CHENNAI: The Madras High Court has directed the Central Bureau of Investigation (CBI) to conduct an inquiry into the complaints of a trust alleging that the officials of a public sector bank manipulated the e-auction process in order to sell high-value properties to a private firm at a throwaway price.
Justice GK Ilanthiraiyan issued the direction on a petition filed by Saravanan Periyasamy, chairman of PERI Educational and Charitable Trust.
The petitioner alleged that certain officials of the Indian Overseas Bank (IOB) fraudulently sold the secured assets of the trust, valued at Rs 252 crore, for a meagre Rs 45.60 crore to SRM University, which is only “18% of the market value”.
The judge also ordered the central agency to proceed further, based on the inquiry, in accordance with the law.
The trust stated that it had taken a loan of Rs 48 crore from the bank and both agreed for a one-time settlement of Rs 46 crore as per a decision taken in 2024. Subsequently, the trust paid Rs 24 crore and sought extension of time for repaying the remaining amount, which, however, was denied.
Senior counsel Hasan Mohammed Jinnah, representing the trust, submitted that IOB officials went on to auction the properties in favour of SRM University at the undervalued price despite the fact that another bank was willing to take over the loan account, and the trust having made efforts to settle the dues.