attorney General R Venkataramani, representing Union Bank of India, argued for the necessity of transferring the probe to the CBI to safeguard the integrity of the banking system.
He contended that RBI's directions under Section 35A should be interpreted broadly to include CBI investigations, especially in cases involving potential bank frauds.
Venkataramani stressed that banking institutions are crucial to the nation's economic stability, and specialised agencies like the CBI are better suited to handle such sensitive cases.
The illegal money transfer scam involving Corporation came to the fore, after its accounts superintendent, Chandrasekharan P, died by suicide on May 26, leaving behind a note.
After the scam came to light, Congress MLA B Nagendra resigned as the Scheduled Tribes Welfare Minister in June. The ED had in July arrested Nagendra under the provisions of the Prevention of Money Laundering Act (PMLA), and also five other key accused during the investigation. He was released on bail last month.
The ED had said its investigation revealed that under the influence of Nagendra, the account of the corporation was moved to the MG Road Branch (of the bank) without any proper authorisation, where Rs 187 crore, including Rs. 43.33 crore from the State Treasury under the 'Ganga Kalyana Scheme', were deposited without following proper procedures and in violation of government guidelines.
These funds were subsequently siphoned off through multiple shell accounts and converted into cash and bullion. ED investigation also revealed that an amount of Rs 20.19 crore of the diverted funds was used to support a candidate contesting the 2024 Lok Sabha election from the Bellary constituency, as well as for the personal expenses of Nagendra, the federal probe agency has said.
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London, Nov 22: A bomb disposal squad deployed as a “precaution” to the South Terminal of Gatwick Airport concluded an investigation into a "security incident" on Friday after making a “suspect package” safe.
The South Terminal of Gatwick Airport, the UK's second busiest airport after Heathrow, which was briefly shut owing to the incident reopened following the incident.
The Gatwick is around 45 km south of London.
Two people detained during the enquiries have since been allowed to continue their journey as the airport was opened.
“Police have concluded their investigation into a report of a suspect package at Gatwick Airport. Officers from the EOD (Explosive Ordnance Disposal) team made the package safe, and the airport has been handed back to its operator,” Sussex Police said in an updated statement.
“Two people detained while enquiries were ongoing have subsequently been allowed to continue their journeys. There will remain an increased police presence in the area to assist with passengers accessing the South Terminal for onward travel,” the statement added.
Earlier on Friday, the incident caused severe disruption at the busy airport’s South Terminal, while the North Terminal of Gatwick Airport remained unaffected.
“Police were called to the South Terminal at Gatwick Airport at 8.20 am on Friday (November 22) following the discovery of a suspected prohibited item in luggage,” a Sussex Police statement said.
“To ensure the safety of the public, staff and other airport users, a security cordon has been put in place whilst the matter is dealt with. As a precaution, an EOD (Explosive Ordnance Disposal) team is being deployed to the airport. This is causing significant disruption and some roads around the South Terminal have been closed. We’d advise the public to avoid the area where possible,” it said.
Footage on social media taken outside the airport showed crowds of frustrated travellers being moved away from the terminal building.
Gatwick said it was working hard to resolve the issue.
“A large part of the South Terminal has been evacuated as a precaution while we continue to investigate a security incident," the airport said in a social media post.
“Passengers will not be able to enter the South Terminal while this is ongoing. The safety and security of our passengers and staff remain our top priority. We are working hard to resolve the issue as quickly as possible.”
Train and bus services that serve the airport were also impacted while the police carried out their inquiries.
In an unrelated incident in south London on Friday morning, the US Embassy area in Nine Elms by the River Thames was the scene of a controlled explosion by Scotland Yard dealing with what they believe may have been a “hoax device”.
“We can confirm the 'loud bang' reported in the area a short time ago was a controlled explosion carried out by officers,” the Metropolitan Police said in a post on X.
“Initial indications are that the item was a hoax device. An investigation will now follow. Some cordons will remain in place for the time being but the majority of the police response will now be stood down,” it added.
