Rajasthan HC Directs Police To Constitute Team For Investigating FIRs Alleging Irregularities In Disbursement & Waiver Of Loans In Cooperative Banks

The Rajasthan High Court has directed the Additional Director General of Police (Crime), Jaipur to constitute an Investigating Team for investigating into 16 FIRs regarding irregularities in disbursement and waiver of loans by Cooperative Banks and Cooperative Societies.

“The said Investigating Team shall conduct inquiry into all the FIRs and submit its final report to the concerned police station, which shall proceed further in accordance with law.”, the Court said.

The bench of Justice Vijay Bishnoi and Justice Praveer Bhatnagar was dealing with a petition raising the issue of large-scale fraud in disbursement and waiver of loans by the Cooperative Banks as well as the Co-operative Societies.

Advocate Nikhil Jain appeared for the petitioner whereas AAG Sudhir Tak appeared for State.

The Court noted that in the year 2021, a direction was issued to the Joint Chief Auditor, Co-operative Department, Rajasthan to conduct audit proceedings of the Cooperative Banks and Cooperative Societies. Thereafter, a compliance report was placed before the Court and the Court observed that in the compliance report, irregularities in the matter of disbursement and waiver of loans were found.

Therefore, the Court had issued direction to forward a copy of the report to the Registrar Co-operative Societies, Rajasthan, who shall submit a compliance report with regard to needed action taken against those co-operative societies and its officials. However, no significant steps were taken in this regard.

The petitioners pointed out that in the whole State, regarding the fraud committed in disbursement and waiver of loans, as many as 16 FIRs have been lodged in different Districts of the State. It was submitted that in all those FIRs different Investigating Officers were appointed. It was prayed to form an Investigating Team to investigate into all the 16 FIRs.

Accordingly, the Court directed the Additional Director General of Police to form a team in this regard.

...we deem it appropriate to direct the Additional Director General of Police (Crime), Jaipur to constitute anInvestigating Team for investigating into all the 16 FIRs regarding irregularities in disbursement and waiver of loans in the State of Rajasthan and in Cooperative Banks as well as Cooperative Societies.", said the Court.

Cause Title- Simartha Ram v. State Of Rajasthan with Connected matter

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