IMPORTANT POINT
The Reserve Bank of India's guidelines mandate that fraud cases involving amounts above Rs.3 Crores must be reported to the CBI, establishing a clear protocol for handling such cases.

ORDER :

A.D. Jagadish Chandira, J.

(Prayer: Writ Petition filed under Article 226 of Constitution of India, pleased to issue a Writ of Mandamus or any other writ, order or direction in the nature of writ mandamus, directing the respondent to register a First Information Report in terms of the circular dated 01.07.2016 issued by the Reserve Bank of India vide RBI/DBS/2016–17/28DBS.CO.CFMC.BC.No.1/23.04.001/2016-17 and on the basis of the complaint dated 01.12.2023 lodged by the petitioner with the respondent vide RM-III-CR-P&C-168.)

The Writ Petition has been filed seeking to direct the respondent to register a First Information Report in terms of the circular dated 01.07.2016 issued by the Reserve Bank of India vide RBI/DBS/2016–17/28DBS.CO. CFMC.BC.No.1/23.04.001/2016-17 and on the basis of the complaint dated 01.12.2023 lodged by the petitioner with the respondent vide RM-III-CR-P&C- 168.

2. The submissions of learned counsel Mr.Nithyaeash Natraj appearing for the petitioner is as follows:-

2.1. The petitioner Bank is Public Sector Bank and being the largest Bank in India, there are lakhs of persons who are on the payrolls of the petitioner Bank.

2.2. One Mr.Abhijeet Kumar, who is the suspected employee, during his tenure as Branch Manager at the Ayyansalai Branch of the petitioner Bank between 25.06.2021 and 22.10.2021, in collusion with other unknown employees and customers of the Bank, by involving in fraudulent activities, corrupt practices and by flouting banking norms and rules, had sanctioned several loans based on forged documents to ineligible borrowers, by accepting bribe and thereby, caused heavy loss to the Bank to the tune of Rs.3.87 Crores.

2.3. The fraud committed by the suspected employee came to light during the Risk Focussed Internal Audit (RFIA) conducted by the Bank at Ayyansalai Branch. The disciplinary proceedings were initiated against the said Abhijeet Kumar and other staff involved in the offence. Later, in order to escape from the clutches of law, the said Abhijeet Kumar has tendered his resignation.

2.4. The Bank had preferred a complaint to the Superintendent of Police, Erode, on 06.12.2021. Subsequently, on 21.03.2022 and 07.04.2022, the petitioner issued communications with all details and documents in connection with the original complaint filed on 06.12.2021. Thereafter, the Regional Manager was summoned for enquiry and pursuant to the same, he appeared and produced all the details and documents, however, later, by a communication dated 04.08.2023, the District Crime Branch, Erode, stating that the amount involved in the fraud committed by the delinquent employees in both Ayyansalai Branch and Sathyamangalam Branch is to the tune of Rs.27.69 Crores, had returned the complaint and directed the petitioner Bank to approach the appropriate authority, referring to the directions issued by the Reserve Bank of India (Frauds Classification and reporting by commercial banks and select F1s) on 01.07.2016 in Reserve Bank of India RBI/DBS/2016-2017/28 DBS.CO.CFMC.BC.No.1/23.04.001/2016-17.

2.5. Meanwhile, the petitioner bank had also preferred a complaint to the respondent vide letter No.RM-III-CR-P&C-40 dated 21.06.2023, for which, the respondent had issued a communication No.C6/RA- 27/2023/CBI/ACB/CHN/2023/3276/3336 dated 22.08.2023, by which it refused to take up the case and returned the complaint stating that as the outstanding amount of an individual account is less than Rs.3 Crores, this matter does not fall under the purview of CBI.

2.6. Thereafter, the petitioner Bank had again sent a complaint in RM-III-CR-P&C-168 dated 01.12.2023 to the respondent, to take up the case. However, no action has been taken by the respondent till date. It is the further case of the petitioner that a sum of Rs.27.69 Crores of public funds in both the Ayyansalai Branch and Sathyamangalam Branch, had been cheated by the culprits which would result in causing loss not only to the petitioner bank but also to the economic gr