Page 20 - Banking Finance September 2022

operative Bank (New Delhi), Suri would be unable to pay its present de- were being guarded by the armed CISF
Friends Union Co-op Bank (Birbhum, positors in full. guards as a matter of precaution.
Suri, West Bengal), and Durga Co-op
The RBI has requested the Commis- The Karuvannur Cooperative bank
Urban Bank (Vijayawada, Andhra
sioner for Cooperation and Registrar of fraud in Thrissur district came
Pradesh) too will be paid by the DICGC
Cooperative Societies, Karnataka, to intolimelight a year ago, but not much
in October.
issue an order for winding up the bank headway has been made in the probe
and appoint a liquidator for the bank. by the police.
RBI cancels licence of
On liquidation, every depositor would Trouble broke out very recently when
Deccan Urban Co-opera- be entitled to receive deposit insurance a depositor after desperate pleas for
claim amount of his/her deposits up to
tive Bank getting his money back for treatment
Rs 5 lakh DICGC. passed away. Since then the fraud in
The Reserve Bank of India said the li-
cence of Deccan Urban Co-operative As of August 06, 2022, DICGC has al- the bank has made frequent headlines
Bank, Karnataka, has been cancelled ready paid Rs 13.07 crore of the total and even saw the Kerala High Court
as the lender does not have adequate insured deposits. intervening.
capital and earning prospects. As per
Recently the Court directed the scam-
the data submitted by the bank, more ED raids residences of 5
tainted coop bank to stop all payments
than 99 per cent of the depositors are
accused in Karuvannur Co- barring the emergency ones and asked
entitled to receive the full amount of
the Pinarayi Vijayan government to
their deposits from Deposit Insurance operative Bank scam
prepare a roadmap aimed at paying
and Credit Guarantee Corporation The Enforcement Directorate at-
back the depositors.
(DICGC), the central bank said.
tached in Kochi office have started si-
The bank informed the court that at
The cooperative bank ceases to carry multaneous raids at the residences of
present they have only Rs 60 lakh in
on banking business. "The bank does five accused in the Rs 312 crore fraud
not have adequate capital and earning at the Trissur-based Karuvannur Coop- cash, while they have assets which can
prospects," the RBI said while announc- erative bank. be sold and depositors can be paid.
ing the cancellation of the licence. It also pointed out that of the total
Incidentally, of the five accused where
It also said the Vijayapur-based bank the raids began, four are out on bail. deposit of Rs 284 crore, a sum of Rs 142
with its present financial position The ED officials involved in the raids crore has matured.

SC: Cases of grave offence can't be quashed on basis of compromise
The Supreme Court held that a complainant has no right to withdraw a plaint in grave and serious offence as the
crime is committed against society and not just an individual and that proceedings cannot be quashed on the ground
of monetary settlement or compromise between the offender and the victim or his/her family.
A bench of Justices Indira Banerjee and V Ramasubramanian set aside a verdict of the Gujarat HC of quashing of
criminal proceedings in an abatement of suicide case after the complainant, who was also cousin brother of the
deceased, and the accused came to a settlement. The top court held that any settlement between the offender and
the complainant will not prevail upon the interest of society to bring to justice the accused and said that if it is al-
lowed, then financially strong offenders would go scot-free in criminal cases.

"Orders quashing FIRs and/or complaints relating to grave and serious offences only on the basis of an agreement
with the complainant, would set a dangerous precedent, where complaints would be lodged for oblique reasons,
with a view to extracting money from the accused. Furthermore, financially strong offenders would go scot-free,
even in cases of grave and serious offences such as murder, rape, bride-burning, etc. by buying off informants/com-
plainants and settling with them," the bench said.

20 | 2022 | SEPTEMBER | BANKING FINANCE