HC stays CBI proceedings

Minister Sudhakar challenges charge sheet

Sudhakar had challenged the charge sheet filed by the CBI accusing him of involvement in bank fraud and creating fake documents.

Ravi B Nayak, the counsel for Sudhakar, sought an interim stay after the CBI concluded its argument. Advocate General Ashok Haranahalli, also the counsel for CBI, contended that the proceedings should not be stayed as the charge sheet has already been filed, the special court has taken cognisance of the offence and issued summons to Sudhakar asking him to appear before the court on October 3.

Nayak submitted that there are deficiencies in the investigation as the probe has not been conducted by the CBI and no documentary evidence has been collected.The probe is based on the report submitted by State Bank of Mysore (SBM) vigilance wing, the bank, which has advanced the money. He pointed out in-house inquiry has been conducted based on the complaint and individuals who availed loans are still unknown. CBI has filed charge sheet against Trishul Enterprises owned by Sudhakar and Seven Hills Private Properties (SSHP) of which he is a partner, stating that the two firms have cheated the bank to the tune of crores of rupees.

The CBI had submitted over 30 volumes of charge sheet in this connection.  Justice Subhash K Adi stayed the process for a week. Meanwhile, the cases against Seven Hills Private Properties (SSHP) and cases against his partners Hanumappa Reddy and Ajit Prasad Jain will continue. The duo had sought to quash proceedings against them in separate petitions.

Krishnaiah Setty case
Meanwhile, the CBI has filed interim application seeking to vacate the stay on proceedings against former minister Krishnaiah Setty. The CBI had filed charge sheet against him in connection with fraud allegations. But the counsel for Krishnaiah Setty Chandramouli sought to delink Setty’s case from that of Sudhakar.

Security deposit
The five Electricity Supply Companies (Escoms) of Bangalore, Mangalore, Hubli, Gulbarga and Chamundeshwari have moved the High Court challenging KERC Security Deposit regulations-07. The escoms have challenged the regulations which enable them to collect only two months’ minimum deposit.
DH News Service