Magistrate says CB failed to prove conspiracy, misappropriation or loss caused by scheme after 13-year-long trial
PANAJI
The Judicial Magistrate First Class, Mapusa, has acquitted ten former directors and officials of the Goa State Cooperative Bank in the long-pending Rs 18.80 crore One-Time Settlement (OTS) fraud case.
Magistrate Puja Sardessai ruled that the evidence produced by the Crime Branch failed to prove the key elements of the alleged offences. The court held that the prosecution could not establish that the accused had formed any criminal conspiracy or misappropriated the bank’s funds.
The case remained pending for nearly 13 years after the FIR was registered on October 1, 2012. A chargesheet was filed in 2016, charges were framed only in January 2024, and the recording of evidence began in August 2024. The case was originally filed against former bank chairman Ramchandra Mule, who died last year, along with Prakash Velip and 14 others.
The main issue before the court was whether the Managing Director, General Managers and Directors had colluded to wrongly implement an OTS scheme that caused financial loss to the bank.
The court criticised the investigation agency for failing to collect crucial evidence, especially considering the large amount involved.
“There is absolutely no material produced on record to show that the accused possessed any fraudulent or dishonest intention from the very beginning, that is, when the One-Time Settlement scheme was formulated. The Investigating Officer did not even obtain the profit and loss statement, despite allegations that the bank suffered losses,” the order stated.
The judgment also noted that the investigation was carried out in a casual manner and that the prosecution failed to prove that the accused had cheated anyone. It further observed that there was no evidence to show that the accused benefited from the OTS scheme.
The Crime Branch had alleged that the accused, including the then Managing Director, General Manager (Recovery), General Manager (Legal) and several Directors, bypassed procedures and granted OTS benefits to borrowers, leading to a loss of Rs 18.80 crore.
Five of the original accused died during the trial, leading to the closure of proceedings against them. The remaining accused were acquitted.
