The State Prosecution Department has proposed co-ordination of disbursement of amounts due to the depositors of Vinivinc and monitoring of Vinivinc chief K N Srinivasa Shastry’s activities by High Court Registrar (Vigilance), if at all the Court decided to let him (Shastry) out on bail.
A request to this effect was made in the Statement of Objections filed by State Public Prosecutor S Dore Raju on Wednesday in respect of the bail petitions of Shastry and the company’s vice-president G Lokesh.
The statement responded to Shastry’s recent proposal to refund all legitimate claims of the company’s depositors by selling off its assets, and his request for release on bail to facilitate the process.
According to the statement, claims of Shastry could not be trusted.There were 20,605 depositors as per the complaints received and an amount of Rs 100 crore was due to them. Shastry and Lokesh have been charged in 14 cases and investigation in two more cases were on, it said.
Enquiry
The auditing of the company’s books of accounts was underway and the State had also initiated an enquiry upon his recent revelations about his assets. However, the details of the assets held by the Investigation Officers differs from that claimed by Shastry, it added.
Realising funds as proposed by Shastry might not be easy since most of the company’s properties were seized and subject to legal proceedings.
If granted bail...
However, it sought the Court to direct Shastry to surrender his and his family members’ passports and other travel papers forthwith, if at all it considers grant of bail. He should be made to offer two solvent sureties along with cash security of Rs one crore, it sought. He should also be restrained from leaving the State.
The statement also sought the Court to appoint High Court Registrar (Vigilance) to co-ordinate between Court and the depositors regarding collection of documents, claims and disbursement of amounts due to them.
Attendance
Shastry should be directed to mark attendance and file status reports to the Registrar once in two days and amounts can be disbursed once in a week, the statement proposed while reserving the right to apply for his re-arrest, on his failure to make sincere efforts for refund.
However, the State government would not hand over any original documents or cash seized from the accused, to Shastry or his agents.
The Court may also direct the officers under the Karnataka Prevention of Finance Establishments Act, 2004 to co-operate with the HC Registrar in disbursement of funds, it suggested.
Justice H Bhillappa adjourned the case to Thursday.
