Supreme Court Acquits Banker in Decades-Old Corruption Case
In a significant ruling on Monday, the Supreme Court acquitted a former branch manager of Indian Bank, V Balakrishnan, in a corruption case dating back to 1991. The court found that the Central Bureau of Investigation (CBI) failed to substantiate its allegations, describing the case as ‘fully fabricated’ [V Balakrishnan v. State].
Court’s Criticism of CBI’s Handling
A bench comprising Justices JB Pardiwala and K Vinod Chandran expressed strong criticism of the CBI, stating that the prosecution’s case was founded on assumptions and unsupported evidence. The bench highlighted that the CBI not only failed to prove the allegations but also framed the case poorly.
Case Background
The case involved loans sanctioned in 1991-92 when Balakrishnan was the manager of the Anna Nagar branch of Indian Bank in Chennai. The CBI accused him of colluding with Kumaradevan, a retired Indian Overseas Bank officer, to sanction loans to two individuals who worked as domestic helps for Kumaradevan. One of these individuals was allegedly a washerman who received a ₹13.50 lakh loan under the pretense of being a real estate businessman. Additionally, a ₹3.30 lakh loan was purportedly disbursed before formal sanctioning.
The prosecution also claimed that a ₹10 lakh loan was sanctioned for the purchase of 21.39 acres of land, with an accusation of property overvaluation by an Indian Bank appraiser. The CBI argued that the loans were actually utilized by Kumaradevan, presenting cheques bearing signatures allegedly linking him to the funds.
Lower Courts’ Rulings
Balakrishnan was initially convicted by the trial court, with the conviction later upheld by the High Court. However, upon appeal to the Supreme Court, significant gaps in evidence presented by the lower courts were revealed. The Supreme Court emphasized the absence of contemporaneous signature specimens to prove Kumaradevan’s involvement, and noted that the loans were sanctioned by the bank’s Regional Office, not Balakrishnan alone.
Supreme Court’s Findings
The bench dismissed allegations of overvaluation, criticizing the reliance on auction values from 2010 without contemporaneous sale deeds or market values from the time when the loans were sanctioned. The properties in question were eventually auctioned, recouping the bank’s dues, and generating additional funds. The Court questioned why these funds had not been returned to the rightful legal heirs.
Final Ruling and Future Actions
The Supreme Court granted Balakrishnan a ‘clean acquittal’ and instructed Indian Bank to provide a report on the excess funds remaining after the property auctions. The matter is scheduled for further consideration on October 5.
Legal Representation
Balakrishnan was represented by Senior Advocate S Nagamuthu and Advocate MP Parthiban. The State’s legal team included Additional Solicitor General Davinder Pal Singh, along with Advocates Shreekant Neelappa Terdal, Khushal Kolwar, Shubham Prakash Mishra, Abhinav Singh, and Jagdish Chandra.
[Read Judgment]
