CBI plans special court for bank, securities fraud cases
Moneylife Digital Team 12 July 2010

BS&F Cell of the CBI plans to have two-three of the proposed 71 additional special exclusive courts to deal with cases related to bank frauds and securities frauds

Keeping in mind the growing increase in the number of securities and bank frauds, the Bank Security and Frauds Cell (BS&FC) of the Central Bureau of Investigation (CBI) is keen to have two to three special, exclusive courts to deal with such cases.

Last week, CBI director Ashwani Kumar announced setting up of 71 additional exclusive courts for CBI across the country. The premier investigation agency currently has 49 courts. Out of these 71 courts, authorities from BS&FC have requested around two to three special, exclusive courts to solve cases related with financial matters.

During 2008-2009, cases related with bank fraud increased 128% to 23,917 to Rs1,883 crore from 10,450 cases amounting to Rs779 crore recorded in 2004-2005, according to a data released by the CBI.

In a presentation made on bank fraud cases, Mahipal Yadav, superintendent of police (SP), BS&FC, CBI, said, "We have requested to be given two to three of these exclusive courts for redressing BSFC related cases."

BSFC is a zone that exclusively deals with cases of securities and bank frauds. These courts may be set up in three cities - Mumbai, Ahmedabad and Bangalore.

The CBI official in his presentation also stated, "CBI has registered 60 cases of bank frauds in the past 18 months since 1 January 2009 involving Rs9.11 billion, while investigation is pending in 39 cases involving Rs7 billion.

Out of the additional 71 courts proposed - six would be set up in Maharashtra comprising three in Mumbai and one each at Amravati, Pune and Nagpur. These exclusive courts are expected to hold day-to-day trial and avoid unnecessary adjournments.

"CBI sent a proposal for creation of additional courts of special judges to the government of India. The Indian government has accepted the proposal. The prime minister has taken up the matter with the concerned chief ministers for creation of additional courts in their respective states and also with the concerned chief secretaries of states. It will be our endeavour to make these CBI courts functional by the end of this year- 2010," said the CBI director.

1 decade ago
good articals
1 decade ago
It is nice to hear about special courts to handle fraud cases. However it is not clear why nothing is being done to recover the hard earned money swallowed by so called finance companies like GNS Nidhi though this hapened in 1997. Can we expect action in such cases also?
TP Viswanathan
1 decade ago
What if the powers that be do not allow the matter to escalate upto CBI? In 2004 a leading Urban Co-op Bank was plundered by ambitious directors and their stooges. In one case a whopping Rs.40+ crore was granted against a security of just Rs.5 crore. The bank wet fut and at the behest of RBI, EOW filed criminal case against the accused. The scam was worth over Rs.130 crore. The matter is still in cold storage. The affected depositors have not been paid back their full deposits so far. The bank which took over the failed bank is enjoying at the sweat and blood of the hapless depositors.
Free Helpline
Legal Credit