Kerala High Court Denies Anticipatory Bail in ₹101 Crore Cooperative Bank Scam, Orders Custodial Interrogation

The Kerala High Court has refused anticipatory bail to N. Basurangan in connection with a massive ₹101 crore financial misappropriation case involving a cooperative bank. The court highlighted the necessity of custodial interrogation to uncover the full scope of the alleged offences, cautioning that pre-arrest protection could obstruct the investigation.

Alleged Financial Misappropriation

The case centers on widespread irregularities in the cooperative bank, including unauthorized deposit schemes promising unusually high interest rates, sanctioning of unsecured loans, diversion of funds to other societies, and improper appointments. Investigations under Sections 65 and 68(1) of the Kerala Co-operative Societies Act, 1969, revealed large-scale corruption, illegal fund transfers, and administrative lapses. Surcharge proceedings have reportedly fixed a liability exceeding ₹51 crore against the accused.

Custodial Interrogation Deemed Essential

Despite the petitioner’s claim of prior relief from the Supreme Court and willingness to cooperate, the state opposed anticipatory bail, emphasizing the seriousness of the alleged scam. The High Court noted that custodial interrogation is crucial to trace the entire financial network and the flow of funds involved in complex transactions.

Economic Offences Require Special Consideration

The bench, led by Justice A. Badharudeen, referenced Supreme Court jurisprudence recognizing economic offences as a distinct category due to their organized, sophisticated, and long-term nature. The court stressed that anticipatory bail is an extraordinary measure and should be granted only under exceptional circumstances, particularly in cases of large-scale financial fraud.

Surrender Directive

The High Court directed Basurangan to surrender immediately to the investigating officer. Non-compliance would allow the investigating agency to take action under the law to ensure a thorough probe. The court emphasized that effective investigation is necessary to unravel the complete chain of transactions and facilitate successful prosecution.

This decision underscores the judiciary’s strict stance on massive economic offences, prioritizing custodial interrogation and thorough investigation to prevent obstruction in uncovering complex financial fraud schemes.