ORAL JUDGMENT

(Per: HONOURABLE MR. JUSTICE P. B. BAJANTHRI)

Date : 21-03-2024 In the instant petition, petitioner has prayed for the following relief:-

(i) For issuance of a writ, order, or direction in the nature of mandamus thereby directing the respondents to initiate inquiry either by S.I.T., C.B.I., or any other independent agency under the supervision of this Hon’ble Court in frauds committed by officials of Respondent Uttar Bihar Gramin Bank which has been revealed in audit report conducted by its auditor. According to the audit reports, such frauds alone have caused losses in excess of Rs.500 cores, and Respondent No. 1, 3 & 4 have not even given a cursory look at such frauds altogether it has acknowledged the same.

(ii) To issue a writ, order, or direction in the nature of mandamus thereby directing Respondent No.7 & Central Bureau of Investigation (C.B.I.) to register a regular case and conduct a depth investigation in the matter of the large-scale fraud and scam of the public money as reported by the petitioner in his complaint dated 20.08.2022 and complaint dated 17.07.2021 made to Chief Judicial Magistrate (CJM), Muzaffarpur on the basis of which FIR No. 83/2022 dated 20.03.2022 pertaining to PS Kazi Mohammadpur, was lodged against erring bank officials.

(iii) To issue an interim order directing Respondent No.6 & 7 to conduct a preliminary inquiry and summon the action taken report from the 5th respondent in the matters of the offences as reported by the petitioner in his complaint dated 17.07.2021.

(iv) To issue an appropriate writ /direction/order, including a writ in the nature of mandamus thereby directing the Respondents to take action in the facts and circumstances of the present case.

2. Matter was heard from time to time there were certain administrative difficulties who has to redressed grievance of the petitioner insofar as alleged certain fraud stated to have been committed by the Uttar Bihar Gramin Bank-Respondent no.5 (for short ‘UBGB’). It is learnt that initially local police have taken up the matter and prima facie case they found certain irregularities alleged to have been committed by the officers of the UBGB. However, there was question arose, in such an event, matter was required to be investigated by the Central Government Organization in consultation with the NABARD / RBI / Government of India. On this issue, we have asked specific material information from NABARD. Earlier NABARD have taken a decision to the extent that there were alleged to have certain irregularities committed by the officers of the UBGB, however, in second supplementary affidavit filed on behalf of the 4th Respondent-NABARD dated 21.02.2024 by Anil Kumar, it is averred as under:-

“16. That as per para 2.1 of the said circular for classification of fraud, a banking fraud may be considered to have occurred under the following circumstances:

a) Misappropriation and criminal breach of trust.

b) Fraudulent encashment trough forged instruments, manipulation of books of account or through fictitious accounts conversion of property.

c) Unauthorized credit facilities extended for renewal or for illegal gratification.

d) Negligence and cash shortages.

e) Cheating and forgery.

f) Irregularities in foreign exchange transactions.

g) Any other type of fraud not coming under the specific heads as above.

17. That it is humbly submitted that, as per the specific directions dated 18 January 2024 of this Hon’ble Court, the instances pointed out in the Special Audit Report were scrutinized. On scrutiny, Respondent No.

4 is satisfied with the resolution of the Board of UBGB that the guidelines of fraud are not applicable to the present matter/audit report and therefore the matter is not required to be referred to local police/CBI as per clause 9.1 and 9.2 of Respondent No. 4 circular.”

3. Taking note of the aforementioned stands of the NABARD, grievance of the petitioner in the present petition do not survive for consideration.

4. At this stage, learned counse