Summary: The Madras High Court turned down a request from K.S. Gita, former Managing Director of Pioneer Alloy Castings Ltd., who wanted a detailed examination of the company's bank transactions. The court found no solid evidence to support claims of bank fraud and misuse of funds.
K.S. Gita, who used to lead Pioneer Alloy Castings Ltd., said the company suffered because of bank frauds and bad management. She believed that strange transactions and misuse of funds happened during the merger of Andhra Bank with Union Bank of India.
"Large amounts of the company's money remain questionable," Gita said, asking for a detailed audit to find out the truth.
The Union Bank of India, speaking through its Chief General Manager, said Gita's claims were unfounded. They believed the petition was an attempt to solve personal family issues over inheritance.
The Central Vigilance Commission and the Reserve Bank of India had already looked into the claims and found no strong evidence to back Gita's accusations.
Gita's claims had been looked at before by the Debts Recovery Tribunal (DRT), which decided against her. The DRT issued a certificate to recover over Rs. 6.6 crores from Pioneer Alloy Castings Ltd., dismissing claims of fund misuse.
The DRT stated, "There was no proof for such claims."
Justice N. Sathish Kumar rejected the petition, saying it lacked detailed evidence. The court noted that the claims were similar to those already turned down by the DRT and other authorities.
"This request seems to be an attempt to delay the proceedings before the DRAT," the judgment explained.
The court's decision to dismiss the case shows the difficulty of proving bank fraud without solid evidence. It highlights the need for strong proof in legal fights over financial issues.
