The Bombay High Court has ordered a new investigation into the alleged mismanagement and financial problems at Rupee Cooperative Bank. The court found that the previous investigation didn't have clear findings and didn't follow the right steps.
In 2002, the Board of Directors of Rupee Cooperative Bank was replaced because of claims of mismanagement. An investigation was started based on a report from the Reserve Bank of India, leading to an officer being assigned to check the losses.
The initial investigation, done by the assigned officer, led to accusations against several bank officers. They were accused of causing financial losses through wrongdoing and breaking trust. However, the court found the results unclear and lacking specific proof against individual officers.
"The findings are written in general terms and treat all persons alike," noted Justice Amit Borkar.
The court pointed out that the investigation didn't specify which actions or failures by each officer led to the bank's losses. It stressed the need for clear evidence to prove personal responsibility under Section 88 of the Maharashtra Cooperative Societies Act.
The court found that the investigation didn't follow Rule 72 of the Maharashtra Cooperative Societies Rules, which requires a detailed process for such investigations. This includes issuing specific charges and letting officers defend themselves.
"The absence of such a detailed and reasoned finding shows lack of application of mind," the court observed.
The court canceled the previous orders and called for a new investigation, instructing the assigned officer to strictly follow the procedural rules. The investigation must be finished within six months, ensuring all parties have a fair chance to present their cases.
The court has ordered a new and thorough investigation to ensure fairness and accountability, highlighting the need for clear evidence and proper legal steps in cases of alleged financial wrongdoing.
