Madras High Court has discharged the Chief Executive Officer of Royapettah Benefit Fund Nidhi Limited from a criminal case filed by Economic Offences Wing of police.
Justice S Vimala said in the absence of any charges which would make out an offence under IPC Sections 406 (criminal breach of trust) and 420 (cheating), the accused K Rajagopal cannot be ordered to face trial.
She also set aside the Chief Metropolitan Magistrate's May 21, 2013 order asking Rajagopal to face trial.
The prosecution case was that in his capacity as CEO, Rajagopal had transferred the amount put by depositors from a bank in another country to the State Bank of Travancore, causing wrongful loss on account of interest to depositors between 2001 to 2005.
The Economic Offences Wing had filed a case against Rajagopal on complaints from depositors.
The Chief Metropolitan Magistrate had dismissed his discharge petition, saying there is sufficient ground to proceed with the trial.
Rajagopal then challenged the order in the High Court.
Justice S Vimala, who concurred with arguments of Rajagopal's counsel, said there was no criminal intention on his part to cause any harm to depositors and that when the financial position of the bank was crumbling, there is need to choose another bank which would give safety to investments.
The judge also said it is important to choose a bank for the safety of the amount deposited than a bank which gives higher rate of interest in the above circumstance. It was a fit case where the trial court ought to have ordered discharge of Rajagopal she said and set-aside the order of trial court.
