BENGALURU: The High Court on Friday asked the Central Bureau of Investigation (CBI) not to
arrest Ibrahim Shariff with regard to an FIR registered against him,after it recovered `4.8 crore in new currency notes from his flat in the city recently.Shariff, a civil contractor and a native of Thirthahalli in Shivamogga, moved the High Court seeking to quash the FIR and subsequent proceedings.
Justice Anand Byrareddy passed an interim order asking CBI not to arrest Shariff after the CBI counsel said the agency would not arrest him if he cooperates with the probe.
However, Justice Byrareddy questioned whether keeping money at one’s residence would amount to a crime, while wondering how the CBI gets into the picture on the issue.
In reply, CBI counsel Prasanna Kumar argued that the accused Shariff was booked on charges of abetment and conspiracy. Any interim order passed by this court would derail the ongoing probe by CBI to unearth a larger conspiracy.
While defending the action of CBI, Kumar also argued that the RBI’s guidelines clearly stated that banks should not disburse new currency notes beyond a prescribed limit.
Despite this, Shariff was found in possession of new notes worth `4.8 crore. It is humanly impossible in the current scenario to procure such a big money in a span of 20-25 days in view of the limit on the amount to be withdrawn after the demonetisation, he argued.
Explaining the grounds for registration of FIR against Shariff, who is accused number 3 in the case, Kumar contended that the two private banks against which the investigation is being conducted come under Banking Regulation Act and hence, the CBI has jurisdiction on the issue.
C H Jadhav, senior counsel representing Shariff, argued that CBI has no jurisdiction to take up the case against private individual Shariff and the two private banks.
Jadhav, who was the former counsel of CBI, argued that the accused Shariff still has time to give explanation for the currency found at his flat as provided under Section 69-A of the Income Tax Act, wherein time was given to furnish details of cash till March 31, 2017.
Defending the accused, Jadhav contended that Shariff is keeping the money for his daughter’s marriage to be held from January 12 to 14, 2017.
On December 1, the CBI registered an FIR against officials of two private banks — Suryanarayana Bairy, chief manager of Karnataka Bank Ltd, Indiranagar Branch, Umashankar Renuka, manager of Dhanalakshmi Bank, S C Jayachandra, chief project officer, State Highway Development Project, PWD Department, Ibrahim Shariff, Nazeer Ahmed, Chandrakanth Ramalingam and SecureValue
India Ltd, a logistic firm, and others.