Summary: The Bombay High Court has called for a new investigation into the suspected financial mismanagement at Rupee Cooperative Bank. The previous investigation was considered inadequate due to a lack of specific evidence and reasoning.
In this case, several former managers of Rupee Cooperative Bank, including Mr. Vilas Vishnu Khaladkar, contested the decisions that blamed them for the bank's financial losses. These decisions were made under a law that allows for the recovery of losses caused by poor management.
An official had written a report blaming Mr. Vilas Vishnu Khaladkar and others for the bank's losses. However, they argued that they were not the ones approving loans, only suggesting them. Their appeals to the State Government were rejected by the Additional Chief Secretary, leading them to take the matter to court.
Lack of Specific Findings: The court noticed that the report did not clearly state what Mr. Vilas Vishnu Khaladkar and others did to cause the bank's losses. The conclusions were unclear and did not separate decision-makers from those with minor roles.
Procedural Flaws: The court pointed out that the inquiry did not follow the rules, which require clear charges and a chance to defend oneself.
Order for a New Investigation: Justice Amit Borkar ordered a new investigation, highlighting the need for specific evidence showing how each officer’s actions led to the financial losses.
Timeframe: The new investigation must be completed within six months, following strict rules.
This ruling highlights the need for detailed and evidence-based findings in cases involving financial responsibility. It also stresses the importance of fair procedures when deciding who is responsible for the actions of cooperative society officers.
