Bail for CR Patil in Diamond co-op bank case

C R Patil, prime accused in the multi-crore rupee Diamond Jubilee Co-operative Bank scam has granted bail by the Supreme Court on Monday.

The apex court granted him bail on a personal bond of Rs 1 lakh and another Rs 1 lakh as the surety amount. Chhotu Patil, another accused in the same case, was also granted bail.

Patil had defaulted on payments of over Rs 50 crore to the Surat-based bank, which resulted in its collapse in August 2002. He was granted bail by the Gujarat High Court in February 2004 after he gave an undertaking to repay the bank's dues by selling his properties.

The bail was, however, quashed by the High Court in August last year as he could not repay any money.

Patil was lodged at the Surat subjail for the past six months.

He had filed a bail plea in the apex court recently, which came up for hearing on Monday.

The Diamond Jubilee Bank went bust on August 29, 2002, mainly due to its indiscriminate granting of loans to C R Patil and other persons. The loans were never recovered, leading to the crisis. The bank was suspended from the clearing house on August 30, 2002.

An administrator was appointed for the bank to recover the dues, but no substantial recoveries could be made. As the bank was unable to improve its financial position, the Reserve Bank of India, revoked its license on June 19, 2004.