HYDERABAD: The Telangana High Court on Tuesday vacated the interim stay orders in a batch petitions, clearing the path for the CBI and ED to investigate cheating of banks of thousands of crores of rupees by corporate companies.
The bench comprising Chief Justice Satish Chandra Sharma and Justice N Tukaramji issued the orders on petitions filed by Coastal Projects Managing Director Sabbineni Surendra, Minerva Executive Apartments (P) Ltd., Director P Chakradhar Reddy, P Lakshmi Shruthi, Ind Bharath Thermal Power Ltd, Director VVV Satyanarana Rao, Kanumuru Raghu Rama Krishnam Raju, Kanumuru Rama Devi, K Indira Priyadarshini, VMC Systems Limited Directors B Hima Bindu, B Venkata Ramana, VNR Infrastructure Private Limited MD Vakati Narayana Reddy, Transstroy (India) Ltd representative Sridhar Cherukuri and several others.
They challenged the action of the consortium of bankers in declaring the accounts of the petitioner companies as liquidation accounts under “Fraud Classification” of RBI’s Frauds Classification and Reporting by Commercial Banks and Select Financial Institutions. The bench further directed that the transactions of the said companies should also be investigated by CBI and ED, along with bankers. After the RBI released the circular on July, 1 2016, the bankers declared their accounts as fraudulent in accordance with the provisions.
On behalf of the State Bank of India, Advocate General B S Prasad informed the bench that after the forensic audit, their accounts were declared as fraudulent. RBI’s counsel B Nalin Kumar informed the bench that as per the Act, principles of natural justice can be avoided in this scenario.
After hearing all the petitions, the bench directed that the bankers concerned should not take any coercive steps against the petitioners.